This is the second major loss for the SEC in the last several months that has resulted in a finding that the SEC exceeded its authority. (See ""). As a result, another major rulemaking effort must be vacated in full. Still to come, challenges to rulemaking efforts related to securities lending, short selling and greenhouse gas disclosures. If the SEC does not lose these cases in court, they are likely to be overturned by the next Congress.

Notably, these judicial findings follow other…

The SEC must now turn its immediate attention to the question of how to regulate cryptocurrencies. The SEC's greatest shortcoming under Chair Gensler have been the failure to devote resources to the development of workable regulation (and legislation) on cryptocurrencies.

The incoming Administration has committed to stopping the enforcement onslaught against virtually every participant in the crypto industry. That should bring significant relief, at least to those not engaged in…

In his testimony on the strength of the federal banking system, Mr. Hsu neglected to mention that there were horrific failures by state-regulated banks during his tenure. It would be interesting to hear his views on why the regulation of those banks failed and his opinion as to what might be learned from those failures.  

Mr. Gruenberg stated that he will resign on January 19, 2025, the day before President-elect Donald Trump takes office.