Federal Reserve Chair Powell says DOJ has subpoenaed central bank, threatens criminal indictment

By CHRISTOPHER RUGABER, Associated Press

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell said Sunday that the Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his testimony about the Fed’s building renovations.

The move represents an unprecedented escalation in President Donald Trump’s battle with the Fed, an independent agency he has repeatedly attacked for not cutting its key interest rate as quickly as he prefers.

The subpoena relates to Powell’s testimony before the Senate Banking Committee in June regarding the Fed’s $2.5 billion renovation of two office buildings — a project that Trump criticized as excessive this summer.

In a video statement, Powell said the threat of criminal charges is a “pretext” to undermine the Fed’s independence when it comes to setting interest rates.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.

The Justice Department, in a statement Sunday, said it could not comment on any particular case but added that Attorney General Pam Bondi “has instructed her US Attorneys to prioritize investigating any abuse of taxpayer dollars.”

A spokesperson for U.S. Attorney Jeanine Pirro’s office did not immediately respond Sunday to requests for comment.

The potential indictment has already drawn concern from one Republican senator, who said he will oppose any future nominee to the central bank — including any replacement for Powell — until “this legal matter is fully resolved.”

“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” said North Carolina Sen. Thom Tillis, who sits on the Banking Committee, which oversees Fed nominations. “It is now the independence and credibility of the Department of Justice that are in question.”

Associated Press writers Seung Min Kim, Eric Tucker, and Alanna Durkin Richer contributed to this report.
https://www.orovillemr.com/2026/01/11/federal-reserve-powell-subpoena/

‘A decision I needed to make’: Cook County Board candidate suspends campaign to fight indictment

The phone rang for Catherine “Cat” Sharp late last October, while she sat at her desk at work, back when news swirled daily about the Trump administration’s deportation campaign around Chicago. The call appeared to be from the federal government. But as chief of staff for Chicago’s 40th Ward alderperson, that didn’t seem unusual. So she picked up. “They identified themselves as the FBI,” said Sharp, who was also running as a Democrat for Cook County Board, “and informed me that they were asking for me to turn myself in the next morning.” News soon broke that Sharp and five others, dubbed the “Broadview Six”, faced a conspiracy indictment tied to protests in Broadview against “Operation Midway Blitz.” But it wasn’t until Monday, two months later, that Sharp announced the suspension of her campaign for the Cook County Board’s 12th District seat to focus on her legal defense in a case criticized as an attack on the First Amendment. Sharp, 29, explained her decision in an interview Tuesday with the Chicago Sun-Times. She acknowledged the financial cost of simultaneously running a campaign and mounting a defense in federal court. But she also said that her initial phone call from the FBI came as a “huge shock” one that she’s still processing. And, she added, “it is hugely stressful to feel that my freedoms are under threat.” “To be a single person, being up against the Trump administration and the federal government, is hugely stressful and has interrupted my ability to really be able to run a campaign that I’m proud of,” Sharp said. “I’m very lucky that I have amazing friends and family members who have been there for me as I’ve been navigating this,” she added. The case against Sharp is among the most high-profile criminal prosecutions, unrelated to immigration, brought in federal court as a result of “Operation Midway Blitz.” Also charged is Kat Abughazaleh, another Democrat running for Illinois’ 9th District congressional seat. So is Oak Park village trustee Brian Straw, 45th Ward Democratic committeeperson Michael Rabbitt, musician Joselyn Walsh and Andre Martin. Each of them face a prison sentence of up to seven years. Four of the six are Democratic politicians, and defense attorneys have said they may file a “selective prosecution motion.” So far, they’ve asked prosecutors for any “White House communications” tied to the case. The 11-page indictment against Sharp and her co-defendants alleges that, while an agent drove a vehicle toward the U. S. Immigration and Customs Enforcement facility in suburban Broadview on Sept. 26, the six and others surrounded it. Members of that group allegedly banged on the vehicle, pushed against it, scratched it and even etched the word “PIG” onto it. They also allegedly broke a side mirror, a rear windshield wiper and forced the agent “to drive at an extremely slow rate of speed.” Much of what happened was caught on video, though defense attorneys say it doesn’t tell the whole story. Sharp declined during Tuesday’s interview to discuss the allegations. U. S. Attorney Andrew Boutros has said that “all federal officials must be able to discharge the duties of their office without confronting force, intimidation or threats.” Still, federal cases brought against “Operation Midway Blitz” protesters have been viewed with some skepticism. Among at least 31 defendants, charges have already been dropped against 14. No one has been convicted. Abughazaleh took the rare step in October of announcing the federal charges on social media and promised her followers regular updates about the case. But Sharp, when asked Tuesday whether she felt the indictment helped her campaign said, “I certainly was told that.” “But overall I mean, as evidenced by me suspending the campaign it was not beneficial,” Sharp said. She said she was conscious that some might see her as being bullied out of the race by the Trump administration. But she said she wanted to “push back against that.” “In the last couple months, with Midway Blitz, I’ve been really proud to have organized Know Your Rights town halls and get neighbors more engaged,” Sharp said. “. In suspending my campaign, I’m going to have more availability to recommit to that work.” In her statement Monday night, she added that, “I’m not going anywhere.” And she promised to continue her work as chief of staff for Ald. Andre Vasquez. She also said she’d been trying, in the last two months, to balance “two hugely stressful things.” That includes her campaign “where every moment that you’re not spending knocking on doors and trying to raise funds for the campaign feels like you’re not doing enough.” She insisted she could only speak about her own experience acknowledging it’s “only a small piece of what other families are having to navigate right now in Chicago, and across the country” while being targeted by immigration authorities. But going into the holiday season, when family is the top priority, Sharp said, “it just resonated a bit more that this is a decision I needed to make. “To put myself, my loved ones and my family first.”.
https://chicago.suntimes.com/immigration/2026/01/06/cook-county-board-candidate-suspends-campaign-to-fight-indictment

