Each month our financial marketing writers round up the top regulatory announcements and compliance changes to ensure our clients stay informed. Here’s our financial regulations roundup for September 2025.
Investors Cheer FCA Decision to Lift Ban on Crypto ETP to Retail Investors
The Financial Conduct Authority (FCA) decided to lift a ban on offering crypto exchange-traded products to UK investors. That ban means that UK retail investors will now be able to buy popular Bitcoin and Ethereum digital tokens through a regulated, exchange-listed product, rather than using crypto exchanges. In a statement, Russell Barlow of 21Shares said:
This is extremely significant and in some ways it could be seen as the first step in a seismic shift in UK financial markets in terms of the acceptance and adoption of digital assets more generally.
SEC To Clarify Which Digital Tokens are Securities
A major regulatory issue in the United States has centred around which cryptocurrencies are classified as securities by the Securities and Exchange Commission (SEC). The agency, under Paul Atkins, is now working to finalise rules that will make it clear which tokens are securities and which are classified as digital commodities.
The SEC, under Gary Gensler, explained that proof-of-work coins like Bitcoin and Litecoin were not securities. However, it considered most tokens with staking features to be securities that should be properly regulated.
In a statement, SEC’s Mark Uyeda said that the agency would publish guidelines on the two as the agency continues to review over 90 altcoin ETF applications.
Trump Executive Order To Make Crypto and Private Equity Investments
Another notable regulatory story was from the United States, where Donald Trump signed an executive order that will allow private equity companies to invest in private equity and cryptocurrencies. This order rescinded one by Joe Biden, which barred these investments, citing their potential risks. Trump hopes that these 401k plans will boost investments in these alternative assets, including Bitcoin. In a statement, Lori Chavez-DeRemer, the Labor Secretary, said:
Instead of allowing Washington bureaucrats to call the shots, we believe plan fiduciaries should decide which retirement investment options are best for hardworking Americans.
Hedge Funds Win Against the SEC on Short Sale Disclosures
A US court ordered a review of SEC rules that require investors to reveal more details about short-selling and related stock lending. It ruled that the SEC failed to consider the cumulative economic impact of the disclosure rules before approving them and then sent the matter back to the commission to reconsider. Hedge funds and trade groups sued to block the rules in 2023, arguing that they were inconsistent and exceeded the agency’s authority. In a statement, an organisation representing hedge funds said:
These regulations were fatally flawed from the start when the SEC adopted highly related rules on the same day without analysing the impact one would have on the other.
ASIC Considers Kill Switches for AI Algo Development
The Australian Securities and Investments Commission (ASIC) is considering ways to modernise its market integrity rules to adapt to evolving technological capabilities. One of the rules being considered is one that will mandate a kill switch for algorithmic trading. That would be a major change considering that 85% of all trading in Australian equities was algorithmic.
In a statement, the agency said:
Extending the kill switch controls to trading algorithms will help to mitigate erroneous order entry and aberrant algorithmic programs which have the potential to result in a ‘flash crash’, without requiring the suspension of a trading participant’s trading system.
Hong Kong Launches a New Stablecoin Regime
The Hong Kong Monetary Authority (HKMA) launched the first regulatory and licensing requirements for domestic stablecoin issuers in the city. These rules mandate that any person issuing stablecoins pegged to the Hong Kong dollar (HKD) must be licensed. These issuers must maintain minimum financial resources, including HK$25 million in paid-up share capital and excess liquid capital equivalent to 12 months of operating expenses.
Issuers must maintain 100% backing of outstanding stablecoins at all times, with the market value of reserve assets equalling or exceeding the par value of circulating stablecoins. In addition, the HKMA expects overcollateralisation to provide sufficient buffers against market volatility, operational costs, and unexpected stresses.
China Tells Brokers to Stop Touting Stablecoins
Meanwhile, in China, officials told brokers and other bodies to stop publishing research and holding seminars to promote stablecoins, which it sees as being highly volatile. Some leading brokerages received guidance from financial regulators, urging them to cancel seminars and halt dissemination research on stablecoins. Regulators are also concerned that stablecoins could be exploited as a new tool for fraudulent activities in mainland China.
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