Each month our financial writers round up the top regulatory announcements and compliance changes to ensure our clients stay informed. We follow regulatory news and updates from ASIC, CySEC, MFSA, FCA, FSA, FRB, SEC, MiFID II to produce compliant content marketing for our clients. Here’s our financial regulations roundup for February 2026.
New Fed Chair Kevin Warsh Nominated
President Donald Trump has nominated former Federal Reserve governor Kevin Warsh to be the next Chair of the Federal Reserve, succeeding Jerome Powell when his term ends in May 2026. Warsh is a seasoned central banker with Wall Street experience and has signaled support for lower interest rates, aligning with the White House’s push for more accommodative monetary policy after recent rate cuts and economic softness. His leadership could shift the Fed toward a more market-friendly stance and potentially reshape regulatory priorities, with observers watching closely for changes in bank supervision, risk oversight, and the balance between market stability and financial innovation. However, debates over the Fed’s independence and regulatory direction are likely to intensify as the Senate reviews his confirmation.
Paul Atkins Supports Retirement Fund Investments in Crypto
A major regulatory statement came from Paul Atkins, the head of the Securities and Exchange Commission (SEC), who noted that he was supportive of retirement funds like 401(k) to invest in the crypto market. The policy, which Donald Trump has supported, will unlock billions of dollars to crypto assets, mostly mainstream tokens like Bitcoin, Ethereum, and XRP.
The SEC and the Trump administration have fully embraced the crypto industry. It has ended some major lawsuits filed by Gary Gensler, including on companies like Coinbase, Uniswap, and Aave.
CLARITY Act Stalled in Congress
Another major regulatory update came from the United States Senate, where the banking committee considered the Market Structure Bill, commonly known as CLARITY. This bill aims to separate the roles between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
After much deliberation, the bill stalled in the committee before the markup after Coinbase withdrew its support. Coinbase pointed to the provisions that would make it illegal for crypto exchanges to offer stablecoin rewards to their customers. The provisions were advocated by banks and credit unions, which argued that allowing stablecoin rewards would lead to substantial outflows from their institutions, which will have an impact on the economy.
Still, the Senate Agriculture Committee voted for the bill, which will now move to the floor for debate and voting.
FCA Partners With OFSI to Clamp Down on Abuse of Crypto Assets
Meanwhile, the Financial Conduct Authority (FCA) partnered with the Office of Financial Sanctions Implementation (OFSI) to clamp down on the use of digital currencies in evading sanctions. This happened as many highly sanctioned officials turned to digital currencies because of the view that these currencies are untraceable. The statement said:
The message for the sector is clear: the use of crypto assets to evade sanctions is treated no differently to the exploitation of traditional currencies. OFSI stands ready to investigate and pursue sanctions offences involving crypto assets.
The FCA also continued its consultation on its regulation on the crypto industry. It sought feedback on further rules that will apply on crypto companies. Its consultation was on issues like consumer duty, redress and dispute resolution, conduct and business standards, credit for crypto purchases, and regulatory reporting.
China Securities Regulatory Commission Weighs Tighter Rules
The CSRC is considering new tighter rules for mainland companies to list in Hong Kong. These new regulations are coming as Chinese authorities remain concerned about the recent offshore fundraising boom. The agency aims to raise regulatory and compliance thresholds for companies pursuing H-share listings. For example, one measure will involve setting a minimum market capitalization limit, possibly at $4.3 billion.
These rules come as the number of mainland companies filing for listings in Hong Kong has jumped. Many of these companies are often small ones and with huge losses. The agency also noted that many of these firms are coming up with incomplete filings. In a statement, the Securities and Futures Commission (SFC) said:
The gate-keeping role of sponsors in the listing process is critical to maintaining the quality of Hong Kong’s capital market and sustaining investor confidence in new listings that will hold up through all market cycles.
Meanwhile, Chinese authorities announced that it would beef up requirements to ensure cross-border portfolios were diversified across asset classes and geographies based on the risk appetite for retail investors. Also, no country will make more than 50% of an underlying fund.
CFTC to Draft More Rules for Predictions Market
The Commodity Futures Trading Commission (CFTC) is drafting new rules to regulate the fast-growing prediction markets. These new regulations come as companies like Polymarket and Kalshi have become highly popular among users in the past few months. One of the changes is that the CFTC will withdraw a proposal to ban sports and politics-related wagers on these markets. Michael Selig, the head of the CFTC said:
While the advisory was issued at the staff level with the intent of bringing awareness to the litigation, it has instead contributed to uncertainty in our markets.
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