Should the SEC and CFTC Merge?

Two Agencies That Should Become One

If DOGE is to avoid the fate of prior blue-ribbon commissions and panels with a similar goal, it should begin with the low-hanging fruit and encourage Congress to merge the SEC and CFTC before taking up a crypto market structure bill.

DOGE would have an ally in this effort in Paul Atkins, Mr. Trump’s nominee to lead the SEC. Testifying in 2015 on the effect of Dodd-Frank, Mr. Atkins told the House Financial Services Committee that the legislation’s authors “blew” a “once-in-a-lifetime opportunity to streamline our crazy quilt of financial services regulators,” most notably by failing to merge “the SEC and CFTC to create one markets regulator.” Working alongside DOGE as well as artificial-intelligence and crypto czar David Sacks, Mr. Atkins has an opportunity to right this wrong. Let’s hope they don’t blow it.

Fight over ‘forum shopping’ heads for US Supreme Court

Historically, business groups have criticised plaintiffs’ lawyers for seeking out friendly judges and juries for large damages claims, and liberal public interest groups often filed their challenges to the first Trump administration in states and circuit courts with more Democratic appointees.

But in recent years, powerful industry groups have done some of the most visible manoeuvring by finding ways to challenge government regulations in courts that have a larger share of conservative judges, particularly the Fifth Circuit, which covers Texas and nearby states.

While the US Securities and Exchange Commission contemplated new disclosure rules for private equity and hedge funds, some of the industry’s most powerful members set up a lobbying group in Texas. When the regulation passed, they used that group’s location to file a challenge to it before the Fifth Circuit rather than in Washington, where such challenges have traditionally been brought.

The financial industry used a similar tactic to take on the SEC’s rules on short selling and new requirements for participants in the Treasury market.

London lawyer hiring frenzy hits record as pay wars rage

A record number of senior lawyers moved jobs in London this year as the arrival of US law firms in the capital continues to disrupt the market and fuel pay wars for talent.

Law firms made 546 partner hires in London over the year to December 23, according to data from legal recruiter Edwards Gibson and shared with the Financial Times. The number surpasses last year’s record of 514 partner moves, as investment from US law firms in the UK shows no sign of abating.[…]

“Unprecedented investment by US law firms in private equity-related hires has pumped scores of millions of dollars into the system,” said Scott Gibson, founder of Edwards Gibson. “This has distorted the market by causing compensation to spike and creating huge knock-on effects down the chain as hapless rivals have scrambled to restock.”

Banks Want In on Tether’s Billions in Stablecoin Profits

Until recently, banks watched from the sidelines with envy as stablecoin market leader Tether Holdings boasted of billions in profits. Now they want in.

Earlier this year, Societe Generale – Forge made its Euro-backed stablecoin — which basically represents fiat on a blockchain ledger — available to retail investors. Financial group Oddo BHF SCA is also working on a Euro-denominated one, and London-based Revolut is considering issuing its own version. AllUnity, a venture involving Deutsche-Bank owned DWS, plans to issue another next year, and BBVA is also working on an entry.

Banks in the US are expected to join in on the rush once legislation that could pave the way for them to issue stablecoins is enacted….