Schnabel urges the EU to enhance bank resilience amid rising shadow banking and digital finance risks

Leading European financial officials emphasize the need to strengthen oversight of shadow banks and prevent deregulation that could threaten financial stability, amidst rising concerns over risky assets and market innovations.European financial officials have been stressing the need to tighten regulations on non-bank financial institutions — you know, the shadow banks — because there’s growing concern that relaxing rules for traditional banks while leaving gaps elsewhere might actually increase systemic risks. In a speech delivered recently in Amsterdam, Christine Lagarde, who’s at the helm of the European Central Bank (ECB), emphasized that rather than easing regulations on regular banks, authorities should instead step up their game and ‘level up’ the standards for non-bank entities like investment funds, insurers, and hedge funds. Right now, these shadow banks tend to operate under lighter frameworks because they don’t take household deposits, which sort of gives them an advantage. Lagarde also pointed out that these shadow banks now hold assets roughly equal to about 350% of Europe’s GDP — which is huge — and that their rapid expansion and growing ties with traditional banks could mean that in times of financial stress, central banks might be forced into action. Her comments are coming at a time when there's still quite a bit of debate across Europe about how to regulate finance after the 2008 crash. Some governments are even considering deregulation measures to boost investment and economic growth — well, at least that’s the argument. However, folks at the ECB, along with other regulators and central bankers, are cautious. Isabel Schnabel, who’s on the ECB board and spoke at the same event, warned against a ‘race to the bottom’ in regulatory standards. She warned that easing rules could actually set the stage for future instability because of new risks associated with innovations like stablecoins. These digital assets combine features of traditional money and reserve assets but could become illiquid in crises, creating new contagion pathways between crypto markets, banks, and conventional asset classes. Over in the UK, regulators are sounding similar alarms. Bank of England Governor Andrew Bailey cautioned that because people tend to forget past crises, there might be pressure to cut back on oversight again. But he stressed that strong regulation remains absolutely essential. Interestingly enough, Bailey responded indirectly to UK Finance Minister Rachel Reeves, who had floated ideas about scaling back regulations to promote growth. Bailey made it clear that the post-2008 banking regulations weren’t to blame for Britain’s sluggish investment or productivity, and instead advocated for simpler rules for small deposit-takers—rules that would cut down on needless complexity without sacrificing safety. The ECB isn't just sitting back either; they’re worried about the European Commission's recent push to loosen securitization rules for banks. They fear such moves could deepen systemic risks. Pedro Machado, an ECB supervisor, criticized proposals that involve complex securitisations, warning that these could lead to opaque and riskier financial structures, kind of reminiscent of what caused the financial turbulence back in 2007-08. He emphasized that regulators should instead focus on promoting simpler, more resilient securitization practices to safeguard financial stability. After all, easing rules doesn’t automatically mean more lending, he pointed out. Moreover, other ECB officials have highlighted that shadow banks, although quite extensive and complex, remain much less regulated and don’t have easy access to central bank liquidity. Sharon Donnery, an ECB supervising officer, mentioned that their opacity and intricate structures could be blind spots when it comes to risk — and right now, especially with geopolitical and economic uncertainties, she stressed the importance of strong regulation around liquidity mismatches and readiness, especially for money market funds and open-ended funds. No one at the ECB or other regulators seems keen on weakening standards. Claudia Buch, one of the top supervisors, reaffirmed that Europe needs to fully implement Basel III rules to make banks more resilient against shocks. She made it clear that watering down internationally agreed standards could harm the safety of global banking systems and create regulatory uncertainty — clearly a concern with some jurisdictions moving toward less oversight. All in all, senior European banking officials seem united in the view that preserving, or even tightening, regulation is crucial. Their focus remains on plugging gaps in shadow banking and market innovation while avoiding destabilizing rollbacks that could