US SEC Extends Compliance Date for Daily Reserve Computation Rule for Broker-Dealers to 30 June 2026
On 25 June 2025, United States Securities and Exchange Commission (US SEC) announced an extension of the compliance deadline for broker-dealers subject to its amended Rule 15c3-3, titled ‘Daily Computation of Customer and Broker-Dealer Reserve Requirements under the Broker-Dealer Customer Protection Rule,’ the compliance date is now pushed from 31 December 2025 to 30 June 2026. The rule mandates enhanced protection of customer funds by requiring relevant entities carrying business of broker-dealers to perform reserve computations and deposits and associated compliances daily, instead of on a weekly basis. The deferral offers industry participants time to align operational systems, internal controls, and staff readiness with the heightened regulatory expectations.
- Rule 15c3-3 applies to carrying broker-dealers regulated under the US Securities Exchange Act of 1934.
- Entities exceeding a 12-month rolling average of $500 million in total credits (customer + PAB) must comply with daily reserve computations.
- The computation must occur as of the close of each business day.
- Required reserve deposits must be made by10 AM on T+2 (the second following business day).
- Total credits are determined using the average of the 12 most recent month-end FOCUS Reports.
- Once the $500 million threshold is crossed, entities are granted a six-month grace period to begin daily compliance.
- Broker-dealers cannot revert to weekly calculations unless they notify their Designated Examining Authority (DEA) 60 days in advance.
- A firm performing daily computations is allowed to reduce debit items by 2% instead of 3% for net capital calculations.
- Broker-dealers may also voluntarily adopt daily reserve computations and apply the 2% benefit, subject to 30-day DEA notification and prior approval to revert.
- The US SEC’s extension will provide sufficient time for software changes, internal testing, personnel training, and robust implementation across finance and operations teams.
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US CFTC Commissioner Kristin Johnson’s 2025 CCP AGM Address Highlights Urgent Cybersecurity Measures and Crypto Exchange Oversight Amid Bybit Hack Fallout
On 19 June 2025, United States Commodity Futures Trading Commission (US CFTC) Commissioner Kristin N. Johnson delivered a speech at the CCP Global Annual General Meeting in Amsterdam. In the wake of the February 2025 Bybit hack that resulted in the loss of $1.5 billion, Johnson’s speech reinforced the need for regulatory action on cybersecurity, third-party risk management, and systemic resilience , particularly in the context of both traditional central counterparties (CCPs) and emerging digital asset markets.
- Commissioner Johnson discussed the Bybit incident as a case study on systemic vulnerabilities involving smart contract exploits and third-party interface compromise.
- She asked for a regulatory bridge between traditional derivatives oversight and decentralised digital asset infrastructure, reflecting the US CFTC’s growing supervisory concerns following increased crypto exchange exposure to systemic risk.
- The US CFTC’s proposed Operational Resilience Framework (ORF) was referenced as a initiative, intended to bolster cybersecurity, business continuity, and vendor risk governance across registered entities.
- Johnson confirmed that the Market Risk Advisory Committee (MRAC) is actively reviewing DCO wind-down planning protocols and developing proposals for enhanced third-party oversight, especially for vendors critical to clearing systems.
- The speech linked future rulemakings to the United States Dodd-Frank Act and IOSCO’s Principles for Financial Market Infrastructures (PFMIs), underlining the international regulatory convergence on cyber resilience and financial stability.
- Commissioner Johnson reiterated that CCPs, strengthened by post-2009 G20 reforms, have historically absorbed systemic shocks, but new digital vulnerabilities require equally robust forward-looking responses.
- Specific cybersecurity incidents, including the2023 ION Cleared Derivatives attack and the 2025 Bybit hack, were cited as proof points of the rising threat environment, underscoring the need for scalable response frameworks.
- The MRAC’s CCP Risk & Governance Subcommittee is now advising that DCOs adopt third-party risk management policies that include:
- Identification and classification of critical service providers.
- Continuous due diligence and monitoring.
- Planning for vendor failures and concentration risk.
- On recovery and resolution, Johnson advocated stress testing, crisis scenario modelling, and safeguarding of customer assets during DCO distress events to ensure business continuity without amplifying market dislocations.
