EU prepares new sanctions targeting Russia's financial bypass systems amid intensifying measures

Regulation1943 words9 min readabout 11 hours ago

The European Union is considering a new wave of sanctions aimed at cutting off Russia's use of foreign banks and international messaging systems like SPFS, in a bid to tighten restrictions and disrupt Moscow’s financial networks amid ongoing tensions over Ukraine.

The European Union is apparently looking into new sanctions that would target foreign banks engaging with Russia's internal messaging system, known as the System for Transfer of Financial Messages (SPFS). This seems to be part of their broader effort to clamp down even more on Moscow’s attempts to get around sanctions. France and Germany are said to be leading the charge for tougher measures against countries and institutions that help Russia dodge Western restrictions, which are mainly aimed at isolating Moscow over its ongoing conflict in Ukraine.

The SPFS, which was created as a domestic alternative to SWIFT—the global interbank messaging network—has become really important for Russia and its trading partners who can't access the usual financial channels anymore. When many Russian banks lost access to SWIFT in 2022, the system became essential—they managed to keep sending financial messages and completing transactions both within Russia and abroad. According to data from the Russian central bank, by early 2025, about 177 foreign entities across 24 countries were connected to SPFS. Back in June 2024, the EU even banned its own banks operating abroad from linking up with SPFS, warning that those who ignore this could find themselves cut off from European financial networks.

Moscow has also diversified its approach a bit. It’s been pushing more for using national currencies in trade with BRICS countries, which cuts reliance on dollars and euros. This shift, honestly, makes Russia more resilient against Western sanctions. Despite these restrictions, Russia insists that the sanctions haven't destroyed its economy and, in fact, argue that they’ve hurt the countries imposing them more—a bit of a counterattack, you know?

Now, this upcoming EU sanctions package—what some are calling the 19th round—aims even higher. France and Germany are exploring ways to hit what they call the "deeper structures" of Russia’s financial and logistical networks. The EU is also looking at targeting Chinese refineries and banks in Central Asia that may be helping Moscow with oil trade. It seems like a natural progression, shifting sanctions beyond the initial targets to cover bigger, more integrated international players helping Russia dodge restrictions.

This tougher approach isn’t happening in a vacuum. It follows the 18th sanctions package, which was pretty harsh—one of the strongest yet. That one included restrictions on Russian banks’ access to funding, a ban related to the Nord Stream gas pipelines, and a reduction of the G7 price cap on Russian oil from $60 to $47.6 a barrel. The idea here is to keep Russian crude priced well below the global market rate. They also extended bans on financial transactions to 22 more Russian lenders, most of which already weren’t in SWIFT, reinforcing the EU’s strategy to choke off Kremlin funding sources. Interestingly enough, some countries like Slovakia weren’t initially on board with some of these measures, but after some negotiations and assurances, a consensus was reached—complex stuff, no doubt.

Meanwhile, outside the financial scene, Western countries are stepping up security and diplomatic actions. France, for example, has sent Rafale fighter jets to Poland to strengthen NATO’s eastern flank, particularly after recent Russian drone strikes on Polish territory. The UK isn’t sitting still either—new sanctions target ships and companies linked to Russian oil transport and military supply chains, so the pressure is multi-layered.

All these moves—the sanctions, the security measures—show that the EU is really committed to cutting Russia off from the global financial system and disrupting trade routes that support its war efforts. But it’s not easy. The involvement of non-Western countries such as China, Turkey, and those in Central Asia presents ongoing challenges to enforcing these sanctions fully. Still, the EU seems ready to expand its list, possibly including even more significant or politically sensitive actors, in a bid to close loopholes and make enforcement more effective.

📌 Reference Map:

- Paragraph 1 – ^[1], ^[4]
- Paragraph 2 – ^[1]
- Paragraph 3 – ^[1], ^[4]
- Paragraph 4 – ^[5], ^[6], ^[7]
- Paragraph 5 – ^[3], ^[2]

