Morgan Stanley Applies for US Trust Bank Charter to Venture into Crypto Custody and Pledge Business

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On February 28th, Fortune reported that OpenAI founder Sam Altman stated the company is in discussions with the U.S. Department of Defense (DoD) about potential uses of its AI models and tools—no contract has been signed as yet. OpenAI will retain control over three key areas: implementation of its technology protection measures, the deployment targets for its models, and the regions where they will be deployed. It will also restrict deployment to cloud environments, not "edge systems"—in a military context, such systems may include aircraft and drones. As a significant concession, the U.S. government has agreed to incorporate OpenAI’s "red lines" into contract terms. These red lines prohibit AI use for autonomous weapon systems, domestic mass surveillance, and critical decision-making areas. Earlier today, Anthropic rejected the Pentagon’s request to relax security restrictions, prompting a Trump administration ban.

**February 28** The Pentagon has demanded Anthropic remove security restrictions on its Claude AI model tied to "autonomous lethal robots" and "mass surveillance." Non-compliance would cost the firm a $200 million contract and result in a supply chain risk designation. Anthropic refused to issue a written commitment, with CEO Dario Amodei responding firmly: "These threats do not change our stance, and we cannot in good conscience comply with their request." OpenAI CEO Sam Altman voiced support for Anthropic on CNBC, stating: "I don’t think the Pentagon should make this kind of threat. Despite our many disagreements, Anthropic is trustworthy in the security space." The two fierce AI rivals publicly drew this red line—Altman and Amodei declined to shake hands during a group photo at last week’s India AI Summit. Additionally, 70 OpenAI employees signed an open letter titled *We Will Not Divide*, and Google engineers have also spoken out in support. Meanwhile, Trump responded force

February 28: OpenAI has fired an employee for allegedly using insider information to trade on the prediction markets Polymarket and Kalshi, per WIRED. The employee leveraged their position to access non-public information and place bets on related event contracts, violating OpenAI’s compliance policies.

On February 28, Ethereum co-founder Vitalik Buterin posted about Ethereum’s scaling roadmap, noting scaling will unfold in two phases: short-term and long-term. ### **Short-Term Scaling: Glamsterdam Upgrade** Short-term efforts hinge on the upcoming Glamsterdam upgrade, which includes: - Block-level access lists to enable parallel validation - Extending the block validation window for the ePBS mechanism - Gas repricing (to measure actual runtime) and multi-dimensional Gas (to differentiate resource consumption and avoid state bloat) During Glamsterdam: - "State creation cost" will be initially separated, so state creation Gas won’t count toward the regular Gas limit (supporting larger contract deployments). - The EVM will maintain compatibility via a "reservoir" mechanism, ensuring subcalls and Gas operations work as normal. - Long-term plans call for a gradual shift to multi-dimensional Gas pricing, balancing economic sustainability and flexibility. ### **Long-Ter

On February 28, Trump posted on Truth Social: The recent Supreme Court tariff ruling could send hundreds of billions of dollars back to countries and companies that have exploited the U.S. for years—and under this ruling, they may keep doing so, maybe even more aggressively. I don’t think the Supreme Court factored this in! Those nations and firms that’ve taken advantage of us for decades, pocketing billions they didn’t deserve, now qualify for an unprecedented windfall of ill-gotten gains. This is truly disappointing, to say the least. Can this case be reheard or reviewed?