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 May 2025.
Paul Atkins becomes SEC Chair
One of the top regulation stories came from the United States, where Paul Atkins became the new head of the Securities and Exchange Commission (SEC). A lawyer and former SEC commissioner, Atkins is known for being a crypto-friendly regulator since he has represented some of the largest players in the industry.
Under Atkins, the SEC is expected to be more lenient on companies in the sector. This is unlike Gary Gensler, the former SEC Chair who prioritised lawsuits than collaboration. He filed suits against companies like Coinbase, Uniswap, Immutable, and Ripple. The SEC is also expected to favour a light-touch approach towards regulations in the financial industry. In his confirmation hearings, he reiterated that he believed that the industry was highly overregulated.
The Federal Reserve and the Federal Deposit Insurance Corporation are also working to simplify rules on crypto to US banks. The new rules will make it easier for large American companies to issue and deal with stablecoins.
Further, the SEC ended a probe into PayPal’s PYUSD stablecoin and approved the ProShares XRP Futures ETF.
FCA Calls On Tech Firms To Tackle Influencer Problem
Global financial regulators have been dealing with a growing challenge of financial influencers on social media platforms like Instagram, Facebook, and X. Some of these agencies have sued and settled with high-profile influencers who promoted financial services products. The most notable one was Kim Kardashian’s $1.6 million settlement with the SEC for failing to disclose that a crypto post was sponsored.
In April, the Financial Conduct Authority (FCA) asked big tech companies to do more to stop the influencer issue on their platforms. The regulator told the parliament that many influencers continued to operate in the country.
It said that its biggest problem was that it had to issue individual take-down orders to social media companies. These influencers then simply switch new accounts and continue offering the financial advice or marketing. An FCA official said:
At the moment we have to submit individual account takedowns. The Big Tech platforms have got the technology to identify this; they need to be proactive about it otherwise we will be in a continued whack-a-mole.
The FCA is also asking parliament to increase the maximum prison sentence for these crimes from two years to five years.
UK To Exempt Overseas Stablecoin Issuers From Its Crypto Rules
The UK government is seeking to grow its market share in the growing crypto industry by making clear regulations. In a statement in April, Rachel Reeves, the Chancellor, said that the country would exempt overseas stablecoin issuers from complying with its new cryptocurrency rules.
The government is aiming to ensure a closer collaboration with the United States. In addition to stablecoins, the government aims that its crypto regulations will cover other industries like online lending, decentralized finance, exchanges, and brokers. Reeves said:
Today’s announcement sends a clear signal: Britain is open for business, but closed to fraud, abuse, and instability.
FCA To Ban Retail Borrowing To Buy Crypto
The FCA announced plans to ban retail investors from borrowing money to invest in the crypto market. The agency believes that, while the UK wants to be a growing country for cryptocurrencies, allowing unrestricted borrowing will lead to losses among consumers.
However, the rules also leave an opening to retail investors, where they can opt to be treated as elective professional clients. Only customers with more than £500k to invest, having at least a year of experience in finance, and having at least ten trades per quarter will qualify. The FCA said:
We started from a position of wanting to develop something that is safe and is competitive. If we can get the regulatory regime right it actually becomes attractive for firms. That is what we are trying to achieve.
US Justice Department Scales Back Crypto Enforcement
The SEC is not the only agency working to simplify rules on crypto in the United States. The Department of Justice, under Pam Bondi, announced that it was scaling back prosecutors ability to bring criminal charges against crypto firms.
In a statement, the DoJ said that it will no longer bring charges against exchanges, dealers, mixing services, and wallet providers for the act of their end users.
Analysts warn that the new policies will put investors at risk. For example, they warn that many customers will continue being exposed to risky products and pump-and-dump schemes.
South Korea Revises Financial Investment Services Act
The South Korean Financial Services Commission (FSC) approved revisions to the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA). The new sanctions aimed at ending unfair trading practices and illegal short-selling and are also aimed at stabilising the market in periods of substantial strains. In the same month, the agency tightened crypto app restrictions on 14 unregistered foreign crypto apps.
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