Regulatory Updates

On 26 September 2025, the United States Securities and Exchange Commission (United States SEC) published [Release No. 34-104103; File No. SR-NYSEARCA-2025-74] titled “Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Bitwise Ethereum ETF Shares.” The notice records that NYSE Arca, Inc. filed the proposal under Section 19(b)(1) of the United States Securities Exchange Act of 1934 and United States SEC Rule 19b-4. The filing was processed as a “non-controversial” proposal under Section 19(b)(3)(A)(iii) and United States SEC Rule 19b-4(f)(6). The Exchange seeks to shift the Bitwise Ethereum ETF from Rule 8.201-E (Non-Generic) to Rule 8.201-E (Generic), effective immediately upon filing, subject to compliance with continued listing requirements. This transition reflects the broader move towards generic listing standards for crypto exchange-traded products, reinforcing predictability and consistency in United States ETF regulation.

On 26 September 2025, the United States Securities and Exchange Commission (United States SEC) published [Release No. 34-104105; File No. SR-CboeBZX-2025-135] titled “Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Fidelity Wise Origin Bitcoin Fund, VanEck Bitcoin ETF, 21Shares Ethereum ETF, Fidelity Ethereum Fund, and the VanEck Ethereum ETF”. The notice records that the Cboe BZX Exchange, Inc. filed the change under Section 19(b)(1) of the United States Securities Exchange Act of 1934 and Rule 19b-4. The filing was accepted as “non-controversial” under Section 19(b)(3)(A)(iii) and Rule 19b-4(f)(6). Effective 1 October 2025, the funds will move under the generic listing standards of BZX Rule 14.11(e)(4).

On 25 September 2025, the United States Commodity Futures Trading Commission (US CFTC) announced that the U.S. District Court for the Middle District of Tennessee entered a Consent Order for Permanent Injunction, Civil Monetary Penalties, and Other Statutory and Equitable Relief against Michael Griffis and Amanda Griffis. The Tennessee couple, who operated a fraudulent pool called “Blessings Thru Crypto”, are ordered to pay US $5,528,121 in restitution to defrauded participants and a US $1,355,232 civil monetary penalty, totalling more than US $6.8 million in monetary relief. The order permanently bans the defendants from trading or registering with the US CFTC and prohibits further violations of the United States Commodity Exchange Act and related regulations.

On 24 September 2025, the United States Commodity Futures Trading Commission (US CFTC) issued a Notice of Proposed Rulemaking to revise specific business conduct and documentation requirements for swap dealers and major swap participants. The proposal aims to codify long-standing no-action relief issued by the US CFTC’s Market Participants Division and to harmonise United States regulations with parallel frameworks of the United States Securities and Exchange Commission (US SEC) and the Municipal Securities Rulemaking Board (MSRB). The amendments, if finalised, would alter obligations under 17 CFR Part 23 by eliminating certain disclosure requirements, introducing new definitional clarity, and revising swap trading relationship documentation rules. The US CFTC is inviting public comment on the proposal, with submissions due within thirty days of publication on the US CFTC’s website.

On 23 September 2025, the United States Commodity Futures Trading Commission (US CFTC) announced a new initiative to enable the use of tokenized collateral, including stablecoins, in derivatives markets. Acting Chairman Caroline D. Pham stated that this initiative forms part of the US CFTC’s crypto sprint to implement recommendations from the President’s Working Group on Digital Asset Markets report. The announcement builds on discussions at the US CFTC’s Crypto CEO Forum held in February 2025 and advances recommendations of the US CFTC’s Global Markets Advisory Committee (GMAC). Public input has been invited by 20 October 2025, with submissions to be published on CFTC.gov.

On 15 August 2025, the United States Department of Justice (DOJ) announced that crypto influencer Charles O. Parks III, also known as “CP3O,” was sentenced in the Eastern District of New York to one year and one day in prison for operating a large-scale cryptojacking scheme. Parks fraudulently obtained over $3.5 million in cloud computing resources, which he used to mine nearly $1 million in cryptocurrency. He pleaded guilty to wire fraud in December 2024. In addition to imprisonment, Parks was ordered to forfeit $500,000 and a Mercedes-Benz luxury car, with restitution to be determined.

On 17 September 2025, the United States Securities and Exchange Commission (US SEC) approved rule changes by three national securities exchanges adopting generic listing standards for Commodity-Based Trust Shares. The approval permits exchanges to list and trade products holding spot commodities, including digital assets, without filing a separate rule change under Section 19(b) of the United States Securities Exchange Act. The US SEC also approved the listing and trading of the Grayscale Digital Large Cap Fund under amended NYSE Arca rules and authorised p.m.-settled options on the Cboe Bitcoin U.S. ETF Index and the Mini-Cboe Bitcoin U.S. ETF Index. These actions streamline access to digital asset products, provide regulatory clarity, and expand the scope of exchange-traded offerings within US capital markets.

On 16 September 2025, the United States Securities and Exchange Commission (US SEC) announced that it will host a dedicated compliance webinar for large firms as part of its Regulation S-P outreach series. The event is scheduled for 25 September 2025 from 1 p.m. to 2 p.m. ET and is the first in a series of three compliance sessions tailored to different registrant types. Future webinars of this events will address transfer agents and small firms, aligned with their respective compliance deadlines under the Regulation S-P amendments adopted in 2024.

On 16 September 2025, the United States Securities and Exchange Commission (US SEC) announced the appointment of four new members to its Investor Advisory Committee. The Committee, established under Section 39 of the United States Securities Exchange Act of 1934, provides recommendations on regulatory priorities, investor protection, and market integrity. The new members will each serve a four-year term, joining the existing sixteen members. The appointments follow an invitation for interest announced earlier in 2025, and the United States SEC confirmed that another call for candidates is expected in 2026.

On 17 September 2025, the United States Commodity Futures Trading Commission (CFTC) and the United States Securities and Exchange Commission (US SEC) jointly extended the compliance date for amendments to Form PF, the confidential reporting form for private fund advisers. The new compliance date is 1 October 2026, replacing the previous deadline of 1 October 2025.

On 17 September 2025, the United Kingdom Financial Conduct Authority (UK FCA) published proposals setting out minimum standards for crypto firms. The consultation “Application of FCA Handbook for Regulated Cryptoasset Activities” seeks feedback on rules covering operational resilience, systems and controls to combat financial crime, and consumer protection. The proposals mirror requirements already applicable to traditional financial institutions but are designed to be proportionate so that United Kingdom firms can remain internationally competitive. The consultation also opens discussion on whether the United Kingdom Consumer Duty should extend to crypto firms, requiring them to deliver good outcomes for consumers. Views are also sought on complaints management, including whether consumers should be able to escalate disputes to the United Kingdom Financial Ombudsman Service. The deadline for responses to the consultation paper is 12 November 2025, while responses to the discussion paper must be submitted by 15 October 2025.

On 10 September 2025, the United Kingdom Financial Conduct Authority (UK FCA) announced that three individuals i.e. Charles Hunter, Kayan Kalipha, and Luke Desmaris, appeared before the United Kingdom Westminster Magistrates’ Court. Each defendant has been charged with one count of unauthorised promotion of high-risk financial products, contrary to Section 21(1) of the United Kingdom Financial Services and Markets Act 2000. The individuals, often referred to as ‘finfluencers’, are alleged to have used social media platforms to encourage followers to invest in foreign exchange contracts for difference (CFDs) without authorisation.