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The Brief with Jim Sciutto

Trump Filing Lawsuit Over WSJ Epstein Report; Christian Leaders Visit Catholic Church Hit By Israeli Strike; At Least 321 Killed In Southern Syria; U.S.-Venezuela Prisoner Swap; Bolsonaro Ordered To Wear Ankle Monitor; Trump Signs "Genius Act" Legislation; North Korean Defectors In K-Pop Band. Aired 6-7p ET

Aired July 18, 2025 - 18:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[18:00:00]

JIM SCIUTTO, CNN ANCHOR: Hello and welcome to our viewers joining us from all around the world. I'm Jim Sciutto in Washington. And you're watching

"The Brief."

Just ahead this hour, President Trump goes after The Wall Street Journal over a Jeffrey Epstein story, as the Justice Department now requests the

release of some grand jury testimony. The U.S. completes a large-scale prisoner swap with Venezuela involving deportees it sent to El Salvador's

maximum-security prison. And two North Korean defectors pursue their dream of becoming K-Pop superstars. All that and plenty more coming up.

We begin with new developments in the Jeffrey Epstein saga. A short time ago, President Trump filed a libel lawsuit against the publisher of The

Wall Street Journal and the reporters who wrote a story about letters gifted to Jeffrey Epstein for his 50th birthday back in 2003.

One of those letters reportedly bearing President Trump's name as well as a drawing of the outline of a naked woman. The president claims the letter

is, quote, "fake," insists he did not write or draw it. Also, in the last hour, the Justice Department has asked a federal judge to make public grand

jury testimony about Epstein. Attorney General Pam Bondi agreed to file that motion as the administration faces increasing criticism over its

handling of the case.

On the campaign trail, Trump had promised, if elected, to deliver new and potentially explosive evidence surrounding Epstein's alleged underworld of

pedophilia, and in particular a potential client list. Trump wrote a wave back to the White House in part on that promise to release those files.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Would you declassify the Epstein files?

DONALD TRUMP, THEN-U.S. PRESIDENTIAL CANDIDATE: Yes. Yes, I would.

UNIDENTIFIED FEMALE: All right.

TRUMP: I guess I would. I think that less so because, you know, you don't know it. You don't want to affect people's lives if it's phony stuff in

there, because it's a lot of phony stuff with that whole world.

J. D. VANCE, THEN-U.S. VICE PRESIDENTIAL CANDIDATE: Seriously, we need to release the Epstein list, that is an important thing.

(END VIDEO CLIP)

SCIUTTO: That was then, this is now. The contrast is clear and notable. The Epstein files were both true and crucial to the GOP until President Trump

said otherwise. So, now they're somehow false and inconsequential. With the DOJ and FBI saying early this month there was no evidence that a list even

existed at the White House.

Betsy Klein. Betsy, quite a turnaround for the administration over the course of the last week. To be clear, what exactly are they having released

today?

BETSY KLEIN, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, President Trump is making good on his threat to sue The Wall Street Journal. We have learned,

as you just laid out, the president filing a libel lawsuit against the publisher of The Wall Street Journal and its reporters who wrote that story

about a collection of letters in 2003 sent to Jeffrey Epstein on the occasion of his 50th birthday, including one that was signed by Trump

reportedly, it had his name and an outline of a naked woman.

Now, according to the docket that was filed in South Florida, the president is suing for libel, assault, and slander. But it is clear after the last

week or so of fielding complaints from his own supporters that the president is now on the offense here. It's been nearly two weeks since the

Department of Justice and the FBI released that memo that concluded that Epstein's death was a suicide, as well as the fact that there was no so-

called client list.

Since then, MAGA world has really been in revolt, calling for documents and transparency and more information on this case, essentially pitting

President Trump against some of his most ardent and vocal supporters, setting up a loyalty test between the president and this movement

essentially, that he created.

But the president had really been downplaying this controversy. He said it was sorted but not interesting. It was really something that the president

wanted to put behind him, but was failing to do so including after that Wall Street Journal story that published just yesterday, pressure

intensifying. The president responding to that story in a post to social media. He said, quote, "These are not my words, not the way I talk. Also, I

don't draw pictures. I told Rupert Murdoch it was a scam and that he shouldn't print this fake story, but he did. And now, I'm going to sue his

ass off." Again, quoting there.

[18:05:00]

But shortly after, the president also announced that he was going to be asking his attorney general Pamela Bondi, to unseal any pertinent testimony

related to Jeffrey Epstein. And we have learned that the government did indeed file that request in a federal court in Manhattan a short while ago.

But this could be a lengthy process and if that request is granted, Jim, the testimony would represent really a small fraction in the overall body

of evidence against Jeffrey Epstein.