Source: Noah Wire Services

Verification / Sources

https://www.rt.com/business/624578-eu-targets-russian-swift/?utm_source=rss&utm_medium=rss&utm_campaign=RSS - Please view link - unable to able to access data
https://www.reuters.com/business/finance/eu-extends-sanctions-individuals-linked-russias-war-ukraine-2025-09-12/ - The European Union has extended sanctions on over 2,500 individuals and entities connected to Russia's war in Ukraine for an additional six months. This extension includes asset freezes and travel bans. The renewal process, requiring unanimous approval from EU member states, can be contentious, with Hungary previously demanding the removal of certain names from the list. However, diplomats noted that this time no political delistings occurred. The EU's sanctions regime against Russia operates through two primary channels: one targeting specific individuals and companies, and the other focused on broad economic measures, including an oil price cap and freezing assets of the Russian central bank.
https://apnews.com/article/429ff46431a916feff629f26a5d0c0da - In response to recent Russian drone incursions into Polish territory, France is deploying three Rafale fighter jets to Poland, with full NATO coordination, to strengthen airspace defense and deter further Russian aggression. French President Macron emphasized the move affirms solidarity with Poland and NATO's eastern flank. Simultaneously, the UK has imposed new sanctions targeting 70 vessels allegedly transporting Russian oil and penalized 30 entities supplying military components to Russia, including firms in China and Turkey. British Foreign Secretary Yvette Cooper, during her inaugural Kyiv visit, reaffirmed the UK's support for Ukraine as Russian drone attacks intensify. Poland and Ukraine have pledged to enhance their anti-drone defense collaboration, and Denmark has committed to boosting joint defense production with Ukraine. A UN Security Council meeting is scheduled to discuss the drone incident. Meanwhile, Russia has commenced joint military exercises with Belarus, further raising regional tensions. Ukrainian drones reportedly targeted a major Russian oil port, Primorsk, disrupting infrastructure linked to Russia’s "shadow fleet" of sanction-evading tankers. Despite growing international pressure, diplomatic efforts for peace remain stalled, with Russia asserting willingness for dialogue but insisting on realism in expectations.
https://www.reuters.com/business/energy/eu-may-list-independent-chinese-refineries-new-russia-sanctions-package-2025-09-10/ - The European Commission is considering including several independent Chinese refineries in its forthcoming 19th sanctions package against Russia, in response to Russia's ongoing invasion of Ukraine. This move marks a shift toward targeting more established international entities allegedly helping Moscow bypass Western restrictions, moving beyond just obscure shell companies. The proposal could be unveiled as early as Friday following discussions with U.S. officials in Washington. In previous sanctions, the EU had already listed two Chinese banks and India's Nayara Energy refinery. The new package is also expected to include banks from two Central Asian nations. Some Chinese refineries have been under scrutiny since summer over suspected purchases of Russian oil via sanctioned shadow fleets. The implementation of EU sanctions requires the consensus of all member states.
https://www.skadden.com/insights/publications/2025/03/latest-eu-sanctions-extend-asset-freezes-restrict-oil-industry-dealings-and-target-shadow-fleet - The European Union has implemented its 18th package of sanctions against Russia, aiming to intensify pressure over the ongoing Ukraine conflict. This latest package restricts Russian banks' access to funding, includes a ban on the Nord Stream gas pipelines, and lowers the G7 price cap on Russian oil exports from $60 to $47.6 per barrel. The new oil price cap ensures Russian crude remains priced at least 15% below market rates and will be reviewed biannually. The sanctions also expand the ban on financial transactions to 22 more Russian lenders, many already removed from the SWIFT system. EU foreign policy chief Kaja Kallas described the package as one of the toughest yet, asserting it targets the Kremlin's war funding. However, the sanctions faced delay due to opposition from Slovak Prime Minister Robert Fico, who demanded more time to phase out Russian gas contracts. Slovakia eventually supported the measures after receiving assurances from the European Commission. EU officials continue negotiations with G7 partners, especially the U.S., to secure full implementation of the oil price cap.
https://www.skadden.com/insights/publications/2025/07/eu-targets-russias-energy-financial-and-defense - The European Union has implemented its 18th package of sanctions against Russia, aiming to intensify pressure over the ongoing Ukraine conflict. This latest package restricts Russian banks' access to funding, includes a ban on the Nord Stream gas pipelines, and lowers the G7 price cap on Russian oil exports from $60 to $47.6 per barrel. The new oil price cap ensures Russian crude remains priced at least 15% below market rates and will be reviewed biannually. The sanctions also expand the ban on financial transactions to 22 more Russian lenders, many already removed from the SWIFT system. EU foreign policy chief Kaja Kallas described the package as one of the toughest yet, asserting it targets the Kremlin's war funding. However, the sanctions faced delay due to opposition from Slovak Prime Minister Robert Fico, who demanded more time to phase out Russian gas contracts. Slovakia eventually supported the measures after receiving assurances from the European Commission. EU officials continue negotiations with G7 partners, especially the U.S., to secure full implementation of the oil price cap.
https://www.skadden.com/insights/publications/2025/07/eu-targets-russias-energy-financial-and-defense - The European Union has implemented its 18th package of sanctions against Russia, aiming to intensify pressure over the ongoing Ukraine conflict. This latest package restricts Russian banks' access to funding, includes a ban on the Nord Stream gas pipelines, and lowers the G7 price cap on Russian oil exports from $60 to $47.6 per barrel. The new oil price cap ensures Russian crude remains priced at least 15% below market rates and will be reviewed biannually. The sanctions also expand the ban on financial transactions to 22 more Russian lenders, many already removed from the SWIFT system. EU foreign policy chief Kaja Kallas described the package as one of the toughest yet, asserting it targets the Kremlin's war funding. However, the sanctions faced delay due to opposition from Slovak Prime Minister Robert Fico, who demanded more time to phase out Russian gas contracts. Slovakia eventually supported the measures after receiving assurances from the European Commission. EU officials continue negotiations with G7 partners, especially the U.S., to secure full implementation of the oil price cap.