undermine resilience and spike systemic risks. The overarching message? As financial markets evolve and new risks appear, regulation should adapt carefully—to protect the integrity of the system rather than expose it to unnecessary dangers. Source: Noah Wire ServicesVerification / Sources https://www.investing.com/news/economy-news/europe-needs-tighter-regulation-of-shadow-banks-lagarde-says-4270047 - Please view link - unable to able to access data https://www.reuters.com/sustainability/boards-policy-regulation/europe-needs-tighter-regulation-shadow-banks-lagarde-says-2025-10-03/ - European Central Bank President Christine Lagarde has called for stricter regulation of non-bank financial institutions, often termed 'shadow banks', due to their rapid growth and lighter oversight compared to traditional banks. Speaking in Amsterdam, Lagarde highlighted that these entities now hold assets equivalent to about 350% of Europe’s GDP, yet they operate under looser regulations because they don’t take household deposits. She urged policymakers to raise regulatory standards for non-banks engaged in bank-like activities or closely linked to the banking sector, to mitigate systemic risks and address concerns from traditional banks about competitive imbalances. Lagarde warned that in times of financial crisis, central banks might be forced to provide liquidity support to non-banks, potentially repeating vulnerabilities seen during the 2008 financial crisis. She concluded by advocating for rules that simplify bank regulation without weakening it, while calling for stricter oversight of shadow banking entities. https://www.reuters.com/sustainability/boards-policy-regulation/bank-englands-bailey-warns-against-rolling-back-financial-regulation-2025-10-03/ - Bank of England Governor Andrew Bailey has cautioned against easing financial regulations, warning that doing so could reintroduce risks as the memory of past financial crises fades. Speaking at an event hosted by the Dutch central bank, Bailey emphasized the importance of continuing to collect crucial data, especially in emerging areas of risk. His comments respond to British finance minister Rachel Reeves’ intent to reduce regulatory burdens to stimulate economic growth. Bailey disagreed with the notion that post-2008 financial regulations were responsible for Britain’s underwhelming investment and productivity performance, suggesting that strong oversight remains necessary for financial stability. https://www.reuters.com/sustainability/boards-policy-regulation/ecb-says-eu-going-too-far-easing-bank-securitisation-rules-2025-09-30/ - The European Central Bank (ECB) has expressed concerns over the European Commission's recent proposals to ease banking securitisation rules. ECB supervisor Pedro Machado criticized the reforms, especially those related to complex and synthetic securitisations, for potentially heightening financial risks. Securitisation, the process by which banks package and sell loans as securities, played a pivotal role in the 2007-08 financial crisis, and the ECB remains cautious about its deregulation. The Commission's proposals, introduced in June, aim to stimulate lending and enhance Europe's financial competitiveness versus the U.S. by loosening requirements such as investor due diligence, reducing paperwork, and decreasing transparency for private deals. However, the ECB warns that such changes could reintroduce 'agency and model risks' and promote opaque and riskier structures. Machado emphasized that easing securitisation rules doesn't directly translate into increased lending, noting the rapid growth of synthetic securitisations in the EU that don't offer new capital. He urged regulators to prioritize simpler, more standardized, and resilient structures to protect financial stability. https://www.reuters.com/business/finance/ecb-warns-about-financial-risk-coming-shadow-banks-2025-04-10/ - The European Central Bank (ECB) has expressed concern over the increasing financial risks posed by non-bank financial intermediaries, commonly referred to as shadow banks. Sharon Donnery, an ECB supervisor, highlighted that these entities have expanded significantly but are subject to less stringent regulations and lack access to central bank liquidity, making them more vulnerable during market disruptions. This vulnerability, combined with direct links between shadow banks and traditional banks through lending and investment, raises the risk of financial contagion. Donnery emphasized the opacity and complexity of shadow banking activities, which can mask risk concentrations and hinder effective risk management by regulated banks. She pointed out recent geopolitical uncertainties as factors amplifying the risk of abrupt asset price corrections. To mitigate these risks, Donnery urged lawmakers to enhance regulatory measures, particularly