This is a published version of the Forbes Daily newsletter, you can sign-up to get Forbes Daily in your inbox here.
Good morning,
Come on Barbie, let’s go party. Airbnb is giving away a free stay at a life-sized Malibu Dream House in California, in partnership with the highly-anticipated Barbie movie.
The “Ken-themed” mansion on the beach in Western Malibu is pink from floor-to-ceiling and features toy-inspired decor, an infinity pool and a wraparound balcony, but it’s privately-owned and not usually used for Airbnb rentals. Just two guests will be able to stay at the Dream House, which oddly does not include a kitchen and only has one bedroom, according to its listing.
Booking for the property opens July 17 at 10 a.m. Pacific Time.
BREAKING NEWS
“Presumed human remains” were recovered from the debris of the OceanGate submersible that imploded on an expedition to see the Titanic wreckage, the Coast Guard announced Wednesday, the same day debris from the vessel was returned to land. News of the possible remains comes after experts expressed doubt about what could be recovered.
Federal debt will grow to a record 107% of GDP by 2029 and 181% by 2053, far exceeding all previously recorded levels, the Congressional Budget Office predicted. If such debt materialized, economic growth would slow, interest payments to foreign investors would increase and threats to the fiscal and economic outlook could develop, the CBO warned.
BUSINESS + FINANCE
The Nasdaq has gained 30% year-to-date, on track for its best first half of the year ever despite a dreadful 2022. The flagship tech index is surging in part because the rise of artificial intelligence brings excitement to the sector.
The Senate is investigating whether two dozen companies, including Burger King, Pizza Hut, H&R Block and Jimmy John’s, avoided giving employees overtime pay by doling out inappropriate job titles. A report found the companies are exploiting a federal law that allows them to avoid paying overtime wages for employees coined “managers,” saving them roughly $4 billion in overtime payments per year.
TECH + INNOVATION
Smartphone startup Nothing raised $100 million, and cofounder Carl Pei says his goal is to create “intentional smartphone usage.” The company has shipped more than 1.5 million phones and earbuds.
TuSimple, a leading developer of autonomous driving technology for heavy-duty trucks, is looking to sell its U.S. business as the San Diego-based company faces turmoil. Autonomous driving has proved to be more challenging to perfect than many of its advocates anticipated.
MONEY + POLITICS
Yevgeny Prigozhin, leader of the mercenary Wagner Group, planned to capture two of Russia’s top military leaders during his armed rebellion last weekend—before the Russian intelligence service learned of the plan, Western officials told the Wall Street Journal. He planned to capture Defense Minister Sergei Shoigu and Gen. Valery Gerasimov, the chief of Russia’s general staff, both of whom Prigozhin has criticized for their handling of the Ukraine invasion.
President Joe Biden has started using a CPAP machine to treat sleep apnea, adding to the growing concerns around the president’s health as he enters his reelection bid. The statement from the White House explains marks from straps that were seen on both sides of his face earlier this week.
SPORTS + ENTERTAINMENT
Gymnastics superstar Simone Biles will compete for the first time since withdrawing from the Tokyo Olympics in 2021 and bringing awareness to athletes’ mental health struggles. Biles is set to participate in August in the U.S. Classic, a qualifier for Nationals, which is used alongside the U.S. Olympic Trials to select the nation’s Olympic team.
Madonna postponed her “Celebration” tour set to begin next month after being hospitalized with a bacterial infection. The pop singer’s health is improving and she is expected to make a full recovery, her tour manager said.
DAILY COVER STORY
SEC Suits Say Nearly 70 Cryptos Are Securities But Proving It Will Be Difficult
TOPLINE In the last few months, the SEC has labeled dozens of cryptocurrencies as securities as it cracks down on the digital assets industry, but provided very little explanation for how they came to that conclusion.
If the cryptos fall in the legal definition of a security, it would require the issuers to register them with the SEC or meet the requirements for an exemption. The SEC is suing crypto exchanges Binance and Coinbase, alleging they operated as unregistered exchanges.
With the addition of tokens named in its lawsuits against the two prominent crypto exchanges, the number of assets the agency deems securities is at least 65, according to Berenberg, a Hamburg-based bank, including major cryptocurrencies such as bnb, busd, cardano, solana and polygon. They collectively account for more than $100 billion in market value.
“By naming such a broad swath of differentiated tokens, the SEC is effectively signaling to the market that it regards most tokens as securities,” says Mike Selig, counsel at New York-based law firm Willkie Farr & Gallagher.
SEC Chair Gary Gensler has said the “vast majority” of crypto tokens meet the Howey test, a set of standards used to determine whether a transaction qualifies as an investment contract and is thus considered a security. An “investment contract” exists when there is the investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.
“We will likely continue to see new tokens offered and sold as non-securities under new legal theories until the SEC or Congress steps in to create a workable regulatory framework for crypto asset securities,” Selig says.
WHY IT MATTERS “The clampdown has been costly to the digital-assets industry,” says Forbes reporter Nina Bambysheva. “The 19 cryptocurrencies named in the SEC’s cases against Binance and Coinbase have lost a combined $5 billion in value since the filing of the complaints in early June and include major tokens such as bnb, busd, cardano, solana and polygon, which collectively account for more than a $100 billion in market value—a sizable chunk of the $1.2 trillion industry. As the crackdown intensifies, crypto companies are exploring plans to expand internationally and possibly move entirely. For example, last month, Coinbase opened a business in Bermuda.”
MORE Binance Judge Seeks To Avoid U.S. Asset Freeze, But Crypto Exchange Faces Lengthy Court Slog; Criminal Charges Are Possible
FACTS AND COMMENTS
As a heat wave scorches across the South, nine people have died in the last eight days because of heat-related illnesses in Webb County, Texas. Power use in the state reached an all-time high:
115 degrees: Laredo, Webb County’s largest city, tied its record high on June 19
Nearly 90 million: Number of people nationwide under heat alerts
Over 600: Number of Americans killed by extreme heat annually, per the CDC
STRATEGY AND SUCCESS
If you are or plan to become pregnant, a new federal law will likely require your employer to provide reasonable accommodations pertaining to childbirth, pregnancy or other related health conditions, unless the accommodation causes the employer “undue hardships.” Examples of reasonable accommodations include closer parking, additional break time for restroom breaks, time for eating and resting, the ability to sit and drink water and the right to be excused from participating in strenuous tasks.
VIDEO
QUIZ
A TikTok trend is going viral where users try a new purple milkshake and pretend to suffer a gruesome death or be possessed by demons as a result. Where is the milkshake from?
A. Shake Shack
B. Chick-fil-A
C. Wendy’s
D. McDonald’s
Check your answer.
ACROSS THE NEWSROOM
- Planning a summer vacation? Get our Passport newsletter for inspired escapes and insider tips. Sign-up here.
Thanks for reading! Follow along with us on Twitter for by-the-minute updates on the latest business and financial news throughout the day.
Read the full article here