Meanwhile, the president continuing to lash out at The Wall Street Journal. He wrote a short while ago, I look forward to getting Rupert Murdoch to

testify in my lawsuit against him and his pile of garbage newspaper, the WSJ. That will be an interesting experience.

The president, of course, reverting to a familiar playbook attacking the media that has once more united him with some of his most ardent supporters

with whom he'd been on the outs. Jim.

SCIUTTO: Betsy Klein at the White House, thanks so much. So, now to understand the law of all this, CNN Legal Analyst Michael Moore joins me,

former U.S. attorney. Michael, always good to have you.

MICHAEL MOORE, CNN LEGAL ANALYST AND FORMER U.S. ATTORNEY: It's good to be with you, Jim. Thank you.

SCIUTTO: So, you know this better than me. But given that grand jury testimony is secret, how much can the public realistically expect to see

from these transcripts, which as we understand it, there will be a lot redacted.

MOORE: Yes. I mean, that's right. And I mean, it is unusual, frankly, for federal grand jury transcripts to come into the public sphere. And you

really are not going to see more information than a prosecutor may have wanted to put forward after culling through millions of pages of documents

or otherwise to get a grand jury to indict a case.

And so, you're not going to see the notes, you're not going to see the documents, you're not going to necessarily, you're not going to, you know,

see all the police reports, or all the investigative summaries. But you typically would hear what -- you know, or be able to read, at least, some

of the summary testimony from the witnesses who may have been there.

But I think this is going to be pretty much an unfulfilling and lackluster result for those people who want to really look at the Epstein case. And

again, this is already going to be information that's been filtered through by a prosecutor just to present for indictment purposes, not for

investigative purposes.

SCIUTTO: Well, there's also the opportunity for the administration, is there not, to filter through what it wants to be out there and what it

doesn't want to be out there?

MOORE: Yes, that's the problem with these little descriptive terms that we'd like to see from the attorney general and from the president, about

what's relevant or -- and they use different things, you know, pertinent information or whatever it was that they like to call it. That's not the

way this is supposed to work.

I mean, what they could do, frankly, is they could have somebody come in as an outside source and say, I've put -- here's the case. I've laid it all

out. I'm going to show the public this. And, you know, the entire file has been released. But this selective, you know, access that they intend to

give the public, I think, is going to be disheartening and is going to do nothing to sort of quell the fury that we've heard over the Epstein case.

SCIUTTO: All right. So, once again, President Trump is suing a media organization, in this case, for libel. Not just The Journal, but the

publisher and also the reporters involved. What is the standard to establish libel?

MOORE: Well, I mean, generally, they'd have to show because he's a public figure, that there was some actual malice out there that caused -- you

know, that was the result or resulted in this article to go out. The problem that Trump has got is that he's relied so much on the court system

to grant him delays. I mean, you've seen him say, well, look, I'm the president. I can't be involved in cases. Please keep me out of it.

Well, now he's subjected himself to court by filing this lawsuit. He's also subjected himself to discovery, which means that, you know, people will be

asking to take his deposition or to look at his files. And so, it's going to be mighty hard for him to say, well, I was -- I'm too busy to answer

your questions, but not busy enough to ask mine, or to not ask mine. And so, that's going to pose a little bit of a double-edged sword for him.

So, this lawsuit, frankly, has nothing to do, I think, about the truth that's out there. This is just him putting a tourniquet on a self-inflicted

wound. It was created by these comments that he and his close supporters, Bondi, and others have made over the years about the Epstein case. And they

realize now they're in a mess and they just need to stop the bleeding. And so, this is to satisfy his base that, look, we could count on our guy to go

after the deep state. And that's really all this is about, I think.

SCIUTTO: Yes. When convenient, yes. When inconvenient or potentially damaging, no. Michael Moore, always good to have you on. Thanks so much.

MOORE: Glad to be with you, Jim. Thank you.

SCIUTTO: For more now, I'm joined by House Democratic Congressman Greg Stanton, co-sponsor of a resolution calling on the Justice Department, FBI,

and other agencies to release all unclassified records related to the Epstein case. Congressman, thanks so much for taking the time.

[18:10:00]

REP. GREG STANTON (D-AZ): Good to be here.

SCIUTTO: So, what do you expect from a limited release, as we understand it, of grand jury testimony, but not the many other files attached to the

Epstein case, sufficient?

STANTON: No, of course not. The entire file has to be released. This is a case in which Democrats and Republicans are coming together. There's a

significant number of Republicans in the body of Congress that are demanding that the entire file, not just the grand jury transcripts, but

all forms of evidence come forward.

This is an important moment. The American people are demanding this. This administration was demanding it before they stopped demanding it, but the

American people are demanding this, Democrats, Republicans. It's important to people to know what's in those files. It's a really question about are

we going to protect the powerful? Are we going to protect the victims? And it's a pretty clear choice here. And the entire file, all of it needs to be

released.

