Good morning. A bill that would create a pathway for crypto to further upend the world of traditional finance moved one step closer to law Thursday, the latest testament to the sector’s influence in Washington.

• Out of committee: The Senate Banking Committee approved a bill that would establish rules regulating different types of cryptocurrencies across the Securities and Exchange Commission and Commodity Futures Trading Commission. Two Democrats joined the committee’s Republicans in passing the legislation, potentially putting it on a path to clear the full Senate.
   
• AML concerns: CEOs of the largest banks have held dozens of meetings or calls with senators on the legislation, according to a person familiar with the matter. The American Bankers Association called on banks across the U.S. to voice concerns. Lenders have also called for stronger antimoney-laundering rules in the bill and pointed to recent scandals that involve crypto.
   
• Next steps: The House already passed its version of the bill, so any differences with the Senate bill would need to be reconciled before President Trump could sign it into law.

Lawyers trade barbs on credibility of Elon Musk, Sam Altman in OpenAI trial.

Attorneys representing Elon Musk and OpenAI’s Sam Altman traded barbs in closing arguments in a blockbuster trial Thursday, linking the outcome of the case to the credibility of the world’s richest man and the leader of its most popular AI lab.

The statements close out the third week of the case, which is litigating the past—and potentially the future—of the AI revolution and has featured some of Silicon Valley’s most prominent voices.

It’s a more secret version of bitcoin and it’s on a tear.

Bitcoin pioneers are getting behind Zcash, a privacy-focused digital token, as bitcoin goes mainstream.

But authorities worry that terrorists and other malicious actors could use such privacy coins to evade sanctions and commit crimes. Regulators in some countries have prohibited or restricted the listing of privacy coins on licensed exchanges.

• California and Oregon have begun enforcing new state laws restricting corporate healthcare investors, leading to penalties and scrapped deals.
   
• Todd Blanche is wasting no time in his audition to be the next attorney general.
   
• Yale University’s medical school discriminated against white and Asian applicants, a Justice Department investigation found Thursday.
   
• U.K.-based yacht maker Sunseeker pleaded guilty to U.S. Justice Department charges of using illegally harvested Burmese teak on two multimillion-dollar vessels imported into the U.S., Risk Journal reports (free link)

Apple’s security has been tough to crack. Mythos helped find a way in.

Security researchers say they have discovered a new way of circumventing Apple’s state-of-the art security technology, using techniques they discovered while testing an early version of Anthropic’s Mythos AI software in April.

The researchers with Calif, a Palo Alto-based security research company, say the software they wrote links together two bugs and a handful of techniques to corrupt the Mac’s memory and then gain access to parts of the device that should be inaccessible.

• Pentagon leaders say they could start running out of money for operations this summer unless Congress passes a new wartime spending bill, warning that the services will have to cut back on training exercises and other priorities because of the war in Iran and troop deployments along the U.S. southern border.
   
• Xi Jinping has elevated Chinese industrial policy into something the world has never seen. It targets almost every industry and region, demand as well as supply, services as well as goods, the sophisticated and the mundane.
   
• An underappreciated surplus of crude oil, sloshing around storage tanks and aboard ships, cushioned the global economy when the Persian Gulf closed 2½ months ago. That excess supply is now dwindling at a record pace, with oil executives and analysts predicting that a harsh reckoning is set to upend the relative calm in energy markets.
   
• Cuba’s government said the country has completely run out of fuel oil and diesel needed to keep the lights on, with extensive blackouts sparking protests for the third day in a row this week.

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• Interactive Brokers is launching a platform where users can place yes-or-no bets through Kalshi, CME Group and its own ForecastEx, a boost to prediction markets’ efforts to woo institutional investors.
   
• Over 100 U.S. ambassador posts around the world are sitting empty in the Trump administration, a vacancy rate without modern precedent and one that some current and former officials warn is hamstringing U.S. diplomatic power abroad.
   
• Who wants to take a 32-mile walk around Manhattan? Everyone, apparently.

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