US Securities and Exchange Commission Chair Paul Atkins has signaled a more collaborative regulatory approach, pledging businesses will get notice of technical violations before facing penalties. The move marks a sharp break from Gary Gensler's aggressive enforcement era under President Biden, with Atkins focusing enforcement on fraud while advancing the White House's crypto-friendly agenda. He also outlined plans to craft rules for tokenized securities and smart contracts.

Securities and Exchange Commission Chairman Paul Atkins has warned that the SEC may no longer allow foreign companies listed on U.S. exchanges to use the International Financial Reporting Standards (IFRS) as an alternative to U.S. accounting standards due to the IFRS Foundation's recent focus on sustainability and climate issues. Atkins has called the foundation's focus on sustainability "a real issue, a real problem" and says it could undermine the integrity of IFRS and its compatibility with US standards.

Asset managers are closely monitoring the potential impact of a European Securities and Markets Authority recommendation that catastrophe bonds be excluded from Undertakings for Collective Investment in Transferable Securities funds. The guidance, now under review by the European Commission, could trigger a sell-off of the $17.5 billion of cat bonds in UCITS funds.

In a keynote speech at the OECD, SEC Chair Paul Atkins outlined plans to integrate trading, lending, and staking of digital assets under a single regulatory framework, reiterating his view that most crypto tokens are not securities. Atkins said the initiative aims to provide clear, predictable rules to support innovation, describing it as "a new day at the SEC."

US ETF assets reached a record $12.19 trillion at the end of August, driven by $120.65 billion in net inflows for the month and $798.77 billion year-to-date, according to ETFGI. The S&P 500's 2.03% rise in August contributed to the growth, with iShares, Vanguard and SPDR ETFs leading the market.

Active fund managers are facing a new challenge from private-market investments, particularly as these investments seek to enter the target-date fund market popular among 401(k) savers. While active managers have traditionally competed with passive funds on fees, private funds often have even higher fees, posing a potential issue for plan sponsors focused on cost.

Hedge funds and quantitative trading firms are stepping up their recruitment of volatility traders as demand surges in response to heightened commodity market swings. Executive search specialists note a significant increase in hiring for cross-commodities and volatility-focused portfolio managers compared to last year.

Investors are embracing the "run it hot" trade, betting on economic resurgence driven by tax cuts and falling interest rates. This optimism has pushed stocks, bitcoin, and gold to record highs, with the Dow Jones Industrial Average surpassing 46,000. Investors are optimistic about the near-term outlook, despite concerns about slowing job growth and tariffs.