Eliminating supervisors will leave the SEC with an inexperienced staff unable to best protect investors.

The SEC and CFTC issued a joint statement saying that SEC and CFTC-registered exchanges are not prohibited from facilitating the trading of certain spot crypto asset products.

The guidance paves the way for the trading of crypto asset products without sufficient investor protections.

The CFTC issued guidance outlining a registration framework that allows offshore cryptocurrency exchanges involved in derivatives trading to operate in the United States as Foreign Boards of Trade (FBOTS).

Extending U.S. market access to offshore exchanges, particularly ones with a history of misconduct (ex. Binance) raises investor protection concerns.

Our economy and financial system depend on the Fed’s independence. The fact that the U.S. is the safest and largest financial market in the world, dominating virtually all global transactions due to its size, liquidity, safety, creditworthiness, and financial stability, is because of the trust that the world has in the ability of the Fed to do its job.

Trump’s baseless attempt to fire Governor Cook has nothing to do with her qualifications to carry out her duties as a member of the Board of Governors and everything to do with Trump’s mission to take control of the Fed and interest rates. Moreover, Trump’s attacks on the Fed are not happening in a vacuum; they are happening alongside a wave of misguided, deregulatory actions that will shift even more money and power to Wall Street and crush the most vulnerable on Main Street.

FDIC issued an NPR to make further changes to Deposit Insurance signage requirements and delay implementation to 2027. Consumers rely on clear and trustworthy signage to indicate when their money is protected by FDIC insurance. The expansion of online and mobile delivery channels has led to a need to expand and clarify signage requirements to be sure that customers are informed about protections. Moreover, changes are needed to protect against crypto and fintech companies that are not FDIC insured but misrepresenting that coverage to consumers.

In 2023, a final rule was issued that addressed these needs. However, its implementation was delayed twice (here and here). Now, the FDIC has started over with a new rulemaking that would not be implemented until 2027 and would further relax signage requirements for online and mobile platforms. Both changes favor the banks with less stringent requirements and open the door to more consumer harm and misinformation.

Federal Reserve ended its “novel activities” supervision program, which focused on crypto and fintech risks at banks. In August 2023, the Fed recognized that crypto and fintech activities in banks were leading to new risks. The Fed created the Novel Activities Supervision Program to “ensure that the risks associated with innovation are appropriately addressed.”

Now, the Fed has ended this program, claiming that these risks can be addressed through normal supervisory processes. This is a dangerous and short-sighted decision because it minimizes the harm that can arise from new technological developments and hinders the interdisciplinary focus on such risks at the Fed, thereby putting the economy, financial system, and Main Street America at risk of harm from future developments that are not well understood.