Legal expert slams Supreme Court Justice for attempt to ‘narrow the forces he unleashed’

The Supreme Court dropped a bombshell on Tuesday by handing President Donald Trump a rare loss, ruling 6-3 to deny a stay on deploying the National Guard to Illinois. However, the rebuke of Trump was not the only notable aspect in the opinion.

Specifically, Justice Brett Kavanaugh, who drafted a concurrence with the majority on one of the key issues in the decision, made statements in his opinion that suggest he may regret one of the most controversial court decisions in recent months.

In a ruling last September that stayed a lower court block on certain kinds of immigration raids in California, Kavanaugh authored a concurrence in which he appeared to endorse profiling by federal agents outright, while simultaneously denying that American citizens have anything to fear from this.

“The Government sometimes makes brief investigative stops to check the immigration status of those who gather in locations where people are hired for day jobs; who work or appear to work in jobs such as construction, landscaping, agriculture, or car washes that often do not require paperwork and are therefore attractive to illegal immigrants; and who do not speak much if any English,” he wrote.

This ruling sparked a wave of outrage. Several legal and political observers began calling immigration enforcement based on racial or ethnic profiling “Kavanaugh stops,” while tallying up the growing number of alleged incidents of this type occurring under the Trump administration.

All of this may have stung the justice, because he appeared to qualify or walk back this sentiment in his concurrence in the Illinois case.

“The basic constitutional rules governing that dispute are longstanding and clear: The Fourth Amendment requires that immigration stops must be based on reasonable suspicion of illegal presence, stops must be brief, arrests must be based on probable cause, and officers must not employ excessive force,” Kavanaugh wrote.

“Moreover, the officers must not make interior immigration stops or arrests based on race or ethnicity.”

This change of tone was not lost on New York University law professor and former Defense Department special counsel Ryan Goodman.
https://www.rawstory.com/brett-kavanaugh-2674826052/

DHS reveals Illegal alien behind fatal crash was given license by deep blue state

**Illegal Immigrant Allegedly Causes Fatal Semi-Truck Crash on Oregon Highway, Killing Two**

An illegal immigrant allegedly responsible for a fatal crash that killed two people in Oregon was reportedly issued a commercial driver’s license by California under Governor Gavin Newsom’s administration, according to the Department of Homeland Security (DHS).

