The SEC reached a settlement to resolve its unregistered securities trading claims against cryptocurrency exchange Gemini Trust Co. This follows a pattern of the SEC surrendering to the crypto industry.

The CFTC withdrew a 2024 proposal that would have established governance and fitness requirements concerning market regulation functions and related conflict of interest standards. Enhancing market integrity by establishing robust governance fitness standards and comprehensive conflict of interest regulations are crucial for maintaining fair and efficient markets.

The CFTC withdrew guidance on requirements related to recovery and orderly wind-down and resolution planning for derivatives clearing organizations (DCOs). Requiring firms to have recover and wind-down plans is critical for safeguarding the integrity and stability of the financial system.

The CFTC withdrew a 2024 proposal that would have required merchants and swap dealers to maintain an operational resilience framework to protect against a broad set of risks, including from cybersecurity and third-party vendors. To truly protect our financial markets, we must ensure that all firms, domestic and international, adhere to the highest standards of operational and cybersecurity resilience.

The CFTC withdrew 2024 guidance on the listing for trading of voluntary carbon credit derivative contracts. A framework that enhances trust and oversight in carbon credit trading markets is essential for ensuring that voluntary carbon credits play a meaningful role in combating climate change.

The FSOC said it would not be using its authority to designate shadow banks for Federal Reserve supervision, said it would eliminate work related to climate-related financial risk, and cut its budget which will hamper all its workstreams going forward.

In a historic dereliction of duty, the FSOC voted on several changes that will abandon its statutory mandate to protect the economy, banking system, and American people from financial risk. First, it said that it would not be using its designation authority to oversee shadow banks’ activities. Second, it eliminated work and committees to oversee climate-related financial risk, a known threat to banks, the economy, and all Americans. Third, it cut its operating budget, which will further prevent it from fulfilling its legislatively mandated mission.