FINANCIAL INDUSTRY AND REGULATION

Eighteen States Sue SEC Over Crypto Regulation: The Hill reports that eighteen Republican attorneys general sued the Securities and Exchange Commission and Chair Gary Gensler late last week for allegedly overstepping the agency’s authority in its enforcement actions against the cryptocurrency industry.

Former SEC Chair Named Wall Street’s New Sheriff: Barron’s reports that President-elect Trump has chosen former SEC Chair Jay Clayton, a veteran corporate lawyer, for U.S. attorney for the Southern District of New York, the branch of the Justice Department that polices America’s financial capital.

DOL Retirement Income Lost and Found Started: PLANADVISER reports that the Department of Labor’s Employee Benefits Security Administration has started its data collection efforts to build the Retirement Savings Lost and Found database, an online search tool aimed at reconnecting American workers with retirement benefits they have lost track of over the years.

FINRA Drops DEI From its Website: Bloomberg Law reports that Financial Industry Regulatory Authority has quietly scrubbed its website of pages promoting the broker regulator’s racial justice and diversity, equity, and inclusion efforts amid a conservative backlash against DEI programs.

IRS Cuts Interest Rates: ThinkAdvisor reports that the Internal Revenue Service said Monday that interest rates for individuals for overpayments and underpayments will decrease 1% for the calendar quarter beginning Jan. 1 to 7% per year, compounded daily.

SEC Total Fines Up From Last Year: InvestmentNews reports that the SEC handed out increased total financial penalties to public companies and their subsidiaries in fiscal year 2024, including $1.5 billion in monetary settlements, compared to $1.3 billion in the previous period, but below the average between 2015 and 2023.

Judge Tosses SEC Treasury Dealer Rule: BNN Bloomberg reports that the SEC suffered another setback in efforts to tighten its oversight of Wall Street, after a federal judge in Texas struck down new rules that would have required some firms to register as dealers in the U.S. Treasuries market.

SEC Chair Says He Will Resign Jan. 20: The DI Wire reports that SEC Chair Gary Gensler announced he will leave the agency on Jan. 20, the same day as President-elect Donald Trump's inauguration.

POLICY AND LEGISLATION

GOP Plans Fast Action on Taxers, Other Priorities: Congressional Quarterly reports that Republicans are planning for a quick start on a filibuster-proof package of tax cuts and other top party priorities as soon as the new GOP-controlled Congress convenes in January.

House May Punt Spending Bills Until Next Year: Politico reports that House Speaker Mike Johnson (R-La.) said Republicans facing a Dec. 20 deadline may push for a short extension of federal funding into early 2025, which would allow the GOP to flex more control over government spending in the new Congress.

Dynamic Scoring Will be Used to Judge Tax Changes: Congressional Quarterly reports that as Republicans plot their legislative agenda for next year, they’re already mulling dynamic scoring methods that could be used to minimize the budget impact of trillions of dollars’ worth of tax cuts.