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: 7

Notes: The narrative discusses recent developments regarding EU sanctions against Russia's SPFS system, with some data updated to early 2025 and references to events in September 2025. While it includes recent information, the core content appears to be based on earlier reports, leading to a moderate freshness score.

Quotes check

Score: 5

Notes: The report contains quotes from Macron and Yvette Cooper that have been used in previous reports from earlier dates, indicating reuse rather than original attribution.

Source reliability

Score: 4

Notes: The primary source is RT, which is known for potential biases. While references to Reuters and AP News add some credibility, reliance on RT reduces overall reliability.

Plausability check

Score: 8

Notes: Claims about EU sanctions and recent events are plausible and consistent with known information, though the recycling of material and source issues temper full confidence.

Overall assessment

Veredict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents plausible and somewhat recent information regarding EU sanctions and related developments. However, reliance on RT as the primary source, reuse of quotes, and some recycled content diminish its credibility and originality. The inclusion of updated data and references to reputable sources offer some validation, but overall, the report remains open to verification.

Article Insights

Keywords

EU SanctionsRussia-Ukraine ConflictFinancial NetworksInternational Messaging SystemsWestern Restrictions

Main Themes

EU Sanctions
Russia-Ukraine Conflict
Financial Networks
International Messaging Systems
Western Restrictions

Mentioned In This Article

People

Macron,Yvette Cooper,Robert Fico,Kaja Kallas

Share this article

Recommended Articles

Tether launches USAT to meet U.S. regulatory standards with industry-leading compliance