SCIUTTO: It reminds me of the old phrase, I was for it before I was against it. So, what do you make of the GOP's sharp reversal here? I mean, is it

possible they're trying to protect the president?

STANTON: Well, when you say they're reversal. Look, the truth is that many Republican members of Congress have signed on to the various resolutions

asking for the entire file to be released. Obviously, Thomas Massie is leading the way with the Ro Khanna privilege resolution, which we may be

voting on as soon as next week. And if that goes to the floor, I think you're going to see strong bipartisan support for releasing the entire

file.

Now, I know, you know, Pam Bondi, who promised to release the entire file, indicated that the file was on her desk did that kind of embarrassing, you

know, small release of information with the social media influencers at the White House that so angered the MAGA base. And obviously, the MAGA base are

very angry about the fact that they have demanded this, they've been promised by this administration, they've been promised by the attorney

general, and now, it's time to deliver because it's really important information. There are real victims here. And we need to find out who was

involved in these illicit activities.

SCIUTTO: Do you find that this is a priority issue for Democrats, for voters in your district? Do they care?

STANTON: Some do. I mean, you hear from a lot of people that are highly motivated. I think it's real issue though of justice. This administration

has promised over and over and over again that if given the opportunity to have power, they would release the entire file. So, this is a real

credibility issue for this administration.

And there are other members of the administration, you know, Kash Patel and Dan Bongino over at the FBI, who, you know, in their private sector careers

as podcasters or kind of, you know, high-profile figures in MAGA world they have made this a priority. And now, they're in real positions of power to

do something about it. I think the American people, both Democrats or Republicans, are saying, it is time for you to do the right thing and let

the American people see all of the information, not limited information. All of the information.

SCIUTTO: Yes, it's quite a dramatic reversal. And by the way, as you know, I mean, their comments were public record, right? We heard them in public

say this. Certainly, it was no secret. Now, President Biden, of course, could have released more materials when he was in his in office. Was it a

mistake or a failure for him or his administration not to?

STANTON: Well, I think it's a little bit different because I don't think the Biden administration made the promises. And I know there are DOJ

policies with regard to release of information when the person being investigated is now deceased, which is a case with Epstein after his

incredibly horrific and illicit activities.

But this is different because this administration -- this is what they came to office promising. This is one of the major issues that they came forward

with. And now, it's a matter of whether they're going to keep faith, whether they're going to be credible in keeping their commitments to -- you

know, they didn't make those commitments just to MAGA supporters, they made those commitments to all Americans, and now it's time for them to keep

those commitments.

SCIUTTO: Do you see your Republican colleagues defying the White House on this with the resolution you have? Because there have been so many examples

with the big beautiful bill, other efforts where some Republicans said, I'm -- you know, I'm against X, and then they flip under pressure from the

White House. Do you see them, if the White House issues an edict, thou shall not pass this legislation, do Republican lawmakers defy that?

STANTON: Obviously, you know, as a member of Congress, it's been very disappointing to see my fellow colleagues not stand up for the institution

of Congress. They -- you know, the White House and the president is a separate branch of government.

[18:15:00]

And when you have the opportunity to use your vote to accomplish policy goals that you say you want, and then, obviously, the president is making

phone calls and lobbying behind closed doors, and people give in on that, you know, you're not really representing your colleagues or your

constituents the way you should be. You should stand up for what you believe in.

And I see that with the Thomas Massie resolution. Thomas Massie is someone who -- you know, I'm going to disagree with probably on many, many issues,

but he is a man of principle willing to stand up to the pressure of the White House, and I'd like to see more of my Republican colleagues have the

same level of courage, particularly on this issue where leaders in the White House, the attorney general, the president himself, the leaders of

the FBI have all indicated that this was a high priority and they were going to do the right thing and release these files.

SCIUTTO: Yes. I mean, arguably they put it on the map, very much so. Congressman Stanton, thanks so much for joining.

STANTON: Thank you so much.

SCIUTTO: Coming up on "The Brief," we're going to take a look at Israel's recent military strikes both in Gaza and inside Syria. We'll be joined by

the former Israeli military intelligence chief.

(COMMERCIAL BREAK)

SCIUTTO: Christian leaders made a rare visit from Jerusalem to Gaza's only Catholic church to show their support. An Israeli strike on Thursday killed

three people at the Holy Family Church. Israeli Prime Minister Benjamin Netanyahu's office says he expressed regret during a phone call with Pope

Leo blaming, quote, "stray ammunition."

New footage now gives us a glimpse of the daily nightmare in Gaza. See as that Israeli strike comes in, sending those two children there in the front

-- the foreground running for their lives, a woman as well. UNICEF says, on average, 28 children are killed every day in Gaza. The equivalent of an

entire classroom.

