FINANCIAL INDUSTRY AND REGULATION 

Acting SEC Chair Sees Rulemaking Slowdown: ThinkAdvisor reports that the interim Securities and Exchange Commission chief says he expects a slowdown in the Wall Street regulator’s rulemaking after three-and-half “overly ambitious” years of pursuing market reforms.

NASAA Warns of Top Investment Scams: InvestmentNews reports that scams involving cryptocurrency and artificial intelligence are expected to be among the biggest threats to retail investors in 2025, according to the North American Securities Administrators Association.

Firm Pays $657,000 for Reg BI Violations: AltsWire reports that the Financial Industry Regulatory Authority says it has fined investment firm Robert W. Baird & Co. Incorporated, as successor-in-interest to retail brokerage Hefren-Tillotson Inc., $100,000 for violating Regulation Best Interest, and will pay $557,830.64 in restitution.

Robinhood Pays $26 Million to Settle FINRA Allegations: ThinkAdvisor reports that two units of Robinhood Markets Inc. agreed to pay $26 million to settle FINRA allegations that it failed to respond to red flags about potential misconduct and didn’t verify the identities of thousands of customers.

FINRA Fines Fell, Restitution Up: Financial Advisor reports that FINRA ramped up the number of disciplinary actions it dished out in 2024, but the total fines dropped by more than a third, according to an analysis from the Eversheds Sutherland law firm. However, restitution payouts to investors soared.

SEC Reverses Course on Crypto Firm Registration Requirements: Reuters reports that the acting SEC chief directed staff to look at ways to abandon a plan that would have widened the definition of alternative trading systems to include some cryptocurrency firms.

SEC Guidance Letter Says Accredited Investors Can Self-Certify: AltsWire reports that SEC staff issued guidance Wednesday that could allow accredited investors to self-certify their ability to participate in private securities offerings.

FINRA Orders Firm to Pay $132.5 Million Compensation: Reuters reports that Stifel Financial was ordered by a FINRA arbitration panel to pay a family $132.5 million for misrepresenting the risk of complex structured notes, causing what their lawyer called "staggering" losses.

POLICY AND LEGISLATION

Washington Headed Towards Opening Private Equity Investment: The Wall Street Journal reports that the new leadership in Washington has declared plans to fulfill a longtime policy goal for private-equity managers: expanding the pool of ordinary people who can invest in the asset class.

Federal Partial Shutdown Unlikely: The Wall Street Journal reports that Senate Democrats cleared the way for a GOP funding bill vote Friday to fund the government through the rest of the year, a bill that passed the House Tuesday, reducing the threat of a partial government shutdown this weekend.

Labor Secretary Confirmed by Senate: Politico reports that Senators confirmed Lori Chavez-DeRemer as labor secretary in a 67-32 vote Monday, meaning the majority leader has successfully confirmed all of Trump’s Cabinet secretaries.

House Sends Crypto Tax Rule Repeal Back to the Senate: Congressional Quarterly reports that the House passed a joint resolution on Tuesday that would overturn a Biden-era Treasury Department rule requiring brokers dealing in cryptocurrencies to report transactions to the IRS, sending it back to the Senate for constitutional reasons, even though the Senate already passed it.

House Financial Services Leaders Urge SEC Crypto Reversal: Crowdfund Insider reports that House Financial Services Committee leaders have sent a letter to SEC Acting Chairman Mark Uyeda asking him to reverse harmful rules impacting crypto enacted during the Biden Administration.