The Neckening Update is Here, and it’s Packed
I’m thrilled to share that Esophaguys v1.2: The Neckening Update is now live on Xbox. After a few months of listening to your feedback, squashing bugs, and polishing every pixel, we’ve put…
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Starlink satellite fails, leaves debris behind • The Register
As if to underscore the need to avoid the Kessler Syndrome, a scenario in which cascading debris can make some orbits difficult to use, a Starlink satellite vented propellant and released debris following an onboard “anomaly” late last week.
The…
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How Trinidad and Tobago is reimagining healthcare through innovation – PAHO/WHO
Just one click with perinatal digital health records
If robots and fridges have strengthened Trinidad’s infrastructure, the country’s application of the Perinatal Information System (SIP and SIP Plus) is strengthening information.
Digitizing…
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SEC Issues Further Crypto Asset Security Guidance, Addresses Broker-Dealer Physical Possession and Asset Pairs Trading | Insights
On December 17, 2025, the staff in the SEC of Trading and Markets (Staff) issued a statement expressing its views on how a broker-dealer can maintain physical possession of a crypto asset security it carries for the account of a customer for purposes of complying with the Customer Protection Rule, Securities Exchange Act (SEA) Rule 15c3-3(b)(1).1 The same day, the Staff supplemented its FAQs on Crypto Asset Activities and Distributed Ledger Technology with new Q&As addressing crypto asset trading and settlement activities involving national securities exchanges (NSEs) and alternative trading systems (ATSs).2 Commissioner Hester Peirce posed a number of related questions to solicit feedback regarding NSE and ATS trading.3
How Can a Broker-Dealer Maintain Physical Possession of Crypto Asset Securities?
A broker-dealer that takes the following measures will be deemed to have “physical possession” of a fully paid or excess margin security of a customer that is a crypto asset security:
- maintain full access to the crypto asset security and the ability to transfer that asset on the relevant distributed ledger technology — in other words, the broker-dealer has access to the private keys necessary to sign transactions on the relevant blockchain for the crypto asset security4
- establish and enforce written policies and procedures aligned with industry customs to protect against access to private keys
- establish and enforce written policies and procedures to identify and assess potential risks of the distributed ledger technology and associated network prior to undertaking the asset and at continuous intervals after
- establish and enforce written policies and procedures that (i) identify steps the broker-dealer will take if certain events occur that could affect the firm’s possession of crypto asset securities, including blockchain malfunctions, 51% attacks, hard forks, or airdrops; (ii) allow for the broker-dealer to comply with a lawful order as to seizing, freezing, burning, or prevention of transfer of the crypto asset securities; and (iii) allow for the transfer of the crypto asset securities held by the broker-dealer to a trustee or similar person in the event the broker-dealer can no longer continue or self-liquidates
Additionally, a broker-dealer does not have possession of a crypto asset security if it is aware of any material security or operational problems related to the distributed ledger technology and associated network used to access and transfer the asset or is aware of risks associated with custody of the asset.
What Is Different From Previous SEC Staff Custody Guidance?
In May 2025, the Staff expressed views only on how a broker-dealer could establish “control” of a crypto asset security that is a fully paid or excess margin security of a customer for purposes of SEA Rule 15c3-3(b). The guidance was silent on the question of how a broker-dealer could maintain “physical possession” of any such crypto asset security.5 The May guidance noted that the Staff would not object to a broker-dealer establishing “control” if the crypto asset securities are held at a qualifying control location under SEA Rule 15c3-3(c), such as a federal bank.
The SEC’s 2020 Special Purpose Broker Dealer Statement,6 which is set to expire soon, permit limited-purpose broker-dealers to custody crypto asset securities. The new guidance expands the path for broker-dealers that are not special-purpose broker dealers to engage in activities in crypto asset securities.
What Is the Significance of the Custody Guidance?
The May 2025 crypto asset security custody guidance addressed reliance by a broker-dealer on a “control” location to satisfy the requirements in SEA Rule 15c3-3(b)(1) regarding fully paid or excess margin securities of customers, including through use of certain arrangements with banking entities.7 The latest guidance contemplates “possession” to satisfy the requirement.
What Custody Questions Remain Unanswered?
