CoinDesk's The Policy Protocol hosts Rebecca Rettig and Renato Mariotti open with two hot topics: Coinbase's SEC-registered AI agentic trading launch and tribal gaming operators' letter to Senators Thune and Schumer demanding that the CLARITY Act include a prohibition on prediction markets.

Then Katie Boller Gosewisch, Executive Director of the Alliance to End Human Trafficking, joins to challenge CLARITY's Section 604, arguing that shielding DeFi developers from money-transmitter liability creates a "duty of care" gap that traffickers can exploit.

Plus, Rebecca and Renato close by naming Meta as their Person of the Week for its reported move into points-based prediction markets.

Check out CoinDesk's latest episode of Public Keys from the NYSE: https://www.youtube.com/watch?v=75LrBmSScvY&list=PLZWrc_gWChqnim-9ZbIKZTOrPA7IgFKVR&pp=sAgC

Timecodes:

00:00 Welcome to The Policy Protocol

00:51 This Week: AI Trading, Prediction Markets, Human Trafficking

01:15 Coinbase Launches AI Agentic Trading

02:22 SEC-Registered AI Agents and the Hallucination Problem

03:43 Tribes Concerns Over Clarity Act

05:30 Rebuttals to the Tribes' Clarity Concerns

06:23 Katie Boller Gosewisch Joins the Show

07:31 Section 604: The Liability Shield Traffickers Could Exploit

08:59 Are DeFi Developers Money Transmitters?

09:52 What Section 604 Actually Says, and What It Doesn't

10:54 Should We Reinstate a Human Trafficking Coordinator?

11:30 Duty of Care and the 'Turning a Blind Eye' Problem

13:07 The Roman Storm/Tornado Cash Case as the Test

14:37 Future Loopholes and the Reasonable Doubt Risk

15:28 Cryptocurrency, Anonymity, and Rising Online Trafficking

16:02 Blockchain Is Transparent, and That Helps Law Enforcement

17:39 Person of the Week: Meta

19:58 The Points-Based Prediction Market and What Meta Could Unlock