- Addressing market concentration concerns, Johnson highlighted MRAC’s research on the Treasury cash-futures basis trade and FCM capacity challenges, with implications for both competition and systemic leverage.
- Commissioner Johnson closed by calling for deeper cross-sector collaboration, praising MRAC’s diverse expert base for advancing risk management in an era of rapidly evolving financial technologies.
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United States SEC Veteran David Saltiel to Depart on 4 July 2025 Leaving Legacy of Market Innovation and Investor Protection
On 18 June 2025, the US Securities and Exchange Commission (US SEC) announced the retirement of Mr. David Saltiel, the Acting Director of the Division of Trading and Markets, effective 4 July 2025. His departure ends nearly a decade of influential service across several senior roles at the US SEC, where he was recognised for his data-driven leadership and steady commitment to market integrity.
- Mr. Saltiel has served as Acting Director of the US SEC Division of Trading and Markets since December 2024.
- Prior to this, he was Deputy Director of the Division from 2021 and served as Associate Director of the Office of Analytics and Research beginning in 2016.
- He was formerly the first Chief Economist at the Municipal Securities Rulemaking Board.
- His broader professional background spans both public service and the private sector, particularly in capital markets and energy infrastructure innovation.
- Mr. Saltiel holds a bachelor’s degree from Williams College and a master’s degree in economics from St. Antony’s College, Oxford University.
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Billy Long Sworn in as 51st US IRS Commissioner, Pledges Taxpayer-Friendly Reforms
On 16 June 2025, Billy Long officially assumed office as the 51st Commissioner of the United States Internal Revenue Service (IRS), following his confirmation by the Senate on 12 June 2025.
- Billy Long succeeds in bringing a blend of political, business, and media experience to the IRS leadership.
- He served as a US Representative for Missouri’s 7th Congressional District from 2011 to 2023.
- Commissioner Long’s term will extend until 12 November 2027.
- In his first address to IRS employees, he stressed building a people-centred agency culture. He emphasised collaboration, stating he would rely on “employee partners” to reshape workplace values and public engagement.
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Singapore MAS Launches 2025 SFF FinTech Excellence Awards with Focus on AI and Crypto-Relevant Regulatory Innovation
On 16 June 2025, the Monetary Authority of Singapore (MAS), in collaboration with the Singapore FinTech Association (SFA) and supported by PwC Singapore, launched the 10th edition of the Singapore FinTech Festival (SFF) FinTech Excellence Awards along with Annexure-About the SFF FinTech Excellence Awards. The annual awards recognise outstanding contributions to the FinTech ecosystem, with this year’s focus aligned with artificial intelligence (AI), regulatory innovation, crypto compliance, and decentralised finance (DeFi). The Awards will form a core part of the SFF 2025, scheduled for 12 to 14 November 2025.
- Nominations are open until 25 July 2025 via the official SFF Awards portal, with final winners to be announced during the festival’s marquee events.
- The programme features six corporate categories and one individual award, collectively recognising eight winners for excellence in innovation, compliance, sustainability, and leadership.
- Companies will be evaluated across five dimensions: impact, sustainability, practicality, interoperability, and creativity.
- This year introduces the AI Champion Award, spotlighting AI use cases in finance, including smart contract analytics, anti-money laundering monitoring, on-chain credit scoring, and fraud detection, areas with direct relevance to crypto and DeFi innovators.
- The Regulatory Leader Award continues to honour RegTech and crypto compliance leaders deploying technologies to support licensing, KYC/AML obligations, and digital asset governance under MAS rules.
- Other core award categories include:
- Emerging FinTech Award for young firms (under 3 years) with globally deployed financial solutions.
- Financial Inclusivity Award for solutions enhancing access to finance, such as microinsurance, peer-to-peer lending, and remittance tools.
- Sustainable Innovator Award for FinTech products with ESG-aligned business models.
- The FinTech Mentor Award recognises three individuals for leadership and ecosystem-building efforts, each receiving S$5,000. Cross-organisation nominations are permitted to foster collective recognition within the community.
- Eligibility criteria include global deployment of finance-focused solutions and corporate incorporation within the past three years. Companies need not be MAS-regulated but must operate within the financial sector.
