FiSolve Weekly News Digest: July 4, 2025

Here is what we're reading in the news this week...

SEC Division of Corporation Issues Statement on Crypto Asset Exchange-Traded Products

The SEC’s Division of Corporation Finance issued new guidance clarifying disclosure requirements for issuers of crypto asset exchange-traded products (ETPs).  The statement outlines how federal securities laws apply to these products, which are typically structured as trusts holding spot or derivative crypto assets.  Issuers must register under the Securities Act of 1933 and the Exchange Act of 1934 and provide detailed, tailored disclosures covering areas such as asset valuation, custody, conflicts of interest, use of service providers, and creation/redemption mechanics.  The guidance emphasizes plain-language risk disclosures and transparency around service providers, governance, and benchmark methodologies.  The statement aims to enhance investor protection, streamline filings, and support the responsible growth of regulated crypto investment products.  Read more here.

SEC Chairman Discusses Innovation and

Priorities in CNBC Interview

In an interview on CNBC’s Squawk Box, SEC Chairman Paul Atkins emphasized a shift toward fostering innovation and transparency in financial markets.  This includes through tokenization and modernization of regulatory frameworks.  Chairman Atkins criticized the prior administration’s “regulation through enforcement” approach, while expressing support for making IPOs more attractive by reducing red tape and improving disclosure clarity.  The Chairman also discussed reevaluating the accredited investor definition to expand access to private markets, while stressing the need for investor education and protection.  Read more here.

Top 10% of US Earners Do Not Feel Rich

A report from the Wall Street Journal highlights that many high-income Americans—those earning over $150,000 annually—are experiencing surprising levels of financial fragility.  Despite their earnings, a growing number report living paycheck to paycheck, driven by rising housing costs, inflation, student debt, and lifestyle inflation.  The article underscores how even affluent households are vulnerable to economic shocks, with some struggling to build emergency savings or manage unexpected expenses.  This trend reflects broader shifts in the cost of living and financial expectations, challenging the assumption that high income guarantees financial security.  Read more here.

FINRA Announces Proposed Amendments to Rule 2210 (Communications with the Public)

At a recent meeting of its Board of Governors, FINRA approved amendments to Rule 2210 that are designed to better align the regulatory requirements for broker-dealers and investment advisers related to performance projections in written communications to investors.  The amendments would create a narrowly tailored exception to the general prohibition on projections and permit the presentation of projected performance and targeted returns when members meet specified conditions, including adopting policies and procedures, having a reasonable basis for the criteria and assumptions made in calculating the projections or targeted returns, and providing specified information. FINRA stated the amendments will be filed with the SEC for approval.  Read more here.

CFTC Issues FAQs on Future Commission Merchant Registration Requirements

The Commodity Futures Trading Commission’s Market Participants Division (MPD) published responses to frequently asked questions (FAQs) regarding registering an entity as a futures commission merchant (FCM) and the ongoing regulatory obligations of operating an FCM.  The FAQs address, among other issues, the FCM registration process, customer protections, and governance obligations and other requirements.  Read more here.

Private Equity Deal Activity Remains Positive

PitchBook’s Q2 2025 Global Private Equity (PE) First Look report reveals that despite ongoing macroeconomic uncertainty, global PE deal activity remains resilient and is on track for another year of growth.  Sponsors are capitalizing on market dislocations to pursue large-scale transactions, even as exit activity slows and fundraising continues to face headwinds.  Many firms are holding onto portfolio companies longer, awaiting clearer market signals before exiting their positions, respectively. The report highlights a divergence between robust dealmaking, and more cautious behavior around exits and capital raising, underscoring a strategic shift toward patience and selectivity in a volatile environment.  Read more here.

ESMA Publishes Note on Sustainability-Related Claims

The European Securities and Markets Authority (ESMA) published a thematic note offering guidance on how financial market participants should make sustainability-related claims—particularly those referencing ESG credentials—in a way that is clear, fair, and not misleading. The note outlines four core principles: claims must be accurate, accessible, substantiated, and up to date.  It emphasizes avoiding exaggeration, cherry-picking, vague language, or outdated information, and encourages transparency around the meaning, methodology, and relevance of ESG labels, awards, and ratings.  While the note does not introduce new regulatory requirements, it aims to combat greenwashing and improve investor trust by promoting responsible communication practices across marketing materials, voluntary disclosures, and other non-regulatory content.  Read more here.

Fun Fact for Independence Day:

US Markets Showing the Fourth of July Effect

An article by CXO Advisory Group notes middle of the year might be a time for funds to dress their windows and investors to review and revise portfolios.  The 4th of July celebration might also engender optimism among U.S. investors.  Back tests of the S&P 500 from 1950 to 2024 show that the average daily return during the five trading days before and after July 4th is about 0.087%, more than double the long-term average of 0.036%.  Read more here.

Happy Independence Day!  

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