Global Regulation

On 21 May 2025, the Australian Securities and Investments Commission (ASIC) announced that it will seek special leave from the High Court of Australia to appeal the decision of the Full Court of the Federal Court of Australia in the Block Earner case. The Full Court had ruled that a fixed-yield crypto lending product offered by Block Earner did not constitute a “financial product” under the Australian Corporations Act 2001 (Cth). ASIC stated that clarification is required on the statutory scope of “financial product,” emphasising that the definition was drafted to be broad and technology-neutral. The regulator maintains that certainty from the High Court is necessary in the public interest, particularly for determining the regulatory perimeter of interest-earning and asset-conversion products. The High Court of Australia will consider ASIC’s application on a date to be fixed.

On 29 July 2025, the United States Securities and Exchange Commission (US SEC) published in Release No. 2025-101, titled “SEC Permits In-Kind Creations and Redemptions for Crypto ETPs,” thereby permitting in-kind creations and redemptions by authorised participants for crypto asset exchange-traded product (ETP) shares. The decision marks a shift from the cash-only model applied to recently approved spot Bitcoin and Ether ETPs, bringing them into alignment with operational norms for other commodity-based ETPs. The in-kind process allows ETP shares to be created or redeemed directly with the underlying crypto assets, reducing transaction costs and improving efficiency for issuers, authorised participants, and investors. The Commission also advanced complementary measures supporting a merit-neutral approach to crypto-based financial products, expanding trading options and listing flexibility across multiple asset classes.

On 9 July 2025, the United States Securities and Exchange Commission (US SEC) published the Notice of Filing of Amendment No. 2 to Proposed Rule Change to Amend the Bitwise Bitcoin ETF Trust and the Bitwise Ethereum ETF in Order to Permit In-Kind Creations and Redemptions, submitted by NYSE Arca, Inc. The amendment seeks to allow in-kind creation and redemption of ETF shares in both the Bitwise Bitcoin ETF and Bitwise Ethereum ETF, as an alternative to the existing cash-based model.

On 27 June 2025, the Hong Kong Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Securities and Futures Commission (HK SFC) jointly published two consultation papers proposing statutory licensing regimes for virtual asset dealers and custodians, marking a major regulatory development in the SAR’s digital asset agenda. These consultations follow the release of Policy Statement 2.0 on the Development of Digital Assets in Hong Kong and support the “Access” pillar of the SFC’s ASPIRe roadmap.

On 3 July 2025, the FINMA opened a public consultation on two new ordinances: the RDO-FINMA and the LiqO-FINMA.

On 25 June 2025, US SEC announced an extension of the compliance deadline for broker-dealers subject to its amended Rule 15c3-3.

On 30 May 2025, the MAS launched the full licensing and compliance regime for DTSPs under the Singapore Financial Services and Markets Act 2022.

On 10 June 2025, the US SEC issued an order instituting proceedings to assess whether to approve or disapprove Nasdaq’s proposed rule change.

On 2 June 2025, the United States Securities and Exchange Commission issued an Order instituting proceedings to assess whether to approve or disapprove a proposed rule change by Cboe BZX Exchange, Inc.

On 28 May 2025, the United States Securities and Exchange Commission published a Notice of Designation of Longer Period to extend its review timeline on a proposed rule change by NYSE Arca, Inc.

On 21 May 2025, the Government of the Hong Kong Special Administrative Region announced the passage of the Hong Kong Stablecoins Bill by the Legislative Council, officially enacting the Hong Kong Stablecoins Ordinance.

On 1 April 2025, the Swiss Financial Market Supervisory Authority implemented a structural reorganisation to strenthen its risk-based supervision across banking, insurance, and asset management sectors.