FINANCIAL INDUSTRY AND REGULATION

FINRA’s Brokerage Expulsion Power Dealt Blow by Appeals Court: Wealth Management reports that the Financial Industry Regulatory Authority must let the Securities and Exchange Commission weigh in before it can cast out one of its members, a three-judge panel of the U.S. Court of Appeals for the District of Columbia ruled on Nov. 22.

Another Democrat to Leave SEC: Decrypt reports that a day after SEC Chair Gary Gensler announced that he plans to resign once Donald Trump becomes president, another Democrat, Jaime Lizárraga, who has served as a commissioner since 2022, said he will step down on January 17, 2025, creating a GOP majority.

Alt Fundraising Increasing: The DI Wire reports that investment banking firm Robert A. Stanger & Co. has moved its projection for alternative investment fundraising in the retail channel for the full year 2024 from $115 billion to $120 billion.

Eleven States Sue Investment Firms Over ESG: InvestmentNews reports that 11 Republican-led states have filed a federal lawsuit against BlackRock, Vanguard, and State Street, accusing the firms of exerting illegal influence on energy companies in pursuit of ESG climate advocacies.

First 24-Hour Trading Exchange Approved: Benzinga reports that U.S. regulators approved the nation’s first 24-hour stock exchange on Nov. 27, marking a significant shift in American securities trading as retail investors increasingly demand round-the-clock market access.

Qualified Opportunity Zones Surged in 3rd Quarter: The DI Wire reports that qualified opportunity zone funds tracked by Novogradac reported a significant surge in investment during the third quarter of 2024, raising $1.24 billion in additional capital and bringing the total investment since the inception of the opportunity zones incentive to $39.54 billion.

POLICY AND LEGISLATION

Paul Atkins Named to Run SEC: The Wall Street Journal reports that Donald Trump on Wednesday picked conservative lawyer Paul Atkins, an SEC alumni, to run the SEC, choosing a regulatory skeptic who will be expected to cut red tape and rein in the agency’s enforcement division.

GOP Trying to Cram Trump Priorities Into One Bill: Republicans are trying to fit as many priorities as possible into one bill early next year, combining tax cuts, spending cuts, energy policy, border security and President-elect Donald Trump’s campaign promises, reports The Wall Street Journal.

Trump Labor Pick Sponsored PRO Act: ThinkAdvisor reports that Lori Chavez-DeRemer, who Donald Trump nominated for Labor Secretary, was one of the few Republicans to cosponsor sweeping pro-union bills, including the PRO Act, which would make it much harder for companies to classify staff as independent contractors rather than employees.

Opportunity Zones May be Election’s Big Winner: The DI Wire comments that for the alternative investment industry, the big winner likely to emerge from the 2024 election is the federal qualified opportunity zones program, an economic development tool designed to incentivize investment in distressed areas across the United States.

Trump Poised to End War on Crypto: The Wall Street Journal reports that regulators tried to police the crypto market using the strongest weapons they have, but now after the election of Donald Trump they are likely to lay down their arms.

Trump Selects Scott Bessent as Treasury Secretary: Donald Trump selected hedge-fund manager Scott Bessent to lead the Treasury Department, The Wall Street Journal reports, elevating one of the finance world’s most vocal supporters of the president-elect to a position overseeing the incoming administration’s economic agenda.

Fed Chair Warns of Unsustainable Fiscal Path: The Hill reports that Federal Reserve Chair Jerome Powell warned Wednesday that the U.S. is on an “unsustainable” fiscal path and called for a course correction days after the national debt topped $36 trillion for the first time ever.