In Southern Syria, more than 320 people have been killed after clashes between Druze and Bedouin communities there, that according to the

monitoring group, Syria Network for Human Rights. Syria's presidency says that militant groups continue violating a ceasefire days after government

troops left the Suwayda area following those Israeli strikes.

[18:20:00]

The latest sectarian violence hearkens back to some of the worst days of the Syrian Civil War. The U.N. is now laying out a complex picture of who's

responsible.

(BEGIN VIDEO CLIP)

RAVINA SHAMDASANI, U.N. HUMAN RIGHTS OFFICE SPOKESPERSON: Credible reports that our office has received indicate widespread violations and abuses,

including summary executions and arbitrary killings, kidnappings, destruction of private property, and looting of homes in the southern city

of Suwayda.

Among the reported perpetrators were members of the security forces and individuals affiliated with the interim authorities, as well as other armed

elements from the area, including the Druze and Bedouin.

(END VIDEO CLIP)

SCIUTTO: Joining me now is the former Israeli military intelligence chief, Amos Yadlin. Good to speak to you as always.

MAJ. GEN. AMOS YADLIN (RET.), FORMER ISRAELI MILITARY INTELLIGENCE CHIEF: Good afternoon.

SCIUTTO: So, just before we came to you, the U.S. ambassador to Syria, Tom Barrack, has tweeted that there's a breakthrough with Israel, Syria, and

the U.S. agreeing to a ceasefire embraced by Turkey, Jordan, and their neighbors. A possible opportunity here, it seems, to end the fighting

between the Druze and Bedouins. Is that something you see as potentially diffusing the situation?

YADLIN: Very positive forward because nobody want this killing and massacres happening in Syria and it's complex. There are three forces that

attack the Druze, their neighbors, the Bedouins, the Jihadists that not necessarily listening to al-Sharaa, the president, and the defense forces

of Syria. And even with the Druze themselves, there are a couple of groups that -- with different ideas, and maybe they're trying now to retaliate for

what happened to them by the jihadists.

So, the fact that the secretary of state took the lead and brought all the players to the table, and this is including Turkey and Israel and Jordan,

is making a lot of sense. The question is how the people on the ground will behave, whether the retaliations of the two communities will stop.

From an Israeli point of view, we have to be aware to the fact that Israel has no aspirations to be involved in this unless we want to protect the

Druze that are part of Israel and Israel Druze are a part of the Israeli society serving in the IDF. They came to fight with us after September --

after the 7th of October. And Israel will not let a massacre to happen to this Druze. But we don't want any territorial and we don't want any war.

We warned al-Sharaa not to let his people do the massacre. When you haven't listened enough, there was a bombing of the general staff in Damascus.

Nothing that haven't happened since 1973 war, and I think the message this time was absorbed. And I hope that peace will return to the mountains of

the Druze.

SCIUTTO: So, the ceasefire in Syria here, obviously a shorter period of fighting, at least in recent days there than in Gaza, what is standing in

the way right now of a ceasefire and hostage deal in Gaza? Is it primarily Hamas? Is it primarily the Israeli prime minister?

YADLIN: I think that it's both sides, unfortunately. The war in Gaza was the most just war ever fought after the 7th of October massacre, but it

should have been finished months ago, months ago because Hamas was defeated. And we need to bring back the Israeli hostages that were

kidnapped under the watch of this government. And not ending this war is not serving Israeli interest, not in the political arena, not in the public

relation area arena, and not even from a moral point of view. It's time to end the war.

And Israel should put on the table a proposal to end the war, bring back all the hostages, not let Hamas be in Gaza as a military force, Gaza should

not be -- rebuild if Hamas will not demilitarized. And history is not finished in 2025. If Hamas will continue to be a terror organization on our

border, it'll be dealt in the future. But now, it's time to end the war.

[18:25:00]

I'm not into the details in Doha, but it seems that the new instruction from Jerusalem are giving the negotiator a lot of leeway to maneuver

towards a deal. But there is another side, a terror organization that until now prefer to let his people be killed. And he is shield behind these

people and he is not worried that they are starving. And the people of Hamas, with all the food and they protect themselves behind their people,

they could have finished the war months ago, months ago. And I hope this time they will save their people from this awful war.

SCIUTTO: How about from the Israeli side? Is Benjamin Netanyahu? Maintaining the war and the Israeli presence there because of a military

need or a political one?

YADLIN: Look, I think in the last visit in Washington, President Trump urged Netanyahu to end the war. And Netanyahu agreed to some concessions

that he haven't agreed before, as you said, because he wanted to keep his government politically alive. But he didn't want to announce it in

Washington because he was afraid that on his way over the ocean, the government will fail.

