Weekly Roundup

Crypto Crackdown: A new poll indicates that voters want lawmakers to crack down on crypto regulation. The poll, conducted by the Crypto Council for Innovation, revealed that 52% of voters want the industry to be more regulated, 7% think the industry should be less regulated, and 41% of respondents had no strong opinion.

Reclaiming Losses: According to data compiled by JPMorgan Chase, personal portfolios in the US fell 44% between early January and October 18. Many retail investors are turning away from individual stocks in favor of funds that track the biggest high-tech companies on the Nasdaq in the hope of reclaiming losses.

The Clawback Rule: On Wednesday, the U.S. SEC voted 3-2 to implement the clawback rule. The rule states that regulators will require public companies to take back executives’ incentive pay if significant errors are found in financial statements. The rule was required by the 2010 Dodd-Frank Act to discourage fraud and accounting mischief, but implementation has been delayed for years.

Female CMOs: According to new research from The Fletcher Group, although women continue to be underrepresented in financial services, technology, and the C-suite in general, women CMOs are building some of the biggest brands in fintech through brand awareness and reputation building.

ESG Skeptics: Many retail investors are skeptical of ESG, and believe that sustainable investing is politically motivated. Around 50% of US financial advisers say those views are now a major impediment in how receptive their clients are to ESG. Asset managers experienced a similar level of pushback from clients, with 23% calling it a major challenge and 52% saying it is a moderate problem.

Fast-and-Furious Regulation: SEC Chair Gary Gensler’s aggressive regulation strategy has businesses, agency officials, and senators worried about the damage it may cause to the economy. According to The Wall Street Journal, the number of rulemakings on the SEC agenda increased by nearly two-thirds between spring 2017 and 2022.

Crypto Scams: According to a report from software firm Solidus Labs,  a crypto scam occurs approximately every four minutes. Using data going back to 2020, the report found more than 188,000 scams based on “smart contracts,” the pieces of software that serve as the building blocks of DeFi. Solidus Labs estimates that at least $910 million worth of funds stolen in DeFi scams have been laundered through crypto exchanges.

Interdealer Trading: Cboe Global Markets is gearing up to launch its ‘dark pool’ style interdealer trading venue for US Treasuries, Cboe Fixed Income. The cash fixed income offering pairs dealers willing to anonymously transact at high volume with minimal information leakage. Cboe expects the first trades to be completed by the end of 2022.

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

  • Kelly Brennan, Head of Institutional Equities for Citadel Securities, is proud to say that technology and electronic trading have made finance less of an ‘old-boys-club.’ Though she thinks that the industry still has a long way to go in terms of gender equality, she told Traders Magazine, “Who you choose to trade with is increasingly driven by pure performance metrics, which continues to level the playing field.”

  • Lynn Martin, NYSE president, voiced caution on ESG disclosures. Martin warned that tracking specific supply chain emissions is particularly challenging for businesses. Her comments come as the SEC hammers out new rules for public companies to disclose their carbon emissions and climate risks.

  • Gary Gensler, SEC chair, could be in the crosshairs if Republicans take control of Congress next month. A Republican controlled Congress could significantly slow SEC rulemaking, and maybe even halt it completely. Congressional scrutiny is predicted to mostly focus on transparency requirements around the first two parts of ESG. That could mean a delay, or even scrapping, heavily lobbied regulations that would mandate detailed disclosures of carbon emissions.

  • Study Hall is back with a second season! In season two we’ll explore the ins and outs of financial technology together. We’re kicking off the season with a conversation on fintech and the elections with Kalshi Founder Tarek Mansour, and DC Strategist Katelynn Bradley. Episode 1 airs this Thursday (11/3), head on over to buzzsprout.com/1893041/11369459 for a sneak peak!