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News this week

• SEC publishes Spring 2025 Regulatory Agenda (policy reset) : Sep 4
  The Chair’s statement outlines a refocus on innovation/capital formation, signals new rule proposals for crypto asset issuance/custody/trading, potential re-thinking of the Consolidated Audit Trail (CAT) after an Eleventh Circuit decision, and withdrawing a slate of prior-agenda items viewed as overbroad. For issuers and intermediaries, this is the clearest roadmap of what’s in vs. out for the next several months.

• Enforcement matter update - Enova order terminated (Sep 2).
  On Tuesday, the CFPB marked its 2023 Enova enforcement action as terminated on Sep 2, 2025, after Enova paid the $15M penalty, completed redress steps, and implemented required conduct provisions. This closes out a high-dollar case involving unauthorized debits and deceptive practices.

• TRAQS MFA change: SMS/voice factors sunset (posted Sep 2)
  FINRA confirmed it will discontinue SMS/voice MFA after Dec 31, 2025 for TRAQS and API Reference Data access. Firms must shift to Google Authenticator, Okta Verify (mobile/desktop FastPass), or SSO; no new SMS/voice enrollments after Sep 1, 2025. Plan user migrations and contingency factors now to avoid year-end access disruptions.

• CRA performance evaluations released - Sep 2, 2025
  OCC published CRA ratings for 11 institutions (e.g., Esquire Bank, N.A. - Outstanding; Chain Bridge Bank, N.A. - Outstanding; HSBC Bank USA, N.A. - Satisfactory). Useful for peer benchmarking and CRA exam planning.

• SAP on H.R. 4553 (Energy & Water Appropriations, FY2026) - posted Sep 5
  OMB’s Statement of Administration Policy (SAP) signals support for the House bill’s direction while flagging priorities: strong backing for nuclear modernization, fossil energy R&D and Title 17 loan authority; pushback on “excessive” EERE spending; and constitutional objections to committee-approval riders. This is your clearest read on the Administration’s stance as Energy, NNSA, Corps and Reclamation toplines move.

A thought from our Author Norm Osumi 

With the recent IPO of cryptocurrencies and exchanges, we’re seeing two governmental agencies needing to work closely together to develop relevant and meaningful rules that protect the investing public.  Below is a summary of recent actions taken by both the SEC and CFTC.

CFTC Leadership Statements & Initiatives

SEC-CFTC Policy Alignment Accelerates:
Acting CFTC Chair Caroline Pham and SEC Chair Paul Atkins jointly announced a “new era” of cooperation. Key regulatory harmonization topics include unified market definitions, capital rules, and innovation sandboxes. A joint SEC-CFTC roundtable is slated for Sept. 29.

Pro-Crypto Remarks from London:
Speaking before UK lawmakers, Pham declared the U.S. is entering a “Golden Age of Crypto.” She praised the administration’s regulatory roadmap, ongoing legislative momentum (e.g. the GENIUS and CLARITY Acts), and emphasized cross-agency efforts like “Crypto Sprint” as essential to keeping innovation onshore.

Enforcement Updates

$8.3M Sprint Settlements Finalized:
The CFTC closed a wave of technical violation cases across 10 firms. Citigroup, UBS, and others were fined for recordkeeping, reporting, and supervisory failures. Cooperation credits were granted, signaling a pragmatic end to legacy cases.

Spoofing Sanction Hits Trader and Firm:
Brett Falloon and Flatiron Futures Traders LLC settled spoofing charges related to equity index futures. The trader received a $200K penalty and a 12-month ban, reinforcing CFTC’s commitment to policing market manipulation.

Market Oversight & Structural Changes

Surveillance Tech Modernized with Nasdaq:
The CFTC has fully deployed Nasdaq’s market surveillance platform, replacing legacy tools from the ’90s. The system enables real-time cross-market fraud detection and automated alerts—an essential upgrade in the digital asset era.

New Criminal Referral Policy Adopted:
The Commission approved a policy clarifying when regulatory infractions rise to the level of DOJ criminal referral. This aligns with Executive Order 14294 and helps distinguish civil violations from criminal conduct more transparently.

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Curious about the future of trading? In our latest episode of ReportingNorms.ai, we dive into the world of tokenized stocks, where markets never sleep, barriers are lower, and trades settle in the blink of an eye. But what about the risks of volatility, fraud, and technical glitches? We break it all down so you know what’s hype and what’s real. Tune in to the full episode for an insightful look at the next wave of investing!

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