Sometimes it seems that the U.S. financial regulators seem eager to abandon their day jobs to focus on ESG. It is doubtful that the FAF will take the Commissioners' advice and steer clear of ESG standard setting. This is too bad.

Even if the SEC chooses to adopt ESG accounting standards, any such rule making will be tied up in court on APA challenges. Assuming the standards survive legal challenge, a change in administration would mean that the rules will likely be dropped because…

Senator Toomey's letter to Chair Gensler sets forth a series of tough questions as to the legal theories that justify the SEC's acts and omissions with respect to digital assets. The questions posed are challenging and fair. After all, the regulator's statements have a huge impact on a trillion-dollar plus market of assets held by millions of U.S. investors. 

Where there is a degree of bipartisan support for the development of digital asset technology, there is hope for legislation that might establish clear jurisdictional boundaries for regulatory authority over various types of digital assets, (see, e.g., the  and this ).

Until either the SEC or Congress provides more substantial guidance as to the treatment of various digital assets under the securities laws, there is a ceiling on the CFTC's ability to oversee the digital asset markets. The fact that the CFTC is holding itself out as the principal regulator of these markets may motivate the SEC to propose some clearer jurisdictional lines, for fear that Congress may determine (see, e.g., the ) that the only way forward is to give the CFTC much broader…