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Monthly Crypto Round-up

March 2025

Crypto Fintech 10 March 2025

Welcome to this month's global crypto round-up, summarising crypto regulatory developments that have happened around the world in February 2025 along with our Clifford Chance crypto publications and upcoming events. 

Details of these and previous developments can also be found on our Fintech Topic Guide on the Clifford Chance Financial Markets Toolkit.

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CLIFFORD CHANCE PUBLICATIONS & MATERIALS

GLOBAL LEGAL AND REGULATORY UPDATES, INDUSTRY GUIDANCE AND PUBLICATIONS

INTERNATIONAL

  • (21 Feb 2025) The Financial Stability Board (FSB) has launched a thematic peer review on the implementation of its global regulatory framework for cryptoasset activities. The framework consists of two sets of high-level recommendations for the regulation, supervision and oversight of cryptoasset activities and markets and global stablecoin arrangements. The review is intended to examine the progress made by FSB member and select non-member jurisdictions in implementing the global regulatory framework, including any lessons learnt. Deadline for comments: 28 March 2025. | Press release
  • (21 Feb 2025) The Wolfsberg Group FAQs on defining digital assets. | Press release

AMERICAS

  • (27 Feb 2025) Securities and Exchange Commission (SEC) staff statement on meme coins, which sets out the SEC's Division of Corporation Finance's view that transactions in 'meme coins' do not involve the offer and sale of securities under the federal securities laws. As such, persons who participate in the offer and sale of meme coins do not need to register their transactions with the SEC under the Securities Act of 1933 or fall within one of the Securities Act’s exemptions from registration
  • (21 Feb 2025) The SEC's Crypto Task Force has invited public input on its work, in particular regarding the security status of cryptoassets, scoping out, public offerings, the possibility of a safe harbor from registration, trading, custody, crypto lending, crypto exchange-traded products, tokenised securities, and sandbox and related international issues. | Statement by Commissioner Hester M. Peirce
  • (20 Feb 2025) The SEC has announced the creation of the Cyber and Emerging Technologies Unit (CETU) to focus on combatting cyber-related misconduct and to protect retail investors from bad actors in the emerging technologies space. The CETU, led by Laura D’Allaird, replaces the Crypto Assets and Cyber Unit and comprises approximately 30 fraud specialists and attorneys across multiple SEC offices. | Press release
  • (20 Feb 2025) Letter from a group of US Senators to the SEC asking it to consider the potential benefit to investors from allowing protocol staking in certain digital asset exchange traded products and calling for it to clarify its position in this area by 1 April 2025.
  • (13 Feb 2025) Speech by Mr Christopher J Waller, Member of the Board of Governors of the Federal Reserve System, reflecting on a maturing stablecoin market. | Webpage
  • (11 Feb 2025) The House Committee on Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee has held a hearing entitled 'A Golden Age of Digital Assets: Charting a Path Forward'. | Hearing webpage | Committee memorandum | Hearing video
  • (6 Feb 2025) The House Committee on Financial Services Oversight and Investigations Subcommittee has held a hearing entitled 'Operation Choke Point 2.0: The Biden Administration’s Efforts to Put Crypto in the Crosshairs.' | Hearing webpage | Committee memorandum | Hearing video
  • (5 Feb 2025) The Federal Deposit Insurance Corporation (FDIC) has published a set of documents relating to its supervision of banks that engaged in, or sought to engage in, crypto-related activities. The documents have been published as part of an ongoing review of all supervisory communications with banks that sought to offer crypto products or services as the FDIC reevaluates its supervisory approach in this area. Acting Chairman Travis Hill indicated that this will include replacing Financial Institution Letter (FIL) 16-2022 and providing a pathway for institutions to engage in crypto- and blockchain-related activities while adhering to safety and soundness principles.  | Press release
  • (4 Feb 2025) Republican Senator Bill Hagerty has published a new bill on the regulation of payment stablecoins, to be known as the Guiding and Establishing National Innovation in US Stablecoins (GENIUS) Act.
  • (4 Feb 2025) Commodity Futures Trading Commission (CFTC) Acting Chairman Caroline D. Pham has announced a reorganisation of the CFTC Division of Enforcement’s task forces to combat fraud while ending what she described as the practice of regulation by enforcement. | Press release