In connection with the “possession” guidance, additional clarifying guidance from the SEC and the Financial Industry Regulatory Authority (FINRA) would be helpful to establish what they will view to be “reasonably designed written policies” and being “aware of any material security or operational problems or weaknesses” regarding the relevant distributed ledger technology and associated network. Questions also remain about how broker-dealers that custody crypto asset securities can comply with other broker-dealer financial responsibility rules. These areas include the following.
- A carrying broker-dealer is subject to an annual audit of its financial statements and a compliance report under SEA Rule 17a-5(d) that generally is subject to the requirements of the Public Company Accounting Oversight Board (PCAOB). The new standards in the guidance must also be judged through the lens of PCAOB requirements that govern external auditors.
- A broker-dealer will have to reasonably satisfy its auditor’s need to determine whether securities are in the “possession” of the broker-dealer. This raises a question of whether the broker-dealer would hand over the private key to the auditor, which would give full transferability to a third party and consequently introduce additional risks.
- Broker-dealers are required, pursuant to SEA Rule 17a-13, to engage in quarterly count of all securities held, or custodied, for proprietary accounts or the accounts of customers. Failing to maintain possession or control over customers’ fully paid or excess margin securities would constitute noncompliance with SEA Rules and a “material weakness” in internal compliance controls.
- Broker-dealers will need to decide how to reflect crypto asset securities on their stock record. For example, this includes what constitutes the appropriate “short” location to ensure adequate stock record “counts” and to test against short securities differences.
The guidance therefore highlights some tension between crypto-native infrastructure and legacy broker-dealer regulatory constructs. As audit methodologies, custody technologies, and on-chain market structures continue to evolve, further engagement among regulators, auditors, and market participants will likely be necessary to ensure that regulatory requirements appropriately reflect technological realities without undermining the core principles of customer protection, financial responsibility, and market integrity.
Absent additional regulatory guidance, it may be easier for a broker-dealer to rely on the May 2025 FAQ guidance on “control” rather than try to show “possession.” FINRA has not yet provided its own guidance and could impose substantial other conditions. Firms that seek to achieve “possession” of crypto asset securities may wish to discuss with FINRA whether a “materiality consultation” or “continuing membership application” is needed.
Can NSEs and ATSs List and Trade Both Crypto Asset Securities and Nonsecurities?
Yes. The FAQs provide that an NSE or ATS can offer pairs trading — trading that involves a crypto asset that is a security and a crypto asset that is not a security — as long as the NSE or ATS satisfies its obligations under the federal securities laws. An NSE trading pair may need to amend its rules, and National Market System (NMS) plan amendments may be necessary. An ATS trading pair would need to comply with Regulation ATS (among other applicable rules), including by noticing its pairs trading activities as required by Form ATS or Form ATS-N. According to the FAQs, Form ATS and ATS-N can sufficiently accommodate disclosures about trading operations that involve crypto asset securities, including pairs trading.
The FAQs address how an ATS should comply with the requirements in Regulation ATS Rules 301(b)(8) and (9) regarding recording and reporting transactions in USD when a transaction is based on the value of non-USD assets, such as nonsecurity crypto assets. For these transactions, an ATS could provide transaction value data in USD using consistent and impartial methods commonly applied for converting the value of an asset that is not quoted in USD.
Separately, the FAQs confirm that a broker-dealer operator of an ATS can engage in certain broker, custodial, or clearing functions in addition to operating its ATS. For example, according to the guidance, a broker-dealer operator of an ATS does not need to register as a clearing agency when it clears and settles transactions in crypto asset securities for its own customers by debiting and crediting the appropriate customer accounts on its internal books and records.
How Soon Can NSEs and ATSs Facilitate Trading of Securities and Nonsecurities?
The FAQs state that the federal securities laws do not prohibit NSEs and ATSs from offering pairs trading of securities and nonsecurities. However, the process for implementing rule updates for an NSE or ATS to facilitate such trading and remain in compliance with the federal securities laws will likely delay the facilitation of these activities. An NSE that seeks to change its rules must submit the proposed rule changes to the SEC for consideration, a process that includes a period for public notice and comment.8 A similar process is required for NMS plan amendments.9 Broker-dealer operators of ATSs may also need FINRA approval to operate an ATS that offers trading in nonsecurity crypto assets if the operation of the ATS is a change to the broker-dealer’s business plan.
