Week of May 25 - 31, 2026

🗓️ May 25, 2026

• IOSCO publishes AI Supervisory Toolkit. IOSCO published a Supervisory Toolkit for AI Use in Capital Markets to support the supervision and oversight of AI-based systems used by regulated entities. The report covers the full lifecycle of AI systems, from traditional Machine Learning models to Generative AI and emerging Agentic AI techniques. It sets out three complementary layers: potential risk areas, tools for supervisory oversight, and indicators for monitoring AI adoption and use. IOSCO notes that AI-driven cyber risks may accelerate threat evolution, so financial market participants should remain vigilant and take timely, proactive steps to identify and remediate vulnerabilities. 🔗 Read more
  

🗓️ May 26, 2026

• Minutes of the Board's discount rate meeting on April 20 and 29, 2026.The Federal Reserve Board released the minutes from its meetings on April 20 and 29, 2026, to review and determine the discount rates for depository institutions. The process for setting the discount rate is different from the Federal Open Market Committee’s process for setting the federal funds rate target range. 🔗 Read more
• EIOPA publishes the RFR Technical Documentation to become applicable from 30 January 2027. The European Insurance and Occupational Pensions Authority (EIOPA) has released an updated Risk-Free Rate (RFR) Technical Documentation, reflecting amendments to the Solvency II Directive and Commission Delegated Regulation (EU) 2015/35, effective from 30 January 2027. The documentation, along with three spreadsheet-based examples, aims to enhance transparency and support stakeholders in replicating RFR term structure calculations. However, it does not yet include results from the depth, liquidity, and transparency (DLT) assessment or the annual update of representative portfolios, which will be added later in the year. 🔗 Read more
• ESMA consults on revised guidelines to support smoother allocations and confirmations under T+1. The European Securities and Markets Authority (ESMA) has launched a consultation on updated guidelines for standardised procedures and messaging protocols to support market participants in transitioning to a T+1 settlement cycle. The updates, which will apply from 7 December 2026, mandate the use of electronic, standardised communication channels and remove references to non-electronic methods, except in cases of technical disruptions. ESMA emphasizes the importance of preparing for the T+1 settlement transition, effective 11 October 2027, and encourages stakeholders to provide feedback on the guidelines. 🔗 Read more
  

🗓️ May 27, 2026

• SEC Investor Advisory Committee to Host June 4 Meeting. Washington D.C. - The Securities and Exchange Commission’s Investor Advisory Committee will hold a public meeting on June 4 at 10 a.m. ET at SEC Headquarters in Washington D.C. to discuss private markets, passive index funds, and recommendations on fund proxy voting and quarterly versus semiannual reporting. The meeting, which will also be webcast, will feature two panels and is part of the Committee’s efforts to advise the Commission on regulatory priorities to protect investors and promote market integrity. 🔗 Read more
• CFTC Charges Google Employee with Insider Trading in Search Result-Related Event Contracts. Washington - The Commodity Futures Trading Commission has filed a complaint against Michele Spagnuolo, a Google employee, for insider trading on Polymarket.com using confidential information about Google’s 2025 Year in Search list. The CFTC seeks various penalties and bans, emphasizing its commitment to combating insider trading. A parallel criminal complaint has been unsealed by the U.S. Attorney’s Office for the Southern District of New York. 🔗 Read more
• CFTC Joins Gemini Trust Company LLC in Motion for Relief from Judgment. Washington - The Commodity Futures Trading Commission (CFTC) has joined Gemini Trust Company LLC in seeking relief from judgment in a case originally filed in June 2022, following a comprehensive review that revealed significant issues with the complaint and investigation process. The review highlighted problems such as reliance on a questionable whistleblower account, targeting Gemini as a fraud victim rather than a perpetrator, and withholding evidence from a Commissioner. Consequently, the CFTC concluded that the complaint should not have been filed under current standards, and both parties are now moving to vacate the consent order’s prospective provisions, while the $5 million penalty imposed on Gemini will not be returned. 🔗 Read more
• FDIC-Insured Institutions Reported Return on Assets of 1.26 Percent and Net Income of $80.5 Billion in First Quarter 2026. Washington - The Federal Deposit Insurance Corporation (FDIC) released its latest Quarterly Banking Profile, reporting that FDIC-insured institutions had a return on assets (ROA) ratio of 1.26 percent and an aggregate net income of $80.5 billion in the first quarter of 2026, a 3.6 percent increase from the prior quarter. Key findings include a 3.9 percent increase in net income among community banks, a 2.1 percent growth in domestic deposits, and a 1.6 percent increase in loan growth, while asset quality metrics remained generally favorable despite some elevated delinquency rates in certain portfolios. 🔗 Read more
• Federal Court imposes penalties after businesses fail to pay AUSTRAC infringement notices. The Federal Court of Australia imposed civil penalties of $50,000 and $45,000 on Castra Licensee Pty Ltd and Princeton Securities (NSW) Pty Ltd, respectively, for failing to pay infringement notices issued by AUSTRAC for breaches of the AML/CTF Act. Both companies admitted liability, and their cooperation was considered in the penalties, with Castra ordered to pay $50,000 plus $15,000 in costs and Princeton $45,000 plus $5,000 in costs. AUSTRAC CEO Brendan Thomas emphasized the importance of taking infringement notices seriously to avoid unnecessary legal burdens. 🔗 Read more
  

