Good morning. A Supreme Court review of a decades-old regulatory precedent is threatening to complicate the Biden administration’s push to enact tough new rules on climate, gun ownership and financial markets.

The high court last week said it would reconsider Chevron v. Natural Resources Defense Council, a 1984 Supreme Court opinion that gives regulators legal cover to interpret ambiguous—and sometimes outdated—statutes.

The court’s conservative majority appears poised to overturn or narrow Chevron, a move that would weaken the Biden administration’s ability to defend its regulatory agenda, including a rule requiring public companies to disclose information on carbon emissions and climate risks.

• Why it matters: “It has been one of the most cited cases of all time,” said Cary Coglianese, an administrative law professor at the University of Pennsylvania. “When new technologies develop that are not directly addressed by pre-existing statutes, the Chevron doctrine has been really important for signaling to the courts to let regulatory agencies adapt.”
   
• SEC climate disclosure: “Clearly, opponents to the [climate disclosure] rule are going to raise every conceivable challenge,” said Jill Fisch, a securities-law professor at the University of Pennsylvania. “If Chevron is on the table, they will raise arguments that either it doesn’t apply, or that it is dead and that the court should play a greater role in examining the scope of the statutory mandate,” Ms. Fisch said.

The Risk & Compliance Forum on May 9 will feature speakers including Glenn Leon, chief of the fraud section at the Justice Department, Assistant Secretary for Export Enforcement Matthew Axelrod, Elizabeth Atlee, chief ethics & compliance officer at CBRE and Sidney Majalya, chief risk officer at Binance.US. You can register here.

EU targets eight Chinese companies in Russia sanctions push. 

The European Union is considering sanctioning eight Chinese companies over Russia’s war in Ukraine, diplomats said, with the bloc looking to target firms they believe have provided Moscow electronic items, including semiconductors, that can be used for military purposes.

The proposed listings are part of an 11th package of sanctions against Russia over its invasion. The new measures center on efforts to prevent the circumvention of Western sanctions by Russia and its military, a central plank in the effort by European and U.S. policy makers to weaken Russia’s economy and crimp the revenue the Kremlin has to continue its war effort.

• Toronto-Dominion Bank’s handling of suspicious customer transactions was behind regulators’ refusal to bless the Canadian lender’s $13.4 billion bid to buy First Horizon, according to people familiar with the matter.
   
• Two separate schemes that allegedly defrauded student-loan borrowers of $12 million after promising them debt relief have been halted by a federal court, the Federal Trade Commission said Monday.

China signals spying fears amid probe of consulting firms. 

China signaled through state-run media that its national security agencies are engaged in a nationwide investigation into whether the due-diligence industry that has grown up to serve Western businesses in the country has been used for foreign espionage.

State broadcaster China Central Television and other official news outlets said that amid Western pressure on China, profit-oriented consulting firms sometimes have a weak awareness of the country’s national security concerns, and had frequently operated at the edge of legality to gather information in sensitive sectors of the military, the defense industry, the economy and finance. CCTV said some consultants in China have caused harm to national security, ultimately becoming accomplices to the West in “spying, buying and extorting state secrets and intelligence.”

Backlash builds against $3 trillion clean-energy push.

The federal government has ignited a green-energy investment spree that’s expected to reach as high as $3 trillion over the next decade. The road to spending that money, though, is increasingly hitting speed bumps from the likes of Gerry Coffman.

About an hour southwest of Kansas City, she turned down a wind lease last year on a farm that has been in her family since 1866. Someone knocked on her door a few months later, paperwork in hand, and offered $6,000 to hang a wind-power transmission line across her land. If she agreed to store construction equipment, she stood to make an additional $4,000. Ms. Coffman said no.

• Bittrex Inc., once among the country’s biggest crypto trading platforms, filed for bankruptcy Monday after being sued by federal securities regulators and winding down its U.S. operations.
   
• As the U.S. tries to stop the illegal flow of dollars into Iran, local money traders next door in Iraq are finding new ways to get hold of greenbacks as the local supply dries up.
   
• Walt Disney Co. has fired back at Florida Gov. Ron DeSantis and his Republican allies in the state legislature.
   
• Investors are pouring funds into companies specializing in generative AI systems. Many of the companies getting backing are new and unproven.
   
• High-tech banks are grappling with a rise in an old-fashioned crime: Check fraud. Banks are working to reimburse victims more quickly, but recouping funds is complicated.

• The gunman authorities said was responsible for the deaths of eight and injuries to seven others in Allen, Texas, was terminated by the Army three months after he enlisted in 2008, never even finishing basic training.
   
• Ukraine said Monday that it shot down more than two dozen drones above Kyiv overnight, as Russia intensifies strikes that seek to degrade its rival’s air defenses ahead of an expected offensive by Kyiv.
   
• The Biden administration intends to propose a new rule that would require airlines to compensate passengers when flight plans change drastically due to causes within the carriers’ control, President Biden said Monday.