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 and more to stay compliant for our clients. Here’s our financial regulations roundup for December 2025.
SEC Approves Altcoin ETFs
One of the most important regulation news updates in November was the approval of spot altcoin ETFs in the United States after months of review. It approved ETFs on top tokens like Solana, XRP, Litecoin, and Hedera Hashgraph. These ETFs have received a strong uptake from investors. Data compiled by SoSoValue shows that Solana ETFs have accumulated over $618 million in inflows since their launches.
Similarly, spot XRP ETF inflows have soared to $666 million, while spot Dogecoin ETFs have had over $2.16 million in assets. The SEC is also considering more altcoin ETFs, including Chainlink, Cardano, and Avalanche.
FCA Launches Sandbox Cohort For Stablecoin Products
The Financial Conduct Authority (FCA) has opened applications for a special cohort focused on stablecoins within its regulatory sandbox. This sandbox is a safe space in which businesses can test innovative products, services, business models, and delivery mechanisms. The application for the sandbox opened on November 26 and will close on January 18.
In a statement, the regulator noted that stablecoins have become increasingly important assets in the crypto industry, with potential use cases for both retail and wholesale customers. Many countries have established their crypto regulations in the past few months. For example, in the United States, Donald Trump passed the GENIUS Act that introduced new regulations in the stablecoin industry.
SEC to Loosen Independence Rules for Big Four Auditors
The Securities and Exchange Commission is considering revising conflict-of-interest rules for the Big 4 accounting companies. In a statement, a senior official at the agency noted that independence rules that prevent accounting companies from auditing firms they have a business relationship with, might not fit the purpose because of the increasing interactions between technology firms and regulators. The official said:
If we interpret our independence rules exactly the way they are, we could get into a situation where some of these large companies don’t have an auditor choice, so we are going to take a look at that.
FCA Seeks to Revive Stock Market Woes
UK authorities have been working to save that dwindling fortune in the stock market in the past few years. One of the main challenges has been that the number of Initial Public Offerings (IPO) has dwindled in the past few years, with notable British companies opting for the United States. At the same time, many British companies listed in the London Stock Exchange (LSE) have moved their listings to the United States. This includes companies like Flutter Entertainment, Wise, CRH, and Ashtead.
One way the UK is aiming will boost the performance of the stock market is by creating a single stream of all US share trading data from across different markets. The FCA believes that combining data on liquidity, volumes, and pricing of share trading from multiple venues on a single source will increase investor participation in markets and attract more companies to list in London. Simon Walls of the FCA said:
UK markets offer diverse trading options which can be great for competition, choice and lowering trading fees. But this landscape makes it harder to assess liquidity as a whole in our markets.
Switzerland Launches Consultation on Stablecoins
As in the UK, Swiss authorities are also focusing on regulations in the stablecoin industry. The Federal Council initiated the consultation to the Financial Institutions Act, which is aimed at improving the framework conditions for market development.
It also aims at making the country attractive in the financial services industry and mitigate risks that may affect the industry. The new rules will introduce a new license category that replaces the existing fintech licence with adjustments aimed at improving consumer protection. They will also introduce new rules to ensure that crypto institutions that provides services in the sector don’t have a conflict of interest.
SEC to Probe Proxy Advisors
The Securities and Exchange Commission is considering launching a probe on proxy advisors, which guide shareholders on how to vote. This view was confirmed by Paul Atkins, the head of the SEC. Similarly, the Federal Trade Commission (FTC) is investigating top proxy advisors like ISS and Glass Lewis on whether they bleached antitrust laws by advising shareholders on how to vote on politically charged topics. In a statement, Atkins said that the companies should:
De-politicize shareholder meetings and return their focus to voting on director elections and significant corporate matters.
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