The Securities and Exchange Commission and the Commodity Futures Trading Commission have launched Project Crypto, a joint initiative to clarify the regulatory framework for digital assets. The initiative is intended to align how the two agencies approach crypto markets, including questions around jurisdiction and market structure, as activity expands across trading, tokenization, and custody. Supporters frame the collaboration as a step toward clearer rules and more consistent supervision, though the effort will also highlight unresolved tensions over how digital assets should be regulated in the US.

Citigroup CEO Jane Fraser emphasized the transformative potential of artificial intelligence during the World Economic Forum, noting that AI will create new jobs and change daily tasks. Fraser highlights the importance of training employees to work with AI, and Citi has implemented ethical principles for AI use since 2019. Citi's AI strategy includes mandatory training for all employees to foster an "AI-first" culture.

Quant investing is gaining traction in corporate bond markets as electronic trading expands and improved data makes it easier to apply systematic strategies in credit. Asset managers are increasingly using models to identify pricing inefficiencies and relative-value opportunities in a market historically shaped by dealer-driven trading.

Intercontinental Exchange has received Securities and Exchange Commission approval to operate a clearinghouse for US Treasurys, adding competition to a market long dominated by DTCC's Fixed Income Clearing Corp. The NYSE owner plans to clear Treasury trades immediately and expand into repo clearing later in 2026, in response to new rules mandating central clearing in the $30 trillion government debt market.

Broadridge said average daily volumes on its Distributed Ledger Repo platform jumped 490% year over year to $384 billion in December 2025, driven by wider client adoption, sponsored repo and new digital asset use cases. The firm plans to add intraday repo, deepen interoperability with digital cash and payment systems, and expand tokenization across asset classes, including bonds, private credit and equities.

The Federal Reserve finalized the hypothetical recession scenarios for its annual bank stress tests, saying the framework is largely unchanged from its October proposal. The central bank also voted to keep current stress capital buffer requirements in place through 2027 while it overhauls the exam, signaling continuity for large lenders even as regulators rethink the design of the tests. "Waiting to calculate new stress capital buffer requirements until we receive public feedback will give us the opportunity to correct any deficiencies in our supervisory models based on that feedback," said Vice Chair for Supervision Michelle Bowman.

Commodity Futures Trading Commission Chairman Michael Selig says the US could become a global model for cryptocurrency regulation with a new market structure bill. Selig says the proposed legislation would provide much-needed clarity to digital asset markets, establish a clear "token taxonomy," distinguish between securities and commodities, and set clear boundaries between the CFTC and the Securities and Exchange Commission.

The unresolved issue of stablecoin rewards was at the center of a recent White House meeting, as banks worry that allowing such rewards could reduce deposits and affect stability. Crypto firms oppose restrictions on rewards, citing significant impact on their business models. While the GENIUS Act allowed some flexibility for interest payments through subsidiaries, the Senate Clarity Act includes provisions that would largely ban third-party interest and rewards, prompting ongoing debate between stakeholders.

The transition to extended trading hours on national securities exchanges marks a major evolution for US equity markets. With new opportunities comes added complexity - and it's critical that firms and exchanges work together proactively. This week, SIFMA convened industry leaders for a roundtable on building the roadmap to 24/7 trading. Watch the replay and explore our recommendations and considerations for the industry.

At SIFMA's 2026 Operations Conference & Exhibition, we bring together the full operations ecosystem -- 900-plus senior executives from broker-dealers, banks, asset managers, vendors, market utilities, and regulators -- to go deeper on the issues shaping tomorrow's markets. Join us for real-world insights, diverse viewpoints, and meaningful connections as we build the future of operational excellence together. Register today!