In a statement released Monday, DHS identified the individual as Rajinder Kumar, an Indian national accused of criminally negligent homicide and reckless endangerment. Kumar, 32, reportedly jackknifed his semi-truck and trailer, blocking both lanes of U.S. Highway 20 around 9:30 p.m. on November 24 in Deschutes County, Oregon, according to Fox 12 Oregon.

A Subaru Outback collided with Kumar’s semi-truck, killing both the driver, William Micah Carter, and the passenger, Jennifer Lynn Lower, DHS confirmed.

The agency stated that U.S. Immigration and Customs Enforcement (ICE) has lodged a detainer for Kumar’s arrest. He is currently being held at the Deschutes County Jail pending further proceedings. DHS added that since Oregon is a sanctuary state, ICE will make all necessary efforts to apprehend Kumar should he be released from custody.

**Background and Immigration Status**

According to DHS, Rajinder Kumar entered the United States illegally near Lukeville, Arizona, in November 2022. After being released into the country by the Biden administration, Kumar was granted work authorization in 2023. He was also issued a commercial driver’s license by the state of California.

This case adds to a series of high-profile auto accidents involving illegal immigrants who obtained driver’s licenses in sanctuary states.

**Similar Incidents in Other States**

In August, another illegal immigrant and semi-truck driver, Harjinder Singh—also from India—made an illegal U-turn on the Florida Turnpike. This dangerous maneuver led to a minivan crashing into the truck, resulting in the deaths of the driver and two passengers.

ICE has also lodged an arrest detainer against Singh, who faces three counts of vehicular homicide.

Earlier in August, ICE arrested Partap Singh, a criminal illegal alien accused of causing a multi-car pileup while driving a commercial semi-truck in California. The crash left 5-year-old Dalilah Coleman with critical, life-altering injuries.

In October, ICE lodged a detainer for Jashanpreet Singh, who was implicated in a crash that killed three people in California while driving a semi-truck under the influence.

**DHS Response**

Regarding the November crash involving Rajinder Kumar, DHS Assistant Secretary Tricia McLaughlin expressed condolences, saying, “Our prayers are with William and Jennifer’s families.”

*For more updates, stay tuned to Fox News.*
https://www.foxnews.com/politics/illegal-alien-behind-fatal-crash-given-license-sanctuary-california-says-dhs

Thousands in Philippines protest corruption, demand return of stolen funds

**Thousands Protest in the Philippines Demanding Swift Justice in Massive Corruption Scandal**

*Manila, Philippines* — Thousands of demonstrators, including members of the Roman Catholic clergy, took to the streets across the Philippines on Sunday, demanding the swift prosecution of top legislators and officials implicated in a widespread corruption scandal. The scandal has severely rocked the Asian democracy, centered around substandard, defective, or non-existent flood control projects.

Left-wing groups also held a separate protest at Manila’s main park, presenting a blunt demand: all implicated government officials must immediately resign and face prosecution.

### President Marcos Faces Growing Public Outrage

President Ferdinand Marcos Jr. has been scrambling to quell the mounting public outrage. The corruption scandal is blamed for numerous failed flood control projects across the archipelago—an area long vulnerable to deadly flooding and extreme tropical weather.

To manage the protests, over 17,000 police officers were deployed throughout metropolitan Manila. The Malacañang presidential palace complex was placed on security lockdown, with key access roads and bridges blocked by anti-riot police forces, trucks, and barbed wire.

### Calls for Military Intervention Rejected

In a deeply divided democracy where two presidents have been ousted over allegations of plunder in the past 39 years, there have been isolated calls for the military to withdraw support from the Marcos administration.

However, the Armed Forces of the Philippines firmly rejected these calls. On Sunday, the military welcomed a statement signed by at least 88 mostly retired generals—including three former chiefs of staff—condemning any proposal for unconstitutional military action.

