US banking regulators

A group of community banks has filed a lawsuit against a US federal regulator over its handling of charters for cryptocurrency firms. The banks are challenging the regulator's decisions to grant or consider special-purpose charters that would let crypto companies operate more like traditional financial institutions. The case adds to ongoing legal disputes in the US over how digital asset firms should be regulated and supervised.

The US Securities and Exchange Commission has put forward new custody rules affecting crypto assets, according to a report from The Banker. The proposals would set stricter requirements for firms holding clients' digital assets, and are drawing attention from crypto firms, banks and regulators who are weighing the compliance burden and the implications for how digital assets are safeguarded in the United States.

US lawmakers are discussing legislation that would establish durable regulatory rules for banks and the cryptocurrency industry, replacing shifting regulatory guidance with more permanent statutory frameworks. The debate covers how much oversight banks should have over digital assets and how crypto firms should be integrated into the traditional financial system. Details of specific bills and their prospects remain unclear.

US regulators have rewritten banking rules on crypto with every new presidential administration since 2017, leaving banks and bitcoin firms facing shifting compliance expectations. Commentators argue that legislation passed by Congress would give the industry lasting legal certainty instead of policies that reverse each time the White House changes hands.

The Federal Reserve has finalized changes to its bank stress-test regime, locking in revisions to how the largest US lenders are evaluated for capital resilience. The move follows industry pressure and public comment over proposals to smooth volatility in test results and adjust scenarios. Banks and regulators are weighing what the final rules mean for capital buffers and future planning.

Mexico is moving to strengthen its anti-money laundering rules amid pressure from the United States, according to the Wall Street Journal's Morning Risk Report. The tightening of compliance requirements matters for banks and companies exposed to Mexican financial flows, as regulators in Washington push for stricter controls on illicit finance and cross-border money laundering risks.

HSBC and HANetf have jointly launched Bitcoin ETCs with currency hedging in pounds and euros for European investors. In Europe, ETCs backed by physical or synthetic assets are the main route to crypto exposure, unlike the US, where ETFs dominate. The move broadens institutional access to Bitcoin across the continent.

The Federal Reserve has finalized reforms to its annual bank stress tests and opened a public comment period on the hypothetical scenarios used to assess whether the largest US lenders can withstand economic shocks. The changes come after industry criticism that the tests were opaque and produced overly volatile capital requirements. Banks and regulators will now weigh in on how future scenarios are designed.

A French government minister has suggested that fines imposed on American technology companies could be used as a source of funding for European Union spending, describing the penalties as a kind of piggy bank for Brussels. The remarks highlight growing friction between the EU and US tech giants over regulation, taxation and who benefits from multi-billion-euro penalties.