Whistleblower program compliance
Whistleblower program compliance in financial and capital markets is under active pressure from multiple directions at once. The U.S. Securities and Exchange Commission has paid out over $1 billion in whistleblower awards under its Rule 21F program, and firms with deficient anti-retaliation policies have drawn enforcement actions, not just guidance letters. The Financial Industry Regulatory Authority and the Consumer Financial Protection Bureau have each added supervisory teeth to internal reporting channel requirements, giving compliance officers three distinct frameworks to reconcile across overlapping product lines.
Watch
- SEC Rule 21F award volume: trends in award size and covered conduct categories
- Anti-retaliation enforcement actions targeting confidentiality agreements in employment contracts
- CFPB supervisory expectations for internal whistleblower intake channels at nonbank lenders
- FINRA Rule 3110 exam focus on escalation procedures for reportable misconduct
- Proposed EU Whistleblower Directive implementation gaps affecting U.S. firms with EU operations
Recent material activity in Financial & Capital Markets
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SEC proposes amendments to Exchange Act Rule 3b-16 expanding ATS definition to include DeFi protocols
The SEC has proposed rule changes that would bring decentralized finance protocols under the regulatory umbrella of Alternative Trading Systems. The amendment targets platforms facilitating token swaps exceeding $50M dai…
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SEC enforcement action against crypto lending platform for unregistered securities offering
The Commission filed charges against a major crypto lending platform alleging the firm offered and sold crypto asset lending products that constituted unregistered securities. The complaint seeks disgorgement of $340M in…
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CFTC and SEC release joint statement on digital asset classification framework
The two primary federal financial regulators issued a joint interpretive statement providing guidance on when digital assets fall under securities law versus commodities law. The framework introduces a functional test ba…
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Federal Reserve announces enhanced supervisory expectations for banks with crypto asset exposure
The Board of Governors issued SR 26-4 establishing new supervisory expectations for state member banks engaging in crypto-related activities. Banks must now maintain dedicated risk management frameworks, capital reserves…
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SEC approves spot Ethereum ETF amendments allowing staking yield pass-through
The Commission approved amendments to existing spot Ethereum ETF registration statements permitting the pass-through of staking rewards to fund shareholders. The approval includes enhanced disclosure requirements and a 3…
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SEC Division of Examinations publishes 2026 priorities: crypto compliance tops the list
The SEC's examination division released its annual priorities letter placing crypto asset compliance, stablecoin reserves, and DeFi protocol governance as the top three examination focus areas for 2026. Registered invest…
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FINRA proposes new rules for broker-dealer crypto custody and customer protection
FINRA filed a proposed rule change establishing custody requirements for broker-dealers holding crypto assets on behalf of customers. The proposal requires segregated wallets, proof-of-reserves attestations, and $10M min…
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Federal Reserve Board publishes research paper on CBDC impact on commercial bank deposits
The Board published a staff research paper modeling the potential displacement of commercial bank deposits by a retail CBDC. The paper estimates 8-12% deposit migration in the first two years, with disproportionate impac…
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