The Federal Reserve Bank of New York's chief risk officer warned that automating the entry-level work that trains future bank leaders could hollow out leadership pipelines and institutional memory within five to seven years.

New York's Attorney General sued another prediction market operator for allegedly running an unlicensed gambling business that accepted wagers on sports, elections, and entertainment outcomes.

The Federal Reserve's Division of Supervision and Regulation issued an updated Statement of Supervisory Operating Principles directing examiners of all Board-supervised banking organizations to act more promptly on material safety-and-soundness risks and rely less on duplicative supervisory work, following an independent review that faulted supervisors' handling of Silicon Valley Bank.

The Federal Reserve Board proposed reserve, capital, and risk-management rules for the stablecoin issuers it supervises, along with an application process for state member banks to issue stablecoins through subsidiaries.

All eleven Democratic members of the Senate Banking Committee urged Chair Tim Scott (R-SC) to hold a public hearing on prediction markets rather than a reported Republican-only roundtable with industry executives.