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Jinse Finance reported that TD Cowen analysts stated that progress on crypto market structure legislation in the U.S. Senate may have to wait until after the midterm elections. There are disagreements between Republicans and Democrats on how to regulate the crypto industry, and negotiations have not been smooth. Republicans have proposed dividing jurisdiction over crypto assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and defining “ancillary assets” to clarify non-securities cryptocurrencies; Democrats, on the other hand, have proposed measures to prevent illegal activities in decentralized finance, but these have been questioned by Republicans and the industry. TD Cowen pointed out that although procedural differences will not prevent an agreement from being reached, senators are not in a hurry to move forward, and legislation is expected to be delayed. Some Democrats have also called for a ban on senior officials and their families holding crypto company assets, which further increases the difficulty of passing legislation.

Jinse Finance reported that Microsoft (MSFT.O) is facing a new consumer lawsuit. The plaintiffs accuse the tech giant of illegally inflating the price of generative artificial intelligence through a secret agreement with ChatGPT developer OpenAI. This class action lawsuit has been filed in federal court in San Francisco, alleging that Microsoft used its exclusive cloud computing agreement with OpenAI to restrict the supply of computing resources needed to run ChatGPT. So far, Microsoft has invested more than $13 billion in OpenAI. The complaint states that the agreement reached by Microsoft during OpenAI's early development stage violated U.S. federal antitrust laws, suppressed market competition, artificially raised ChatGPT subscription prices, and harmed the product quality for millions of users of the AI platform.