- The judging panel comprises global experts in FinTech, regulation, sustainability, and digital innovation, ensuring alignment with Singapore’s strategic digital finance priorities.
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FATF Updates List of Jurisdictions Under Increased Monitoring for AML/CFT Compliance
On 13 June 2025, the Financial Action Task Force (FATF) released its latest update on jurisdictions under increased monitoring, commonly referred to as the “grey list.” The FATF makes ongoing efforts to support global anti-money laundering and counter-terrorist financing (AML/CFT) improvements and identifies countries that have committed to addressing strategic deficiencies in their AML/CFT regimes within defined timeframes.
- The FATF list includes countries that are actively working with the FATF to resolve issues but still require enhanced oversight.
- The updated list now includes Algeria, Angola, Bolivia, Bulgaria, Burkina Faso, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Haiti, Kenya, Lao PDR, Lebanon, Monaco, Mozambique, Namibia, Nepal, Nigeria, South Africa, South Sudan, Syria, Venezuela, Vietnam, Virgin Islands (UK), and Yemen.
- Croatia, Mali, and Tanzania have been removed from the grey list, signifying improvements in their AML/CFT frameworks.
- The FATF emphasises close engagement with listed jurisdictions to support legal, regulatory, and institutional reforms.
- Recommended reform areas include risk-based supervision, transparency in beneficial ownership, and effective implementation of targeted financial sanctions.
- Member states are advised to consider this updated list in their own national risk assessments.
- The FATF urges caution to ensure that humanitarian, non-profit, and remittance flows to affected regions are not unduly restricted.
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Global Regulators Crack Down on Unlawful Finfluencers: ASIC Targets Finfluencers in Global Regulatory Sweep
On 12 June 2025, the Australian Securities and Investments Commission (ASIC) announced its active participation in the Global Week of Action Against Unlawful Finfluencers, joining eight other international regulators to target social media influencers promoting high-risk financial products, including cryptocurrencies, without proper authorisation. This coordinated initiative marks an aggressive cross-border regulatory effort to curtail misleading financial content on social platforms, particularly that which targets younger investors with exaggerated claims or unlicensed financial advice.
- ASIC issued warning notices to 18 Australian finfluencers suspected of promoting high-risk products such as CFDs, OTC derivatives, and crypto assets without holding an Australian Financial Services (AFS) licence or proper authorisation.
- The global regulatory sweep included Canada (Alberta, Quebec, British Columbia, Ontario), Hong Kong, Italy, the UAE, and the United Kingdom’s Financial Conduct Authority.
- Enforcement actions taken by regulators involved arrests, takedowns of unlawful websites, issuance of warning letters, and public education initiatives to raise investor awareness.
- ASIC noted a sharp increase in Australians, particularly youth, seeking financial advice on social media, with Moneysmart reporting 41% of users relying on such platforms.
- Finfluencers have been found to lure followers into paid forums or private groups by showcasing lavish lifestyles and promising insider trading strategies, which ASIC deems potentially misleading.
- Under the Corporations Act 2001, it is illegal to provide financial product advice or arrange financial deals without an AFS licence or appropriate exemption.
- Penalties for violations include imprisonment of up to five years and substantial corporate fines.
- ASIC’s INFO Sheet 269, issued in March 2022, clarified online financial content boundaries and pushed many finfluencers to either obtain licences or amend their content.
- Crypto-related promotions must adhere to strict obligations including licensing, fair content standards, and transparent disclosure of authority status.
- ASIC cited its 2022 court victory against Tyson Robert Scholz as a precedent, where the Federal Court held in the judgment that he had unlawfully engaged in unlicensed financial advice through social media channels.
- Consumers are encouraged to report suspicious or unlicensed conduct via ASIC’s official misconduct reporting channels.
- Finfluencers and content creators are advised to seek legal counsel to ensure their online activities comply with Australia’s financial services law, particularly when discussing speculative investment instruments.