Can NSEs/ATSs Trade Tokenized NMS Securities?
The FAQs state that an ATS that trades NMS stock that displays subscriber orders in an NMS stock to non-ATS employees and meets certain volume thresholds would need to comply with Rules 301(b)(3) and (4) of Regulation ATS, which set forth order display and fee cap obligations for certain NMS stock ATSs. For orders based on non-USD, the ATS could convert the value of the non-USD asset using the process described above before providing the orders to the NSE or national securities association.
In response to the FAQs, Commissioner Peirce posed questions inviting feedback to the Crypto Task Force in a number of areas.10 The questions include a statement that ATSs that trade crypto asset securities that are NMS stocks are subject to Rule 304 of Regulation ATS, which requires an NMS stock ATS to file public disclosures on Form ATS-N.11
Will the SEC Object to Crypto Exchange-Traded Product Trading Under Regulation M?
No, the Staff would not recommend enforcement action against persons who transact in crypto exchange-traded products as long as they operate under circumstances described in the Staff’s no-action letter related to commodity-based investment vehicles.12 Such persons must still abide by other antifraud and antimanipulation securities laws in conducting these transactions.
What Other Rules Might Still Apply to Trading Crypto Asset Securities?
Other rules that may apply to the trading of the crypto asset securities depend in large part on the nature of the underlying security (e.g., NMS stock, over-the-counter equity security, fixed-income, security etc.). In this regard, the FAQs notably do not provide relief from the requirements for Regulation SHO, Regulation SCI, the market access rule (SEA Rule 15c3-5), SEA Rule 15c2-11 (with respect to non-NMS stocks), and Regulation NMS (with respect to NMS stocks).
How Does This All Fit Together?
The guidance expressly contemplates activities in crypto asset securities in a way that further opens the door for the development of a robust tokenized securities market. The SEC’s issuance last week of a no-action letter permitting DTC to launch a tokenization service combined with the new guidance on broker-dealer possession or control and tokenized ATS trading move toward supporting a complete trading and post-trade environment for crypto asset securities. Additionally, the ability for financial intermediaries to support multiple asset types, including NMS securities, crypto asset securities, and nonsecurity crypto assets, moves toward Chairman Paul Atkins’s vision of a unified “superapp” capable of seamlessly accommodating diverse financial instruments within a single platform.
1 Div. of Trading & Mkts., SEC, Statement on the Custody of Crypto Asset Securities by Broker-Dealers (Dec. 17, 2025).
2 Div. of Trading & Mkts., SEC, Frequently Asked Questions Relating to Crypto Asset Activities and Distributed Ledger Technology (Updated Dec. 17, 2025).
3 Commn’r Hester M. Peirce, And Then Some: Request for Information Regarding National Securities Exchanges and Alternative Trading Systems Trading Crypto Assets (Dec. 17, 2025).
4 Alternatively, it could be sufficient signing authority to transact in a multiparty computation (MPC) arrangement. Previously, under now-withdrawn guidance, the staff raised concerns with the fact that a broker-dealer (or its third-party custodian) who maintains a private key may not be sufficient evidence by itself that the broker-dealer has exclusive control of the digital asset security (e.g., it may not be able to demonstrate that no other party has a copy of the private key and could transfer the digital asset security without the broker-dealer’s consent). The staff no longer raises this as a concern, likely a reflection of developments in market practices around private key storage.
5 See SEC Paves the Way for Crypto Asset Activities by Broker-Dealers and Transfer Agents, Sidley Update (May 19, 2025).
6 See Custody of Digital Asset Securities by Special Purpose Broker-Dealers, Securities Exchange Act Release No. 90788 (Dec. 23, 2020), 86 FR 11627 (Feb. 26, 2021).
Digital Asset Securities Custody: U.S. SEC Issues Broker-Dealers Enforcement Relief and Requests Industry Comment, Sidley Update (Dec. 28, 2020).