🗓️ May 28, 2026

• Federal Reserve Board issues enforcement actions with former employee of Atlantic Union Bank and former employee of Frost Bank. The Federal Reserve Board announced enforcement actions against Crystal Moore, a former employee of Atlantic Union Bank in Richmond, Virginia, for CARES Act loan fraud, and Jesse Romo, a former employee of Frost Bank in San Antonio, Texas, for embezzlement of bank funds. Both individuals have been issued consent prohibition orders. 🔗 Read more
• CFTC Sues to Block State Enforcement in Rhode Island Amid Ongoing Efforts to Preserve Jurisdiction. Washington - The Commodity Futures Trading Commission (CFTC) intervened in a lawsuit in Rhode Island to prevent the state from applying gambling laws to CFTC-registered contract markets. This action follows a complaint by a threatened market and Rhode Island’s own lawsuit seeking penalties, as part of a broader trend of states challenging the CFTC’s jurisdiction over prediction markets. CFTC Chairman Michael S. Selig emphasized the agency’s exclusive authority over these markets under the Commodity Exchange Act, which preempts state regulations. 🔗 Read more‍
  

🗓️ May 29, 2026

• SEC Proposes Rescission of Climate-Related Disclosure Rules. Washington D.C. - The Securities and Exchange Commission proposed rescinding climate-related disclosure rules, citing they exceed the agency’s statutory authority and impose unnecessary costs without justified benefits. The rules, approved in March 2024, required detailed climate information from public companies but were stayed pending litigation. The Commission now believes these rules are inconsistent with a materiality-based approach and hinder capital formation and public company status. 🔗 Read more
• SEC Charges Texas Resident in Alleged Multi-Million Dollar Crypto Asset Fraud Scheme. The Securities and Exchange Commission charged Nathan Fuller with a crypto asset trading scheme where he allegedly raised approximately $12.3 million from about 150 investors through misrepresentations, including false claims about using AI-based trading bots and guaranteeing high returns. Fuller is accused of misappropriating investor funds for personal expenses and making Ponzi-like payments, while the SEC seeks permanent injunctions, disgorgement of ill-gotten gains, and civil penalties. The investigation was conducted by the SEC’s Fort Worth Regional Office, with litigation led by Tyson Lies. 🔗 Read more
• CFTC Issues Policy Statement Concerning the Listing of Perpetual Contracts. Washington - The Commodity Futures Trading Commission issued a policy statement outlining its views on the listing of perpetual contracts, emphasizing the need for a case-by-case review process due to their unique characteristics. This statement was released alongside an order allowing a DCM to list a perpetual contract referencing bitcoin’s spot price as a futures contract. The policy statement will be published in the Federal Register. 🔗 Read more
• Commission Staff Confirms the Categorization of Certain Crypto Asset Perpetuals as Foreign Futures and Issues No-Action Letter Regarding FCM Transfers of Customer Crypto Assets to Foreign Brokers as Margin. Washington - The Market Participants Division of the Commodity Futures Trading Commission issued an interpretation and a no-action position regarding Coinbase Financial Markets, Inc.’s plan to offer digital commodity derivatives products on Deribit FZE. The staff letter confirms that these perpetual contracts may be categorized as foreign futures and states that MPD will not recommend enforcement action against CFM for using customer-owned digital commodities and payment stablecoins to margin positions, provided certain conditions are met. 🔗 Read more
• CFTC Approves BTCPERP Contract Submitted by KalshiEX, LLC. Washington - The Commodity Futures Trading Commission has approved KalshiEX, LLC to list the BTCPERP Contract, a perpetual contract referencing bitcoin’s spot price, as a futures contract. The approval was granted under Section 5c(c)(4) of the Commodity Exchange Act and Commission Regulation 40.3, following a review that confirmed compliance with relevant regulations. The Order requires Kalshi to maintain compliance with all applicable provisions, and the Commission encourages market participants to seek approval for other perpetual contracts through the voluntary product approval process. 🔗 Read more