APAC

Hong Kong:

  • (19 Feb 2025) The Securities and Futures Commission (SFC) has outlined twelve major initiatives to enhance the security, innovation and growth of Hong Kong’s virtual asset market under a five-pillar 'ASPIRe' roadmap, which stands for 'Access, Safeguards, Products, Infrastructure and Relationships'. Under the roadmap, new frameworks for regulating virtual asset over-the-counter and virtual asset custodian services will be developed, while virtual asset product and service offerings will be expanded. Other measures encompass the optimisation of operational requirements for virtual asset trading platforms, combatting illicit activities, investor education and proactive stakeholder engagement. | Press release 

Republic of Korea:             

  • (13 Feb 2025) The Financial Services Commission (FSC) has established a 'Roadmap for Corporate Participation in the Virtual Asset Market' to gradually allow corporate participation in the crypto market while maintaining user protection and market stability. | Press release (in Korean)
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EUROPE

EU:  

  • (27 Feb 2025) The EU Commission has adopted three Delegated Regulations setting out RTS under MiCA to specify: the records to be kept of all cryptoasset services, activities, orders and transactions undertaken (C(2025)1206); the requirements for policies and procedures on conflicts of interest for cryptoasset service providers and the details and methodology for the content of disclosures on conflicts of interest (C(2025)1216); and the requirements for policies and procedures on conflicts of interest for issuers of asset-referenced tokens (C(2025)1220)
  • (27 Feb 2025) European Banking Authority (EBA) opinion in response to the EU Commission’s proposed changes to its draft RTS on the information to be provided to competent authorities when authorising the offer to the public of asset-referenced tokens (ARTs) or the admission to trade them under MiCA. In the opinion, the EBA accepts the changes proposed by the Commission, in particular those considered as substantive, but also invites the Commission to consider amending the Level 1 text at the next available opportunity to include certain elements that were set out in the draft RTS originally submitted by the EBA, including the requirements of a market abuse policy, of an independent third-party audit about the issuer’s proprietary DLT that is operated by the issuer or by a third-party operator, and of a comprehensive notion of good repute aligned with the rest of the financial sector. | Press release | Letter to Commission
  • (20 Feb 2025) Commission Delegated Regulation (EU) 2025/303 and Commission Implementing Regulation (EU) 2025/304 setting out RTS and implementing technical standards (ITS) on notifications of an intention to provide cryptoasset services under MiCA, which have been published in the Official Journal. The RTS specify the information to be included by certain financial entities in the notification of their intention to provide cryptoasset services, while the ITS cover standard forms, templates and procedures for the notification. Entry into force: 12 March 2025.
  • (20 Feb 2025) Commission Delegated Regulation (EU) 2025/301 and Commission Implementing Regulation (EU) 2025/302 setting out RTS and ITS on reporting major ICT-related incidents and notifying significant cyber threats under the Digital Operational Resilience Act (DORA), which have been published in the Official Journal. The RTS specify the content and time limits for the initial notification of, and intermediate and final report on, major ICT-related incidents, and the content of the voluntary notification for significant cyber threats, while the ITS set out standard forms, templates, and procedures for financial entities to report a major ICT-related incident and to notify a significant cyber threat. Entry into force: 12 March 2025.
  • (20 Feb 2025) The European Central Bank (ECB) has decided to expand its initiative to settle transactions recorded on distributed ledger technology (DLT) in central bank money. The initiative will follow a two-track approach. First, as soon as feasible, the Eurosystem intends to develop and implement a safe and efficient platform for such settlements in central bank money through an interoperability link with TARGET Services. A concrete time plan will be announced in due course. Second, the Eurosystem will look into a more integrated, long-term solution for settling DLT-based transactions in central bank money. | Press release
  • (18 Feb 2025) The European Supervisory Authorities (ESAs) have set out a roadmap for the implementation of the pan-European oversight framework for critical ICT third-party service providers (CTPPs) under DORA, with the objective of designating CTPPs and starting oversight engagement in 2025. 
  • (17 Feb 2025) European Securities and Markets Authority (ESMA) consultation on its draft guidelines under MiCA on the criteria for the assessment of knowledge and competence of CASPs' staff giving information or advice on cryptoassets or cryptoasset services. Deadline for comments: 22 April 2025. | Press release
  • (13 Feb 2025) The following Delegated Regulations setting out RTS under MiCA have been published in the Official Journal:
  •  (13 Feb 2025) Delegated Regulation (EU) 2025/295 supplementing DORA with regard to RTS on the harmonisation of conditions enabling the conduct of oversight activities has been published in the Official Journal.
  • (13 Feb 2025) Interview with ECB Executive Board member Piero Cipollone, in which he argued that the digital euro would make life easier for European consumers and enhance the EU payments sector, fostering competition and innovation across the entire euro area.
  • (11 Feb 2025) The EBA has narrowed down the scope of its existing guidelines on ICT and security risk management measures, due to the application of harmonised ICT risk management requirements DORA. | Press release
  • (5 Feb 2025) EBA opinion, dated 24 January 2025, on amendments proposed by the EU Commission in November 2024 to the EBA's June 2024 draft RTS on conflicts of interest for issuers of ARTs under MiCA. In its opinion, the EBA endorses the substantive amendments made by the Commission and accepts the remaining changes to other parts that are not considered substantive. The EBA has therefore resubmitted the amended draft RTS to the Commission for adoption. | Press release