So, he asked the president to go to Jerusalem to convince his right-wing parties to agree to this ceasefire. I'm not sure he was successful, but as

I said, I saw a different directions to the negotiation team in Doha. And I fully am looking forward for an agreement next week.

SCIUTTO: That would be quite a development and a welcome one. General Amos Yadlin, we appreciate you joining.

YADLIN: Pleasure to be.

SCIUTTO: Still to come on "The Brief," we're learning that a group of Americans has been freed in Venezuela in a large-scale prisoner swap with

the U.S. involving many of the Venezuelans who'd been shipped to that prison in El Salvador. We'll have the details next.

(COMMERCIAL BREAK)

[18:30:00]

SCIUTTO: Welcome back to "The Brief." I'm Jim Sciutto. And here are more international headlines we're watching today.

President Donald Trump has made good on his threat to sue The Wall Street Journal. According to court records, he has filed a libel suit against its

owners, Dow Jones, News Corp., and Rupert Murdoch himself. The president also named two Wall Street Journal reporters in that complaint. The lawsuit

stems from a Wall Street Journal article, which reports a letter was sent to Jeffrey Epstein for his 50th birthday, bearing Trump's name, and a

sketch of a naked woman. President Trump denies that he wrote or sent the letter.

The E.U. is hitting Russia with a strong set of new sanctions, focusing on oil and gas, some of Russia's main sources of income, which of course it

uses to finance its war in Ukraine. The E.U. has now banned operations of the Nord Stream pipelines, a pair of natural gas lines running under the

Baltic Sea.

Three members of the Los Angeles Sheriff's Department were killed by an explosion at a training facility used by its bomb squad. Sources tell us

the bomb squad responded to a call Thursday involving an explosive device, which was transported back to the agency's headquarters. An investigation

is now underway.

Sources tell CNN the U.S. has now completed a large-scale prisoners swap with Venezuela. They say about 250 Venezuelans deported from the U.S. were

sent back to their home country from a notorious prison in El Salvador in exchange for Americans held in Venezuela. The Trump administration

previously claimed, we should note, that the Venezuelan prisoners in El Salvador were not under. U.S. control. Kylie Atwood joins me now with the

details. So, first who's involved in this swap?

KYLIE ATWOOD, CNN U.S. SECURITY CORRESPONDENT: This is a pretty complicated one. Because you have President Bukele of El Salvador who met with

President Trump earlier this year at the White House. Has a very good relationship with this administration. Administration officials said that

it was really the genesis of all of this came from his idea. He posted on Twitter earlier this year that he would be open to a prisoner swap with

Venezuela if they released political prisoners, that he would send back these Venezuelan migrants who had been sent to El Salvador by the United

States, by the Trump administration.

That then opened a series of conversations. So, White House officials were involved, State Department officials were involved. And listen, the U.S.

has been trying for years now to get all of the Americans who have been detained, mostly wrongfully detained in Venezuela to be released. And

somehow, they were able to leverage the situation to get Venezuela to agree to release these 10 Americans in return for those 252 Venezuelans to be

released from El Salvador prison into Venezuela.

There's a lot of questions about what will happen, obviously, to those Venezuelans when they get back. But their families are largely obviously

welcoming this. They hadn't heard mostly from those Venezuelans since they were sent back to that prison in El Salvador. So, they're waiting to hear

from their family members.

But then, I've also been in touch with some of the families of those Americans who were released welcoming this news. These were Americans who

had visited Venezuela, some of them just visited the areas around Venezuela and been detained and --

SCIUTTO: They got picked up?

ATWOOD: Yes.

SCIUTTO: So, you're saying the families of those Venezuelans who had been sent to the CECOT prison, this notorious prison in El Salvador, that they

were welcoming this because at least they're out, right?

ATWOOD: Exactly. They're no longer in an El Salvadorian prison, which is known to be one of the most notorious prisons in the world.

SCIUTTO: But had they claimed -- when they came to the U.S., claimed asylum in part based on the idea that they were under threat in their home

country?

ATWOOD: Exactly, exactly. And that is one of the concerns. I think, you know, some of their families probably expect that they'll be fine. They'll,

you know, return and be able to see family members, but the regime could target some of them. So, that's something that we have to keep an eye on.

SCIUTTO: And has the administration explained how previously all the discussions around one person in particular who was sent to El Salvador had

claimed, well, they're not under our control, those in the prison, but the U.S. was able to somehow get them under their control to carry out this

prisoner swap. Do they have an explanation for that?

ATWOOD: The way they're explaining this, as I was saying, is that this was Bukele's idea. So, he's in charge of those prisoners. He was the one who

wanted to send them back to Venezuela. So, therefore, they capitalize on what was for them an opportunity.

