Regulatory Review: Weekly Recap

The U.S. Court of Appeals for the D.C. Circuit made a ruling recently that caught the attention of the financial world. They decided that FINRA, the Financial Industry Regulatory Authority, can’t kick out one of its members, Alpine Securities Corporation, before the SEC gets a chance to review the situation. The court thought that expelling Alpine Securities prematurely would cause serious harm to their business, so they put a hold on it. This ruling doesn’t dive into the bigger questions about FINRA’s power, but it’s an interesting development nonetheless.

Meanwhile, down in Mississippi, the U.S. District Court issued an injunction against a new Department of Labor rule that was meant to protect agricultural workers on temporary visas. The rule aimed to give these workers more rights when it comes to advocating for themselves and better working conditions. But the court sided with the plaintiffs, who argued that the rule went too far and stepped on employers’ freedom of speech. So, for now, the rule is on hold.

Looking ahead, President-Elect Donald J. Trump is considering giving more oversight power to the Commodity Futures Trading Commission (CFTC) in the growing digital asset market. This move would shift some of the SEC’s regulatory authority and might lead to less strict rules around cryptocurrency. It’s definitely a hot topic among Republican regulators as the incoming Administration takes shape.

Over at the EPA, there’s a proposed rule in West Virginia about carbon sequestration facilities that use underground injection wells. This is all about keeping carbon dioxide out of the atmosphere, and the EPA wants West Virginia to take the lead on regulating these facilities. It’s a step towards cleaner air and a greener future.

Finally, there’s big news from the Department of Health and Human Services. They just approved a rule that allows kidney and liver transplants between individuals with HIV, without the need for it to be part of a research study. This change is based on solid research showing that these transplants are just as safe and effective as others. It’s a move that will hopefully increase access to life-saving organs and reduce stigma surrounding HIV.

In other news, some interesting articles caught our eye this week. Asaf Eckstein and Roy Shapira had some thought-provoking insights about compliance gatekeepers in large corporations. They suggested that there should be more accountability for these external compliance officers to ensure better functioning compliance programs.

Jaclyn Lopez also had some important points to make about climate change and biodiversity. She argued for more proactive policies to protect species in the face of escalating climate impacts, emphasizing the need for resilience-focused strategies.

And finally, Kevin Werbach discussed the Biden Administration’s executive order on cryptocurrency regulation. The order highlighted the importance of incorporating digital assets into our regulatory system and recognized that there’s still a lot of work to be done in this area. It’s a step in the right direction for the future of cryptocurrency regulation.

Overall, it’s been an eventful week in the world of finance and securities regulation. Stay tuned for more updates and developments as we continue to track these important issues.