In its 2023 Annual Report, the FSOC identified potential emerging threats to U.S. financial stability and made recommendations to mitigate those threats.

The SEC adopted two new rules requiring certain market participants that "play an increasingly significant liquidity providing role," to register with the SEC as broker-dealers or as government securities broker-dealers under the Securities Exchange Act.

Regulatory Intelligence Commentary: SEC Expands Broker-Dealer Registration Requirement: The Rule, The Consequences, The Legal Questions

FinCEN proposed to include "investment adviser" in the definition of "financial institution" under the Bank Secrecy Act. The proposed rule would require advisers to implement AML/CFT programs and maintain recordkeeping requirements.

SEC Chair Gary Gensler warned of broad challenges and increased risk resulting from the use of AI models in the financial sector. He highlighted the need to update regulatory guidelines, establish strict oversight mechanisms and enhance disclosure requirements for companies utilizing AI.