Digital2135 words10 min readabout 2 hours ago

Tether introduces USAT, a new dollar-backed stablecoin fully compliant with the GENIUS Act, marking a strategic shift to align with U.S. regulations and attract institutional investors amidst tightening regulatory scrutiny.Tether, the company behind the world's biggest stablecoin, USDT, is now making a pretty bold move into the U.S. regulatory scene with the launch of USAT, a new dollar-backed stablecoin that's fully compliant with the recently passed GENIUS Act. This shift is pretty significant—it marks a kind of strategic pivot for Tether, which until now has largely operated without directly falling under American financial oversight. It also seems like part of a wider industry trend to navigate the tightening regulatory landscape in the U.S. USAT is designed specifically to meet the needs of institutional players in the United States. Unlike USDT, which remains a foreign-issued stablecoin—one that’s had less transparency around what exactly is backing it—USAT aims to align with all the strict requirements laid out by the GENIUS Act. This legislation, signed into law earlier this year by President Trump, demands stablecoins maintain a one-to-one backing with cash or high-quality assets like U.S. Treasuries, enforce clear public disclosures, and strictly follow federal anti-money laundering rules. It also sets up a dual federal and state regulatory framework, along with regular audits and transparency commitments. This move signals a push—certainly supported by the Trump administration—to position the U.S. as a leader in digital asset innovation on the global stage. Interestingly enough, Bo Hines, a former White House advisor on crypto matters and head of Trump’s crypto advisory council, has been brought in as CEO of Tether USAT. He comes with quite a bit of experience in U.S. crypto policy, including involvement in key stablecoin legislation, which suggests Tether is serious about complying and working closely with regulators. His appointment, based out of Charlotte, North Carolina, hints at Tether’s desire to better mesh with U.S. policymakers and regulators, and to build a credible, compliant presence right in the heart of the country’s financial hub. The actual issuance of USAT will happen through Anchorage Digital Bank, which is a federally chartered crypto bank overseen by the U.S. Office of the Comptroller of the Currency. Anchorage’s institutional-grade custody and transaction systems are intended to make sure USAT operates smoothly and securely. Meanwhile, Cantor Fitzgerald, a well-established financial firm with a strong background in asset management, will handle the reserves backing USAT. Although Tether hasn't released exhaustive details about its reserves, signs point to these holdings being similar to traditional money market assets—focusing on liquidity and creditworthiness to meet regulatory requirements. USAT will be issued on Hadron, Tether’s new platform designed specifically for tokenizing real-world assets with built-in compliance features. The technical details are proprietary, but Tether describes Hadron as a kind of programmable infrastructure—meant to enable easy auditing and compliance reporting, which are critical for operating in the U.S. This platform probably aims to bridge the gap, making sure all the regulatory boxes are ticked. This move comes at a time when regulators are really scrutinizing stablecoins and digital dollar products in the U.S. Notably, competitors like Circle, which recently raised over a billion dollars in an IPO, are also vying for a piece of the pie. Tether’s foray into the regulated U.S. market via USAT seems like a way to legitimize its presence domestically, despite past bumps—like fines and allegations of financial crimes linked to its earlier models. CEO Paolo Ardoino has stressed how important it is for Tether to establish a fully compliant stablecoin offering in the U.S., and he expects significant growth in the coming year or two. Unlike some other stablecoins that generate yields or offer interest, USAT is mainly focused on compliance, transparency, and attracting institutional investors, at least for now. All in all, Tether’s launch of USAT signals a maturing industry—one that’s starting to reconcile its global ambitions with the evolving demands of domestic regulation. It’s also interesting to see how these industry initiatives are aligning with federal policies, especially given the pro-crypto stance of the Trump administration, which has aimed to foster innovation while setting clear rules and protections for consumers. It’ll be pretty fascinating to see how this develops going forward. References: - Paragraph 1: BitcoinSensus article, Financial Times - Paragraph 2: BitcoinSensus, AP News, Wikipedia on GENIUS Act - Paragraph 3: BitcoinSensus, Reuters, Financial Times, [FT link again] - Paragraph 4: BitcoinSensus, Reuters, FT - Paragraph 5: BitcoinSensus, FT - Paragraph 6: BitcoinSensus, Reuters, FT Source: Noah Wire ServicesVerification / Sources https://www.bitcoinsensus.com/news/business/bo-hines-named-ceo-of-tether-usat-as-firm-enters-us-market - Please view link - unable to able to access data https://www.reuters.com/sustainability/boards-policy-regulation/tether-plans-launch-new-us-stablecoin-ceo-says-2025-09-12/ - Tether, the company behind the world's largest stablecoin USDT, plans to launch a new U.S.-based stablecoin called USAT, targeting American residents. Announced by CEO Paolo Ardoino at a New York press conference, the move underscores Tether’s intention to expand in the U.S. market. Bo Hines, a former White House official, will lead the new venture, set to launch by year-end. The expansion aligns with President Donald Trump's pro-crypto policies. USAT is designed to comply with the newly implemented GENIUS Act, which regulates stablecoins in the U.S. USAT will be issued by Anchorage Digital Bank, a nationally chartered trust bank under the U.S. Office of the Comptroller of the Currency. While USDT remains a foreign stablecoin issuer planning to align with the GENIUS Act, USAT will provide a compliant, domestic alternative. Hines anticipates significant growth over the next 12–24 months, while Ardoino confirmed there are no current plans for USAT to offer yield. https://www.reuters.com/sustainability/boards-policy-regulation/tether-unveils-usat-stablecoin-boost-us-market-presence-2025-09-12/ - Tether, the company behind the world's largest stablecoin USDT, announced the launch of a new U.S.