The military declared, “The unified voice of our retired and active leaders reaffirms that the Armed Forces of the Philippines remains a pillar of stability and a steadfast guardian of democracy.”

### Catholic Church Leads Anti-Corruption Protests

Roman Catholic churches nationwide helped lead Sunday’s anti-corruption protests in their neighborhoods. The main rally was held at a pro-democracy “people power” monument along Manila’s EDSA highway.

Police estimated that about 5,000 demonstrators, mostly clad in white, had gathered before noon. Their demands were clear: imprison members of Congress, government officials, and construction company owners responsible for thousands of anomalous flood control projects, and order them to return stolen government funds.

One protester wore a shirt emblazoned with the message: “No mercy for the greedy.” The Rev. Flavie Villanueva, a Catholic priest who has supported families of impoverished drug suspects killed under former President Rodrigo Duterte’s crackdowns, addressed the crowd:

“If money is stolen, that’s a crime, but if dignity and lives are taken away, these are sins against fellow human beings, against the country, but most importantly, against God. Jail all the corrupt and jail all the killers.”

### Progress and Promises in the Corruption Case

Since President Marcos first raised alarm about the flood control anomalies during his State of the Nation Address in July, at least seven public works officers have been jailed on charges such as illegal use of public funds and graft related to a single flood control project.

Executives from Sunwest Corporation, one of the construction firms involved, are actively being sought by authorities.

On Friday, Henry Alcantara, a former government engineer who admitted under oath to involvement in the anomalies during Senate inquiry hearings, returned 110 million pesos (approximately $1.9 million) in kickbacks. He has pledged to return additional amounts in the coming weeks.

To date, authorities have frozen about 12 billion pesos ($206 million) worth of assets linked to suspects in the flood control anomalies, according to President Marcos.

### Marcos Vows Accountability

President Marcos has pledged that many of the at least 37 powerful senators, members of Congress, and wealthy construction executives implicated in the scandal will be behind bars by Christmas.

However, protesters at Sunday’s rallies insisted that many more officials—including implicated senators and House members—should be jailed immediately and ordered to return the funds they misappropriated to finance fleets of private jets, luxury cars, mansions, and extravagant lifestyles.

*AP journalists Joeal Calupitan and Aaron Favila contributed to this report.*
https://www.npr.org/2025/11/30/nx-s1-5626219/philippines-protest-corruption-stolen-funds

Senator Eric Schmitt on Restricting Immigration in Light of Deadly Attack in DC on National Guard, Blasts Democrats for America Last Policies (VIDEO)

Senator Eric Schmitt appeared on “Sunday Morning Futures” with guest host Jackie DeAngelis to discuss efforts to restrict immigration following the deadly attack on National Guard members in Washington, D.C.

The Senator emphasized the importance of enforcing the immigration laws that are already in place. He noted that one of the main reasons President Trump was reelected was his strong commitment to protecting the nation from open borders and mass migration.

“I’m particularly interested in what Congress can do about our immigration policies to help President Trump. He’s doing everything that he can,” DeAngelis remarked.

During the conversation, DeAngelis referenced a suggestion by Treasury Secretary Scott Bessent to cut off some illegal migrants from tax benefits and cross-border money transfers, asking Senator Schmitt if this was a good idea.

“I do. I think we need to take away every incentive possible that made this wide-open border the Biden administration constructed,” Senator Schmitt replied. “All this mass migration needs to be met with mass deportations. We have plenty of laws that are now being enforced by this administration.”

The Senator added that the left often tries to “create controversy, create chaos, make it look like the ICE agents are the bad guys in all this.”

Senator Schmitt also highlighted issues within the legal immigration system. He cited the H-1B Visa program as an example, explaining how it allows foreign workers to be paid lower wages, which hurts American workers competing for the same jobs.

“I would point out, though, that it’s not just an illegal immigration problem. We have real abuses with our legal immigration system that should be addressed,” he said.

