Regulatory Updates

On 10 September 2025, United States Securities and Exchange Commission (US SEC) Chairman Paul S. Atkins addressed the OECD Roundtable on Global Financial Markets in Paris. In his remarks, Atkins explained how artificial intelligence (AI) is reshaping capital markets. He described the rise of agentic finance, where autonomous AI agents manage trades, capital, and risk with compliance embedded in code. Atkins urged regulators to provide commonsense guardrails while avoiding restrictive measures that could slow innovation. He framed AI as a critical driver of faster markets, lower costs, and broader access to investment strategies once reserved for large firms.

On 10 September 2025, United States Securities and Exchange Commission (US SEC) Chairman Paul S. Atkins addressed the OECD Roundtable on Global Financial Markets in Paris. In his remarks, Atkins explained the US SEC’s evolving approach to digital assets under Project Crypto. He described crypto as a permanent feature of global finance and stated that most tokens do not fall under securities law. Atkins called for predictable rules to replace enforcement-driven approaches, emphasising investor choice, integrated platforms, and freedom for innovators. His comments highlighted a decisive regulatory pivot intended to align the United States with global trends while reinforcing oversight and investor protection.

On 10 September 2025, the United States Securities and Exchange Commission (US SEC) announced that James J. Moloney will be the next Director of the Division of Corporation Finance, effective October 2025. Mr. Moloney returns to the agency after 25 years at Gibson Dunn & Cutcher, where he co-chaired the securities regulation and corporate governance practice. His appointment signals the SEC’s intention to modernise corporate disclosure rules and streamline governance frameworks. Cicely LaMothe, who has been serving as Acting Director, will return to her role as Deputy Director. SEC Chairman Paul S. Atkins praised Moloney’s experience in corporate governance and disclosure, underscoring his ability to balance innovation and capital formation with investor protection. The appointment marks a pivotal leadership transition at a time when the Division is central to advancing rule updates for mergers, acquisitions, proxy matters, and corporate reporting.

On 5 September 2025, the United States Securities and Exchange Commission (US SEC) Chairman Paul S. Atkins issued a statement following a United States Court of Appeals ruling on two 2023 rulemakings. The rules, Rule 10c-1a on securities lending reporting and Rule 13f-2 and Form SHO on short position reporting, were remanded by the Court for further economic analysis. While the Court did not vacate the rules, it found that the US SEC had failed to properly consider cumulative economic impacts. Chairman Atkins confirmed that staff have been directed to re-evaluate the rules and prepare recommendations, including possible changes and compliance date adjustments. Temporary exemptions remain in place, with compliance deadlines beginning in January 2026.

On 8 September 2025, the United States Securities and Exchange Commission (US SEC) announced that its Crypto Task Force will host a public roundtable on financial surveillance and privacy. The event is scheduled for 17 October 2025, from 1 p.m. to 4 p.m., at the US SEC headquarters in Washington D.C. The roundtable follows the Spring Sprint Toward Crypto Clarity series of discussions, the President’s Executive Order on Digital Assets, and the President’s Working Group on Digital Assets report. Commissioner Hester M. Peirce has directed the US SEC CryptoTask Force to advance United States leadership in digital assets and financial technology while safeguarding economic liberty. The roundtable will convene experts developing privacy-preserving technologies and regulators examining policy responses to financial surveillance. The event is open to the public, with registration required for in-person attendance, and will be streamed live on SEC.gov.

On 5 September 2025, the United States Securities and Exchange Commission (US SEC) announced the creation of a Cross-Border Task Force within its Division of Enforcement. The task force is established to enhance the SEC’s ability to investigate and prevent fraudulent conduct by foreign-based companies targeting U.S. investors. The US SEC Crypto task force will prioritise investigations into potential violations of U.S. federal securities laws involving overseas issuers, including market manipulation practices such as “pump-and-dump” and “ramp-and-dump” schemes. It will also focus on gatekeepers, particularly auditors and underwriters, that facilitate these companies’ access to U.S. capital markets. The initiative further highlights regulatory concerns around entities from jurisdictions such as China, where state involvement and systemic risks present distinct investor protection challenges. By consolidating investigative resources, the US SEC will deploy all available enforcement tools to safeguard U.S. markets from cross-border fraud.