addressing liquidity mismatches in money market and open-ended funds and boosting their liquidity preparedness. Despite banks’ resilience in recent volatile periods, the ECB remains vigilant about the broader systemic implications of shadow bank-related risks. https://www.reuters.com/business/finance/europe-must-not-water-down-bank-regulation-top-supervisor-says-2024-11-06/ - Claudia Buch, the top supervisor of the European Central Bank, emphasized the importance of implementing Basel III regulations in Europe to strengthen banks' resilience to economic shocks. In her speech, she highlighted that the Basel framework should remain the foundation of internationally agreed rules and warned that diluting these regulations would undermine protections for globally active banks and create regulatory uncertainty. Buch's statements come in the aftermath of Donald Trump's victory in the U.S. Presidential election, which has sparked concerns about the future global application of the Basel III rules due to his deregulatory campaign promises. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is based on a recent speech by Christine Lagarde in Amsterdam on October 3, 2025, as reported by Reuters. (reuters.com) This indicates high freshness. Quotes check Score: 10 Notes: The direct quotes from Christine Lagarde in the narrative match those reported in the Reuters article, with no significant variations or earlier appearances found. (reuters.com) This suggests the quotes are original to this event. Source reliability Score: 10 Notes: The narrative originates from a Reuters report, a reputable news organisation known for its accuracy and reliability. (reuters.com) Plausability check Score: 10 Notes: The claims made in the narrative align with the content of the Reuters report, which details Christine Lagarde's speech in Amsterdam on October 3, 2025. (reuters.com) The information is consistent and plausible. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is based on a recent and original speech by Christine Lagarde, reported by a reputable news organisation, with consistent and plausible claims.

The Bank of England adopts a more positive stance towards stablecoins, proposing regulatory integration and access to reserve facilities, amid shifting policies worldwide and innovations like Visa’s cross-border payment pilot.The Bank of England has recently adjusted its tune when it comes to stablecoins, indicating a more positive and regulation-oriented outlook towards these digital assets. Governor Andrew Bailey made a point to emphasize that stablecoins which are widely used in the UK should be brought under regulation similar to that of traditional bank money. This would cover depositor protections, and importantly, give stablecoins access to the Bank of England’s reserve facilities—this is quite a significant move toward formally integrating stablecoins into the existing financial framework. Bailey clarified that even though stablecoins aren’t quite functioning as money-like payment tools just yet—mostly because their main role is still to serve as entry and exit points in crypto markets—they shouldn’t be dismissed outright. Instead, the Bank plans to publish a consultation paper that would lay out a clearer regulatory framework and suggest that stablecoins could hold accounts directly at the Bank of England, boosting their credibility as legitimate forms of money. Bailey also envisioned a future where banks and stablecoins could coexist happily, with non-bank players possibly stepping up to provide more credit-related services. Interestingly enough, this marks quite a shift from earlier concerns that stablecoins posed a threat to banks by diverting deposits away from them. But—and I suppose you could say this—some voices from the traditional banking world are still wary; Rob Nichols, who heads the American Bankers Association, expressed ongoing worries, warning that stablecoins might sideline fundamental banking functions like deposit-taking and lending. The momentum behind regulation, however, isn’t coming from just the UK. It’s partly fueled by developments in the U.S., particularly the GENIUS Act signed into law back in July 2025. This piece of legislation sketches out a detailed oversight framework for stablecoins, mandating that they be backed 1:1 with U.S. dollars or other low-risk assets, along with strict standards on reserves, auditing, and transparency. It establishes supervision at both the federal and state levels and aims to protect consumers. Industry insiders see this U.S. regulatory clarity as a big boost—kind of a catalyst—that will inspire more confidence among institutions and help integrate stablecoins into mainstream financial systems. As a reflection of the broader institutional backing, Visa has recently kicked off a pilot project that uses stablecoins to facilitate