“The good news is we have a President who wants to enforce the laws, and that is not what we saw last administration when 20 million people came here in four years, illegally,” Schmitt continued.

DeAngelis asked if there is a timeline for when Americans can expect a system to be put into place that ensures secure borders.

“That is certainly step one. I see what the President is trying to do with some of these pauses in the aftermath of this shooting,” she commented. “What can we do to fix a broken system?”

Senator Schmitt responded, “I think when you hear comprehensive immigration reform, it’s usually a code word for mass amnesty. That’s what they are talking about, and we are not interested in that. What we need to do right now is enforce the laws of the United States.”

He concluded by noting, “There is nothing particularly new about deportations. Bill Clinton deported 11 million people. The difference now is the Democrats have been radicalized.”

Watch the full interview to learn more about Senator Schmitt’s views on immigration enforcement and reform.
https://www.thegatewaypundit.com/2025/11/senator-eric-schmitt-restricting-immigration-light-deadly-attack/

Trump says the U.S. will ‘very soon’ take action on land to stop alleged Venezuelan drug traffickers

President Donald Trump suggested Thursday night that the U.S. could “very soon” begin targeting alleged Venezuelan drug traffickers on land, expanding operations that have so far focused on the Caribbean Sea.

In Thanksgiving remarks to U.S. troops around the world, Trump thanked the Air Force’s 7th Bomb Wing for their work to “deter Venezuelan drug traffickers” and said “it’s about 85% stopped by sea… and we’ll be starting to stop them by land.”

“Also, the land is easier, but that’s going to start very soon,” the president added, speaking from his Mar-a-Lago estate.

The comments come as Trump weighs whether to take military action against Venezuela as part of what his administration has called a campaign against drug trafficking. Senior U.S. military officials have also made recent visits to leaders in the Caribbean.

For months, the president has intensified the U.S. military presence in the region, ramping up pressure on Venezuela with strikes on alleged drug boats since early September. The military has carried out nearly two dozen known strikes on vessels they said were carrying drugs, killing at least 82 people.

Last week, the USS Gerald R. Ford, a major aircraft carrier, arrived in the Caribbean, rounding out a build-up of U.S. military forces in the region that has not been seen for decades.

The U.S. also designated the Cartel de los Soles—a group Washington alleges is run by Venezuelan President Nicolás Maduro—as a foreign terrorist organization. These moves have raised both expectations and concerns over a possible strike inside Venezuela.

Yet even as he increases military pressure, Trump has said he could still hold talks with Maduro, suggesting a possible diplomatic pathway to defuse mounting tensions.

“I might talk to him,” Trump said aboard Air Force One this week. “We’ll see. We’re discussing this with different staff.”

Asked about the administration’s continued targeting of narcotraffickers on Monday, White House press secretary Karoline Leavitt told reporters that “you can expect to see those strikes continue.”

NBC News previously reported that, according to current and former U.S. law enforcement and military officials as well as narcotics experts, drug cartels operating vessels in the Caribbean are mainly moving cocaine from South America to Europe, not to the U.S.

During his remarks on Thursday, Trump also spoke with members of other military service groups, offering to take “any damn question you want.” Military members praised him, told stories, and asked questions about his presidency.

A Marine speaking from Camp Santiago, Puerto Rico, said that his battalion was ready to support the president’s operation against narcoterrorists.
https://www.nbcnews.com/politics/trump-administration/trump-soon-take-action-alleged-venezuelan-drug-traffickers-land-rcna246267