On 4 September 2025, the Australian Securities and Investments Commission (ASIC) signed a Memorandum of Understanding (MoU) with the International Financial Services Centres Authority (IFSCA) of India in Sydney. The MoU was executed by ASIC Chair Joe Longo and IFSCA Chair Shri K Rajaraman, in the presence of senior Indian and Australian officials. The arrangement aims to deepen cooperation between the two jurisdictions in areas such as information sharing, regulatory compliance, market supervision, and the adoption of technology in financial markets. ASIC and IFSCA highlighted that the MoU represents a mutual commitment to collaboration, built on shared values of trust, transparency, and innovation. The partnership is expected to strengthen financial market resilience, support supervisory coordination, and enhance regulatory frameworks in both Australia and India. This development positions Australia as a proactive regional hub in cross-border regulatory alignment at a time of accelerating globalisation and digital transformation.

On 4 September 2025, the Hong Kong Securities and Futures Commission (HK SFC) announced as it suspended the licence of Mr Chow Tsz Lam, a former responsible officer (RO) and Manager-in-Charge (MIC) of Agg. Asset Management Limited (Agg), for 12 months under section 194 of the Securities and Futures Ordinance (HK SFO). The suspension runs from 2 September 2025 to 1 September 2026. The disciplinary decision followed findings that Agg, as investment manager of a Cayman-incorporated fund, invested between 88.83% and 100% of the fund’s assets in debentures issued by companies wholly owned by Mr Ng Ka Shun, Agg’s sole shareholder, director, and other RO. These investments created unmanaged conflicts of interest, exposed investors to material risks, and inflated the net asset value (NAV) through questionable structures. The HK SFC determined that Chow, as RO and MIC, failed to safeguard investor interests, ensure proper risk controls, and prevent NAV inflation despite being fully aware of the debenture transactions.

On 9 September 2025, the Hong Kong Securities and Futures Commission (SFC) and the Asian Development Bank Institute (ADBI) co-hosted a roundtable during Hong Kong Green Week to advance sustainable finance in Asia-Pacific markets. Senior officials from twelve jurisdictions participated in the Asia Climate Finance Dialogue Project, reflecting growing regional cooperation on green bonds, blue bonds, and ESG-linked funds. The dialogue brought together representatives from the Asian Development Bank, ADBI, and private sector experts to discuss frameworks for transition finance, climate disclosures, and thematic investment mechanisms. The initiative forms part of ongoing cross-border policy work to scale up sustainable-related thematic instruments and mobilise capital for the low-carbon transition. The session represents the fifth roundtable under the Asian Climate Finance Dialogue Project, signalling momentum in regulatory collaboration across Asia.

On 8 September 2025, the Hong Kong Securities and Futures Commission (SFC) announced disciplinary action against Instinet Pacific Limited (Instinet) for persistent failures to report cross trades to The Stock Exchange of Hong Kong Limited (SEHK). The regulator imposed a public reprimand and a fine of HK$8 million under section 194 of the Hong Kong Securities and Futures Ordinance (HK SFO). The HK SFC investigation revealed that between December 2012 and March 2018, Instinet failed to report 8,817 pairs of cross trades worth approximately HK$25.9 billion. The trades were executed between clients and an affiliated company but not disclosed to the SEHK as required. The HK SFC found that Instinet had no internal policies or procedures to ensure compliance with reporting obligations and conducted no review of its reporting process during the period.

On 5 September 2025, the High Court of Australia granted the Australian Securities and Investments Commission (ASIC) special leave to appeal a Full Federal Court decision in the Block Earner case. The lower court had ruled that Block Earner, a digital asset service provider, did not require an Australian Financial Services Licence (AFSL) to offer its fixed-yield crypto product. ASIC is seeking clarification on the scope of the statutory definition of a financial product, particularly where interest-bearing arrangements and asset-conversion products are involved. The outcome of this appeal will affect not only digital asset offerings but also the broader financial services regime in Australia, as the definition of financial product is drafted to be both broad and technology-neutral. The appeal, conditional upon ASIC covering Block Earner’s costs, is expected to set a critical precedent for crypto and traditional finance alike.

On 5 September 2025, the United States Securities and Exchange Commission (US SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement committing to harmonization of regulatory frameworks. The agencies announced a public roundtable to be held on 29 September 2025 at the US SEC headquarters in Washington, D.C. The statement, delivered by US SEC Chairman Paul S. Atkins and US CFTC Acting Chairman Caroline D. Pham, highlighted a shared vision to align oversight of financial markets, streamline reporting standards, and coordinate innovation exemptions. The agencies emphasised that this step builds on their recent joint staff statement on spot crypto asset products and reflects a broader effort to reduce regulatory fragmentation. The roundtable will address priorities including capital frameworks, data reporting, and venue definitions, and will be webcast live for public access. This marks a significant milestone in cross-agency cooperation aimed at enhancing market efficiency and investor protection.