cross-border payments. The idea is that businesses can pre-fund transactions with stablecoins instead of relying on traditional currencies, which could speed up payment processing and reduce the hassle of holding multiple fiat currencies. Visa’s move to incorporate stablecoin tech into their existing payment networks suggests that stablecoins are moving beyond their niche crypto origins and are increasingly becoming part of the backbone of global payments infrastructure. That said, concerns about regulation aren’t fading away entirely, especially outside the UK and US. The European Systemic Risk Board (ESRB), led by ECB President Christine Lagarde, has issued some pretty urgent warnings regarding the dangers of stablecoins issued by multi-jurisdictional groups that don’t fall neatly within EU regulatory oversight. The fear is that such fragmented regulation could lead to market stress—maybe even runs on reserves—and overall liquidity problems. There’s also a risk of regulatory arbitrage, where investors might prefer to redeem in stricter regimes to escape laxer ones, which raises the need for better coordinated international supervision. Meanwhile, big players like Amundi—Europe’s largest asset manager—are expressing some reservations, especially about how stablecoins might impact the global financial landscape once they’re more widely adopted. Amundi’s CIO Vincent Mortier highlighted worries that if stablecoins reach the scale JPMorgan projects—somewhere between $500 billion and $2 trillion—they could create what’s essentially “quasi-banking” entities and threaten monetary sovereignty and overall financial stability. Plus, Mortier pointed out a somewhat surprising paradox: the increased purchase of U.S. Treasuries backing stablecoin reserves might even weaken the dollar itself. It’s a complex interplay—digital assets influencing traditional currencies—something that most experts are watching closely. These cautious views from major financial institutions emphasize that, despite the regulatory progress, many are still wary of how widespread stablecoin adoption might shake things up. All in all, the Bank of England’s changing stance indicates a broader trend among global regulators to shift from outright skepticism to more structured, rules-based approaches. As the UK considers giving stablecoins direct access to the Bank of England, and with other jurisdictions still struggling to coordinate policies, this market is at a real crossroads. The promise of faster, more efficient payments is attractive—no doubt about that—but finding the right balance between encouraging innovation and mitigating systemic risks remains a key challenge for policymakers moving forward. References: - Paragraph 1 – 1, 2 - Paragraph 2 – 1 - Paragraph 3 – 1, 6, 7 - Paragraph 4 – 4 - Paragraph 5 – 3 - Paragraph 6 – 5 - Paragraph 7 – 1, 2, 3, 5 Source: Noah Wire ServicesVerification / Sources https://www.atmmarketplace.com/news/bank-of-england-softens-tone-on-stablecoins-say-they-should-be-regulated/ - Please view link - unable to able to access data https://www.reuters.com/sustainability/boards-policy-regulation/widely-used-stablecoins-need-be-regulated-like-money-boes-bailey-says-2025-10-01/ - Bank of England Governor Andrew Bailey has stated that widely used stablecoins in the UK should be regulated similarly to traditional banks. This includes implementing depositor protections and granting access to Bank of England reserve facilities. Bailey clarified that he is not opposed to stablecoins in principle but emphasized that their current primary function—facilitating entry and exit from cryptocurrency markets—does not qualify them as money-like payment methods. The Bank of England plans to release a consultation paper outlining its regulatory approach, including the proposal for UK stablecoins to have accounts at the Bank of England to reinforce their credibility and monetary status. https://www.reuters.com/business/finance/eu-risk-watchdog-calls-urgent-safeguards-stablecoins-2025-10-02/ - The European Systemic Risk Board (ESRB), led by European Central Bank President Christine Lagarde, has issued a warning calling for urgent safeguards on stablecoins that are only partially issued within the European Union. These concerns stem from potential vulnerabilities in 'multi-issuer' stablecoin arrangements, in which issuers inside and outside the EU collaborate. Under such schemes, stablecoins are not uniformly regulated, exposing the bloc to potential financial risk during market stress, such as a run on reserves. Policymakers fear this discrepancy could lead investors to prefer redeeming stablecoins within the stricter and safer EU framework, potentially causing a liquidity shortage. The ESRB emphasized the need for consistent oversight across jurisdictions to prevent regulatory arbitrage and reduce systemic financial