The Big Story 

Pope Leo XIV sounded the alarm this week over artificial intelligence (AI)’s potential impact on young people’s intellectual and neurological development, building upon one of the main focuses of his papacy.

© Vatican Media via Associated Press

The first American pope delivered the message to an annual conference on AI and ethics, part of which took place in the Vatican this week.

“All of us, I am sure, are concerned for children and young people, and the possible consequences of the use of AI on their intellectual and neurological development,” the pope said.

“Our youth must be helped, and not hindered, in their journey towards maturity and true responsibility.”

The pontiff described how new generations have unprecedented, quick access to data and information, while noting they must not confuse this access to data with intelligence.

“In the end, authentic wisdom has more to do with recognizing the true meaning of life, than with the availability of data,” Leo said.

Leo acknowledged AI has been used in positive ways, pointing to research in health care and science.

But he warned of the possibility the emerging technology can be used for “selfish gain at the expense of others” or “to foment conflict and aggression.”

The pope said AI, especially generative AI, “also raises troubling questions of its possible repercussions on humanity’s openness to truth and beauty, on our distinctive ability to grasp and process reality.”

Since being elected pope in early May, Leo has made the risks of AI on humanity a key priority of his papacy. In his first official address to cardinals in May, the pope warned of the challenges AI poses to the “defense of human dignity, justice and labor.”

The mission resembles that of Pope Leo XIII, who pushed for workers’ rights amid the industrial revolution, and a Vatican spokesperson told media outlets the name choice was “not a casual reference.”

Read more in a full report at TheHill.com 

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Crypto Corner 

Coinbase secures EU crypto license

© Richard Drew, Associated Press

Welcome to Crypto Corner, a daily feature focused on digital currency and its outlook in Washington.

Crypto exchange Coinbase has obtained a license to operate in the European Union (EU) under the bloc’s relatively new regulatory framework for digital assets.

The company announced Friday that it has secured a Markets in Crypto Assets (MiCA) license, allowing it to operate in all 27 European member countries.

Coinbase also plans to establish its European crypto hub in Luxembourg, after receiving its license from the country’s Commission de Surveillance du Secteur Financier (CSSF).

“This is a pivotal moment for Coinbase, Luxembourg, and Europe’s growing crypto ecosystem,” the exchange said in a press release. “We look forward to continuing to contribute to Europe’s vibrant economy, unlocking growth, and increasing economic freedom across the region.”

As crypto firms seek MiCA licenses in Europe, the U.S. continues its slow forward march toward establishing its own regulatory framework.

The Senate voted 68-30 Tuesday to pass the GENIUS Act, a bill creating regulatory rules of the road for one form of cryptocurrency, known as stablecoins.

President Trump threw his weight behind the legislation Wednesday, urging the House to quickly pass the bill without any major additions.

However, his call stands at odds with the hopes of some in Congress and the industry, who had been hoping to tie stablecoin legislation to another bill laying out a regulatory framework for the rest of the crypto market.

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