7 On December 12, the Office of the Comptroller of the Currency conditionally approved five national trust bank charter applications for firms seeking to provide crypto asset custody, signaling an expansion in bank control locations. See Office of the Comptroller of the Currency, OCC Announces Conditional Approvals for Five National Trust Bank Charter Applications (Dec. 12, 2025).
8 15 U.S.C. § 78s(b)(2); 17 C.F.R. § 240.19b-4.
9 17 C.F.R. § 242.608(b)(2)(i).
10 See supra note 3.
11 Commn’r Hester M. Peirce, No Longer Special: Statement on the Division of Trading and Markets’ Statement Related to the Custody of Crypto Asset Securities by Broker-Dealers (Dec. 17, 2025).
12 SEC No-Action Letter, June 21, 2006, TP 06-81, https://www.sec.gov/divisions/marketreg/mr-noaction/currencyshares062106-10a1.pdf.
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Russell Brand charged with new rape and sexual assault offences
Russell Brand has been charged with two further offences including one count of rape, the Metropolitan Police has said.
In a new statement, the police force said the Crown Prosecution Service has authorised an additional charge of rape and a…
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Is AI the Newest Talent in Podcast Narration?
This post is from Edison’s Weekly Insights email. Subscribe here.
It seems as if people couldn’t stop talking about Artificial Intelligence (AI) in 2025. New AI tools and technologies have emerged in almost every space…
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No charges over IDF chants during Glastonbury set
Getty ImagesPolice launched an investigation after the band’s performance at the Glastonbury Festival An investigation by Avon and Somerset Police into chants made during a Bob Vylan performance at Glastonbury has concluded no further action will…
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Flu cases among people aged 65 and older up by almost 25% over past week – The Irish Times
Cases of flu among people aged 65 and older have increased by almost 25 per cent over the last week, new figures show.
On Tuesday, the Health Protection Surveillance Centre (HPSC) published the latest figures for respiratory illnesses –…
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VISN 8 Innovators Poised To Transform Veteran Care At The 2025 Veterans Health Make-a-thon | VA Tampa Health Care
VISN 8 continues to lead the way in health care innovation within the Veterans Health Administration.
After the successful completion of the 2024 Veterans Health Venture Studio program, which saw 7 teams create working prototypes, the 2025 cohort kicked off with the Hackathon this past August. Of the 51 concepts developed at the Hackathon, 17 teams were selected to join the Make-a-thon (December 2025 – March 2026), where teams will advance their concepts into technical designs ready to prototype. A subset of these teams will advance to the Accelerator, where they will collaborate with technical experts to create working prototypes prepared for pilot testing within VA.
Dr. Sandal describes the vision of VHVS as “simple yet powerful: to create technology by the people who will use it, alongside those people.” The Studio aims to develop five or more technologies each year, created by clinicians and Veterans, that can be rolled out across the entire VA system—delivering solutions that Veterans can proudly say they helped create.
Representing James A. Haley Veterans’ Hospital, Orlando VAMC, San Juan VAMC, Malcolm Randall VAMC, C.W. Bill Young VAMC , Thomas H. Corey VAMC, and VA facilities from across Florida, Puerto Rico, and the Caribbean, these innovators are prepared to tackle some of the most pressing challenges facing Veteran care. Their participation reflects VISN 8’s commitment to fostering collaboration and breakthrough solutions that improve outcomes for Veterans across the region and beyond.
David Dunning, Interim Director of Veterans Integrated Service Network 8 (VISN 8), The Sunshine Network, shares the personal motivation behind this innovation effort:
“It’s very personal for me. I get my care here, my spouse is a Veteran, my dad was a Veteran, her dad was a Veteran. So, seeing how we can get better at what we’re doing—it’s about tearing it down and building it back up into something transformational.”
Veterans Health Venture Studio: Founded and Led by VISN 8 Innovation Leader
The Veterans Health Venture Studio (VHVS), founded and led by Dr. Indra Sandal, Chief of Innovation at James A. Haley Veterans’ Hospital, fuels innovation by providing a structured pipeline that supports projects from initial ideation to pilot and scale phases. Focused on People Development, Technology Development, and Community Development, VHVS cultivates innovation capacity, launches new technologies, and builds partnerships to enhance health care delivery.