risks associated with cross-border stablecoin arrangements. https://www.reuters.com/technology/visa-bets-stablecoins-speed-up-cross-border-payments-2025-09-30/ - Visa has announced a pilot program to test the use of stablecoins for international payments, allowing businesses to pre-fund transactions with digital tokens instead of traditional currencies. This initiative aims to accelerate cross-border payments and reduce the need for companies to lock up cash in multiple currencies worldwide. The decision follows the passage of the GENIUS Act in the U.S., which established clear regulations for stablecoin issuers and has increased institutional confidence in digital tokens. Visa is partnering with undisclosed entities and plans to expand the program next year. While stablecoins raise concerns about competition for traditional financial institutions, Visa’s approach emphasizes integrating stablecoin technology into its existing payment systems rather than replacing them. Experts suggest this marks a shift in stablecoins from a niche crypto tool to critical financial infrastructure. https://www.reuters.com/business/finance/amundi-warns-us-stablecoin-policy-could-destabilise-global-payments-system-2025-07-03/ - Amundi, Europe’s largest asset manager, has expressed concern that the U.S. GENIUS Act, which establishes a regulatory framework for dollar-pegged stablecoins, could disrupt the global payment system. The legislation, recently passed by the U.S. Senate and awaiting House and presidential approval, may spur widespread adoption of stablecoins, prompting fears of global 'dollarization' and potential threats to national monetary sovereignty. Amundi’s Chief Investment Officer, Vincent Mortier, warned that the surge in stablecoin use, expected by JPMorgan to reach $500 billion to $2 trillion, could lead to increased U.S. Treasury bond purchases, which may ironically weaken the dollar. Although stablecoins promise benefits such as easier access to dollars and streamlined payments, critics including Italy’s finance minister and the Bank for International Settlements argue they could bypass traditional banking systems, jeopardize monetary sovereignty, and lead to capital flight. Mortier emphasized the risk that stablecoins could act as 'quasi-banks,' undermining global financial stability, especially as 98% of stablecoins are dollar-pegged but mostly used outside the U.S. Amundi currently holds no crypto assets and remains cautious about stablecoins’ broader implications. https://en.wikipedia.org/wiki/GENIUS_Act - The GENIUS Act, enacted in July 2025, is a U.S. federal law that aims to create a comprehensive regulatory framework for stablecoins. Stablecoins are a type of cryptocurrency that are backed by assets considered to be reliable, such as a national currency or a commodity. The act requires stablecoins to be backed one-for-one by U.S. dollars or other low-risk assets, establishing stringent standards for reserves, audits, and transparency. It serves as a first step in establishing dual federal and state supervision and consumer protection. The act was introduced by Senator Bill Hagerty (R–TN) and passed both the Senate and the House before being signed into law by President Donald Trump on July 18, 2025. https://www.forbes.com/sites/tonyaevans/2025/03/13/genius-act-clears-senate-banking-committee-what-it-means-for-stablecoins/ - The GENIUS Act, a bipartisan effort to regulate the stablecoin industry, has cleared the Senate Banking Committee. Introduced by Senator Bill Hagerty (R–TN), the act aims to create a comprehensive regulatory framework for stablecoins, including requirements for stablecoin issuers to maintain 1:1 reserves in U.S. dollars or highly liquid assets. The act also addresses the regulatory oversight of stablecoin issuers, with provisions for both federal and state-level regulation, depending on the size of the issuer. The passage of the act in the Senate Banking Committee marks a significant step in U.S. crypto policy, though its path to becoming law remains uncertain. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 9 Notes: The narrative presents recent developments, including Governor Andrew Bailey's comments on stablecoin regulation from October 1, 2025, and the GENIUS Act signed into U.S. law in July 2025. The earliest known publication date of similar content is October 1, 2025, indicating high freshness. The narrative is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. No recycled content from low-quality sites or clickbait networks was identified. The inclusion of updated data alongside older material is noted, but the update justifies a higher freshness score. Quotes check Score: 10 Notes: Direct quotes from Governor Andrew Bailey and other individuals are consistent with their known statements from October 1, 2025. No earlier usage of these quotes