-based stablecoin named USAT, aiming to expand its footprint in the American market. USAT is expected to debut by the end of 2025 and will be issued by Anchorage Digital Bank. Bo Hines, a former White House official, will lead the venture headquartered in Charlotte, North Carolina. This move aligns with recent pro-crypto developments, including President Donald Trump’s support and the passage of the GENIUS Act, which regulates stablecoins by requiring transparent, asset-backed reserves. Tether intends USAT to comply fully with the new law, while USDT remains a foreign stablecoin. The launch comes amid heightened scrutiny from U.S. regulators and competition from firms like Circle, which recently raised over $1 billion in a major IPO. USAT’s custody will be managed by Cantor Fitzgerald, and Tether continues to be a significant investor in U.S. Treasury bills. CEO Paolo Ardoino stressed the strategic importance of entering the U.S. market despite past regulatory issues, aiming for significant expansion over the next two years. https://www.ft.com/content/f2329769-6bbc-489b-9a98-d9bbf7addf6f - Tether has announced the upcoming launch of USAT, a new stablecoin targeted at the U.S. domestic market, aiming to leverage recent U.S. regulatory changes and expand its presence in the world’s largest capital market. Unlike Tether's existing stablecoin USDT, USAT will comply fully with U.S. stablecoin regulations, including one-to-one backing with top-rated assets like U.S. Treasuries, monthly reserve disclosures, and annual audits. This move follows U.S. congressional action in July to formally regulate the stablecoin sector and aligns with political support under the Trump administration, which sees crypto as vital to national interests. Tether, based in El Salvador, currently operates the largest stablecoin, USDT, with $169 billion in circulation and nearly 500 million users. However, USDT includes backing assets such as bitcoin and gold, which are prohibited under new U.S. rules. The newly hired Bo Hines, former head of Trump’s crypto advisory council, will lead the USAT initiative, based in Charlotte, North Carolina. USAT’s reserves will be managed by Cantor Fitzgerald, and the coin will be issued by Anchorage Digital. Tether, which made a $13.4 billion profit last year, positions USAT as a secure, transparent tool to reinforce the dominance of the U.S. dollar in the digital era. https://www.ft.com/content/884775bf-8634-4940-a410-1c3a36be97ac - Tether, the largest issuer of stablecoins, has appointed Bo Hines, the former head of President Donald Trump’s crypto advisory council, as its strategic adviser for digital assets and U.S. strategy. This move is part of Tether’s broader effort to strengthen its presence and influence in the U.S. market. Hines, who previously had no crypto experience until his 2024 appointment, played a significant role in shaping U.S. crypto regulation, including landmark stablecoin legislation passed in July under the Genius Act. The new law requires stablecoins to be fully backed by assets like U.S. Treasuries and mandates transparency about reserves—something Tether had resisted in the past. Tether CEO Paolo Ardoino said Hines' hiring signals the firm's intent to comply with regulations by developing a U.S.-compliant stablecoin. Hines, a former Republican congressional candidate and college football player endorsed by Trump, was praised for his leadership in advancing digital asset innovation under the Trump administration. Despite past controversies, including regulatory fines and allegations of enabling financial crime, Tether is pushing to legitimize and expand its operations in the U.S. https://apnews.com/article/94fa3c85e32ec6fd5a55576cf46e58ea - On July 18, 2025, President Donald Trump signed the GENIUS Act into law, marking a significant regulatory milestone for the U.S. cryptocurrency industry. The bipartisan legislation establishes consumer protections and regulatory frameworks for stablecoins—digital currencies tied to stable assets like the U.S. dollar to minimize volatility. Speaking at a White House ceremony attended by crypto executives and GOP lawmakers, Trump praised the industry’s resilience and emphasized his administration’s commitment to making the U.S. the global leader in cryptocurrency. The act prohibits members of Congress and their families from profiting from stablecoins, though the restriction does not apply to the president—a notable exemption as Trump and his family hold stakes in crypto company World Liberty Financial. The GENIUS Act is part of broader efforts by the Trump administration to support the industry, including halting several SEC enforcement actions. Two additional crypto-focused bills enhancing market structure and preventing the Federal Reserve from creating a digital currency also passed the House and await Senate approval. Trump, once a crypto skeptic, now openly supports the industry, attributing his stance partly to political benefits. https://en.wikipedia.org/wiki/GENIUS_Act - The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) is a United States 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 US dollars or other low-risk assets. This establishes a stringent standard for purposes of determining reserves, doing audits, and providing transparency for buyers; prior to passage of the GENIUS Act, stablecoins were not required to maintain a 1-to-1 backing with a low-risk asset. The act serves as a first step in establishing dual federal and state supervision and consumer protection. 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 fresh, with no evidence of prior publication. The earliest known publication date is September 12, 2025. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content has not been republished across low-quality sites or clickbait networks. No similar narratives appeared more than 7 days earlier. The article includes updated data and does not recycle older material. Quotes check Score: 10 Notes: All direct quotes are unique to this report, with no identical quotes found in earlier material. No variations in quote wording were noted. No online matches were found for the quotes, indicating potentially original or exclusive content. Source reliability Score: 10 Notes: The narrative originates from reputable organisations, including Reuters, Financial Times, and CNBC, which strengthens its credibility. Bo Hines is a verifiable individual with a public presence, serving as the former executive director of the President's Council of Advisers on Digital Assets. His appointment as CEO of Tether USAT is consistent with his background and recent career moves. Plausability check Score: 10 Notes: The claims made in the narrative are plausible and align with recent developments in the cryptocurrency industry. The launch of USAT and Bo Hines' appointment as CEO are corroborated by multiple reputable sources. The narrative lacks excessive or off-topic detail unrelated to the claim. The tone is consistent with typical corporate and official language. No inconsistencies in language or tone were noted. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative passes all fact-checking criteria with high confidence. It is fresh, original, and sourced from reputable organisations. The claims made are plausible and supported by multiple sources, with no discrepancies or signs of disinformation.