The VHVS program includes a Hackathon, Make-a-thon, and Accelerator in Year 1, followed by piloting and scaling in Year 2. This structure ensures VISN 8 projects receive the mentorship, resources, and support needed to evolve from concepts into practical, deployable solutions.
Highlights from the 2025 Veterans Health Hackathon
The 2025 Hackathon energized VISN 8 with over 350 participants collaborating across 17 VISNs and more than 100 VA and community organizations. Teams competed across three critical tracks:
- Timely Access to Care
- Optimizing Enterprise-wide Costs and Operational Efficiency
- Improving Community Care Coordination
Judged by 17 experts, nine winning teams emerged, showcasing innovative solutions ranging from appointment scheduling portals to AI-powered referral management tools. VISN 8 proudly claims several winners and finalists from its regional facilities, reflecting a strong culture of innovation dedicated to Veteran-centered care.
VISN 8 Teams Advancing to the Make-a-thon
Seventeen teams—comprising the nine Hackathon winners and eight additional rigorously selected projects—will advance to the Make-a-thon. These teams represent a powerful cross-section of VISN 8 expertise, including:
Timely Access to Care
- Bravo Zulu Health – Streamlines appointment and test scheduling into a single portal to reduce missed care and cancellations.
- Antonio Romero, C.W. Bill Young VAMC
- Onelis Cardona Lorenzo, Malcolm Randall VAMC
- SPEED Access Care – Uses AI to screen high-risk symptoms, preventing delayed diagnoses and guiding provider routing.
- Claudia Legaspi, C.W. Bill Young VAMC
- Alysa Werkheiser-Quillen, James A. Haley VAMC
- Sylvia Santiago-Rodriguez, James A. Haley VAMC
- Dana Glenn, James A. Haley VAMC
- Yolanda Showers, James A. Haley VAMC
- CareBridge – Empowers Veterans and providers with real-time access to care plans, discharge summaries, and chatbot support.
- Referral IQ – Enhances consult completeness through AI pre-validation against service line rules.
- Pedro Diaz-Rosario, San Juan VAMC
- Jorge Montanez, San Juan VAMC
- Grace Cruz-Lamboy, San Juan VAMC
- PIVOT – Reduces no-shows and boosts engagement via an AI hub enabling appointment rescheduling across preferred channels.
- Richard Paul, Orlando VAMC
- Erin Bohannon-Chenault, James A. Haley VAMC
Optimizing Costs and Efficiency
- VA Resource Allocation Mapping (VA R.A.M.) – Tracks medical supply inventories using AI to limit waste from surpluses and expirations.
- Farrah Noronha, Orlando VAMC
- Robert Eaton, Malcolm Randall VAMC
- autoVAte – Streamlines ePAS workflows with AI-driven assessment, triaging, and auto-approval.
- Ashley Rush, Orlando VAMC
- Candace McNulty, Orlando VAMC
- Catherine Javellana, Malcolm Randall VAMC
- CareNav – Reduces misdiagnosis by suggesting CPT/ICD codes from clinical notes using AI.
- Nitza Robles Sanchez, James A. Haley VAMC
- Hayley Stevenson, James A. Haley VAMC
- Exit Strategy – Improves discharge planning and clinical capacity through a real-time dashboard.
- Alexandra Kennedy, James A. Haley VAMC
- Hope Hunter, James A. Haley VAMC
- Improving Outcomes – Uses a digital CHF tool to promote adherence and monitor patient weight, reducing readmissions.
- David Beck, James A. Haley VAMC
- Mohamad Anas Sukkari, Malcolm Randall VAMC
- Caitlyn Morley, Thomas H. Corey VAMC
Enhancing Community Care Coordination
- Mission Fax Impossible – Automates community care records management to reduce treatment delays.
- Edward Martin, Malcolm Randall VAMC
- Edward Martin, Malcolm Randall VAMC
- Laser Focus – Increases referral transparency through AI-powered document scanning and validation.
- Jessica DelleChiaie, James A. Haley VAMC
- Gilberto Balderas, Orlando VAMC
- Carlos Gonzalez-Rodriguez, San Juan VAMC
- Rafael Giraud Carcano, San Juan VAMC
- Mia Lind Correa, San Juan VAMC
- Care Continuity – Provides Veteran-focused tracking with real-time views, AI alerts, and secure messaging.
