Shares of banks and other financial institutions fell as Fitch cut its rating on U.S. government debt. Regulation was in focus.

Implementation of a law to catch crypto tax cheats is delayed inside the Treasury Department, putting billions of dollars in federal revenue at risk and frustrating members of the president's own party.

The department missed its first deadline to implement a 2021 law in time for the current tax year. Now, following further delays, it might be close to too late for tax year 2024.

Private-equity and hedge funds are bracing for what could be the biggest regulatory challenge in years to their business of managing money for deep-pocketed investors.

The Securities and Exchange Commission is preparing to adopt a rule package as soon as this month aiming to bring greater transparency and competition to the multitrillion- dollar private-funds industry, people familiar with the matter said.

Jeff Schmid, a former banking regulator and executive, will become the next president and chief executive of the Federal Reserve Bank of Kansas City, the bank said.

Meanwhile, shares of Country Garden Services Holdings jumped after the company said it plans to buy back shares from the open market, signaling confidence in its growth prospects.


Write to Amy Pessetto at amy.pessetto@dowjones.com

(END) Dow Jones Newswires

08-02-23 1717ET