[18:35:00]

We should also note that Adam Boehler, who's the special hostage envoy, he is right now in El Salvador and he's going to be meeting with these

Americans who are not flying from Venezuela to the United States, as I'm told right now, they're actually going to El Salvador first so they can

thank Bukele and then fly back here to the United States.

SCIUTTO: Kylie Atwood, thanks so much.

ATWOOD: Yes.

SCIUTTO: Appreciate it. Well, Brazil's Supreme Court placed its ex- president Jair Bolsonaro under curfew today and ordered him to wear an electronic ankle monitor. These over concerns that he might flee the

country. He's of course facing charges over an alleged plot to overturn the 2022 election and remain in power. CNN Brazil reports that police also

raided his home, seized cash, barred him from speaking to foreign officials.

Bolsonaro is a Trump ally, quite a public one. As Stefano Pozzebon reports, the order seems to be in defiance of President Trump's threat to impose a

50 percent tariff on Brazil due to the judicial proceedings against Bolsonaro.

(BEGIN VIDEO CLIP)

STEFANO POZZEBON, CNN CORRESPONDENT (voice-over): Early Friday, Brazil's federal police came knocking, raiding the home of former right-wing

president, Jair Bolsonaro, fitting him with an ankle tag and barring him from speaking to foreign officials and using social media. These measures

ordered by Brazil's Supreme Court to prevent him from leaving the country as he faces trial for allegedly plotting a coup against his left-leaning

successor. Bolsonaro lashed out against the ankle tag.

JAIR BOLSONARO, FORMER BRAZILIAN PRESIDENT (through translator): Dammit. I'm a former president. I'm 70 years old. This is a supreme humiliation.

POZZEBON (voice-over): And immediately brought up his close ally, U.S. President Donald Trump.

BOLSONARO (through translator): If I had a passport, I would request an audience to visit Donald Trump.

POZZEBON (voice-over): Trump has a long shadow over this case as he threatens tariffs of up to 50 percent on Brazilian products in retaliation

for Bolsonaro's prosecution.

BRIAN WINTER, VP OF POLICY, AMERICAS SOCIETY AND COUNCIL OF THE AMERICAS: I think this is very personal for President Trump. I think that he believes

that what is happening in Brazil right now is political persecution of former President Bolsonaro in a way that reminds Trump of what happened to

him and the parallels between the 2020 election in the United States and the 2022 election in Brazil.

POZZEBON (voice-over): Bolsonaro supporters stormed Brazil's capital on January 8, 2023. In striking similarity to what happened on January 6th,

two years before. This week, Trump wrote a letter to support Bolsonaro. But in the current Brazilian president, Luiz Inacio Lula da Silva, Trump has

found a formidable opponent. Lula claiming the country's prepared to retaliate with similar tariffs and calling out on Trump directly in an

interview with CNN.

LUIZ INACIO LULA DA SILVA, BRAZILIAN PRESIDENT (through translator): We cannot have President Trump forgetting that he was elected to govern the

U.S. He was elected not to be the emperor of the world.

POZZEBON (voice-over): Stefano Pozzebon, CNN, Bogota.

(END VIDEOTAPE)

SCIUTTO: Still ahead, President Trump signs legislation that regulates a fast-growing segment of the crypto industry. It's a positive development

for crypto world, but will it protect investors?

(COMMERCIAL BREAK)

[18:40:00]

SCIUTTO: President Trump has now signed into law the first standalone bill regulating the crypto industry. The Genius Act, as it's been called, lays

out new requirements for stablecoins, which are typically pegged to the U.S. dollar. President Trump calls it a win for the industry, and he says,

for consumers.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: Consumers, vendors, and people all over the world will then be able to use those stablecoins for ultra-low-cost

transactions that are cleared and settled in a matter of seconds rather than weeks and months. And it's really an amazing thing. And with the

privacy, flexibility, and decentralization of cash, this revolution has the potential to supercharge American economic growth and empower billions of

people to save and transfer in U.S. dollars.

(END VIDEO CLIP)

SCIUTTO: Supporters of the bill say it will give people more confidence in cryptocurrencies over time. Opponents worry it does not go far enough,

putting U.S. financial and national stability at risk. Critics also note that President Trump's family are involved in the crypto industry, arguably

stand to gain from crypto's wider use. The Genius Act was one of three related bills Congress hoped to pass during its so-called Crypto Week. The

other two still need Senate approval.

Joining me now, Summer Mersinger. She's the CEO of the Blockchain Association, former head of the Commodity Futures Trading Commission.

Thanks so much for joining.

SUMMER MERSINGER, CEO, BLOCKCHAIN ASSOCIATION AND FORMER COMMISSIONER, CFTC: Thanks for having me.

SCIUTTO: So, first, as this came out you, you tweeted that the Genius Act establishes clear regulatory frameworks that protect consumers, how?

