September 2025 Capital Markets Regulatory Updates
23 September 2025: The CFTC launched an initiative to explore tokenized collateral in derivatives, seeking public input by Oct 20 as part of its crypto modernization efforts.
17 September 2025: The FCA proposed bringing crypto firms fully under U.K. regulations by adapting existing financial rules. In a new consultation paper, the FCA set out a framework to apply traditional requirements to crypto-asset businesses “on a proportionate basis.”
15 September 2025: The French, Austrian and Italian financial markets authorities are called for a stronger European crypto-asset framework to improve supervision, investor protection, and competitiveness, based on MiCA lessons.
5 September 2025: The SEC launched a Cross-Border Task Force to target fraud by overseas-listed companies, focusing on “pump-and-dump” schemes and gatekeeper scrutiny.
4 September 2025: The CFTC concluded an enforcement sprint led by Acting Chairman Pham, issuing six orders against 10 firms for compliance failures, resulting in $8.3M in penalties and remediation commitments.
4 September 2025: Japan’s Financial Services Agency (FSA) proposed to classify cryptocurrencies as securities under the Financial Instruments and Exchange Act (FIEA) in a major regulatory shift, aiming to protect retail investors and crack down on unregistered operators.
3 September 2025: The CFTC cleared crypto prediction platform Polymarket to launch in the United States via a no-action letter, allowing compliant prediction markets after previous setbacks.
2 September 2025: The Securities and Exchange Board of India (SEBI) introduced stricter intraday position limits for index options trading. Each broker or entity’s net intraday positions in equity index options will be capped at ₹5,000 crore. The gross intraday limit remains ₹10,000 crore per direction. SEBI is mandating stock exchanges to take at least four random snapshots of intraday positions to enforce these limits.
2 September 2025: The U.S. SEC and CFTC issued a joint statement clarifying that exchanges registered with them can facilitate trading of certain spot crypto asset products.
Latest Fines and Enforcement Actions
- The SEC charged a former Two Sigma portfolio manager with fraud for manipulating algorithmic trading models to boost his pay, causing $165 million in client portfolio distortions (which the firm repaid to clients).
- The SEC and FINRA charged two individuals in a $100 million Chinese pump-and-dump stock scheme involving millions of shares of Ostin Technology Group (OST). At its peak, OST’s market cap surged from $22 million to over $1 billion before crashing 94%, leaving retail investors with huge losses.
- ASIC announced a record 240 million AUD settlement with ANZ Bank for “widespread misconduct” across its operations. ANZ admitted to four major failures, including unconscionable trading, ignored hardship requests, false statements and improper fees.
- The CFTC ordered a Colorado trader and his firm Flatiron Futures Traders to pay a $200,000 penalty for spoofing in equity index futures.
- Three U.K. social-media “finfluencers” made their first court appearance in an FCA-led crackdown on illegal financial promotions. They were each charged with unlawfully promoting high-risk forex CFD investments to the public without authorization.
- Swedish authorities arrested nine people on suspicion of insider trading ahead of takeover bids for two Stockholm-listed companies. Investigators allege the suspects traded large volumes of Tethys Oil and Fortnox stock in 2024–2025 based on leaked deal information.
- The CFTC sanctioned Shinhan Securities Co. $212,500 for illegal wash trading on the NYMEX. Shinhan agreed to pay a $212,500 civil penalty and to cease and desist further violations.
- The SEC announced that a jury found an individual liable for securities fraud and manipulative trading, including using Twitter to promote stocks he secretly sold for profit.
- South Korea’s new stock-manipulation task force raided 10 sites and uncovered a ₩100 billion ($72 million) scheme in which seven elite investors used sham buy orders and synchronized trades to inflate a thinly traded KOSPI stock over 21 months, marking the task force’s first major victory against pump-and-dump rings.
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