• CFTC Staff Issues Advisory on 24/7 Trading, Clearing, and Settlement. Washington - The Commodity Futures Trading Commission’s Division of Clearing and Risk, Division of Market Oversight, and Market Participants Division issued a staff advisory on 24/7 trading, clearing, and settlement. The advisory encourages responsible innovation while reminding market participants of their regulatory obligations under the Commodity Exchange Act and emphasizes the need to consider asset class nuances, such as the suitability of crypto asset derivatives for 24/7 trading compared to agricultural products. CFTC staff urges registrants to ensure market evolution complies with regulations. 🔗 Read more
• FDIC Publishes April Enforcement Actions. Washington - The Federal Deposit Insurance Corporation (FDIC) published a list of administrative enforcement actions taken against banks and individuals in April 2026, including two orders, one notice of charges, and one adjudicated decision. These actions involved a consent order, an order terminating a consent order, a notice of intent to prohibit and assess a civil money penalty, and a decision to prohibit and pay a CMP. No administrative hearings are scheduled for June 2026. 🔗 Read more
• FDIC Issues CRA Examination Schedules for Third Quarter 2026 and Fourth Quarter 2026. Washington - The Federal Deposit Insurance Corporation (FDIC) has released the lists of institutions scheduled for Community Reinvestment Act (CRA) examinations in the third and fourth quarters of 2026. The CRA, a law from 1977, mandates that the FDIC evaluate a bank’s efforts to meet the credit needs of its community, including low- and moderate-income areas, while ensuring safe operations. Examination schedules are determined by an institution’s asset size and CRA rating, with specific intervals for institutions with $250 million or less in assets. The schedules are subject to change based on various factors, and public comments on the examinations are encouraged and will be considered if received before the examination is completed. 🔗 Read more
• ESMA’s annual data report shows increased quality, wider use and digital progress. The European Securities and Markets Authority (ESMA) published its annual report on regulatory data quality and use, highlighting improvements in data quality across major datasets like EMIR, SFTR, MiFIR, AIFMD, and MMFR. These enhancements support effective supervision and market monitoring, with ESMA and national competent authorities extensively using the data to protect investors and ensure financial stability. Additionally, ESMA is working on simplification efforts, developing an integrated reporting framework, and increasing automation and cooperation with NCAs as part of its broader data strategy. 🔗 Read more
• $5 million to strengthen Pacific partnerships targeting criminal money flows. The Australian Government has committed over $5 million over the next two years to enhance financial crime-fighting partnerships with Pacific nations. This funding aims to disrupt serious crimes such as drug trafficking and child sexual exploitation by improving the detection and disruption of illicit money flows. AUSTRAC, through its Pacific Financial Intelligence Community, will provide tools like Project Taipan, a financial intelligence system, to Pacific partners, and expand training and mentoring for analysts. The initiative underscores Australia’s leadership in the region, emphasizing collaboration with Pacific agencies and the Department of Foreign Affairs and Trade to ensure regional and national security. 🔗 Read more
• Suspected illegal gambling den arrests. Two people were arrested after a joint operation by Greater Manchester Police, the Gambling Commission, and Manchester City Council Licensing team at a suspected illegal gambling den on Chester Road, Manchester, on 28 May. The operation uncovered gambling tables, chips, records, alcohol, cash, and mobile phones, leading to the arrest of a 33-year-old man and a 66-year-old woman on suspicion of offences under the Gambling Act 2005 and the Licensing Act 2003. Sue Young, Gambling Commission Executive Director of Operations, emphasized the importance of tackling illegal gambling through collaboration with local authorities. 🔗 Read more