August 16, 2026 to August 22, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for professionals in the financial industry, banking, credit unions, insurance, payment processing, fintech, credit card issuing, asset management, venture capital, private equity, and crypto-currencies. Once a week, we break down the most important updates in this space in under five minutes.

Want to track other GR news in adjacent industries? Don’t miss this week’s updates in ICT & Cybersecurity. Also consider subscribing to our Finance - Ottawa edition covering critical GR news north of the border.

📋 In This Week's Newsletter

• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 📚 What We're Reading This Week

Federal Government News

SEC Proposes Regulation Crypto Assets: New Exemptions for Crypto Asset Offerings

The Securities and Exchange Commission (SEC) issued proposed rules establishing 'Regulation Crypto Assets,' creating a tailored offering regime for certain investment contracts involving crypto assets. The proposed regulation would introduce two new Securities Act exemptions: (1) a startup exemption, permitting covered crypto asset offerings of up to $5 million over four years, with principles-based disclosure and web-based public information; and (2) a fundraising exemption, permitting offerings up to $75 million in a 12-month period, modeled in part on Regulation A but tailored to crypto asset issuers, with specific principles-based narrative disclosures and financial statement requirements. A new safe harbor provision is also proposed, clarifying when a crypto asset ceases to be subject to the Federal securities laws following fulfillment of managerial efforts. The proposal provides extensive details on definitions, reporting, ongoing public disclosures, and coordination with state law preemption. Comments on these rules are due by October 20, 2026.

Sources: www.federalregister.gov

IRS Proposes Eligible Investment Regulations for Trump Accounts

The Internal Revenue Service released proposed regulations related to eligible investments in Trump accounts as established under section 530A of the Internal Revenue Code. The proposal would restrict investments during the 'growth period' (under age 18) to certain mutual funds or ETFs tracking qualified U.S. equity indexes with annual fees and expenses below 0.1%, using no leverage. Detailed provisions cover definitions, procedures for trustee compliance, default investment rules, index composition, annual monitoring, and fee calculation. ESG (environmental, social, governance) indexes are specifically excluded, and an annual index 'safe harbor' requires at least 90% U.S. company weighting. Affected parties include account trustees and minor beneficiaries. The rules are open for comment until October 20, 2026.

Sources: www.federalregister.gov

CFTC Proposes Exemptions for RIA Commodity Pools and Raises Small Pool Threshold

The Commodity Futures Trading Commission released proposed amendments to its rules on commodity pool operator (CPO) and commodity trading advisor (CTA) registration. The rule would exempt SEC-registered investment advisers (RIAs) operating pools limited to sophisticated investors from CPO registration, codifying in regulation past no-action relief. Pools eligible for this exemption must be offered only to qualified eligible persons (QEPs) or specified accredited investors and be subject to SEC oversight and Form PF reporting. Additionally, the total gross capital contributions threshold for the 'small pool' registration exemption is increased from $400,000 to $800,000, accounting for inflation since 2003. Related amendments are proposed to integrate the exemption into notice filing and CTA rules. Comments are requested on all aspects.

Sources: www.federalregister.gov

IRS Issues Proposed FDDEI Regulations: Property Sales Excluded from Deduction

The IRS issued proposed regulations (REG-117130-25) under section 250 addressing income and gain excluded from deduction eligible income (DEI) for purposes of the foreign-derived deduction eligible income (FDDEI) calculation. The rule would implement changes from the One, Big, Beautiful Bill Act, clarifying that income or gains from the sale or disposition of intangible property or depreciable, amortizable, or depletable property are excluded from DEI unless specifically provided otherwise, consistent with Notice 2025-78. Exceptions are detailed for ordinary inventory, copyrighted articles, and anti-abuse related party transfers. The rule also clarifies that FDDEI remains a subset of DEI. The proposal includes illustrative examples for various fact patterns. Comments are due by October 5, 2026.

Sources: www.federalregister.gov

SEC Approves Rule Change: Mandatory Book-Entry Redemption for DTC-Eligible Securities

The Securities and Exchange Commission approved a Depository Trust Company (DTC) rule change, effective August 13, 2026, amending its Redemptions Service Guide and Operational Arrangements. The new PWP (Payment without Presentation) process requires agents to remit maturity or full call proceeds to DTC based on book-entry records without the need for physical certificate delivery. Participation in PWP becomes mandatory except for legal or regulatory obligations, and agents now may opt to receive automated payment notifications. Physical certificates will be imaged, retained for at least 90 days, and then destroyed following prescribed protocols. The amendments are expected to reduce processing delays and increase efficiency for redemption settlement.

Sources: www.federalregister.gov

Legislative Updates

Empowering States to Protect Seniors from Bad Actors Act

Bill 10112, titled 'Empowering States to Protect Seniors from Bad Actors Act,' was referred to the House Committee on Financial Services. This proposed legislation addresses protections for seniors in financial transactions by enhancing state regulatory authority to respond to fraudulent activity.

Sources: www.congress.gov

NO PROFIT Act

Bill 10125, titled 'NO PROFIT Act,' was referred to the Committee on Financial Services, with additional referrals to the Committees on Agriculture, and Energy and Commerce for jurisdictional review. The measure pertains to profit limitations in financial or related sectors but awaits further Congressional action.

Sources: www.congress.gov

Housing Price Transparency Act

Bill 10110, 'Housing Price Transparency Act,' was referred to the House Committee on Energy and Commerce. The bill targets reform in housing price disclosure and data transparency requirements within the housing and community development arena.

Sources: www.congress.gov

What We're Reading This Week

• Several Big Brokerages Leave Customer Accounts Open to Theft, Senators Say: Lawmakers question leading brokerage firms’ protections against account fraud and unauthorized fund transfers.
• Bessent acts to break bond market fever, head off rising borrowing costs: Bond market instability is prompting investor concern over rising funding costs for governments and businesses.
• Should You Invest in Bonds Right Now?: Analysis of risks and opportunities for fixed income investors in the current market environment.
• India opens tax amnesty scheme for small taxpayers with undisclosed foreign assets: India announces a program to allow disclosure of previously unreported offshore assets by small taxpayers.
• 777 Partners Secures Financing Amid Lender Clash, Fraud Allegations: 777 Partners arranges new funding as legal and fraud challenges persist among creditors.
• Stablecoins are here. So is volatility.: Stablecoin issuers and markets continue to face significant price swings and regulatory attention.
• Opinion | High Anxiety in the Bond Market: Bond market volatility remains elevated, affecting rates and investor sentiment.

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