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Today’s Menu

• AI 'Godmother' Says Spatial Intelligence Is the Next Leap

• Senate Releases Historic Crypto Regulation Framework

Markets

TODAY IN AI

AI 'Godmother' Says Spatial Intelligence Is the Next Leap

Famed AI specialist Dr. Fei-Fei Li just published a new essay detailing why the next breakthrough in AI will come from spatial intelligence - systems that can understand, reason about, and generate 3D, physics-consistent worlds.

Li argues that while LLMs have mastered abstract knowledge, they lack the ability to perceive and act in space, such as estimating distance and motion. She said spatial understanding is the cognitive core of human intelligence and a crucial step to take AI from language to perception and action.

World models, Li said, will be key to building this intelligence, but they need the ability to create realistic 3D worlds, understand inputs like images and actions, and predict how those worlds change over time. She added that these models will ultimately unlock new advances in robotics, science, healthcare, and design by enabling AI to reason in the real world.

World models that understand how objects move and interact could one day predict molecular reactions, model climate systems, or test materials. The challenge lies in teaching AI real-world physics, but momentum is building fast with Li's World Labs, Google, and Tencent all racing to bring spatially intelligent systems to life.

When the AI godmother says spatial intelligence is the next frontier, that's not theory - that's the roadmap from language models to embodied AI.

TODAY IN CRYPTO

Senate Releases Historic Crypto Regulation Framework

After years of debate, Washington is finally moving toward clear crypto regulation as the Senate Agriculture Committee released its long-awaited draft bill Monday.

This is the first concrete step toward defining how the CFTC and SEC will share oversight of the crypto market. The 155-page draft gives the CFTC new authority over spot digital commodities like Bitcoin while directing coordination with the SEC on joint rulemaking.

It builds on the House's Clarity Act and aims to close regulatory gaps that have left the industry in limbo. Senator John Boozman stated: "The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers."

But the bill isn't finished. Dozens of sections remain in brackets, signaling unresolved issues including how to fund the CFTC, how to treat DeFi protocols, and how to address potential conflicts of interest tied to President Trump's crypto ventures.

Crypto Council for Innovation CEO Ji Hun Kim called it "meaningful positive progress... Momentum continues to build for clear, risk-based rules that promote innovation, protect consumers, and strengthen U.S. competitiveness."

If this passes, it will set up the first unified crypto framework vote in U.S. history, potentially in early 2026. The path won't be smooth with Democrats divided over Trump's involvement and DeFi language still uncertain, but the direction is clear: regulatory clarity for crypto is coming.

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Until next time,

Damon James