Weekly Roundup

Financial Futures: Moomoo, an online trading platform, released the results of its Personal Finance Survey of US users. The survey found that users are worried about their financial futures and that financial literacy is largely dependent on socioeconomic factors. These concerns have led users to put a greater emphasis on saving through more detailed budgeting and income allocation.

Retiree Investments: According to a recent report from Vanguard, American retirees are making riskier investmentsand ignoring ‘conventional wisdom.’ The study found that one-fifth of investors 85 or older have most of their money invested in stocks, up from 16% in 2012.

Spot Bitcoin ETF Filings: The SEC declared that applications filed by Nasdaq and Cboe Global Markets to launch bitcoin exchange-traded funds are inadequate due to their lack of clarity and comprehensiveness. Both exchanges can update their applications and refile based on the regulator’s feedback.

SEC Enforcement Proceedings: The US Supreme Court has added Jarkesy vs. SEC, a case challenging the constitutionality of the SEC’s authority to issue in-house enforcement proceedings, to its upcoming case docket. On May 19, 2022, the 5th US Circuit Court of Appeals in New Orleans found that the SEC had violated the right to a jury trial in its case against hedge fund manager George R. Jarksey, Jr. This decision will be reviewed following a petition filed by the SEC.

Celsius Investigations: The CFTC has determined that bankrupt crypto lender Celsius Network and its former CEO Alex Mashinsky broke US rules before the company went under. According to bankruptcy filings, the SEC and federal prosecutors in Manhattan are also investigating Celsius. 

Retail Investors Pushback on SEC Proposal – Scrutiny of the SEC’s equity market structure overhaul continued, with the National Association of Securities Professionals noting in a letter that, “perhaps at no point in the history of our country have Americans from all backgrounds taken a more active role to improve their financial lives, including participating in the stock market.” The letter cautions that “Given the harm that these proposals may cause to millions of retail investors, NASP believes the SEC should slowdown and adopt a more incremental, fact-based approach.”

In the Mix: This Week’s Top FinTech Thought Leader

  • John Palmer, President of Cboe Digital, spoke with Markets Media about the platform receiving approval from the CFTC to launch margined futures contracts. This makes Cboe Digital the first US-regulated crypto-native exchange and clearinghouse combination platform to offer leveraged derivatives products. Palmer said, “The approval was for the clearing business and gives us the ability to provide margin treatment on clearing. This really unlocks capital efficiencies and leverage that derivatives offer to market participants.”

  • Masayoshi Son, Softbank CEO, is struggling to keep up with rival investment managers after missing out on a handful of major AI investment opportunities. While Son currently has $140 billion invested in over 400 startups, the prominent global tech investor has failed to capitalize on the AI wave.