July Global Regulatory Developments Report
- James Ross
- Jul 31
- 3 min read
Global Regulatory Developments: July Executive Summary
July marked a period of intense regulatory activity across the globe, characterised by a decisive shift from high-level policy formulation to detailed implementation and the establishment of comprehensive operational frameworks. Key jurisdictions are moving to solidify their approaches to digital assets, focusing on market integrity, operational resilience, and consumer protection.
Globally, three dominant themes emerged:
Operationalising Frameworks: In Europe, the focus was squarely on the granular details of implementing the Markets in Crypto-Assets (MiCA) and the Digital Operational Resilience Act (DORA), with regulators issuing specific guidance on everything from staff competency to third-party risk management.
Creating Legislative Clarity: The United States saw significant legislative momentum aimed at ending regulatory ambiguity, with proposed acts to define federal oversight for stablecoins and delineate the roles of the SEC and CFTC.
Proactive Ecosystem Development: Hong Kong and Australia are actively fostering innovation through structured, government-backed initiatives like the "LEAP" framework and "Project Acacia," aiming to build and regulate tokenised asset markets from the ground up.
Overall, July underscored a global trajectory towards structured oversight, enhanced operational resilience, and the cautious but deliberate integration of digital assets into the mainstream financial system.
Jurisdictional Highlights
🇪🇺 European Union
The EU continued its methodical rollout of MiCA and DORA, providing critical details for market participants.
MiCA Implementation: The European Securities and Markets Authority (ESMA) released a flurry of guidance aimed at operationalising MiCA. The focus was on ensuring market integrity through rules on preventing market abuse and prohibiting shared order books between regulated and unregulated entities. Furthermore, ESMA emphasised high standards for Crypto-Asset Service Providers (CASPs) by issuing final guidelines on staff knowledge and competence, signalling that strict enforcement of authorisations will be the norm.
DORA and Operational Resilience: The European Supervisory Authorities (ESAs) and the European Central Bank (ECB) advanced the implementation of DORA with a strong emphasis on managing ICT and third-party risk. Guidance was issued on the oversight of critical third-party providers, the management of subcontracting, and specific rules for banks and other financial entities outsourcing services to the cloud.
🇬🇧 United Kingdom
The UK government announced the "Leeds Reforms," a comprehensive strategy designed to bolster the nation's financial services sector. The reforms signal a clear intent to enhance growth and global competitiveness by streamlining regulation, pushing forward with the digital transformation of markets, and reforming conduct and accountability standards, while maintaining a focus on combating financial crime.
🇦🇺 Australia is advancing its exploration of tokenisation through Project Acacia. This joint initiative between the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre is designed to practically explore the use cases and infrastructure needed to support robust and innovative tokenised asset markets, signalling a hands-on approach to understanding the future of finance.
🇭🇰 Hong Kong
Hong Kong solidified its ambition to be a leading digital asset hub with its "LEAP" framework, a proactive strategy for growth. The framework outlines a comprehensive regulatory approach covering the full lifecycle of digital assets, including specific licensing for custodians and dealers. It also provides clarity on the path forward for stablecoin issuers and the integration of cryptoassets within the traditional banking system, moving from high-level policy to practical implementation.
🇺🇸 United States
The U.S. took significant steps towards creating a federal regulatory framework for digital assets, aiming to resolve long-standing jurisdictional uncertainty.
Legislative Proposals: Three key bills moved forward: the GENIUS Act to create a federal framework for stablecoins, the CLARITY Act to delineate oversight between the SEC and CFTC, and the CBDC Anti-Surveillance State Act to prohibit the creation of a retail digital dollar, reflecting a complex political landscape.
Regulatory Guidance: In parallel, the SEC issued updated guidance on crypto asset Exchange-Traded Products (ETPs), and a joint statement from federal agencies reinforced expectations for the safekeeping of crypto-assets by banking organisations.
🌍 International Bodies
Global standard-setters continued to address the risks and opportunities presented by financial innovation.
The Financial Action Task Force (FATF) released a comprehensive update on terrorist financing risks, emphasising the evolving tactics used in the digital age.
The Bank for International Settlements (BIS) and the Financial Stability Board (FSB) addressed the financial stability implications of AI and digital assets, focusing on identifying and mitigating systemic risks.
UNCITRAL and The Wolfsberg Group continued their work on developing harmonised legal frameworks and promoting practical risk-based approaches for financial institutions globally.
