FiSolve Weekly News Digest: August 1, 2025

Here is what we are reading in the news this week...

SEC Permits In-Kind Creations and

Redemptions for Crypto ETPs

The Securities and Exchange Commission approved orders to permit in-kind creations and redemptions by authorized participants for crypto asset exchange-traded product (ETP) shares.  The SEC stated the orders reflect a departure from recently approved spot bitcoin and ether ETPs, which were limited to creations and redemptions on an in-cash basis.  The order allows bitcoin and ether ETPs to create and redeem shares on an in-kind basis.  Read more here.

FINRA Enlists Outside Experts to

Evaluate its Enforcement Program

FINRA announced that a part of its FINRA Forward initiative, it has engaged two outside experts—former SEC Commissioner Troy Paredes and Professor Paul Eckert of William and Mary Law School—to will help identify and assess opportunities for FINRA’s enforcement function, together with related oversight programs, to better serve FINRA’s self-regulatory mission.  Among other areas, they will consider governance, policies, processes, and communications, as well as how FINRA enforcement works with other FINRA departments and federal and state regulators. These views will be shared with FINRA’s Board of Governors.  Read more here.

Report Shows Workforce Retention Stability in

Face of Market Uncertainty

The July 2025 release of Eagle Hill Consulting’s Employee Retention Index finds U.S. workers are increasingly likely to stay in their current roles over the next six months, with the index rising slightly to 102.9.  Optimism about the external job market has plummeted, however, marked by a 4.4-point drop in the Job Market Opportunity Indicator.  This is the steepest decline since the index began in 2023.  This growing pessimism is identified as the most influential factor in retention decisions, surpassing internal drivers like culture and organizational confidence. Interestingly, compensation sentiment rose slightly, suggesting that as external opportunities dwindle, employees may find their current pay more appealing.  Read more here.

NFA Orders Introducing Broker to Withdraw from and

not reapply for NFA membership

The National Futures Association decision and settlement stems from allegations the broker’s website displayed misleading and deceptive trading results that were not presented net of commissions and fees and included discussions about profits that were not accompanied by an equally prominent discussion of the risk of loss, in violation of NFA Compliance Rules.  The NFA complaint also alleged the firm (through its employees) engaged in misleading and deceptive sales solicitations and failed to adequately disclose fees to customers prior to the commencement of trading.  Read more here.

The President’s Working Group on Digital Asset Markets Releases Recommendations to Strengthen American Leadership in Digital Financial Technology

The President’s Working Group on Digital Asset Markets has released fact sheet describing a comprehensive roadmap to position the U.S. as the global leader in digital financial technology.  Among other things, the report recommends clarifying respective government agency roles (SEC and CFTC), embracing DeFi integration, and enabling federal-level trading through clearer rules on registration, custody, and recordkeeping.  It also calls for modernizing bank regulations to support blockchain-based services like tokenization and stablecoin issuance, while promoting transparency in chartering processes.  Additional proposals include safe harbors for innovation, tax reforms tailored to digital assets, and privacy protections—collectively aimed at ushering in what the administration calls the “Golden Age of Crypto.”  Read more here.

SEC Chairman Discusses American Leadership

in the Digital Finance Revolution

In a speech this week, SEC Chairman Paul Atkins discussed Project Crypto, a new SEC initiative to implement the Presidential Working Group Report recommendations and support the GENIUS Act, which sets a stablecoin regulatory standard.  The Chairman said the SEC will look to develop clear rules for crypto asset distributions, custody, and trading, aiming to bring offshore crypto activity back to the U.S.  Chairman Atkins called for guidelines to help distinguish certain categories of crypto assets as securities and others as collectibles, commodities, or stablecoins.  The Chairman also proposed consideration of tailored disclosures and exemptions for token offerings and airdrops, and discussed support measures for tokenized securities.  The speech also discussed expanding access to crypto assets including evaluating self-custody rights and streamlined licensing for platforms offering both securities and non-securities.  This includes the possibility of enabling “super-apps” that integrate trading, staking, and lending.  The overarching goal: make America the most innovation-friendly jurisdiction for digital assets.  Read more here.

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