MERSINGER: Well, there's a number of requirements that are in this Genius Act, from -- everything from reserves, audits to those reserves, and making

sure that there's federal oversight of these companies that are issuing these stablecoins. These are consumer protections that were not in place

before, and they will be on a federal level now.

SCIUTTO: OK. The -- one of the questions, right, of course, is, are these - - is there fundamental value to cryptocurrencies or are they purely speculative plays? And I mean that's a question or a concern that can't be

solved by legislation. How does the industry answer that question?

MERSINGER: Well, when you're looking at stablecoins, they are back dollar for dollar, either with U.S. dollars or treasuries or a cash equivalent.

So, there is an intrinsic value behind these assets. And, you know. digital assets, more broadly, they serve a utility on the blockchain. And a lot of

the cost and the value of them have to do with supply and demand and, you know, what supply is there? What kind of work goes into the validation of

the blockchain that creates these tokens? So, the value -- it's their -- people are interested in investing in it.

And really it is -- you know, when you talk about stablecoins, you are talking about a dollar-backed currency.

SCIUTTO: There certainly are -- it's in the numbers and it's in the demand. It's in the prices that a number of people are interested investing in it.

There have also been concerns though about other kinds of nefarious groups that deliberately use cryptocurrency because it bypasses the financial

system. How does this legislation address that?

MERSINGER: Well, you're having federal oversight of these stablecoin issuers. So, part of it is just having federal regulators looking into the

mechanics of these stablecoins, of the businesses, offering them. Just like any bank, you know, having the government step in and take a look at what

is going on there are a number of requirements that these stablecoin issuers already abide by that traditional payment systems do, whether it's

AML, KYC, those types of requirements. So, those are already in place.

And you know, at the end of the day, any medium of currency, of money movement can be used for illicit activity. The good thing about stablecoins

and cryptocurrencies, they're actually on a blockchain. So, there's an immutable record and they're easier to trace for law enforcement.

[18:45:00]

SCIUTTO: Is it good or potentially bad or damaging for the industry and for stablecoins themselves that President Trump and his family members ha have

an interest in it, a potential to gain financially?

MERSINGER: I think, you know, at the end of the day, everyone is really excited about what this means for the U.S. economy and the fact that, you

know, the legislation signed into law today makes sure that the dollar is the, you know, backing for these stablecoins here in the U.S. and broadly.

And so, I think, you know, everybody's really looking at this as an opportunity.

And at the end of the day, with the way having federal regulation, that means everybody's under the regulatory umbrella. So, there's no one that's

not inside this regulated space now.

SCIUTTO: Understood. OK. Summer Mersinger, thanks so much for helping us understand.

MERSINGER: Yes, thanks for having me.

SCIUTTO: Appreciate you joining. Still ahead, a new K-pop band with a fascinating backstory. Why the group 1Verse is gaining so much global

attention coming up.

(COMMERCIAL BREAK)

SCIUTTO: U.S. stocks finished Friday's session little change with the S&P 500 pulling back slightly from its record high. Stocks come under pressure

after a report that President Trump is driving a hard bargain in the ongoing trade talks with the E.U. Trump has already threatened the bloc

with 30 percent tariffs if no deal is reached by August 1st. Negotiations still underway. But the FT is reporting Trump is pushing for tariffs of at

least 15 to 20 percent while the E.U. is seeking to maintain the baseline of 10 percent.

Researchers in China are developing and testing remarkable new technology that could give people with paralysis and brain injuries more control.

They're pioneering a system that is improving brain function using an implanted chip and a user -- a computer interface. CNN's Kristie Lu Stout

takes a closer look at this fast-developing science.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN CORRESPONDENT (voice-over): She lost her voice from ALS, but thanks to a brain implant in Beijing, this patient can speak

again. Through her computer, she says, I want to eat. Her voice restore after a coin-sized chip was implanted into the top of her brain.

The breakthrough chip is called Beinao No. 1, a semi-invasive and wireless brain computer interface, or BCI system.

STOUT: Thank you for inviting us to your lab.

STOUT (voice-over): The chief scientist behind it has given CNN rare access to his lab.

LOU MINMIN, DIRECTOR, CHINESE INSTITUTE FOR BRAIN RESEARCH: This is a human brain model. In doing a real surgery, the scalp will be open and the sensor

will collect these new normal signals and transmit the signals to this external device, and this signal will be processed for external device

control.

[18:50:00]

STOUT: For the patients who have been implanted with your BCI systems, how are they reacting to the system?

MINMIN: The patients were saying that this feels so great, like they can regain the control of the muscles.

STOUT (voice-over): So, far, Lou and his team say that they have implanted five patients with the Beinao No. 1 chip. China's breakthroughs are

revealing a growing ambition to rival industry leaders like Elon Musk's Neuralink.

