The Federal Reserve has proposed a limited payment account for fintechs and nontraditional financial institutions, aiming to facilitate payment clearing and settlement. The account would not offer intraday credit, interest on balances or access to the discount window.

The Commodity Futures Trading Commission filed a lawsuit aimed at blocking Minnesota's new law that criminalizes the operation of certain prediction markets. The CFTC argues that the law infringes on the agency's exclusive jurisdiction over derivatives markets. The move follows similar actions by the CFTC against other states.

The House has passed a significant housing measure aimed at increasing the housing supply and homeownership in a 396-13 vote after a provision requiring investors to sell newly built rental homes within seven years was removed. The White House has endorsed the bill, which now returns to the Senate, where further changes are possible. "America is in the middle of a full-blown affordable housing and homelessness crisis, and working families are burdened by skyrocketing rents and a housing market that is pushing homeownership further out of reach," says Rep. Maxine Waters, D-Calif., who helped negotiate changes to the bill.

The yield on 30-year Treasury bonds has reached 5.19% for the first time since 2007, raising concerns about the potential impact on the stock market and credit markets. This development comes as fund managers increase equity allocations despite worries about stagflation, and companies like Nvidia benefit from significant capital expenditures driven by the artificial intelligence boom.

Investors are increasing downside protection in small-cap stocks as concerns grow that the Federal Reserve could raise rates later this year, a move that typically pressures smaller, rate-sensitive companies. The shift contrasts with continued optimism in large-cap equities, supported by the AI trade, highlighting a growing divide in market positioning.

Intercontinental Exchange plans to introduce futures contracts for computing power amid rising demand for graphics processing units driven by artificial intelligence. The contracts, which will be based on Ornn's index products that track GPU costs, will be settled in cash and denominated in US dollars. The move comes after CME Group announced a similar initiative.

US regulators are investigating over $800 million in oil futures trades that occurred shortly before a social media post by President Donald Trump that moved crude prices sharply lower. The Commodity Futures Trading Commission is reviewing whether nonpublic information might have influenced trading across several firms, some of which recorded multimillion-dollar gains, while stressing that no wrongdoing has been alleged and that the inquiry is ongoing.

HSBC CEO Georges Elhedery detailed the major impact that AI is expected to have on the bank, saying the technology has already accelerated client onboarding and improved risk monitoring. Elhedery said AI would eliminate and create jobs, and he called on staff to embrace the technology and stay engaged as the bank navigates this transformation. The bank is considering significant job cuts as part of an AI-driven overhaul, potentially affecting up to 20,000 positions.

President Donald Trump signed an executive order directing regulators to revise know-your-customer rules to include customers' immigration status as a factor in assessing money-laundering risk. The order cites activities by Mexican cartels and Chinese money-laundering networks. It stops short of an earlier proposal to mandate that banks collect citizenship information from customers, although it aims to authorize financial institutions to obtain such information.

The Securities and Exchange Commission proposed changes to encourage initial public offerings, including allowing more companies to use scaled disclosures and delaying certain reporting requirements for up to five years. The plan would raise the public float threshold to $2 billion and expand eligibility for simplified reporting, while also streamlining shelf registration to help firms access markets more quickly. Public comments are due within 60 days.

The Securities and Exchange Commission is delaying proposed exchange-traded funds from Roundhill Investments, GraniteShares and Bitwise Investments that would track prediction market contracts tied to events such as elections and economic data. Chair Paul Atkins said the agency will seek public comment as it evaluates whether such ETFs appropriately fit within the investment framework or raise concerns about gambling-like exposure.