Crypto News: Birthright fight begins

Attorneys general from almost half of US states sued President Donald Trump over his executive order seeking to end birthright citizenship. The immigration policy, widely seen by legal scholars as being enshrined in the US Constitution, guarantees American-born children are citizens regardless of their parents' status.

The executive order—one of a slew made shortly after the Republican's return to the White House Monday—seeks to upend more than a century of legal precedent. The order, if upheld by the courts, would also apply to those in the US legally, but only temporarily, such as tourists, students, and those on work visas.

Some 18 Democratic attorneys general sued Trump in federal court in Massachusetts, while another coalition of four states filed a similar lawsuit in Seattle, marking the first steps in what's sure to be a long legal battle over Trump's immigration policies that will likely end in the US Supreme Court. Birthright citizenship has long been considered to be guaranteed by the 14th Amendment to the Constitution, which states that "all persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States." —Jordan Parker Erb

What You Need to Know Today

Meanwhile Trump, alongside the chief executives of Softbank, OpenAI and Oracle, announced a new investment push for artificial intelligence. Softbank's Masayoshi Son, OpenAI's Sam Altman and Oracle's Larry Ellison joined Trump on Tuesday afternoon to unveil an initial $100 billion investment into AI infrastructure—which could scale up to $500 billion over the next four years. A day earlier, Trump rescinded former President Joe Biden's sweeping executive order on AI—immediately halting the implementation of key safety and transparency requirements for AI developers.

US President Donald Trump, left, speaks in the Roosevelt Room of the White House with SoftBank CEO Masayoshi Son, Oracle CTO Larry Ellison and OpenAI CEO Sam Altman on Tuesday. Photographer: Andrew Harnik/Getty Images

Goldman Sachs announced a major revamp. The bank, which just reported a surge in profits, ushered in its next generation of leadership, tapping new global leaders for its equities, fixed-income and banking units. Erdit Hoxha, Cyril Goddeeris and Dmitri Potishko will oversee equities; Kunal Shah, Anshul Sehgal and Jason Brauth are set to run fixed income; and Kim Posnett, Matt McClure and Anthony Gutman will lead banking. The changes are the most significant elevation of Goldman's future leadership outside of Chief Executive Officer David Solomon's core team in recent years.

Brevan Howard cut about 7% of its trading workforce after two of its main hedge funds underperformed relative to peers last year. The terminations are said to have affected roughly a dozen traders from Brevan Howard's offices globally, spanning New York, London and Abu Dhabi, leaving about 150 traders. The macro trading firm eliminated the current batch of traders as part of its twice-a-year review after making similar cuts last year.

TD Eyes Selling $9 Billion of Mortgages as It Faces Asset Cap

Toronto-Dominion Bank is looking to sell about $9 billion of residential mortgage loans as the Canadian lender adjusts its balance sheet to comply with a new cap imposed by US regulators, part of a plea agreement reached last year for its role in failing to prevent money laundering.

Read the Story

At least seven Palestinians were killed by Israel in the West Bank on Tuesday and another 35 people were injured, according to the Palestinian health ministry. The Israeli military confirmed the attacks but provided no further details. Israeli Prime Minister Benjamin Netanyahu said in a statement the actions in the West Bank are aimed at what he called Iran-backed militias in the territory. The bloodshed in Jenin stoked fears that Israel's attention is shifting from Gaza to the West Bank, the larger of the two Palestinian territories, following Sunday's Gaza ceasefire. Also on Tuesday, Israel's top general and his Gaza commander resigned over their failure to prevent the 2023 Hamas attack that triggered the war.

Walgreens shares tumbled after the US sued the company last week, claiming its pharmacists filled millions of prescriptions that lacked a legitimate medical purpose and then sought reimbursements from federal health programs. The stock fell as much as 14% Tuesday in New York, the most intraday since June, before closing down about 9%. They had lost 44% in the 12 months through the close on Friday, when the suit was announced.

Three small fires were reported early Tuesday in San Diego County, forcing evacuations and threatening structures. The Lilac fire has burned at least 80 acres (32 hectares) in the hills northeast of Carlsbad, while crews were able to quickly curb smaller blazes that sparked nearby. Meanwhile, firefighters have made significant progress against the Eaton and Palisades fires in Los Angeles, which have all but stopped growing. Still, the area isn't out of the clear—seasonal Santa Ana winds will blast a large swath of the state through at least Thursday, creating critical fire weather from northern Ventura County and Los Angeles County to the US-Mexico border.