This week brought a familiar mix: regulators making room for innovation while turning up the heat on fraud. Here are four highlights, with more to explore in this week’s roundup:

• SEC staff clears a path for tokenized funds: A no-action letter lets Franklin Templeton’s affiliated funds invest in its blockchain-based money market fund without meeting certain Rule 17f-2 custody provisions. The relief comes with safeguards, and it signals the staff’s willingness to fit tokenized structures into existing rules.
• DOJ ramps up fraud enforcement: The National Fraud Enforcement Division plans to grow to roughly 500 attorneys and staff and lean on data analytics. Corporate misconduct is one of its five priorities, with an emphasis on self-disclosure, cooperation, and remediation.
• SEC alleges $14 million revenue scheme: A public company and several executives are charged with using sham, backdated, or forged consulting agreements to overstate revenue by about 345%. According to the SEC, the scheme helped raise more than $25 million from investors.
• The AI workforce gap: PwC finds nearly 80% of financial services executives expect their workforce to shrink by at least 20% over five years. Yet many firms are cutting headcount without redesigning jobs, talent pipelines, or AI governance.

And there’s more. Also in this week’s roundup: a CFTC advisory on prediction market incentive programs, a FINRA suspension for unapproved private securities transactions, and the FCA’s expanded Scale-up Unit for high-growth fintechs. Read the full update from FiSolve here.