UK’s FCA Issues Final Rules and Guidance Under New UK Crypto Regulatory Framework
Link: https://www.fca.org.uk/publications/policy-statements/cryptoasset-regime
The FCA has issued final changes to the FCA Handbook, as well as new non-handbook guidance documents governing crypto asset activities of subject firms. The changes become effective on October 25, 2027. This notably broadens the narrow framework currently in force that only requires FCA registration under, and compliance with, the 2017 AML/Transfer of Funds Regulations 2017 regime and the financial promotions regime (consumer protection laws).
Why It Matters
Per the February 2026 Crypto Asset Regulations passed by Parliament authorizing the new framework, stablecoins are dually regulated by the FCA and the Bank of England. A number of specific activities, technologies, and entities are carved out from the framework which will be separately addressed in the future, including DeFinance (blockchain).
Crypto firms currently operating in the UK must apply to the FCA for a transitional exemption to continue operating under the narrower regime until October 2027. Once the new framework is in force, crypto firms will still be subject to the UK AML/Transfer of Funds Regulations (and the consumer protection laws) but they will no longer need to register under the AML regime (just the crypto regime).
Charged with regulating large-scale, systemic stablecoins that could impact UK financial stability, the Bank of England (BoE) published its own policy statement on Sterling-denominated systemic stablecoins alongside a draft Code of Practice on June 22, 2026. The FCA and BoE issued a joint consultation and approach document on June 30th explaining how the stablecoin dual-regulatory framework will work.
Links to the documents that include the FCA Handbook changes (Policy Statements) and related FCA guidance documents are included in the FCA Pronouncement. Separately, the FCA issued a research report describing the UK cryptoasset market that references the new regulatory framework under “Future Regulation.”
FTC Proposes Policy Statement Applying UDAP TO Companies that Market AI Systems
Links: https://www.regulations.gov/document/FTC-2026-0859-0013
The FCC is seeking public comments by Friday, July 31, 2026, on a proposal to Comments due on a proposed policy statement addressing concerns that AI companies may be manipulating the behavior of their AI systems contrary to reasonable consumer expectations for objectivity and accuracy. If adopted, the policy statement would interpret the FTC’s statutory authority to prohibit deceptive acts and practices to AI Companies. Their expressed rationale is that it believes “AI companies that steer the outputs of their AI systems toward unexpected objectives, and away from the objectives set by or reasonably expected by users, are likely to deceive consumers in violation of section 5 of the FTC Act.”
Why It Matters
The proposal seems to be in response to state attempts to impose their own AI regulations. The FTC announcement states, “Colorado’s Artificial Intelligence Act, for instance, appears to coerce companies into altering the output of their AI models to comply with and advance the state’s ideological objectives.”
