Government and Policy Sector
The U.S. government advanced new regulatory frameworks for digital assets while trade tensions eased slightly with a brief pause on Canadian tariffs. Simultaneously, major corporate entities like Disney and Apple faced regulatory challenges and legal battles spanning antitrust actions, First Amendment claims, and European compliance mandates. Federal agencies also expanded investigations, including a Department of Justice inquiry into board overlaps at prominent technology firms.
The US Office of the Comptroller of the Currency granted conditional approval for World Liberty Financial to establish a national trust bank. The newly formed World Liberty Trust Company will issue and redeem the firm's USD1 stablecoin in-house, taking over operations previously handled by BitGo Bank & Trust. The narrow charter authorizes the entity to manage reserves, custody digital assets, and settle payments, but excludes retail deposits and commercial lending. The OCC conditioned the approval on a minimum capital requirement of $20 million and other preopening terms. The decision immediately drew fierce pushback from lawmakers, with Senator Elizabeth Warren and nine colleagues introducing the Ending Presidential Corruption in Banking Act in response to the approval.
The Walt Disney Company and ABC sued the Federal Communications Commission in federal court on Tuesday, alleging that the agency's demand for early television license renewals violates the First Amendment. The lawsuit seeks to halt the accelerated review process, which covers eight Disney-owned stations originally scheduled for renewal between 2028 and 2031. ABC's 45-page complaint characterizes the regulatory action as a retaliatory campaign intended to punish the network for editorial content and viewpoints the administration dislikes. The FCC ordered the accelerated review in April, linking the move to an ongoing investigation into the company's diversity, equity, and inclusion practices. That directive followed public calls from President Donald Trump for late-night comedian Jimmy Kimmel to be fired over a joke about first lady Melania Trump. FCC Chairman Brendan Carr has maintained that the early license review is unrelated to First Amendment matters and focuses strictly on Disney's DEI practices under the Communications Act of 1934. ABC previously submitted its early renewal applications under protest, stating in May filings that it was responding to an unlawful and unconstitutional order. The network argues that if the administration succeeds in coercing its programming choices, every media company in the country will face pressure to broadcast only stories deemed favorable by the government.
President Donald Trump delayed a planned 50% tariff on nearly $20 billion of Canadian goods for three days after speaking with Prime Minister Mark Carney. The levy, which was scheduled to take effect Wednesday morning, targets consumer-oriented imports including wine, dairy, cement, clothing, and hockey equipment under Section 338 of the Tariff Act of 1930. While trade negotiators finalized documents on a potential agreement, sticking points remained over vehicle content rules and provincial bans on American alcohol sales. Canadian officials pressed for broader North American content rules to qualify for tariff reductions on autos, while Washington demanded that only US-produced parts count toward exemptions. Trump also suggested that a finalized agreement could revive the Keystone XL pipeline to transport 830,000 barrels of oil daily from Alberta to the United States.