Good morning. The Supreme Court upended the federal regulatory framework in place for 40 years, expanding the power of federal judges to overturn agency decisions over environmental, consumer and workplace safety policy, among other areas.

• Precedent gone: The 6-3 decision, along ideological lines, discards a 1984 precedent directing federal courts to defer to agency legal interpretations when the statutory language passed by Congress is ambiguous. Conservative legal activists, Republican-led states and some business groups have argued in recent years that the 1984 case, Chevron v. Natural Resources Defense Council, allows agenda-driven regulators to push the limits of their power.
   
• Gives more room to overturn: By abandoning the doctrine called Chevron deference, the justices have given parties unhappy with agency decisions more opportunities to overturn regulations by persuading federal judges that agency officials exceeded their authority.
   
• Part of ongoing critique: Even before the decision, the conservative-dominated court had been hammering away at federal regulatory power, in opinions that threw out Biden administration policies ranging from public-health measures to contain Covid-19 to a blanket cancellation of student-loan debt. But while the Supreme Court hasn’t cited Chevron for authority in years, many lower courts said they remained bound by the doctrine as long as it remained on the books.

Also: Supreme Court Puts Biden Policies Like Net Neutrality and Ban on Noncompete Contracts at Risk

Monaco, Venezuela placed on global money-laundering watch list.

A global financial watchdog has censored Monaco and Venezuela for not doing enough to strengthen their anti-money-laundering and counterterrorist financing systems, reports Risk & Compliance Journal's Mengqi Sun.

The Financial Action Task Force, a Paris-based intergovernmental body that sets anti-money-laundering law standards, met last week in Singapore and added the two countries to its “gray list” of nations requiring increased monitoring. The FATF said it would work with the two countries to address the deficiencies identified in their anti-money-laundering systems.

SEC sues Consensys, alleges it is unregistered broker.

The Securities and Exchange Commission on Friday sued crypto firm Consensys Software, alleging that it violated rules that require it to register as a broker and illegally sold securities.

The agency said Consensys operated as an unregistered broker through its MetaMask Swaps platform, which let users directly exchange one cryptocurrency for another. Consensys has collected over $250 million in fees through its conduct as an unregistered broker, according to the complaint.

• Prosecutors plan to ask Boeing to plead guilty to deceiving air-safety regulators about a crucial aspect of the 737 MAX planes implicated in two disastrous crashes.
   
• The World Economic Forum, despite its lofty goals, has faced numerous accusations of sexual harassment and discrimination​ against women and Black people.
   
• The beginning of the end of Tractor Supply’s triangle diversity efforts started on June 6. That afternoon, Robby Starbuck, a former Hollywood director turned conservative activist, posted a message on the social-media platform X saying, “It’s time to expose Tractor Supply.”
   
• A key adviser to Alzheimer’s drug developer Cassava Sciences was indicted by a federal grand jury this week for allegedly submitting fabricated and falsified scientific data to obtain $16 million in grants from the National Institutes of Health.
   
• The Supreme Court has killed a common legal tactic used to reduce investors’ liability in bankruptcy cases, potentially putting private-equity firms at greater risk when companies they own fail.
   
• The Biden administration took a long-delayed step against tax evasion in cryptocurrency markets, though it left some work unfinished amid fierce lobbying by companies like Coinbase.
   
• The European Union is charging Meta Platforms with breaching its new digital-competition law by giving Facebook and Instagram users a choice of either paying a subscription fee or allowing the company to use their data for targeted advertising.

Even a slowly cooling labor market often ends with a recession.

The pandemic left the U.S. labor market badly overheated. Reopening businesses panicked at labor shortages, paying big raises to hire. As prices shot higher, fears rose of a wage-price spiral.

Recently, though, the labor market has cooled, and indeed, looks like something close to normal. Unemployment has crept up from a half-century low of 3.4% a year ago to 4% in May, consistent with what economists consider full employment. The Labor Department releases June data Friday.

The question now is whether the labor market is in a sustainable equilibrium where unemployment settles out around 4% or keeps softening, resulting in recession—as historically has occurred when unemployment rises much more than it already has.

• Slowing U.S. Inflation Fuels Expectations of Interest Rate Cuts

How Iran defied the U.S. to become an international power.

The winner of Iran’s presidential election will inherit domestic discord and an economy battered by sanctions, but also a strength: Tehran has more sway on the international stage than in decades.

Iran, under Supreme Leader Ali Khamenei’s leadership, thwarted decades of U.S. pressure and emerged from years of isolation largely by aligning itself with Russia and China, giving up on integration with the West and throwing in its lot with two major powers just as they amped up confrontation with Washington. 

Today, Tehran poses a greater threat to American allies and interests in the Middle East than at any point since the Islamic Republic was founded in 1979.

• Iran Election Goes to Runoff, Presenting Choice Between Engagement or Confrontation With West

• Starwood Capital Group’s move to severely tighten restrictions on investor withdrawals from its $10 billion real-estate fund is rippling through the $90 billion private real-estate fund business.
   
• European officials expressed worries about President Biden’s focus and stamina before Thursday’s debate.
   
• The cyberattack on software firm CDK Global that forced U.S. car dealerships to break out pen and paper to do business is putting a spotlight on other sectors critically reliant on just a handful of vendors.
   
• China’s manufacturing sector stayed in contraction for a second consecutive month in June.
   
• Marine Le Pen’s National Rally notched a victory in the first round of parliamentary elections across France on Sunday, according to projections.
   
• Governments should cut back on borrowing to ease one of the biggest threats to the stability of the global financial system and support efforts to tame inflation, the Bank for International Settlements said Sunday.

Insurers warn standardizing cyber policies could limit future coverage.

Insurers told a congressional hearing Thursday that they need the flexibility to determine what they will and won’t cover under cyber policies, saying they are still trying to understand the risks associated with cyberattacks.

Insurers have tightened underwriting standards and raised premiums for cyber policies in recent years, spooked by an increase in losses starting in 2019 as cyberattacks spiked during the coronavirus pandemic.

• Top Democratic leaders and donors urged the party on Sunday to stick with President Biden as their nominee.
   
• The Supreme Court is set to decide Monday whether Donald Trump must stand trial on charges he tried to subvert the 2020 election he lost to President Biden, a question fraught with political, legal and historic significance unlike any the justices have before confronted.
   
• Reynolds American new vaping brand boasts one big difference: It contains no nicotine.
   
• Lumber prices have tumbled into building season, a sign that residential construction and home-improvement markets are buckling under high borrowing costs.
   
• Amazon built a $2 trillion company through years of aggressive spending on its retail and logistics businesses. Its future gains will likely be determined by the billions designated to fund its artificial-intelligence push.
   
• The last-minute implosion of congestion pricing in New York, which was set to begin Sunday, shows the challenges of solving America’s most intractable problems.
   
• It is the era of importing power from faraway lands.

Follow us on X at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

You can reach us by replying to any newsletter, or email David at david.smagalla@wsj.com.