The Fable Shutdown: Due Process in the Age of AI Regulation
Speakers
TuongVy Le
— General Counsel, Veda Tech Labs / ex-SEC / Co-Host, DEX in the City
Jessi Brooks
— General Counsel, Ribbit Capital / Co-Host, DEX in the City
Katherine Kirkpatrick Bos
— Host
Summary
The episode covers the US government forcing Anthropic to disable Fable 5 and Mythos 5 without transparent process, CFTC's 300-page proposed rule on prediction markets, the SEC's repeal of key Reg NMS order-protection rules that could help tokenized securities, and the race to tokenize shares by Citi and Coinbase. A speaker also draws a cautionary analogy between MicroStrategy and Minsky's riskiest market phase.
- Anthropic forced to take Fable 5/Mythos 5 offline globally under export control, raising AI censorship and KYC concerns.
- CFTC proposed rule defines gaming, allows political event contracts, but faces state gaming commission tensions.
- SEC seeks to rescind Reg NMS rules 611 and 610E, removing order protection and trade-through restrictions to accommodate tokenized equities.
- Citi launched tokenized depository receipts, not true shares; Coinbase announces upcoming on-chain share trading.
- Speaker warns MicroStrategy resembles Minsky's phase three, reliant on debt and price momentum, risk of unraveling.
Ideas
MicroStrategy in late-cycle debt momentum phase.
MicroStrategy is in the third phase of the Minsky market cycle, where investors bet on price appreciation with debt, making the stock extremely risky and prone to eventual deleveraging and collapse.
Up Next
This Unchained (Chopping Block) video, published June 16, 2026, features TuongVy Le discussing MSTR. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: TuongVy Le · Tickers: MSTR