US banks could face funding challenges as stablecoin issuance increases, potentially leading to higher funding costs and reduced lending, according to experts. The GENIUS Act has fueled predictions of significant outflows from bank deposits to stablecoins, but some experts doubt such a scenario, citing the current lack of compelling use cases for stablecoins and the prohibition on interest payments.

The Securities and Exchange Commission has announced changes to the process by which companies can seek to exclude votes on shareholder resolutions, potentially making it more difficult for investors to force votes on certain topics. The SEC will no longer rule on common proxy objections until at least June 2026, citing administrative burden and resource allocation.

The cryptocurrency market has lost $1.2 trillion in value over the past six weeks amid concerns about tech valuations and US interest rates. The value of more than 18,000 coins tracked by CoinGecko is down 25% since Oct. 6, with Bitcoin down more than 28%.

SEC Chair Paul Atkins announced plans to create a "token taxonomy," signaling a major shift in how digital assets are regulated. The proposal could mean that many tokens will no longer be treated as securities, aligning with recent legislative efforts such as the GENIUS Act. Industry veterans have praised the approach for offering regulatory clarity, but investor-protection lawyers have raised concerns about potential risks and the need for robust market-structure legislation.

As tech companies prepare to raise substantial funds for artificial intelligence investments, banks and investors are increasingly using derivatives to hedge against potential defaults. This trend has notably increased the cost and trading volume of credit default swaps, particularly for companies like Oracle and Meta Platforms.

Assets in the US exchange-traded fund industry reached a record $13.08 trillion at the end of last month, with net inflows for the month totaling $186.19 billion, ETFGI says. This has helped push year-to-date inflows to $1.14 trillion, also a record.

The Bloomberg US Aggregate Bond Index is on track for its best performance since 2020, potentially fueled by Federal Reserve interest-rate cuts and other factors. The index has returned about 6.7% this year, outpacing short-term Treasury bills. However, potential threats remain, including uncertainty over future rate cuts.