Good morning. Most digital assets don’t fall under U.S. securities laws, Securities and Exchange Commission head Paul Atkins said, announcing a new, much looser framework for regulating cryptocurrencies, Risk Journal reports.

• Outside agency jurisdiction: The SEC won’t regulate as securities four categories of digital assets: digital commodities, digital collectibles, digital tools and stablecoins, Atkins said. Stablecoins are crypto-assets that are tied to a real-world asset such as government-backed currencies.
   
• CFTC agrees: The Commodity Futures Trading Commission, which under President Trump has moved to cooperate more closely with the SEC, joined in the announcement, endorsing the SEC approach.
   
• End of an era: Trump has embraced cryptocurrencies in policy and as patriarch of a business-minded family. Tuesday’s move from Atkins represents a definitive break from the policies of the Biden-era SEC, whose then-head Gary Gensler likened the cryptocurrency industry to a “Wild West.”

The Trump official ushering crypto into the banking system.

A top banking regulator is on the verge of letting crypto firms become banks. Banks aren’t happy about it.

Jonathan Gould, one of the country’s most powerful banking regulators, has given the green light to crypto firms such as Ripple and Crypto.com to build banks—and is welcoming applications from others, including payment-technology companies. That is rankling the banking industry, which sees the new players as potential rivals that aren’t subject to the same level of regulatory oversight.

Arizona files illegal-gambling charges against predictions platform Kalshi.

Arizona filed criminal charges against the parent companies of Kalshi, a startup prediction platform, on Tuesday accusing them of operating an illegal gambling business without a license.

Arizona Attorney General Kris Mayes said Kalshi accepted bets from residents on sports, elections and events in violation of state law. Arizona doesn’t allow unlicensed wagering businesses and bans elections betting, Mayes said. The state charged the companies with 20 counts of illegal betting and wagering.

• The European Union approved Italian defense and aerospace group Leonardo’s 1.7 billion-euro ($1.96 billion) bid for Iveco Group’s defense business.
   
• The U.S. Treasury fined brokerage firm TradeStation Securities roughly $1.1 million for violating sanctions on Iran, Syria and the Crimea region of Ukraine, Risk Journal reports.
   
• A unit of industrial engineering company Thyssenkrupp has resolved a U.S. case alleging it stopped union organizing in Mexico.
   
• The Italian Competition Authority has launched an antitrust investigation into the quantum computing sector to evaluate possible barriers facing startups looking to enter the market.

Russia is sharing satellite imagery and drone technology with Iran.

Russia has been expanding its intelligence sharing and military cooperation with Iran, providing satellite imagery and improved drone technology to aid Tehran’s targeting of U.S. forces in the region, people familiar with the matter said.

Russia is trying to keep its closest Middle Eastern partner in the fight against U.S. and Israeli military might and prolong a war that is benefiting Russia militarily and economically.

• Despite significant damage to Iran’s cyber capabilities inflicted just before the current conflict, the regime still poses a threat that U.S. companies must take seriously, lawmakers and experts warned.
   
• Israel’s decapitation strategy has wiped out another two top Iranians.

• AI can already see, hear, read and speak. Now researchers are teaching it to smell.
   
• Cuba’s communist government is struggling to restore electricity across the island after its obsolete power grid collapsed on Monday.
   
• The World Bank is embracing industrial policy, abandoning three decades of stigma.
   
• America now has more spas and gyms than stores selling actual stuff.

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