Axios

The chief U.S. regulator of increasingly popular prediction markets says he'll treat them as financial products, arguing that most people aren't using prediction markets for "entertainment."

Why it matters: Prediction markets like Kalshi and Polymarket are soaring in popularity, and most of their trading volume is on sports — fueling a growing fight with state gambling regulators.

Food and Drug Administration Commissioner Marty Makary is stepping down after a turbulent 13-month term marked by organizational upheaval, controversies over drug approvals and tensions with the White House.

• Kyle Diamantas, the agency's deputy commissioner for food, will serve as acting commissioner, President Trump posted on Truth Social.

As the U.S. and China barrel ahead in their quest for AI supremacy, their race could come at the expense of global cybersecurity.

Why it matters: The U.S. and China both have an interest in preventing each other from weaponizing AI tools against them or letting rogue systems into the wild.

The White House will offer line-by-line detail on its $1 billion plan for its East Wing renovation project during a Senate Republican lunch on Tuesday afternoon, Axios has learned.

Why it matters: The administration is making the case that the project isn't simply about funding a new White House ballroom, as Democrats have claimed, but rather that it will also fund a broad array of new security measures.

Rep. Jen Kiggans (R-Va.) is facing calls to resign from Democratic colleagues who say she expressed agreement with a radio host's remark that House Minority Leader Hakeem Jeffries (D-N.Y.) should get his "cotton-picking hands off of Virginia."

Why it matters: Kiggans, who denied agreeing with or condoning the language, is facing one of the most hotly contested reelection battles in the country.

Yale University has long been a private markets trailblazer and ally, thanks to its alts-heavy endowment model.

• Now it may become a taxblazer, much to the private market's chagrin.

Driving the news: Yale's Budget Lab, a nonpartisan policy research center, recently published an analysis that argues that changing the tax treatment of carried interest could generate over $100 billion in new federal revenue over the next decade.

Consumer prices continued to surge in April, led by higher energy prices, the government said on Tuesday.

Why it matters: The April report shows that inflationary pressures tied to the Iran war are seeping into consumer prices, making it difficult for the Federal Reserve to cut interest rates just as President Trump's pick is set to take the helm of the central bank.

President Trump's endorsement of suspending federal gas taxes pushes the idea higher on the political radar, but it still faces long odds.

Why it matters: Some Republicans rushed to introduce bills, and a few Democrats have already endorsed the idea — but there are still serious obstacles that could keep Trump's comments from becoming reality.

The Strait of Hormuz has been closed for 10 weeks now — a once unthinkable shock to the world economy — yet global oil prices aren't nearly as high as many people had expected.

Why it matters: The relatively restrained price movement helps explain why the global economy is holding up so far.

Las Vegas has long been known as Sin City for its 24/7 access to all kinds of indecencies.

• America is quickly becoming Sin Nation. Or, as President Trump put it while discussing prediction markets in the Oval Office last month: "The whole world, unfortunately, has become somewhat of a casino."

Why it matters: Once-forbidden vices — weed, gambling and porn — are no longer confined to back alleys or the desert.