was found, indicating originality. Source reliability Score: 8 Notes: The narrative originates from ATM Marketplace, a reputable source in the financial industry. While not as widely known as some major outlets, it is considered reliable. The report includes references to Reuters, enhancing its credibility. Plausability check Score: 9 Notes: The claims about the Bank of England's stance on stablecoins align with recent developments, including Governor Bailey's comments from October 1, 2025. The GENIUS Act, signed into U.S. law in July 2025, is accurately referenced. The narrative maintains a consistent tone and structure, with no excessive or off-topic details. The language and tone are appropriate for the topic and region. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is fresh, original, and plausible, with no significant issues identified. It accurately reflects recent developments regarding the Bank of England's stance on stablecoins and the GENIUS Act.

While Congress stalls on digital asset legislation, U.S. regulators and private sector initiatives are driving rapid reforms, including milestone approvals and increased market activity, signalling a new era of crypto regulation.Despite the ongoing Congressional gridlock surrounding federal funding and the uncertain outlook for digital asset market structure legislation, there's still quite a bit of momentum quietly building in U.S. crypto regulation. This momentum is mainly driven by administrative agencies and private sector actions, rather than Congress itself. For instance, the Securities and Exchange Commission (SEC) recently provided some notable no-action relief for a decentralized physical infrastructure (DePIN) token project, which many see as a potential milestone in regulatory clarity. Meanwhile, Senate Democrats have introduced their own proposals aimed at market structure—these are meant to complement the efforts of the Senate Banking Committee, which has been actively working on similar initiatives. At the same time, agencies like the SEC and the Commodity Futures Trading Commission (CFTC) have pushed forward with new initiatives designed to harmonize oversight of digital assets and foster technological innovation—even as the CFTC continues to operate without a permanent chair or a full quorum. All of these developments are happening alongside a surge in crypto companies going public, which underscores how deeply crypto is becoming entwined with traditional financial markets. Back in late September 2025, the SEC and CFTC held a joint roundtable discussion—aimed at better aligning their regulatory approaches. The event gathered regulators and industry leaders alike, all trying to figure out ways to coordinate more effectively, reduce compliance headaches, and bring some clarity to the rapidly evolving world of blockchain-based financial products. Both SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham made it clear they wanted to prioritize their respective regulatory missions over fighting over jurisdictional boundaries. This approach reflects guidance given earlier that summer by the President’s Working Group on Digital Asset Markets. Interestingly enough, the conversations revealed differing views around exemptions and sandbox frameworks—where some larger, more established institutions advocated for tighter oversight, while newer market entrants supported more flexible, less restrictive rules. For example, SEC Commissioner Hester Peirce openly discussed the messy overlaps in jurisdiction—particularly around prediction markets—highlighting ongoing debates about whether such markets should fall under the CFTC, state gaming regulators, or both. At the same time, the SEC granted no-action relief to DoubleZero, a DePIN project working on its “2Z” token. This was a significant move—the first of its kind since the SEC’s 2020 IMVU letter. Essentially, the relief allows the project to transfer tokens programmatically as part of providing network services, without classifying those transfers as securities transactions. But there’s an important catch: the token can't include features like dividends or deflationary mechanisms that passively build value for holders. This outcome involved tight collaboration between SEC staff and the project’s legal team, signaling a more engaged and flexible SEC attitude toward blockchain innovations. While the decision partly rests on a rationale related to the token’s consumptive use—something courts have historically tended to scrutinize suspiciously—it at least offers a clearer path forward for projects trying to distinguish utility tokens from securities. Honestly, it’s a promising step, even if the legal landscape remains complex. Meanwhile, Senate Democrats have also rolled out their own market structure framework, aiming to bolster the majority bill crafted by the Senate