"Big Moves in Crypto, AI, and Global Trade"

18th June 2025

The U.S. Senate passed a stablecoin bill, marking progress on crypto regulation, Meta will introduce ads and subscriptions on WhatsApp to support AI investments, Elon Musk’s xAI is raising $5 billion in debt despite low investor enthusiasm and the U.S. and U.K. struck a trade deal, but steel tariffs remain unsettled, find out the details as you read.

• U.S. Senate Passes Stablecoin Bill, Marking Major Milestone for Crypto Industry

In a major step for the digital asset industry, the U.S. Senate on Tuesday passed the GENIUS Act, a bill that would create a regulatory framework for stablecoins—cryptocurrencies pegged to the U.S. dollar. The bill passed with strong bipartisan support, 68-30, and now heads to the Republican-controlled House of Representatives before potentially reaching President Donald Trump for final approval. Stablecoins, which are widely used in crypto markets for their price stability, have seen rapid growth, and many in the industry argue that clear regulation could unlock broader use cases such as instant payments.

If signed into law, the legislation would require stablecoins to be backed by highly liquid assets like U.S. dollars or short-term Treasury bills. Issuers would also need to disclose the composition of their reserves each month. The crypto sector has lobbied hard for this kind of regulatory clarity, spending over $119 million in last year’s elections to support pro-crypto candidates. Backers say the bill marks a long-overdue foundation for stablecoins to integrate into the broader financial system, especially as Washington begins to take digital assets more seriously.

However, the bill has drawn criticism from some Democrats, who worry it doesn’t do enough to guard against money laundering or prevent large tech firms from issuing their own stablecoins. Senator Elizabeth Warren has been especially vocal, arguing the bill could “undermine national security, financial stability, and consumer protection.” Others have raised concerns about President Trump’s personal ties to the crypto industry—he’s associated with projects like a meme coin called $TRUMP and a crypto firm, World Liberty Financial. The White House maintains there are no conflicts of interest, noting that Trump’s assets are held in a trust.

As the bill moves to the House, further revisions could be on the horizon. The Conference of State Bank Supervisors has urged lawmakers to amend parts of the bill they say could allow uninsured entities to operate nationally without proper oversight. While supporters see the legislation as a long-awaited breakthrough, critics argue that without stronger safeguards, the bill could do more harm than good. Either way, the debate highlights just how central crypto has become in Washington’s evolving economic and political landscape. CNN

• WhatsApp Breaks with Tradition, Introduces Ads and Subscriptions

Meta is officially shifting WhatsApp’s long-standing no-ads policy. The company announced that it will begin rolling out sponsored content and premium subscriptions on the messaging app, marking a major change for the platform that once prided itself on being ad-free.

If you’re only using WhatsApp to message friends and family, you likely won’t see much difference. Messages will remain untouched by ads, Meta confirmed. However, advertising will begin appearing in the Updates tab, a feature introduced two years ago. Specifically, ads will show up as users tap through Statuses;WhatsApp’s version of Stories. Meanwhile, businesses, creators, and brands using broadcast channels will be able to monetize their content with paid subscriptions. They’ll also have the option to pay for higher placement in in-app search results.

Users who link their WhatsApp to Facebook or Instagram can expect more personalized advertising, informed not just by basic info like location or language, but also by their behavior across Meta’s platforms.

This move represents a sharp turn from WhatsApp’s founding principles. Prior to Meta’s $19 billion acquisition of WhatsApp in 2014, the platform famously promoted its “no ads, no games, no gimmicks” philosophy. That stance led to the departure of co-founders Brian Acton and Jan Koum in 2018, reportedly over pressure to monetize through advertising. As recently as 2023, Meta had denied plans to bring ads to WhatsApp.

