US financial regulators

Kalshi, the US prediction market operator, is expanding into sports betting, a move that regulators and industry watchers say stretches the legal boundaries of what prediction markets are allowed to offer. The company argues its contracts are regulated financial instruments, while critics view them as unlicensed sports wagering. The dispute could shape the future regulatory treatment of event contracts in the United States.

UBS has been fined $125 million by US regulators, an amount analysts see as a signal of a broader hardening in Washington's approach to financial enforcement. The penalty suggests US authorities are taking a tougher stance toward major international banks, with commentators watching whether this marks the start of more aggressive supervision of the sector.

TikTok has agreed to pay at least $100 million to settle a lawsuit with the US state of Alabama. The settlement marks another legal and financial setback for the company in the United States, where it faces ongoing scrutiny from state attorneys general and federal regulators over its operations and practices.

US health insurers warn that AI-driven medical billing and coding could add billions of dollars in unnecessary claims and raise overall healthcare costs. Medical billing and coding companies reject the claim, arguing that AI improves accuracy and efficiency rather than driving up spending. The dispute comes as regulators and providers weigh how quickly artificial intelligence should be adopted across the healthcare revenue cycle.

The Conference of State Bank Supervisors has announced a new AI supervisory framework covering state-chartered banks and nonbank financial institutions. The framework is intended to guide how state regulators oversee the use of artificial intelligence in financial services, adding to growing regulatory attention on AI across the US financial sector.

Efforts to pass the Clarity Act, a bill to set clear US rules for crypto markets, have stalled amid political tensions tied to the Trump family's growing crypto ventures. Critics say the family's financial interests in digital assets have complicated negotiations, giving Democrats reason to resist and Republicans reason to defend, leaving the legislation in limbo on Capitol Hill.

A federal court has ruled that prediction market operator Kalshi is subject to Tennessee's gambling laws in relation to its sports event contracts. The decision means the company cannot treat its sports offerings as federally regulated financial products exempt from state gambling regulation in Tennessee. It marks a setback for Kalshi's efforts to expand sports event trading across US states and could prompt similar challenges elsewhere.