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US SEC Chair Paul Atkins Calls for Fit-for-Purpose Regulation for DeFi Ecosystems at Crypto Roundtable
On 9 June 2025, at the US Crypto Task Force Roundtable titled “DeFi and the American Spirit,” US SEC Chairman Paul S. Atkins delivered a speech advocating for regulatory reform that fosters innovation in decentralised finance (DeFi). He drew inspiration from America’s frontier spirit, likening blockchain to a new economic frontier of property rights, liberty, and code-based innovation. His remarks marked a decisive break from prior enforcement-led regulatory approaches, calling instead for formal rulemaking tailored to DeFi’s structure and risks.
- Atkins described DeFi as a modern “American experiment” driven by freedom, ownership, and innovation.
- He framed blockchain as a transformative public good that redefines economic interactions without intermediaries.
- Peer-to-peer protocols like Uniswap and Aave exemplify permissionless value exchange, bypassing traditional financial tollgates.
- He stressed that values like private property and market choice are embedded in DeFi’s design and should be preserved in digital form.
Rejection of Regulation by Enforcement
- Chairman Atkins sharply criticised the previous administration’s enforcement-heavy stance, especially against miners, validators, and staking service providers.
- He applauded the US SEC’s Division of Corporation Finance for clarifying that proof-of-work and proof-of-stake mechanisms do not fall under securities law.
- However, he argued that guidance is insufficient and called for formal US SEC rulemaking under congressional authority to ensure DeFi innovators are not blindsided by enforcement action.
- He framed this approach as a defence against bureaucratic overreach, likening it to American resistance to arbitrary governance.
Defending Self-Custody and Wallet Sovereignty
- Atkins championed the right to hold crypto assets in self-custodied wallets, calling it a digital extension of the foundational American principle of property rights.
- He warned that regulatory models which penalise or restrict wallet users risk undermining DeFi’s inclusive, permissionless ethos.
- The emphasis on wallet sovereignty aims to protect users from being forced into centralised custody arrangements that contradict blockchain’s architecture.
Code as Expression: Protecting Developers
- Atkins argued for protections for developers writing open-source DeFi software.
- He stated that software publishers, like car manufacturers, should not be liable for others’ misuse of their tools.
- He urged the Commission to respect constitutional protections for code as speech and to avoid stretching securities laws to fit decentralised software protocols.
- The resilience of self-executing smart contracts during market volatility was cited as evidence of DeFi’s structural integrity.
Proposal for Innovation Exemption
- Atkins announced he had instructed US SEC staff to explore a “conditional exemptive relief” or innovation exemption for qualified DeFi operators.
- This framework would allow on-chain financial products to launch without the burdens of full US SEC registration, provided they meet tailored compliance conditions.
- The exemption would mirror sandbox regimes seen in other jurisdictions, offering a space for innovation without compromising investor protection.
- He linked this proposal to the vision of making the US the global hub for crypto innovation, aligned with President Trump’s pro-crypto policy direction.
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Cayman Islands Monetary Authority Cancels AC Holding Limited’s VASP Registration for Non-Compliance
On 5 June 2025, the Cayman Islands Monetary Authority (CIMA) issued a notice formally cancelled the Virtual Asset Service Provider (VASP) registration of AC Holding Limited (In Official Liquidation), citing serious breaches of the Virtual Asset (Service Providers) Act (2024 Revision), and the Anti-Money Laundering Regulations (2025 Revision).
- The cancellation was executed under section 25(3)(a) of the Cayman Islands VASP Act.
- A prior Warning Notice had been issued by CIMA on 28 March 2025 regarding repeated breaches of the VASP Act and AMLRs.
- AC Holding Limited failed to submit required documents and information under sections 9(4)(b) and 9(4)(d) of the VASP Act.
- The firm lacked adequate anti-money laundering systems, violating section 9(3)(e) of the VASP Act.
- CIMA cited failures in conducting enhanced due diligence, verifying source of funds for politically exposed persons, and maintaining an independent audit function under the AMLRs.
- Grounds for cancellation include fraudulent practices, unfit management, and non-compliance with statutory obligations under sections 25(2)(b), (c), (e), and (f) of VASP Act.
- The regulator specifically flagged concerns about the conduct and suitability of the company’s majority shareholder, Mr. Christopher Flinos.
- AC Holding Limited has the statutory right to appeal the cancellation before the Cayman Islands court pursuant to section 30 of the VASP Act.
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