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 April 2026.
SEC and CFTC MoU on Coordination
A key regulatory story was the memorandum of understanding (MoU) between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on financial regulations.
The document focused on six areas, including areas of harmonisation, clarifying definitions through joint rulemakings, reducing frictions for dually registered entities, and developing a “fit-for-purpose” framework for digital assets. The two sides will also focus on financial reporting and coordinating cross-market examination and enforcement. In line with the new MoU, the two regulators issued a joint interpretation regarding the application of federal securities laws to crypto assets and transactions.
It establishes a five-part token taxonomy based on characteristics, uses and functions, and addresses how a non-security crypto asset may become subject to, or cease to be subject to, an investment contract under the Howey test. The two agencies also discussed moving in the same building.
- Digital securities → SEC oversight
- Digital commodities → CFTC oversight (e.g., Bitcoin, Ethereum)
- Digital collectibles (NFT-like) → CFTC
- Digital tools (utility tokens) → CFTC
- Stablecoins → case-by-case, depending on structure and use
SEC Delivers Plan for Semi-annual Reporting
The Securities and Exchange Commission submitted its plan for financial reporting to the White House.
The agency and the White House are working to end quarterly reporting, a move they argue will reduce the pressure of companies and promote a long-term view among companies. They also believe that the plan will save companies significant time and money.
Other SEC-related news was that the agency created a new endorsement team to target bad actors in the auditing profession after the agency slashed the budget of the independent board that traditionally policies those responsible for vetting company financial statements. The agency said:
Additional hires in the enforcement division will continue the commission’s longstanding efforts to crack down on bad actors in the profession.
Meanwhile, the SEC halted high-leveraged ETF plans amid risks to consumers. It wrote warning letters to companies that offer funds that deliver three to five times the daily returns of stocks, commodities, and crypto. It told companies like Direxion, Tidal, and ProShares that it would not move forward with reviewing proposal launches until key issues are addressed. The statement came as leveraged ETFs continue growing, with the assets under management soaring to over $162 billion.
ESMA Issues Statement on CFD Product Intervention and Crypto-Linked Derivatives
The European Securities Markets Authority (ESMA) issued a statement on contract for differences product intervention measures in the context of crypto-linked derivatives, alongside a supervisory briefing on algorithmic trading and a consultation on revised Market Abuse Regulation guidelines on delayed disclosure.
ESMA clarified that these products, which provide leveraged exposure to underlying assets like Bitcoin or Ethereum, are likely to fall under existing national product intervention measures for Contracts for Differences (CFDs).
Where these derivatives meet the definition of a CFD, they must comply with strict national rules, including:
- Leverage limits (e.g., 2:1 for crypto-assets).
- Mandatory risk warnings and margin close-out rules.
- Negative balance protection.
- Prohibition of monetary/non-monetary benefits.
FCA Selects Companies for Testing Stablecoin Services
The Financial Conduct Authority has been working to regulate stablecoins. In a statement, the agency selected four companies to test how their stablecoin services work with proposed regulations in a safe environment. The four companies are Monee, ReStabilise, Revolut, and VVTX.
The Regulatory Sandbox program allows companies to trial stablecoin products in real world conditions with appropriate safeguards.
It is will allow the FCA to assess its proposed policy in a live environment and ensure that future rules are clear, effective, and support responsible innovation. This testing will primarily focus on stablecoin issuance. In a statement, Matthew Long, the director of payments at the FCA said said:
We are supporting UK stablecoin issuers to ensure they can be trusted for payments, settlement and trading. It will benefit consumers and financial transactions and help to deliver the FCA’s strategy and the Government’s National Payments Vision.
Australia Passes Crypto Regulations Requiring Exchanges to Get Financial Services Licenses
Australia passed regulations that create the first comprehensive regulatory framework for digital assets that requires crypto exchanges and custody providers to obtain financial services licenses. The Corporations Amendment Bill passed in both houses, bringing firms that hold digital assets on behalf of customers into existing Australian Financial Services License regime.
It created two new regulated categories under the Corporation Act: digital asset platforms and tokenized custody platforms. Operators of both will need to obtain licenses from ASIC, bringing them under the same core rules as brokers or fund managers.
New Rule to Allow Crypto and Private Credit Investments by Retirement Accounts
Another major regulatory change was a new rule by the Labor Department to allow private equity and crypto investments into 401(k) plans. It would create a “safe harbour” that shields retirement account administrators from legal action, incentivising them to pitch risky alternative assets to workers.
The new rule, if it passes, will open trillions of dollars in the crypto industry. Critics argue that the new changes may put retirement savings of millions at risk. In a note, a senior policy analyst at Americans for Financial Reforms said:
This isn’t about advancing the interests of retirement savers, it is about opening a new profit center for crypto and Wall Street.
CLARITY Act Debate Continues
Representatives of the crypto and banking industries continued meeting with US politicians to bridge the gap that has prevented the CLARITY Act from passing. The main issue has been on stablecoin yield. Banks have vehemently opposed measures that allow crypto exchanges like Kraken and Coinbase to offer returns on stablecoins held in their platforms.
Politicians reached a compromise that allows companies to offer yield based on customer activities. It banned them from offering yield based on customer deposits It is unclear whether the CLARITY Act will ultimately pass in the Senate Banking Committee and the full house. Coinbase, which spends heavily on lobbying, has opposed the new changes.
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