Good morning. The Treasury Department needs new laws authorizing the agency to interdict terrorist financing and sanctions evasion techniques that use cryptocurrency, a top agency official told a Senate committee.

Deputy Treasury Secretary Wally Adeyemo on Tuesday testified to the Senate’s Banking Committee that his agency has seen cryptocurrency used by Hamas, North Korea and the Russian military-industrial complex to avoid sanctions that hurt their access to the traditional financial system.

• A means to avoid sanctions: “They were going to turn to other means of financing that could, frankly, even be faster and harder for us to track in cryptocurrency,” Adeyemo said.
   
• Singling out tether: Adeyemo specifically named the use of the currency tether as being used as an alternative payment mechanism by Russia, as highlighted by a Wall Street Journal article last week.
   
• Treating crypto more like banks: The Treasury should treat crypto companies more like traditional banks, including potentially penalizing them for processing transactions for sanctioned individuals and imposing similar obligations to identify clients and monitor their transactions, Adeyemo said.

Norfolk Southern agrees to $600 million Ohio derailment settlement.

Norfolk Southern agreed to pay $600 million to settle lawsuits brought by individuals and businesses in connection with a toxic train derailment in Ohio early last year.

The proposed settlement announced Tuesday is pending approval in an Ohio federal court, according to the company and plaintiffs’ attorneys.

PCAOB proposes turnover metrics and other new disclosures for audit firms.

The Public Company Accounting Oversight Board wants audit firms to disclose metrics on the involvement and turnover of their auditors and provide new details on fees and cybersecurity vulnerabilities, in a pair of proposals aimed at standardizing the information provided to investors.

Audit firms currently must publicly identify the lead partner on the audits they perform and the other firms that helped with that work. Firms also annually share information such as a list of their public-company audit clients and the addresses of their offices.

• The European Court of Human Rights on Tuesday ruled in favor of a group of elderly Swiss women who argued that their government isn’t doing enough to fight climate change, in what is being seen as a landmark case in the fight against climate change.
   
• Chemical plants will have to curb certain emissions under a new rule aimed at slashing cancer risk for those nearby.
   
• A veteran Boeing engineer has filed a complaint with federal regulators alleging the company dismissed quality and safety concerns during production of its troubled 787 Dreamliner jets.
   
• Royal Bank of Canada is navigating the early innings of its integration with HSBC’s Canadian business without a permanent finance chief. On Friday, Chief Financial Officer Nadine Ahn was fired after an investigation found she engaged in an undisclosed relationship with an employee.

Artificial intelligence’s ‘insatiable’ energy needs not sustainable, Arm CEO says.

Chip-design company Arm made its name by devising ways to minimize smartphones’ power consumption and extend battery life. Now, the company’s head says the same push for energy efficiency is needed in artificial-intelligence applications.

More power needed. Without greater efficiency, “by the end of the decade, AI data centers could consume as much as 20% to 25% of U.S. power requirements. Today, that’s probably 4% or less,” said Rene Haas, chief executive of Arm. “That’s hardly very sustainable, to be honest with you.”

Russia and China double down on defying U.S.

Russia and China have pledged to deepen their growing alliance and shared opposition to what they describe as the U.S.’s attempts to dominate the world order, with Moscow again seeking to boost trade with Beijing as it looks for new ways to bypass the Western sanctions imposed for its war on Ukraine.

Countering U.S. power. Russia’s Foreign Minister Sergei Lavrov met with Chinese leader Xi Jinping in Beijing on Tuesday after the U.S. increased the volume of warnings that China should step back from helping the Russians pursue the war against their smaller neighbor. 

• China Plays Tense Game of ‘Russian Roulette’ With U.S. Ally
• China Pushes Back Against Janet Yellen’s Warnings on Overcapacity

• Arizona’s highest court on Tuesday revived a 160-year-old ban on abortion, a decision that ratchets up the political stakes in a state that could decide the 2024 presidential race.
   
• Follow the mountains and sunshine for the best job markets in America.
   
• Google is making more of its own semiconductors, preparing a new chip that can handle everything from YouTube advertising to big data analysis as the company tries to combat rising artificial-intelligence costs.
   
• Elon Musk’s Starlink satellite-internet devices are helping Russian fighters in Ukraine and paramilitary forces in Sudan; SpaceX hasn’t shut them off.

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