US accelerates towards coordinated digital asset regulation with new legislative and agency initiatives

Regulation1878 words9 min readabout 2 hours ago

The United States advances a comprehensive, innovation-friendly regulatory framework for digital assets, featuring new legislation, agency actions, and a strategic stance aimed at maintaining global leadership in digital financial technology.The United States is advancing toward a more coherent and coordinated regulatory framework for cryptocurrencies and digital assets, reflecting the sector’s rapid evolution and innovation. Since the start of 2025, the Trump administration has emphasized strengthening America’s leadership in digital financial technology by promoting clarity, fostering innovation, and safeguarding consumers. Central to these efforts is Executive Order No. 14178, issued in January 2025, which established the Presidential Working Group on Digital Asset Markets. Its mission includes developing a unified federal oversight approach and evaluating the potential for a strategic national digital assets stockpile, while explicitly prohibiting the creation or promotion of central bank digital currencies (CBDCs). The working group’s July 2025 report underscores the importance of adopting technology-neutral regulations, establishing consistent definitions of digital assets, and clarifying agency jurisdiction to maintain US competitiveness. The report advocates for a regulatory environment that enables responsible growth and innovation, especially in decentralized finance (DeFi), while ensuring fair access for compliant users. Federal agencies are actively aligning with these policy directions. The Commodity Futures Trading Commission (CFTC), in August 2025, launched a “crypto sprint” initiative to create a federal framework for trading spot crypto assets on registered futures exchanges, seeking stakeholder input. The CFTC has also moved to update and withdraw outdated advisories concerning derivatives listing and clearing, aligning regulation more closely with modern trading practices such as perpetual contracts and 24/7 trading. The agency has committed to collaborating with the Securities and Exchange Commission (SEC) to establish clearer, unified rules for digital assets, aiming to reduce overlaps and streamline compliance. SEC Chair Paul Atkins has emphasized modernizing securities regulations for on-chain markets, moving away from enforcement-focused measures towards clearer, proactive guidance. He considers that only a small portion of crypto tokens likely meet the criteria of legal securities, focusing on statutory definitions rather than decentralization alone. The SEC is working to introduce clear safe harbors, streamline token offerings, and develop tailored disclosure rules for digital assets, including stablecoins and tokenized equities. Chairman Atkins has clarified that, under current law, only “very few” crypto tokens should be classified as securities, prioritizing clarity and practical guidance over ambiguity. Additionally, the SEC’s focus includes clarifying the classification of tokens, with an emphasis on statutory parameters like investment contracts, to offer certainty for market participants. Meanwhile, the Federal Reserve has signaled a more receptive stance toward digital assets. At the Wyoming Blockchain Symposium, Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman highlighted ongoing efforts to address longstanding debanking concerns and to reduce reputational risks for banks working with crypto firms. The Fed aims to foster innovation by updating supervision materials and considering new regulatory measures that enhance market transparency and certainty. On the legislative front, Congress has taken significant steps toward creating consistent federal standards. The bipartisan-approved GENIUS Act, signed into law in July 2025, establishes a comprehensive federal framework for stablecoins. It mandates 100% reserve backing with liquid assets like U.S. dollars or short-term treasuries, along with regular reserve disclosures and anti-money laundering compliance. The Act also imposes restrictions on yield payments and marketing practices to promote market stability and consumer confidence. The CLARITY Act (Digital Asset Market Clarity Act of 2025), recently passed by the House, aims to clarify the division of regulatory authority between the SEC and CFTC. It defines key terms such as “digital commodity exchange,” “digital commodity broker,” and “mature blockchain systems,” and explicitly excludes digital commodities from the definition of securities under the Securities Act of 1933. The Act establishes consumer protection standards and introduces a provision for a provisional registration process for digital commodity platforms, enabling compliance with regulatory requirements. It also clarifies which activities are exempt from regulation, facilitating a clearer and more predictable regulatory environment, especially for DeFi services and digital asset exchanges. Senators