Banking Committee. They’ve scheduled a markup—probably late October or early November—which hints at the possibility of bipartisan support. It seems they’re mostly aligned with Republicans on many issues, which bodes well for legislative progress. That said, some deep disagreements still linger. These include questions about how federal law might pre-empt state regulations, the oversight of decentralized finance (DeFi) protocols, and restrictions on stablecoin yields that are passed on to consumers. The final Senate package is expected to look quite different from the House-passed CLARITY Act. Instead of moving quickly, the Senate Agriculture Committee—responsible for oversight of the CFTC—has yet to release its accompanying proposal. This adds a layer of delay to comprehensive reforms in the market structure arena. On the legislative front, the SEC moved swiftly to approve new rules that make it easier to list commodity-based ETFs, including those tied to cryptocurrencies. This is a big deal—it will significantly streamline the process for launching numerous pending crypto ETFs and could lead to a flood of new product offerings. Industry groups, including the Digital Chamber of Commerce, played an influential role by submitting supportive comments that helped push this through. Furthermore, the SEC granted approval for trading a fund holding multiple cryptocurrencies and even signaled openness to incorporating staking or liquid staking tokens—these were just moves to further embed crypto assets within traditional investment platforms. Beyond regulation and legislation, there’s a flurry of other activities worth noting. The Department of Treasury is pushing ahead with the implementation of the GENIUS Act, seeking public input on its framework. And then there’s the ongoing saga around leadership at the CFTC—after delays, the nomination of Brian Quintenz for a permanent chair has been officially withdrawn, leaving the agency without confirmed leadership or a quorum. This leadership gap raises concerns about the agency’s ability to maintain momentum on important initiatives, like exploring stablecoin collateral arrangements for derivatives trading. On the innovation side, the SEC’s Project Crypto—launched in August under Chair Atkins—is aimed at developing a regulatory framework for digital assets. The project seeks to create clearer guidelines for crypto tokens classified as securities, promoting lawful issuance, custody, and trading of crypto assets while deterring misconduct. SEC Chair Atkins has also emphasized the importance of enabling \u201csuper-app\u201d trading platforms that combine trading, lending, and staking under a single regulatory umbrella, aiming to make the regulatory landscape more adaptable to the fast-paced, multi-faceted nature of digital assets. Additionally, the SEC’s Crypto Task Force has stepped up efforts to engage with startups and smaller projects through nationwide roundtables, gathering feedback to help guide rulemaking priorities. The crypto market itself continues to show signs of strength. Companies like Gemini and Figure have successfully gone public, exceeding earnings expectations, and venture capital remains active—nine startups raised nearly $870 million in just one week. Overall, the sector is projected to attract about $25 billion in venture funding by year-end 2025, which is quite remarkable given the regulatory uncertainties. All in all, these developments paint a picture of a digital asset space in rapid flux. Agencies like the SEC and CFTC are pushing ahead with coordinated efforts that, despite some gaps, aim to bring more structure and clarity, while private companies keep innovating and expanding. The dynamic interplay between pragmatic regulatory signals, a still-leaderless CFTC, and Democratic proposals in the Senate makes this a critical juncture for U.S. crypto policy. Watchers will want to see how these moves influence the integration of digital assets into traditional markets and shape the regulatory landscape in the upcoming months. It’s a period of significant change and opportunity. Source: Noah Wire ServicesVerification / Sources https://natlawreview.com/article/blockchain-bi-weekly-cftcsec-move-forward-crypto-focused-initiatives-and-important - Please view link - unable to able to access data https://www.cftc.gov/PressRoom/PressReleases/9115-25 - On September 5, 2025, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) issued a joint statement announcing a roundtable on September 29 to discuss regulatory harmonisation efforts. The agencies aim to coordinate on enabling the trading of certain spot crypto asset products, aligning with recommendations from the President’s Working Group on Digital Asset Markets report. This initiative seeks to provide markets with the clarity they deserve and to make America the best place to