Millions of Migrants Right to Remain in US to Be Reviewed—White House

The U. S. government will speed up efforts to review the immigration status of “every single person added to this country over the last four years,” Stephen Miller, a senior adviser to Donald Trump, said on Wednesday. “What you heard from President Trump, the breaking news here tonight, is that his government is going to accelerate efforts to review every single person added to this country over the last four years,” he told Fox News, estimatng that would amount to 20 million migrants. The undocumented immigrant population in the United States reached 14 million in 2023, according to nonpartisan think tank Pew Research Center. President Donald Trump said earlier on Wednesday that individuals who arrived in the U. S. from Afghanistan during the Biden administration should have their status “reexamined.” Trump spoke after it emerged two West Virginia National Guard members deployed in Washington, D. C., had been shot and injured, with an Afghan national named as the suspect. “We must now reexamine every single alien who has entered our country from Afghanistan under Biden and we must take all necessary measures to ensure the removal of any alien from the country who does not belong here, or add benefit to our country. If they can’t love our country, we don’t want them,” President Trump said. Rahmanullah Lakanwal entered the U. S. in 2021 under Operation Allies Welcome, the Department of Homeland Security (DHS) said. Lakamal was granted asylum earlier this year under the Trump administration, according to reports from several outlets. Miller added: “Now if you’re an illegal you’re out automatically, but everybody else who was brought here refugee-, asylum- status whatever status, as he said, if you’re not someone who loves this country if you’re not any benefit to this country wer’e going to send you out of this country.” Thousands of Afghans entered the U. S. after the U. S. withdrawal and the Taliban regaining control in 2021. Many had worked with American forces as interpreters and support staff and were considered at risk of persecution under the new Taliban government. This is a developing story; updates to follow.
https://www.newsweek.com/millions-migrants-right-to-remain-united-states-reviewed-white-house-11118458

BREAKING: National Guard Shooter Identified as Illegal Afghan National

Hotair ^ | 11/25/2025 | Beege Welborn Posted on by SeekAndFind UPDATE 8: 41 CST: President Trump just addressed the nation from Mar-A Lago .”Nobody knew who was coming in, knew anything about it! And his status was extended by legislation signed by Biden” He said the suspect had been flown in by the Biden administration post-Afghanistan disaster, and then had his status extended. He also announced that they’re going to be ‘reexamining’ everyone who came in under the Biden programs, which means for many of them, it will be the FIRST time. Per Biden’s orders. The president’s remarks in full below. The ‘most reckless immigration program in US history. ************************************************************* Oh. My. God. CBS News had it first, and we just heard it on Fox during the Ingraham Angle. Entered with the friends and Taliban family programs Biden started after his disaster at Kabul, and then overstayed his visa. The gunman accused of shooting two National Guard members blocks from the White House the day before Thanksgiving is 29-year-old Afghan national Rahmanullah Lakanwal, three law enforcement sources confirmed to Fox News Digital. Lakanwal, an illegal migrant who entered the U. S. after the withdrawal from Afghanistan, overstayed his visa granted under Operation Allies Welcome, sources said. Authorities are investigating the shooting as a possible act of international terrorism. Remember the questions about the vetting at the time, and being told ‘shut up, already’? . administration’s Operation Allies Welcome a program created to resettle Afghans after the U. S. withdrawal from Afghanistan. Pepperidge Farm remembers. He used a handgun in the attack. Wonder how he got that? Suspect in National Guard shooting identified, sources say He reportedly waited around the corner for the Guardsmen to come around and shot a female Guard in the chest first, and then shot her in the head with her own weapon. The Fox News reporter just told Jason Chaffetz they were also stabbed in their heads, both of them. I’ll update as things come out. UPDATE: Every last swinging you-know-what in the Biden administration has so much to answer for, damn them. Details from Mike Davis, usually a pretty reliable source. A Major in the National Guard, who was unarmed and doing his spot checks of the guardsmen was in the block, heard the shots and turned to see the shooter who spotted him. He took cover behind a truck. The suspect came for the Major who pulled out his pocket knife, and bravely took on the suspect who was reloading his revolver. The Major began stabbing the suspect in the head. Another guardsman in the area who was armed, them drew his pistol and shot the suspect twice, once in the leg and once in the buttocks. The Major stated that when the suspect began shooting he heard him shout, Allahu akbar!” I just briefed [omitted]. Now, you know too. There’s more: we trying to confirm if the suspect, an Afghan national was an interpreter brought over by Biden, because he has a Department of Defense record. Again, we are trying to confirm. The suspect has a home address in Washington State. 2021 Flashback: ‘Conservative’ Bill Kristol with the supergreen hot take Prayers up all over the country with theirs. TOPICS: Crime/Corruption; US: District of Columbia; War on Terror KEYWORDS: afghanistan; nationalguard; shooter Click here: to donate by Credit Card Or here: to donate by PayPal Or by mail to: Free Republic, LLC PO Box 9771 Fresno, CA 93794 Thank you very much and God bless you. 1 posted on by SeekAndFind Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by.
https://freerepublic.com/focus/f-news/4354799/posts