- Karen Cionci, James A. Haley VAMC
- Karen Cionci, James A. Haley VAMC
- Care Ninjas – Integrates a scalable mobile and MyHealtheVet referral tracker to build Veteran trust.
- Tiffany Anthony, James A. Haley VAMC
- Angela Rozar, James A. Haley VAMC
- Catherine Clark Martin, James A. Haley VAMC
- Sandra Dompkosky, Thomas H. Corey VAMC
- Michele Laney, James A. Haley VAMC
- Care Connect – Streamlines prescribing with pharmacist-led, standardized intake and secure messaging.
- Michael Pitter, Orlando VAMC
- Charmaine Leighton‑Stewart, James A. Haley VAMC
- Shadow PACT – Preserves care continuity by scanning provider notes with AI for clinical triggers and auto-generating information packets.
The Path Forward: Make-a-thon and Beyond
The Make-a-thon will begin with an immersive bootcamp, providing teams with training, mentorship, and strategic support to refine their solutions into functional prototypes ready for pilot testing across VISN 8 and the broader VA system. This phase is designed to align leadership, cultivate innovation, and prepare high-potential projects for sustainable impact.
VISN 8’s innovators have already benefited from nearly 5,000 person-hours of training, demonstrating their readiness to deliver transformative solutions that enhance Veteran care and operational efficiency.
Collaboration Powering VISN 8 Innovation
The Make-a-thon thrives on collaboration among VA leadership, the Office of Healthcare Innovation and Learning, The American Legion, and Microsoft. Microsoft plays a pivotal role by providing comprehensive training, and mentorship, empowering teams to accelerate their innovations.
These partners serve as Advisory Council members and expert faculty, guiding VHVS’s strategic vision and working closely with teams throughout the Make-a-thon to refine and validate solutions. This collective expertise ensures VISN 8’s innovations are positioned for meaningful, scalable impact throughout the VA.
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The U.S. stock market had a rocky start to the year, thanks to tariffs and Trump’s fight with the Fed. But it’s ending on a high note
NEW YORK (AP) — It was a scary good year for investors.
It was scary because the U.S. stock market plunged to several historic drops on worries about everything from President Donald Trump’s tariffs to interest rates to a possible bubble in artificial-intelligence technology. In the end, though, it was a great year for anyone with the stomach to stick through the swings.
S&P 500 index funds, which sit at the heart of many savers’ 401(k) accounts, returned more than 18% in 2025 through Dec. 11 and set a record high that day. It’s their third straight year of big returns.
Here’s a look at some of the surprises that shaped financial markets along the way:
Tariff tremors
Trump dropped the biggest surprise on “Liberation Day” in April, when he announced a sweeping set of tariffs that were more severe than investors expected.
It immediately triggered worries about a possible recession and spiking inflation. The S&P 500 plunged nearly 5% on April 3 for its worst day since the 2020 COVID crash. The very next day, it dropped 6% after China’s response raised fears of a tit-for-tat trade war.
The tariffs’ impact went beyond the stock market. The value of the U.S. dollar fell, and fear even shook the U.S. Treasury market, which is seen as perhaps the safest in existence.
Trump eventually put his tariffs on pause on April 9 after seeing the U.S. bond market get “queasy,” as he put it, which sent relief through Wall Street. Since then, Trump has negotiated agreements with countries to lower his proposed tariff rates on their imports, helping calm investors’ nerves.
Wall Street motored higher through a remarkably calm summer thanks to euphoria around artificial-intelligence technology and strong profit reports from companies. The market also got a boost from three cuts to interest rates by the Federal Reserve.
READ MORE: AI darlings prop up Wall Street as most other stocks fall
Trade worries can still cause havoc in markets, and Trump sent stocks spiraling as recently as October with threats of higher tariffs on China.
Trump and the Fed
Another surprise was how hard, and how personally, Trump lobbied to get the Federal Reserve to lower interest rates.
