House Releases Budget Bill Cutting SEC Funding by 7% from FY 2025

Plus here come the Ethereum treasury companies.

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David Esseks, former AUSA and Chief of the SDNY’s Securities and Commodities Fraud Task Force, and Gene Ingoglia, former AUSA in the SDNY, have founded litigation boutique Esseks Ingoglia PLLC, based in New York.

Agnès Dunogué has joined Freshfields as a partner in the firm’s New York office.

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House GOP Seeks Less Money for IRS, SEC in Funding Bill

House Republicans plan to cut funding for the Internal Revenue Service, the Securities and Exchange Commission, and for federal property, releasing a funding bill Sunday that Democrats promised to oppose.

The House Appropriations Committee released its fiscal 2026 Financial Services and General Government bill ahead of a planned subcommittee markup on Monday. The bill would cut budgets for the Treasury Department and other financial agencies.

Democrats slammed the bill, signaling an unsurprising partisan divide in a year when funding negotiations have moved slowly. Lawmakers face a Sept. 30 deadline to avoid a shutdown….

by Bloomberg Law

👉 A summary of the bill is here. It states that the bill “provides $2,034,000,730 for the Securities and Exchange Commission, which is $153.9 million, or 7%, below the FY25 enacted level.”

In addition, the bill prohibits the SEC from using funds for certain purposes such as collecting personally identifiable information under the Consolidated Audit Trail or enforcing the “Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure” rule.

The full bill is here.

Blank-Check Company Strikes Cryptocurrency Deal

Blank-check company Dynamix is merging with another entity to create a new company known as the Ether Machine. The combined company plans to manage over $1.5 billion in ether, the largest cryptocurrency behind bitcoin.

It is a bet that investors will continue to reward businesses that pour money into crypto holdings under the industry-friendly Trump administration.

The deal was Monday morning, confirming an earlier report from The Wall Street Journal.

It will be backed by a group of crypto investors including exchanges Kraken and Blockchain .com contributing more than $800 million in equity financing at $10 a share, the companies said.

It will also receive a roughly $645 million anchor investment from the Ether Machine co-founder Andrew Keys, who will serve as chairman. David Merin, another co-founder, will be chief executive and investor Jonathan Christodoro will be vice chairman.

Keys said in an interview that its team’s experience with Ethereum will set it apart.

“We’ve essentially amassed the Avengers of Ethereum,” he said.

by WSJ

👉 “AI, create an image for the “Avengers of Ethereum:”

Investor Sues Edelman Financial Engines Over Crypto Scam Losses

A New York-based investor accused Edelman Financial Engines of “legitimizing illicit, fraudulent transactions on cryptocurrency” when it didn’t slam the brakes on her plan to liquidate her IRA account to invest in a scam.

According to the lawsuit filed in New York federal court, Stella Maksumova believed Edelman “would have her best interest at heart” when operating as her financial advisor.

“Instead, (Edelman) recommended a liquidation of her account to meet her objectives, when it knew or should have known its recommendation was unsuitable for (Maksumova’s) investment objectives and financial situation because the purported investment was on its way to a fraudster,” the complaint read.

But Edelman Financial Engines Chief Legal & Risk Officer Allison Amadia disputed the claims, arguing that Maksumova’s financial planner “advised her of the consequences” of the crypto investment, but that she refused to follow the advice.

by Wealth Management

SEC OIG Investigative Summary

The Securities and Exchange Commission (SEC) Office of Inspector General (OIG) investigated allegations that an SEC attorney falsely certified to the SEC that they had an active bar membership in good standing when they did not. All SEC attorneys in the SK- 0905 job series are required to annually self–certify that they have an active bar license in one or more U.S. jurisdiction. A current, valid license, with eligibility to practice law in a state, the District of Columbia, or any United States territory or commonwealth, is a required condition of employment with the SEC.

The OIG found that the SEC attorney falsely certified active membership in good standing with a state bar at the time they were hired in 2008. Additionally, on at least 13 separate occasions between 2015 and 2024, the SEC attorney provided false certifications of an active state bar license in good standing. State bar records where the attorney claimed membership in good standing showed the attorney was not in good standing since 2004, and their bar license was administratively revoked in 2010 for failure to pay into the state’s lawyers’ fund.

The SEC placed the attorney on administrative leave and the attorney resigned.

by SEC Office of Inspector General

Charles Schwab Wants to Take Business From Coinbase, Says CEO

Charles Schwab Corp. (SCHW) is preparing to launch trading for bitcoin and ether as it aims to become a dominant player in digital asset custody for U.S. retail investors, according to CEO Rick Wurster.

Speaking Friday on CNBC’s “Money Movers”, Wurster said Schwab clients already have significant crypto exposure through exchange-traded products — accounting for more than 20% of the industry’s holdings in that segment — but many have expressed interest in keeping their actual tokens with Schwab, rather than at crypto-native platforms.

by CoinDesk

👉 “When asked whether Schwab’s upcoming platform would compete with Coinbase, Wurster replied: ‘Absolutely.’”

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👉 Enron 2.0, why are you like this.