So why the change now? The answer lies in Meta’s growing investment in artificial intelligence. With billions already committed including $14.3 billion in Scale AI and potentially $50 billion more planned this year, Meta is leaning heavily on ad revenue to support its AI ambitions. WhatsApp, with its 3 billion monthly users and high daily engagement on the Updates tab, is a significant and largely untapped revenue opportunity. Meta also plans to collect a 10% fee on WhatsApp channel subscriptions, adding another stream to its growing monetization strategy. Morning Brew

• Elon Musk’s xAI Nears $5 Billion Debt Raise Amid Lukewarm Demand

Elon Musk’s artificial intelligence startup, xAI, is set to secure $5 billion in debt financing, led by Morgan Stanley, despite limited investor enthusiasm. The offering includes a mix of floating-rate and fixed-rate loans, along with secured bonds. Allocation to investors is expected Wednesday, though details remain private and neither xAI nor Morgan Stanley have commented publicly.

Investor interest in the deal has been described as modest. The floating-rate loan is priced at 700 basis points above the Secured Overnight Financing Rate, while the fixed-rate debt offers yields around 12%—well above the current average for high-yield bonds. The elevated rates reflect the fact that xAI, an unrated and pre-revenue company, presents higher risk and limited financial transparency.

Several investors reportedly passed on the offering, citing concerns over xAI’s lack of profitability and Musk’s prior debt-heavy Twitter acquisition, where banks struggled to offload the $13 billion in loans. While the new debt was fully sold, it drew only 1.5 times oversubscription—well below the 2.5 to 3 times seen in comparable deals.

Unlike the Twitter deal, where banks were on the hook for unsold debt, this raise is structured as a “best efforts” deal, meaning Morgan Stanley hasn’t committed its own capital. Meanwhile, xAI is also in talks to raise $20 billion in equity at a valuation north of $120 billion, with some investors pegging the company’s worth as high as $200 billion. Finance.Yahoo 

• U.S. and U.K. Reach Trade Agreement, but Steel Dispute Remains

President Donald Trump and U.K. Prime Minister Keir Starmer announced a new trade agreement on the sidelines of the G7 Summit in Canada, marking a step forward in economic ties between the two allies. The deal lowers tariffs on British automobiles and removes duties on aerospace products, but it stops short of resolving the ongoing dispute over steel and aluminum imports.

While the agreement gives British carmakers an annual quota of 100,000 vehicles entering the U.S. at a 10% tariff—lower than the standard 25%—details around steel remain murky. The U.S. plans to impose a quota system exempting some British steel and aluminum from hefty tariffs, but only if the U.K. can demonstrate secure and reliable supply chains. Commerce Secretary Howard Lutnick will determine the quota limits, according to the White House.

Trump, who mistakenly referred to the deal as one with the EU before correcting himself, praised the U.S.-U.K. relationship as "fantastic." Starmer echoed the sentiment, calling it a “very good day” for both countries. However, key industries like pharmaceuticals were notably absent from the announcement.

The agreement, which goes into effect seven days after being published in the Federal Register, makes Britain the first country to secure tariff relief under Trump’s new trade strategy. In return, the U.K. will lower duties on U.S. beef and ethanol—offering both sides a partial win as they continue working toward a broader trade pact. CNN

Minor Headlines 

• Trump to Extend TikTok Sale Deadline Again, White House Confirms. Financial Times 

•  Fresh Takeover Interest Emerges in the UK Banking Sector. Morning Brew

• JPMorgan to Raise Sapphire Reserve Annual Fee by 45%. CNN

• Amazon Plans Job Cuts as AI Takes Over More Roles. Bloomberg 

• Markets Tumble as Trump Demands ‘Unconditional Surrender’ from IranCNN

• China to Launch New STAR Market Segment for High-Growth, Pre-Profit Firms. 

• Russia’s Sberbank Warns of Economic Slowdown, Pushes for Lower Key Rate. Reuters 

• Government Signals Possible U-Turn on Non-Dom Tax Policy. Bloomberg 

• Pope Leo Puts AI’s Threat to Humanity at the Center of His Agenda. TechCrunch 

Gen Z Word of the Day 

Cancel Culture

Cancel culture is a form of shaming the actions or opinions of a public figure, company or organization.