The Fed has traditionally operated separately from the rest of Washington, making its decisions on interest rates without having to bend to political whims. Such independence, the thinking goes, gives it freedom to make unpopular moves that are necessary for the economy’s long-term health.
Keeping interest rates high, for example, could slow the economy and frustrate politicians looking to please voters. But it could also be the medicine needed to get high inflation under control.
As inflation stubbornly remained above the Fed’s 2% target, the central bank kept rates steady through August. This drew Trump’s ire – even though it was his own trade policies that were driving fears about inflation higher.
Trump continuously picked on Fed Chair Jerome Powell, even giving him the nickname “Too Late.” Their tense relationship reached a head in July when Trump, in front of cameras, accused Powell of mismanaging the costs of a renovation of the Fed’s headquarters. Powell, in turn, shook his head.
Even though Wall Street loves lower rates, the personal attacks caused some queasiness in financial markets because of the possibility of a less independent Fed. Powell’s turn as Fed chair is set to expire in May, and the wide expectation is that Trump will choose a replacement more likely to cut rates.
Good but not first
“America first” didn’t extend to global markets. Even as U.S. stocks soared to another double-digit gain, many foreign markets fared even better.
The technology frenzy that helped fuel gains for the S&P 500 and the Nasdaq composite drove Korea’s KOSPI higher in 2025, enjoying its biggest gain in more than two decades. South Korea is a technology hub and companies including Samsung and SK Hynix surged amid the focus on artificial intelligence investments and advancements.
Japan’s Nikkei 225 had a double-digit gain for a third straight year. Besides the focus on AI and the technology sector, the gains were boosted in October and November following national elections and plans for a $135 billion stimulus package.
European markets also had a strong year. Germany’s DAX got a boost as the government announced plans to ramp up spending on infrastructure and defense, which could fuel economic growth in Europe’s largest economy.
The European Central Bank spent the first half of the year cutting interest rates, which helped give financial markets across Europe a boost. France’s CAC 40 was a laggard, up 10% as of Monday.
Crypto’s ups and downs
Even with a reputation for volatility, cryptocurrencies still managed to surprise market watchers.
Bitcoin dropped along with most other assets early in the year as Trump’s trade policies scared investors away from riskier investments.
The most widely used cryptocurrency roared back as the White House and Congress threw their support behind digital assets and the Trump family launched a number of crypto ventures. Retail investors joined in by pouring money into bitcoin ETFs, stock-like investments that allowed them to benefit from the run-up in price without having to actually store bitcoin in digital wallets. Some companies, notably Strategy Inc., made buying and holding crypto the crux of their business and their stocks jumped.
READ MORE: How a Trump business deal with a crypto firm exposes potential conflicts of interest
Bitcoin and hit a high around $125,000 in early October. But, almost as quickly, digital assets tanked as investors worried the prices for shining stars such as tech stocks and crypto had jumped too high. As of Monday afternoon, bitcoin traded around $89,400, down roughly 28% from the peak and 4% below where it started the year.
What’s ahead?
Many professional investors think more gains could be ahead in 2026.
That’s because most expect the economy to plod ahead and avoid a recession. That should help U.S. companies grow their profits, which stock prices tend to track over the long term. For companies in the S&P 500, analysts are expecting earnings per share to rise 14.5% in 2026, according to FactSet. That would be an acceleration from the 12.1% growth estimated for 2025.
But some of this year’s concerns will linger. Chief among them is the worry that all the investment in artificial-intelligence technology may not produce enough profits and productivity to make it worth it. That could keep the pressure on AI stocks like Nvidia and Broadcom, which were responsible for so much of the market’s gains this year.
And it’s not just AI stocks that critics say are too pricey. Stocks across the market still look expensive after their prices climbed faster than profits.
That has strategists at Vanguard estimating U.S. stocks may return only about 3.5% to 5.5% in annualized returns over the next 10 years. Only twice in the last 10 years has the S&P 500 failed to meet that bar, assuming this year ends without another sell-off.
At Bank of America, strategist Savita Subramanian says the S& P 500 could rise by less than half as much as profits do in 2026. She said that could be a result of companies reducing stock buybacks, as well as global central banks implementing fewer rate cuts.
Reporter Damian Troise contributed.
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