Top Stories – July 02, 2026
1. Fable 5 Returns Worldwide as US Lifts Export Controls on Anthropic Models
The Commerce Department lifted its June 12 export-control directive on Anthropic’s Fable 5 and Mythos 5 on June 30, and Fable 5 returned to global availability July 1 – ending a 19-day shutdown that began when a reported jailbreak enabled the model to identify and exploit software vulnerabilities. Mythos 5 had been partially restored June 26 to a vetted group of more than 100 US organizations that defend critical infrastructure. In exchange, Anthropic agreed to proactively detect and address security risks, work with the government on standards for upcoming models, and report malicious activity; the company says a new cybersecurity classifier now blocks the jailbreak technique in over 99% of cases. The episode is the first government-ordered shutdown and reinstatement of a frontier AI model – a template for how model-access disputes may be resolved under the national-security lens.
2. FTC Seeks Public Comment on Policy Statement Addressing AI Accuracy
The FTC voted 2-0 to open a 30-day public comment period on a proposed policy statement warning that AI companies suppressing model accuracy to pursue undisclosed ideological objectives may violate Section 5 of the FTC Act’s prohibition on unfair or deceptive conduct. Comments are due July 31, 2026.
3. EU AI Act Omnibus Amendments Await Formal Adoption Before August 2 Deadline
The EU is racing to formally adopt and publish AI Act Omnibus amendments – reached in political agreement May 7 – before the August 2, 2026 enforcement date, with the package deferring high-risk Annex III AI system obligations to December 2, 2027 and adding a new prohibition on AI-generated non-consensual intimate imagery.
4. Bipartisan Great American Artificial Intelligence Act Discussion Draft Released
Reps. Jay Obernolte (R-CA) and Lori Trahan (D-MA) released a 269-page bipartisan discussion draft that would establish a national AI framework covering liability standards, transparency requirements, and federal preemption of state AI laws – signaling the first serious bipartisan push for a comprehensive federal AI bill.