Emerging Regulatory Priorities at the DOJ, CFTC, SEC and FINRA, including Insider Trading in Prediction Markets

Elizabeth Lan Davis, Partner | Davis Wright Tremaine LLP

Elizabeth Lan Davis is a partner in the Washington, D.C. office of Davis Wright Tremaine LLP, where she leads the firm’s commodities and derivatives business practice within the financial services group. Her practice centers on enforcement defense, regulatory compliance, and litigation, including financial services examinations, regulatory investigations, white-collar matters, and compliance guidance.

• Education & Credentials

Ms. Davis earned her J.D. from Tulane University Law School in 1999 and her B.A. from the University of Pennsylvania in 1996. She has been admitted to the District of Columbia bar since 1999.

• Recognition & Leadership

Chambers USA has ranked Ms. Davis Band 1 for Derivatives: Enforcement (2023–2026), naming her among “America’s Leading Lawyers for Business.” Her honors include the DOJ Outstanding Attorney Award from the Tax Division (2004, 2006, and 2007), the Washington Business Journal’s “Women Who Mean Business” recognition (2021), and the Asian Pacific American Bar Association Pioneer Award (2021). She previously served as a founding member and chair of McGonigle, P.C., where she established the firm’s Commodities, Futures & Derivatives practice group.

• Professional Involvement

Ms. Davis serves on the Executive Committee of the Futures Industry Association’s Law & Compliance Division and has served as conference co-chair of the American Bar Association’s Commodities & Derivatives Section. Her past roles include law firm board member of the Commodity Markets Council, compliance community co-chair of the Global Digital Asset Cryptocurrency Association, fellow of the Leadership Council on Legal Diversity, and diversity committee co-chair of the Women’s Bar Association of Washington, D.C. She is a member of the Women’s White Collar Defense Association and of Women in Financial Markets, where she previously served as a Wolfpack Facilitator.

• Experience

Ms. Davis spent nine years as Chief Trial Attorney in the CFTC’s Division of Enforcement, leading civil regulatory enforcement investigations involving fraud, manipulation, disruptive trading practices, digital assets, credit default swap indices, undercapitalization, and swaps reporting. Earlier, at the U.S. Department of Justice Tax Division, she served as Counsel to the Deputy Assistant Attorney General for Civil Matters and as a Trial Attorney in the Civil Trial Section, trying bench and jury trials on behalf of the IRS in federal district and bankruptcy courts.

Barry O’Connell, Partner | Davis Wright Tremaine LLP

Barry O’Connell is a partner in the New York office of Davis Wright Tremaine LLP’s financial services practice group, focusing on white collar, investigations, and government controversies.

• Education & Credentials

Mr. O’Connell earned his J.D. from Cornell Law School in 2008, where he was a Radice Scholar, received the CALI Award, and made the Dean’s List, and his B.S. in Industrial & Labor Relations from Cornell University in 2005 as an Alpern Scholar. He is admitted in New York (2009) and Massachusetts (2008), and before the U.S. District Courts for the Eastern and Southern Districts of New York.

• Recognition & Leadership

Mr. O’Connell received the Ellen B. Ross Award from the Enforcement Division of the U.S. Securities and Exchange Commission.

• Professional Involvement

He has served as a NITA instructor for Georgetown University’s summer program.

• Experience

Mr. O’Connell served as Enforcement Senior Counsel at the U.S. Securities and Exchange Commission (2010–2022), as Special Assistant U.S. Attorney for the Eastern District of New York (2021–2022), and as Assistant U.S. Attorney for the District of New Jersey (2022–2024). He began his career as an associate at Goodwin Procter LLP in Boston (2008–2010).

Russell M. Fecteau, Of Counsel | Davis Wright Tremaine LLP

Russell M. Fecteau is of counsel in the Washington, D.C. office of Davis Wright Tremaine LLP. He is a regulatory and enforcement defense attorney focusing on complex trading issues for brokerdealers, investment advisors, dual registrants, and registered representatives in SEC and FINRA matters.

• Education & Credentials

Mr. Fecteau earned his LL.M. in Securities and Financial Regulation, with distinction, from Georgetown University Law Center in 2008; his J.D., cum laude, from American University Washington College of Law in 2001; and his B.A. in English and Philosophy from Marquette University in 1998, where he made the Dean’s List, was a member of the English Honor Society, and captained the NCAA Division I wrestling team. He is admitted to the bars of the District of Columbia (2003) and New York (2002).

