The Cynic: May 28

BUSINESS
This Week’s Business News

U.S. Banks Tiptoe Toward Crypto, Awaiting Regulatory Clarity

Banks are cautiously exploring the crypto market.
Major U.S. banks are considering pilot projects and partnerships in the cryptocurrency space, encouraged by more favorable regulatory signals under President Donald Trump's administration. Institutions like JPMorgan Chase, Bank of America, and Morgan Stanley are particularly interested in custody services. However, uncertainties over anti-money laundering rules and inconsistent regulatory guidance are slowing broader adoption.

Regulatory ambiguity remains a hurdle.
While the U.S. Office of the Comptroller of the Currency has authorized limited crypto engagements, and the SEC has eased some cost-related barriers by changing accounting rules, banks are still seeking clearer and unified regulatory frameworks. Without proper representation from banking regulators in crypto policy discussions, large financial institutions remain hesitant to fully commit.

A joint stablecoin is under consideration.
Some banks are even discussing the possibility of launching a jointly issued stablecoin. However, these talks are in preliminary stages and subject to change. The consortium could potentially allow other banks to use the stablecoin as well, but the lack of regulatory clarity continues to be a significant barrier.

Indonesia's Antitrust Agency Flags Monopoly Risk in TikTok-Tokopedia Merger

Regulators express concerns over market dominance.
Indonesia's antitrust agency has raised concerns that TikTok’s acquisition of a majority stake in Tokopedia, the country’s largest e-commerce platform, presents a risk of creating a monopoly. The deal, finalized in January 2024, allowed TikTok—owned by China's ByteDance—to acquire 75.01% of Tokopedia from GoTo for $840 million.

Potential impact on digital commerce sector.
This consolidation of market power has prompted regulatory scrutiny over potential monopolistic effects on Indonesia's digital commerce sector. The agency's findings suggest that the merger could limit competition and harm consumer interests.

Further investigations may follow.
The antitrust agency's concerns could lead to more in-depth investigations and possible regulatory actions to ensure fair competition in the market. The outcome of this scrutiny will be closely watched by stakeholders in the digital commerce industry.

Texas Enacts Age Verification Law for App Stores

New law requires age checks for app downloads.
Texas is set to enforce Senate Bill 2420, mandating age verification on Apple and Google app stores. The bill, awaiting Governor Greg Abbott's signature, would require app store providers to confirm device users' ages and secure parental consent for those under 18 to download apps or make in-app purchases.

Tech companies express privacy concerns.
Apple and Google have criticized the bill, arguing that it imposes excessive data collection requirements on uncontroversial apps and prefer selective age data sharing. Meanwhile, child safety advocates support the legislation, citing the failure of industry self-regulation.

Potential national precedent.
The bill could set a national precedent, intensifying the debate between tech companies' privacy concerns and legislative efforts to protect children online. Similar legislation has been introduced in other states and at the federal level, reflecting growing bipartisan support for child online safety.

REAL ESTATE
This Week’s Real Estate News

New Home Sales Rise in April Despite High Mortgage Rates

Affordable homes drive unexpected sales increase.
Sales of newly built, single-family homes saw an unexpected boost in April, despite stubbornly high mortgage rates and slipping consumer confidence. The increase was fueled by a higher share of homes sold for under $400,000, indicating that affordability remains a key factor for buyers.

Median sales price remains steady.
The median sales price of new houses sold in April 2025 was $407,200—essentially flat since last month, but about 2% below last April. This stability in pricing, combined with the availability of more affordable homes, contributed to the rise in sales.

Builders adapt to market conditions.
Homebuilders are adjusting their offerings to meet the demand for more affordable housing options. This strategic shift appears to be paying off, as evidenced by the uptick in new home sales despite challenging economic conditions.

Existing-Home Sales Dip Slightly in April as Supply Hits 5-Year High

Sales decline amid growing inventory.
Existing-home sales fell 0.5% last month from March, slipping to a seasonally adjusted annual rate of 4 million. This decline comes as the supply of homes on the market reached a five-year high, indicating a shift in the housing market dynamics.

Price growth shows signs of cooling.
The cooling of price growth suggests that the market is adjusting to the increased inventory levels. Buyers now have more options, which could lead to more competitive pricing and potentially more favorable conditions for purchasers.

Market outlook remains cautious.
While the increase in inventory provides more choices for buyers, the slight dip in sales indicates that challenges remain in the housing market. Factors such as mortgage rates and economic uncertainty continue to influence buyer behavior.

Homebuilder Confidence Drops as Price Cuts Increase

Builder sentiment hits two-year low.
Builder confidence in the market for newly built single-family homes dropped 6 points in May, to 34, matching a two-year low. This decline reflects the challenges builders face in the current economic environment.

Price cuts become more common.
The share of homebuilders offering price reductions rose to 34% in May, up from 29% in April and the highest level since December 2023. These price cuts are a response to the need to attract buyers amid high mortgage rates and affordability concerns.

Outlook remains cautious.
Despite efforts to stimulate sales through price reductions, builders remain cautious about the market's future. Economic factors and buyer hesitancy continue to impact builder confidence and sales strategies.

BREAKING NEWS
This Week’s Headlines

1. Russia Launches Largest Attack on Kyiv in Months, Then Swaps Prisoners
Ukraine reports over 70 missiles and drones launched at Kyiv—followed by a surprise prisoner exchange that feels a little like sending flowers after breaking the windows.

2. Israel Faces Mounting Pressure From Allies Over Gaza War
U.S. and European allies are pushing Israel for a ceasefire deal as the Gaza war drags on—while Netanyahu’s coalition pulls in the opposite direction.

3. Russia Creating ‘Buffer Zone’ at Ukraine Border, Claims Land Is Now Security Policy
Moscow says it's clearing Ukrainian towns near the border to protect Russian territory, while the West says it looks a lot like an old-school land grab with a PR facelift.

4. Georgia Man Dies in Police Custody After Telling Officers He Couldn’t Breathe
Qaaadir Lewis begged officers for help before collapsing in a jail cell; state officials are now investigating, again.

5. Kim Kardashian Cleared of All Charges in Paris Fashion Week Lawsuit
A French court ruled in favor of Kim K after she was accused of breaching fashion event contracts—proving yet again that designer drama can go all the way to court.

FUN
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ADVICE
This Week’s Business Advice

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