As a financial content services agency, we closely follow updates from top regulators and key compliance announcements. in forex, regtech, wealthtech and fintech. Every month we round up the top regulatory announcements to ensure our clients stay informed. Here’s our financial regulations roundup for April 2025.
SEC Ends Top Crypto Cases
The biggest regulatory news during the month was the decision by the Securities and Exchange Commission (SEC) to end its lawsuit against several top companies in the crypto industry. The regulator ended its suits against top companies like Coinbase, Kraken, Ripple Labs, and Immutable. Its most significant action was dropping its appeal against Ripple Labs, wrapping up a four-year litigation.
The SEC had accused Ripple of selling unregistered securities when it raised money in 2013. A judge ruled that XRP tokens sold to retail investors were not securities. She then ruled that Ripple Labs violated securities laws when it sold these tokens to investors, and fined it $250 million, which the SEC appealed. Ripple Labs believes that ending the lawsuit will help it to ink partnerships with American companies that were afraid of dealing with it because of the lawsuits.
The SEC, under the Trump administration, has vowed to be more friendly to the crypto industry. It has ended the lawsuits brought by Gary Gensler, and hinted that it will approve altcoin ETFs. Companies like Grayscale, Fidelity, and Franklin Templeton have filed for ETFs tracking tokens like XRP and Cardano.
The other top SEC-related news was that Paul Atkins, Trump’s appointee to lead the agency, was confirmed by the US Senate. He replaces Gensler, who was hostile to the crypto industry.
Wall Street Braces For Light-Touch Regulations
Wall Street banks and other companies in the financial services industry are bracing for a a light-touch approach to regulations. This is after Donald Trump appointed Michelle Bowman to be the vice-chair for supervision at the Federal Reserve. Bowman is different from Michael Barr, his predecessor, who favored more regulations. In a statement, David Solomon, the head of Goldman Sachs said:
I think the industry would be excited to see Miki Bowman appointed, and then that can help the banks move forward, to do what the bank should be doing, which is getting capital into the system and help supporting growth in the economy.
FCA Abandons ‘Name And Shame’
The Financial Conduct Authority (FCA), the top regulator in the UK, dropped the controversial ‘name and shame’ rules it proposed a few months ago. The rules would have seen it publish names of companies under investigation before the outcome of the cases.
Instead, the regulator will stick to its ‘exceptional circumstances’ test. Many City experts criticized the ‘name and shame’ rules noting that they would drive companies abroad when the UK is working to attract more firms to the UK.
Meanwhile, the FCA is working to encouraging more risk-taking among retail investors with their savings. The agency hopes that the change of these regulations will help the UK address its ageing population, with the number of people of pensionable age expected to rise 14% by 2032.
Still, the FCA warned that many young people were focused on investing in cryptocurrencies, instead of stocks and bonds that it is now focused on.
BaFin Cracks Down On Algorithmic Stablecoins
BaFin, the German financial regulator, continued to implement the MiCAR regulations focused on stablecoins. It banned Ethena from offering its USDe stablecoin in the country.
USDe has become one of the biggest stablecoin in the crypto industry even though it is not backed by US dollars. It instead uses various arbitrage strategies to maintain a 1:1 peg. Unlike other stablecoins, USDe also pays a monthly return. The concern among regulators is that the stablecoin may soon crash as Terra’s UST stablecoin did in 2022. Ethena responded to BaFIN saying:
Since its inception, Ethena has been exploring various options and jurisdictions when it comes to regulatory frameworks globally that would be conducive to our business, and as a result we have multiple entities within our structure facilitating minting and redemption.
CFTC Pulls Advisory On Review Of Risks Tied To Crypto Clearing
The Commodity Futures Trading Commission (CFTC) is scaling back its scrutiny of risks tied to clearing and trading of digital assets. It withdrew two staff advisories immediately to ensure that there was no suggestion that regulatory treatment of digital asset derivatives will vary from its treatment of other products. This means that it will be easier for companies to list crypto futures.
Similarly, the FDIC and the CFTC removed some of the old rules that target crypto. They revoked a 2022 directive that impacted banks’ interactions with crypto. In a note, FDIC Acting Chairman Travis Hill. said:
I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities in accordance with safety and soundness standards.
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