US Nasdaq, Germany’s Deutsche Boerse lead lobby against relaxed SEC crypto regulation

In a letter published on the SEC’s website and dated November 21, the World Federation of Exchanges (WFE), whose members include Nasdaq and Deutsche Boerse, stated that the regulator must avoid allowing crypto companies to “bypass regulatory principles that have safeguarded markets for decades.” WFE chief executive Nandini Sukumar stated that exempting unregistered crypto firms would risk allowing products that look like equities to be offered without the protections that accompany real stock ownership. The body representing exchanges voicing its concerns comes as the SEC considers whether to issue a form of “innovation exemption” that would allow crypto companies to offer blockchain-based tokens representing exposure to listed stocks, instruments that would be sold to US retail investors without the platforms registering as broker-dealers. This proposal, which is supported by several crypto platforms, is being considered by SEC chair Paul Atkins, highlighting the agency’s recalibrated approach to digital assets under the Trump administration. The tokenization debate divides traditional and crypto finance This is not the first time the WFE has raised concerns about tokenized equities. In August, it wrote to regulators in the U. S., Europe, and Asia, urging a crackdown on unlicensed platforms offering tokenized stocks, warning of investor-protection issues and reputational risks for listed companies whose names are used without consent. It went further to ask that regulators apply the same rules used on securities to tokenized assets. Despite the body’s concerns, interest in tokenization continues to grow across the financial sector. Large banks, asset managers, and trading venues have begun exploring blockchain-based settlement and token-form assets as part of efforts to modernize financial infrastructure. The trend has gained more traction this year as crypto-native platforms seek direct access to the US equities market, while traditional exchanges experiment with on-chain settlement models. Nasdaq’s push for regulated tokenized securities. Nasdaq, one of the WFE’s most prominent members, has simultaneously been pushing for a regulated path toward tokenization. In September, it submitted a formal rule-change proposal that would allow the exchange to list and trade stocks in tokenized form, assigning the digital instruments the same regulatory treatment, including rights and CUSIP identification, as conventional shares. However, Ondo Finance, a blockchain startup offering financial market solutions, called for delays until Nasdaq provides further details on how trades in tokenized form would be processed through the Depository Trust Company, which operates the core plumbing of US securities settlement. Within the WFE itself, members acknowledge tokenization’s potential. The letter describes blockchain-based equity instruments as a “natural evolution in capital markets.” However, many exchanges argue that innovation must occur within the existing regulatory framework rather than through exemptions granted to unlicensed crypto platforms. James Auliffe, head of the WFE’s technology working group, said equity markets are already “very, very efficient,” and that proponents of moving trading onto blockchains still need to prove the benefits outweigh the costs. High stakes for regulators and markets The SEC’s decision on the matter will shape the future of how equities are traded and accessed in the US. Allowing tokenized stocks to be offered without conventional broker-dealer oversight could potentially enable firms outside the traditional financial system to compete directly with exchanges and brokers that face far stricter compliance obligations. Investor advocates fear that retail traders may not understand the difference between owning a token linked to a stock and holding the real equity itself. Earlier this year, companies including OpenAI warned that tokenized versions of their shares circulating on trading apps did not represent actual ownership. Join Bybit now and claim a $50 bonus in minutes.
https://bitcoinethereumnews.com/crypto/us-nasdaq-germanys-deutsche-boerse-lead-lobby-against-relaxed-sec-crypto-regulation/

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