• Recognition & Leadership

Mr. Fecteau was a member of the practice recognized as “Law Firm of the Year” in Securities Regulation by U.S. News/Best Lawyers – Best Law Firms (2019).

• Professional Involvement

He is a member of the District of Columbia Bar Association, where he participates in the Broker-Dealer Regulation Subcommittee, and of the New York Bar Association.

• Experience

Before joining Davis Wright Tremaine, Mr. Fecteau served as of counsel at Morgan, Lewis & Bockius LLP in Washington, D.C. (2014–2023) and at Bingham McCutchen LLP (2013–2014), and spent eight years as counsel at FINRA in the Department of Market Regulation – Legal in Rockville, Maryland (2005–2013).

SESSION 1 – Changes in Leadership and Senior Management at the SEC, DOJ, CFTC, and FINRA | 2:30pm – 3:10pm

This session examines the changes in leadership and senior management now reshaping the SEC, DOJ, CFTC, and FINRA. At the SEC, the panel reviews commission-level developments and the enforcement leadership of David Woodcock and Os Nawaz. At the CFTC, Michael Selig has been confirmed as permanent chair, succeeding Acting Chairman Pham, with a pro-crypto approach expected and an end to regulation by enforcement in the crypto space; new enforcement director David Miller has announced priorities that include insider trading on prediction markets. The panel also considers whether Democratic commissioners will be appointed and the quorum question left open by the Commodity Exchange Act. At FINRA, Bob Cook’s FINRA Forward initiatives, announced April 21, 2025, and the reorganization of the former Market Regulation Department — with Greg Rupport named Chief Regulatory Officer and Stephanie Dumont named Chief Market Services Officer — round out the discussion.

BREAK | 3:10pm – 3:20pm

SESSION 2 – Enforcement Process Changes and Practical Tips for Advocacy | 3:20pm – 4:00pm

This session turns to process changes in enforcement at each regulator, with practical tips from each panelist. At the SEC: the emphasis on clear regulatory rules of the road, real-world experience obtaining pre-Wells and Wells discovery from the investigative file, and how Wells meetings are being conducted. At FINRA: referral discussions with Enforcement attorneys and the Director, reverse proffers of the Staff’s evidence, and the continued acceptance of white papers and pre-Wells submissions. At the CFTC: the advisories issued during Acting Chair Pham’s tenure — including a Wells process amended to follow the SEC, lengthening the response time from 14 days to a minimum of 30 days and requiring that submissions reach the Commissioners — the referral standards from the operating divisions to Enforcement and to DOJ, and the new self-reporting and cooperation advisory issued by Director Miller. The panel closes with FINRA Forward developments: rule modernization (outside activity requirements under Regulatory Notice 25-05, the revised $300 gift limit, capital acquisition broker rules, and the corporate financing process), enhanced Report Cards, and new cybersecurity and fraud tools.

BREAK | 4:00pm – 4:10pm

SESSION 3 – Prediction Markets and Insider Trading: Regulation, Enforcement, and Corporate Compliance | 4:10pm – 4:50pm

Insider-trading exposure is no longer limited to traditional securities markets — prediction-market and event-contract activity can create risk for employees across industries. This session explains how prediction markets work, from payout mechanics to price movement before event resolution, across event categories including politics, finance, culture, entertainment, sports, crypto, and corporate developments. It covers the fast-moving regulatory landscape — federal and state jurisdictional disputes over sportsrelated event contracts, litigation involving prediction-market platforms and state regulators, CFTC involvement, potential Supreme Court implications, and tribal and private litigation — and where SEC and CFTC rulemaking may be headed under CEA Section 5c(c)(5)(C) and CFTC Regulation 40.11, including the proposed treatment of “gaming” and the potential for event contracts to be treated as swaps, securitybased swaps, or mixed swaps. The session then applies the core insider-trading framework to prediction markets, walks through exchange disciplinary actions and federal enforcement examples — including the April 2026 SDNY matters U.S. v. Gannon Van Dyke and U.S. v. Michele Spagnuolo, the CFTC settlement against George Santos, and Kalshi’s internal enforcement programs — and closes with corporate compliance implications beyond Wall Street: updating handbooks, codes of conduct, and training before an incident.