Good morning. The sudden rise and fall of a ban on state artificial-intelligence laws exposed the deep divisions between the pro-tech and MAGA wings of the Republican Party, a rift that has complicated the GOP’s ability to enact sweeping tech policy.

• The split: President Trump’s aides and advisers were split on the proposed ban, according to people familiar with the matter. Trump’s stance on the issue couldn’t be determined, but the division among his advisers helped give opponents of the ban—from former Trump adviser Steve Bannon to parents worried about the safety of their children online—room to kill the policy, tech observers said. Commerce Secretary Howard Lutnick and White House AI czar David Sacks pushed for the ban publicly, while some in Vice President JD Vance’s office expressed opposition privately, people familiar with the matter said. Other Trump aides were neutral or didn’t think the moratorium would pass.
   
• A possible patchwork: The debate has high stakes for who regulates AI, with many companies worried about getting ensnared in a thicket of state rules. There have been over 1,000 AI bills proposed at the state level.
   
• "Too far-reaching:" When it moved to the Senate, critics such as Sens. Marsha Blackburn (R., Tenn.) and Josh Hawley (R., Mo.) said they opposed it because the language was too broad and could be seen as preventing states from passing any laws affecting technology such as child online safety bills or laws protecting name, image and likeness. State officials including Arkansas Gov. Sarah Huckabee Sanders also fought the proposal, arguing it would hurt consumers.

Also: Trump’s Megabill Set for Final House Vote as GOP Holdouts Relent

Note to readers: The Morning Risk Report won’t be published Friday in observance of the Fourth of July in the U.S. We will be back Monday.

Ripple seeks a U.S. banking license, adding to list of crypto companies. 

Ripple has applied for a national banking license, joining the rush of cryptocurrency companies seeking to cross the divide into mainstream finance. 

Ripple, which manages cross-border payments and a dollar-backed stablecoin called RLUSD, filed its application Wednesday with the U.S. Office of the Comptroller of the Currency. Stablecoins are typically pegged to the dollar or other government-issued currencies, and store reserves in cash or safe assets such as Treasurys to keep a one-to-one exchange ratio in place.

• An appeals court reinstated the convictions of a former 21st Century Fox executive and a sports marketing company that paid bribes to obtain FIFA media rights, siding with prosecutors who argued foreign commercial bribery violates U.S. fraud law.
   
• France’s banking and insurance regulator fined Banque Delubac & Cie 600,000 euros, equivalent to about $708,000, and issued a formal reprimand over shortcomings in its anti-money-laundering and counterterrorism financing systems.
   
• The European Union is pushing ahead with an ambitious new target for cutting greenhouse gas emissions, signaling a growing divide between the U.S. and the rest of the industrialized world.

U.S., Vietnam come to agreement on tariffs.

The U.S. and Vietnam have struck a tariff deal that will see American goods enter the country duty-free, President Trump announced Wednesday.

In return, the U.S. will charge 20% tariffs on Vietnamese goods, Trump said, instead of the 46% tariffs he had announced in April, before putting the duties on pause to allow for negotiations. “It will be a Great Deal of Cooperation between our two Countries,” Trump said in a Truth Social post.

• Trump Said Trade Deals Would Come Easy. Japan Is Proving Him Wrong.
• Continental Expects Limited Autos Hit From U.S. Tariffs

U.S. halts key weapons for Ukraine in new sign of weakening support for Kyiv. 

The U.S. has stopped the delivery of air-defense interceptors and other weapons intended for Ukraine and is using them instead to beef up Pentagon stocks, a Trump administration official and two congressional aides said Tuesday.

The U.S. move to withhold arms deliveries earmarked for Ukraine reflects the Trump administration’s slackening commitment to aiding Kyiv in its defense against Russia. Administration officials have stressed the need to focus more on the longer-term threats from China and, more immediately, military needs in the Middle East.

• Why the Halt to U.S. Weapons Couldn’t Come at a Worse Time for Ukraine

• Iran said it was suspending cooperation with the United Nations atomic agency, denying international inspectors the chance to assess the damage done by U.S. and Israeli airstrikes on its main nuclear sites and setting up a new clash with Washington and other Western powers.
   
• The eurozone’s unemployment rate inched higher in May, a sign of jitters among European firms amid economic uncertainty over tariffs and geopolitical tensions.

• In the first major speech to Congress of his second term, President Trump vowed to resurrect American shipbuilding. Four months later, Trump’s ambitious plans to reverse decades of maritime-industry decline are sputtering.
   
• Sean “Diddy” Combs was found not guilty of racketeering and sex-trafficking offenses on Wednesday but convicted of less serious charges, a blow for prosecutors who had targeted the music mogul in a sprawling case that alleged he ran a criminal enterprise for over two decades.
   
• A federal judge on Wednesday blocked President Trump’s executive order banning people who cross the southern border illegally from seeking asylum, a decision that, should it stand, could threaten the unprecedented decline in crossings that have resulted from the administration’s immigration crackdown.
   
• Microsoft plans to cut another 9,000 workers in its latest round of layoffs, bringing its workforce reductions to 15,000 in the past two months.

Follow us on X at @WSJRisk. Send tips to our reporters Mengqi Sun at mengqi.sun@wsj.com, Richard Vanderford at richard.vanderford@wsj.com and Max Fillion at max.fillion@dowjones.com.

You can also reach us by replying to any newsletter, or by emailing our editor David Smagalla at david.smagalla@wsj.com.