Cynthia Lummis and Tim Scott have expressed optimism about the upcoming passage of a Senate version of the CLARITY Act, which will incorporate elements from both the House’s CLARITY and the GENIUS Act. These legislative efforts aim to reduce regulatory overlaps, provide clarity on agency jurisdictions, and foster legitimate DeFi development while safeguarding consumers. Collectively, these administrative, agency, and legislative developments demonstrate a shift toward a more structured, innovation-friendly regulatory landscape for digital assets in the U.S. This evolving framework promises clearer rules, reduced legal uncertainty, and stronger market integrity, positioning the United States to lead in digital financial innovation for years to come. References: - Paragraph 1: 1, 2, 3, 4 - Paragraph 2: 1, 4 - Paragraph 3: 1, 5 - Paragraph 4: 1 - Paragraph 5: 1 Source: Noah Wire ServicesVerification / Sources https://www.lexblog.com/2025/09/12/recent-developments-in-crypto-regulation-in-america-frameworks-agency-actions-and-proposed-legislation/ - Please view link - unable to able to access data https://www.whitehouse.gov/presidential-actions/2025/01/strengthening-american-leadership-in-digital-financial-technology/ - On January 23, 2025, President Trump signed Executive Order 14178, titled 'Strengthening American Leadership in Digital Financial Technology'. This order aims to promote U.S. leadership in digital assets and financial technology while protecting economic liberty. It establishes the Presidential Working Group on Digital Asset Markets, which is tasked with developing a federal regulatory framework for digital assets, including stablecoins, and evaluating the creation of a strategic national digital assets stockpile. The order also prohibits federal agencies from establishing, issuing, or promoting central bank digital currencies (CBDCs). https://www.whitehouse.gov/fact-sheets/2025/01/fact-sheet-executive-order-to-establish-united-states-leadership-in-digital-financial-technology/ - The White House released a fact sheet detailing Executive Order 14178, signed by President Trump on January 23, 2025. The order establishes the Presidential Working Group on Digital Asset Markets, chaired by the White House AI & Crypto Czar, to develop a federal regulatory framework for digital assets and evaluate the creation of a strategic national digital assets stockpile. The order also directs departments and agencies to identify and make recommendations on regulations affecting the digital assets sector that should be rescinded or modified. Additionally, it prohibits agencies from undertaking any action to establish, issue, or promote CBDCs. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - On July 30, 2025, the President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. 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 Executive Order No. 14178 signed on January 23, 2025, and the GENIUS Act signed into law on July 18, 2025. These dates are consistent with the timeline of the events described. The inclusion of specific dates and events suggests a high level of freshness. However, the narrative does not provide direct links to primary sources, which would enhance its credibility. Additionally, the absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. The absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. The absence of direct citations to primary sources is a notable concern. Quotes check Score: 7 Notes: The narrative does not include any direct quotes, which limits the ability to assess the originality of the content. The absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. Source reliability Score: 6 Notes: The narrative originates from LexBlog, a platform that aggregates legal blogs. While LexBlog hosts content from various legal professionals, the platform itself is not a traditional news outlet, which may affect the perceived reliability of the source. The absence of direct citations to primary sources is a notable concern. Plausability check Score: 8 Notes: The events described in the narrative align with known developments in U.S. cryptocurrency regulation, including the signing of Executive Order No. 14178 and the passage of the GENIUS Act. The inclusion of specific dates and events suggests a high level of plausibility. However, the lack of direct citations to primary sources makes it difficult to fully verify the accuracy of the claims. The absence of direct citations to primary sources is a notable concern. Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: The narrative references recent developments in U.S. cryptocurrency regulation, including Executive Order No. 14178 and the GENIUS Act. While the events described are plausible and align with known developments, the lack of direct citations to primary sources and the absence of direct quotes or specific data points make it challenging to fully verify the accuracy and originality of the content. The absence of direct citations to primary sources is a notable concern.

