Good morning. Thought leaders from across the risk and compliance field joined legal experts, government officials and members of the Risk Journal team at the latest Dow Jones Risk Journal Summit in Singapore on Tuesday. On the agenda were topics ranging from cybersecurity at a time of increasing geopolitical risk, to financial crime policy as a national security tool, to digital sovereignty in the tech supply chain.

Some of the highlights include:

• AI gives cyberattackers an edge—for now: Artificial intelligence is giving cyberattackers an advantage over defenders, but that could swing the other way, according to a senior Singapore cybersecurity official. Ong Kok Wee, assistant chief executive for policy and corporate development at the Cyber Security Agency of Singapore, said attackers can use AI more freely because they have fewer concerns about what happens if the technology makes a mistake, she told Dow Jones’ Kim Nash.

• No relief coming for rocky U.S.-China trade relations: A big win for Democrats in the U.S. midterm elections won’t necessarily calm trade relations with China. Republicans in Congress who have so far curbed their desires for more economic and political pressure on China might well agitate for harsher measures against the country many consider a national security and economic threat, said Deborah Elms, head of trade policy at the Hinrich Foundation, a think tank focused on sustainable global trade.

• Artificial intelligence is making scams easier and cheaper to run: AI is making it cheaper and easier for criminals to run sophisticated scams, allowing them to automate work that once required teams of people and specialized skills. Scammers can now use AI agents to identify potential victims and conduct conversations with them, while deepfake technology can be purchased as a service, said Ziqing Ang, head of policy in the Asia-Pacific region for blockchain-intelligence company TRM Labs.

More from Singapore: Check out the Morning Risk Report on Wednesday and Thursday for further coverage from the Risk Journal Summit.

Supreme Court questions oil companies’ bid to shut down climate lawsuits.

Oil companies seeking to avoid lawsuits over climate change faced skeptical questions Monday at the Supreme Court, with several justices expressing doubts about the industry’s campaign to shut down dozens of cases brought by state and local governments.

On the first day of the court’s new term, the justices debated whether communities can sue energy giants for billions of dollars to pay for local harms allegedly caused by extreme weather events that scientists say are tied to the worldwide burning of fossil fuels.

The high court is weighing a lawsuit by Boulder, Colo., against ExxonMobil and Suncor Energy. Boulder claims that the companies contributed to climate change and deceived consumers about the risks of greenhouse gases. Similar lawsuits are pending around the country and threaten the energy industry with massive financial liability.

Regulators propose new crypto rules—but leave spot trading untouched.

Trump regulators are moving to create new rules for cryptocurrency trading following the collapse of a landmark bill in Congress last month.

The Commodity Futures Trading Commission on Monday proposed two new rules for crypto companies that want to facilitate the trading of leveraged, financed or margined crypto transactions, specifically. The rules would require exchanges that want to offer those types of transactions to register with the agency, creating federal oversight and consumer protections.

Separately, the Securities and Exchange Commission has proposed its own guidance and regulations, including an “innovation exemption” for tokenized stocks and crypto custody rules for investment advisers and funds.

• The former Anthropic researcher whose resignation last month set off fears about artificial intelligence’s threat to humanity repeated his warnings at a hearing Monday with New York City lawmakers, who are weighing a spate of bills to rein in the rapidly advancing technology.

• Texas Attorney General Ken Paxton launched an investigation into UnitedHealth Group over alleged illegal practices that blocked healthcare access.

• Lambda Research settled with the U.S. Commerce Department over the sale and updating of software to institutions on the agency’s entity list, including a subsidiary of Chinese national champion Huawei Technologies, according to Risk Journal’s Katherine Peavy (free link).

• The Federal Trade Commission sent letters to two dozen of the largest U.S. healthcare businesses asking them to investigate how they charge patients, Risk Journal’s Clara Hudson reports (free link).

• The U.S. sanctioned two nonprofits based in France for allegedly funneling $2 million to Hamas via cryptocurrency, Risk Journal reports (free link).

• A group of consumers is suing Starbucks, accusing the coffee chain of wrongly marketing its line of “Protein Beverages” as free of sugar.

• Japan imposed sanctions on Russian defense manufacturers and maritime vessels, Risk Journal’s Archie Monk reports, part of continued efforts to squeeze Moscow’s military supply chains.

The EU’s trade deficit with China last year, equivalent to more than $400 billion, or more than $1 billion a day. The two nations are proposing a new trade tool that would allow the European Union to quickly block cheap Chinese imports.

• “The real risk isn’t a Terminator 7 type of movie going to play out. I really see social upheaval as a real risk.”
—Anthony Tan, CEO of Grab, in conversation with Robert Thomson, CEO of News Corp.

• “I could imagine the relationship will be less stable as we move towards the end of the Trump administration.”
—Deborah Elms, head of trade policy at the Hinrich Foundation, a think tank focused on sustainable global trade.

• “You see thousands being locked up in scam compounds working 17 hours a day just to scam another victim. I think what this actually does—it’s actually modern slavery.”
—Ziqing Ang, head of policy APAC for blockchain-intelligence company TRM Labs.

• “If you really want to serve the China market, you go to China, basically set up shop in China and do everything from China. If you want to sell in the U.S. market, go to the U.S. and do it from the U.S. The good old days when you can serve your China client from the U.S. or vice versa is really over, and you really, really have to choose now.”
—Henry Gao, Professor of Law, Singapore Management University.

• “Quantum used to be the main show and AI seems to be a side quest. But actually today the relationship is reversed.”
—Singapore Cyber Security Agency Assistant Chief Executive Officer Ong Kok Wee.