innovate with blockchain technology and participate in crypto asset markets. https://www.cftc.gov/PressRoom/PressReleases/9105-25 - On August 4, 2025, CFTC Acting Chairman Caroline D. Pham announced the launch of an initiative for trading spot crypto asset contracts listed on a CFTC-registered futures exchange. This initiative is part of the CFTC’s crypto sprint to implement recommendations from the President’s Working Group on Digital Asset Markets report. The goal is to enable immediate trading of digital assets at the federal level, in coordination with the SEC’s Project Crypto, to foster innovation in digital asset markets. https://www.sec.gov/newsroom/press-releases/2025-101-sec-permits-kind-creations-redemptions-crypto-etps - On July 29, 2025, the SEC approved orders permitting in-kind creations and redemptions by authorised participants for crypto asset exchange-traded product (ETP) shares. This decision aligns with standard practices for similar ETPs and is expected to make these products less costly and more efficient for investors. SEC Chairman Paul S. Atkins highlighted the agency's commitment to developing a fit-for-purpose regulatory framework for crypto asset markets. https://www.cftc.gov/PressRoom/PressReleases/9104-25 - On August 1, 2025, CFTC Acting Chairman Caroline D. Pham announced the commencement of a crypto sprint to implement recommendations from the President’s Working Group on Digital Asset Markets report. The initiative aims to enable immediate trading of digital assets at the federal level, in coordination with the SEC’s Project Crypto, to foster innovation in digital asset markets and make America the crypto capital of the world. https://www.sec.gov/about/sec-launches-project-crypto - On August 5, 2025, SEC Chairman Paul Atkins announced the launch of 'Project Crypto', an initiative aimed at developing a regulatory framework for digital assets. The project seeks to provide clear guidelines for crypto tokens classified as securities, promoting lawful issuance, custody, and trading of crypto assets while deterring misconduct. This move aligns with the SEC's commitment to establishing a firm foundation for digital asset regulation. https://www.sec.gov/newsroom/press-releases/2025-102-road-sec-crypto-task-force-host-series-roundtables-across-us - On August 1, 2025, the SEC announced that its Crypto Task Force will host a series of roundtables across the United States to engage with stakeholders on digital asset regulation. The roundtables aim to gather input from representatives of crypto-related projects, particularly those with fewer than ten employees and less than two years old, to ensure comprehensive outreach and inform the development of a regulatory framework for digital assets. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative references recent events, including the SEC's no-action letter to DoubleZero dated September 29, 2025, and the SEC-CFTC joint roundtable on regulatory harmonization held on September 29, 2025. These events are current and have been reported by reputable sources such as Axios and the SEC's official website. (axios.com) The inclusion of these recent developments suggests a high freshness score. Quotes check Score: 7 Notes: The narrative includes direct quotes from SEC Commissioner Hester M. Peirce regarding the SEC's no-action letter to DoubleZero. These quotes are consistent with statements made by Commissioner Peirce on September 29, 2025. (sec.gov) The alignment of these quotes with the original source indicates a moderate to high originality score. Source reliability Score: 9 Notes: The narrative is published on the National Law Review, a reputable platform known for its legal analysis and commentary. The inclusion of direct quotes from SEC Commissioner Hester M. Peirce and references to official SEC press releases further enhance the credibility of the information presented. (sec.gov) Plausability check Score: 8 Notes: The narrative presents developments that are consistent with recent regulatory actions and statements from the SEC and CFTC. The SEC's no-action letter to DoubleZero and the SEC-CFTC joint roundtable on regulatory harmonization are plausible and align with the current regulatory landscape. (sec.gov) The inclusion of direct quotes from SEC Commissioner Hester M. Peirce adds authenticity to the narrative. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative effectively incorporates recent developments, including the SEC's no-action letter to DoubleZero and the SEC-CFTC joint roundtable on regulatory harmonization. The use of direct quotes from SEC Commissioner Hester M. Peirce and references to official SEC press releases enhance the credibility and originality of the content. The alignment with current regulatory actions and statements further supports the plausibility of the information presented.