Record increase in California Carbon Allowance holdings signals shift among emitters

ESG1051 words5 min readabout 2 hours ago

US CFTC data reveals a historic rise in net long positions for California Carbon Allowances, highlighting a significant strategic shift among emitters amid evolving regulatory and market conditions in North America.Data from the US Commodity Futures Trading Commission (CFTC) indicates notable activity in the North American carbon markets this year. According to the latest reports, emitters have added a record amount of net long positions in California Carbon Allowances (CCAs). This increase in CCA holdings is the largest on record within the futures and options market for these allowances, suggesting a significant shift among market participants. Concurrently, these emitters have reduced their positions in V25 RGGI Allowances (RGAs), while their holdings of Washington Carbon Allowances (WCAs) remained relatively stable during the same period. These developments highlight a pronounced rebalancing in market positions. Earlier CFTC data indicated that, in general, producers and financial players had decreased their net long positions in CCAs, whereas emitters had increased their long exposure in RGAs. The recent surge in CCA holdings by emitters marks a notable change in positioning, possibly reflecting their response to evolving market and regulatory conditions. Meanwhile, financial entities have been reallocating their holdings, reducing positions in older vintages like V24 CCAs and increasing their focus on newer vintages such as V25, aligning with observed trends in auction results and vintage confidence. In contrast, holdings of RGAs among emitters have declined, although traders and speculators continue actively taking short positions in the RGA market, which may be associated with price and auction dynamics. The Washington Carbon Allowance market has shown little change, with holdings remaining stable, differing from the more active shifts seen in California and RGGI markets. Overall, these movements underscore how participants in North America’s key carbon markets are adjusting their strategies in response to regulatory updates, auction outcomes, and market signals. The record increase in CCA net length among emitters suggests heightened demand or hedging activity in California, while the reduction in RGA holdings indicates shifting priorities across different markets. These trends are important for regulators, investors, and market watchers seeking to understand the evolving landscape of carbon allowances in the region. Source: Noah Wire ServicesVerification / Sources https://carbon-pulse.com/434672/ - Please view link - unable to able to access data https://carbon-pulse.com/434672/ - This article reports that emitters have added a record amount of net length to their California Carbon Allowance (CCA) holdings, while decreasing their positions in V25 RGGI Allowances (RGAs) and maintaining their Washington Carbon Allowances (WCAs) in the futures and options market, according to data from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/417202/ - This article discusses how producers and financial entities have reduced their overall California Carbon Allowance (CCA) net length across markets, while emitters have added nearly 30% to their long position in V25 RGGI Allowances (RGAs), based on the latest figures from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/355961/ - This article reports that producers have increased their net length for both California Carbon Allowance (CCA) and RGGI Allowance (RGA) holdings at the end of 2024, while managed money closed out V24 RGA short positions, according to data from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/346005/ - This article highlights that financial entities have continued to trim V24 California Carbon Allowance (CCA) exposure and build V25 length, while traders have added to RGGI Allowance (RGA) net length even as price action stalled, based on data from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/408128/ - This article reports that both emitters and investors have increased their V25 California Carbon Allowance (CCA) net length in the futures-only market, contrasting with activity in the combined futures and options segment, while adding RGGI Allowance (RGA) short interest in the aftermath of the Q2 auction, according to data from the US Commodity Futures Trading Commission (CFTC). https://carbon-pulse.com/261179/ - This article discusses how regulated entities have reduced length in California Carbon Allowances (CCAs) and Washington Carbon Allowances (WCAs), but added to RGGI Allowance (RGA) net holdings, while speculators continued to take profits across North American carbon markets, based on data from the US Commodities Futures Trading Commission (CFTC). 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 presents recent data from the CFTC, with the latest report dated July 12, 2025. This suggests the content is current and not recycled. However, similar reports from earlier in 2025 indicate ongoing trends, which may affect the perceived novelty. The report appears to be based on a press release, which typically warrants a high freshness score. No significant discrepancies in figures, dates, or quotes were found. No earlier versions show different figures, dates, or quotes. No content similar to this has appeared more than 7 days earlier. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Quotes check Score: 9 Notes: The narrative does not contain direct quotes. The absence of quotes suggests the content is potentially original or exclusive. Source reliability Score: 9 Notes: The narrative originates from Carbon Pulse, a reputable organisation specialising in carbon markets and climate policy. This adds credibility to the report. Plausability check Score: 8 Notes: The claims about shifts in carbon market positions align with recent CFTC data. The narrative lacks supporting detail from other reputable outlets, which is a concern. The report includes specific factual anchors, such as names, institutions, and dates, enhancing its credibility. The language and tone are consistent with the region and topic. The structure is focused and relevant, without excessive or off-topic detail. The tone is formal and appropriate for corporate or official language. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative presents current data from a reputable source, with no significant issues identified in freshness, quotes, source reliability, or plausibility. The absence of direct quotes and the reliance on a press release are noted but do not significantly impact the overall assessment.