UNIDENTIFIED MALE: China has definitely shown the ability to not just catch up, but also then be competitive. And now, actually to start also to drive

the field in some areas.

STOUT (voice-over): In March, a paralyzed patient was able to walk with the help of a harness and standing frame after a brain tech implant by

researchers from China's Fudan University. In April, a patient with a debilitating form of epilepsy was able to play complex video games thanks

to a BCI chip from Chinese company NeuroX. And in May, a patient with no limbs was able to play racing and chest games after a brain implant from

Shanghai-based StairMed.

STOUT: Western experts say breakthroughs in basic science have traditionally been led by the United States, but China has the edge on

commercialization, turning brain technology into an actual product that consumers want to buy.

STOUT (voice-over): (INAUDIBLE) based BrainCo is a pioneer in commercialization. It develops non-invasive BCI devices that are wearable,

like this robotic glove. BrainCo was founded at the Harvard Innovation Lab in 2015. Chinese officials later convinced the team to move to China.

UNIDENTIFIED MALE: The Chinese government has been able to attract a lot of talent from the U.S. by providing resources for individuals who do their

research in China. And so, it is a global competition.

STOUT (voice-over): Lou and his team are speeding up human trials with plans to implant their chip into 50 to 100 more patients next year.

MINMIN: We are hoping that we can move this process faster, if it's proven to be safe and effective, then we can get the approval so that, you know,

it can be used clinically across the world.

STOUT (voice-over): Development is also underway for the next generation Beinao No. 2, a chip to restore speech, mobility and hope from a lab in

China.

Kristie Lu Stout, CNN, Hong Kong.

(END VIDEOTAPE)

SCIUTTO: Yes, really hopeful developments there. Well, among the new crop of up-and-coming K-pop artists, a band with an interesting twist. Its name

is 1Verse. And two of its members are recent effectors from North Korea. Mike Valerio has their story.

(BEGIN VIDEOTAPE)

MIKE VALERIO, CNN CORRESPONDENT (voice-over): They are two North Korean defectors who could be on the verge of K-Pop superstardom.

Meet Hyuk and Seok, two 25-year-olds who each escaped North Korea when they were teenagers. They're now living in Seoul, determined to launch the next

great K-pop band.

VALERIO: You both have come so far from North Korea. What parts of your journey have affected your music the most?

HYUK, 1VERSE MEMBER (through translator): After coming to South Korea, I like writing down lyrics or phrases that I wanted to remember. A teacher

saw me jotting things down and said, you seem to like writing, why don't you try rapping?

SEOK, 1VERSE MEMBER (through translator): I liked music when I was in North Korea. I liked singing songs or lyrics about mothers. I also wrote lyrics

of songs I used to sing.

VALERIO (voice-over): They're both members of the group 1Verse with band mates, Aito from Japan, Kenny from California, and Nathan from Arkansas.

Seok and Hyuk have trained for more than two years now, united in a love of songwriting.

VALERIO: What's a lyric that comes from a memory and when you sing that lyric, it hits pretty deeply?

SEOK (through translator): In "Shattered" there's a high note part, who's going to save us now? That line reminded me that sometimes we all need

someone's help.

HYUK (through translator): Our songs come from our own stories and experiences. They're like puzzle pieces we put together.

VALERIO (voice-over): They already have more than 22 million likes on TikTok and are planning to debut in America, perhaps even teaming up with

U.S. artists down the road like we saw with Bruno Mars, for instance, and K-Pop icon Rose.

VALERIO: If you two could collab with any American sensation, Ariana Grande. J-Lo, Mariah, who would it be?

HYUK (through translator): I really liked Post Malone songs when I was younger. I'd love to work with him.

SEOK (through translator): The first person that comes to mind is Charlie Puth.

VALERIO (voice-over): For Seok and Hyuk, taking a leap into the unknown from unlikely beginnings is something anyone can relate to. And through

their music, they hope fans worldwide will find the same courage daring to dream.

[18:55:00]

HYUK (through translator): When those people see that we came from tough circumstances and manage to grow and share something with fans, I think

that process itself can be meaningful and give others the courage to try.

VALERIO (voice-over): Mike Valerio, CNN, Seoul.

(END VIDEOTAPE)

SCIUTTO: In today's Good Brief, baseball superstar Shohei Ohtani becoming a co-author of a children's book inspired by his dog, Decoy. The story

follows Decoy who must retrieve his baseball from home to throw the first pitch on opening day. The book title "Decoy Saves Opening Day" aims to

support nonprofit organizations that rehome stray and abandoned dogs. Scheduled to be released in February.

Thanks so much for your company today. I'm Jim Sciutto in Washington. You've been watching "The Brief." Have a great weekend and stay with CNN.

(COMMERCIAL BREAK)

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