France

  • (22 Feb 2025) Decree No. 2025-169 of 21 February 2025 (in French) on cryptoasset markets, which has been published in the Official Journal. The decree amends the regulatory part of the Monetary and Financial Code to ensure its consistency and compliance with MiCA. It adapts the registration and approval procedure for digital asset service providers on a transitional basis until 30 June 2026, and sets the amount of the contribution paid to the Autorité des marchés financiers (AMF) for cryptoasset service providers, as well as that provided for in the event of a notification of a white paper on cryptoassets other than electronic money tokens (EMTs) or asset-referenced tokens (ARTs). The decree entered into force on 23 February 2025, with the exception of the provisions of articles 7 and 9, which will enter into force on 1 July 2026.
  • (3 Feb 2025) A Ministerial Order (in French) amending Books III (on service providers) and VII (on token issuers and digital asset services providers) of the AMF's General Regulation has been published in the Official Journal. The Order amends the provisions on public offerings and applications for admission to trading of cryptoassets. It also sets out regulation on cryptoassets service providers.

Germany:          

  • (13 Feb 2025) Speech by Burkhard Balz, Member of the Executive Board of the Deutsche Bundesbank, on the role of CBDCs in Europe's digital financial ecosystem. | Webpage

Luxembourg:

  • (25 Feb 2025) The Luxembourg financial sector supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF), has issued five circular letters on the application and integration of the following EBA and ESMA guidelines under MiCA into the CSSF's administrative and regulatory approach:
    • Circular CSSF 25/872 on the application of the EBA guidelines on the minimum content of the governance arrangements for issuers of asset-referenced tokens (EBA/GL/2024/06);
    • Circular CSSF 25/873 on the application of the EBA guidelines on recovery plans under Articles 46 and 55 of MiCA (EBA/GL/2024/07);
    • Circular CSSF 25/874 on the application of the EBA guidelines establishing the common reference parameters of the stress test scenarios for the liquidity stress tests referred to in Article 45(4) of MiCA (EBA/GL/2024/08);
    • Circular CSSF 25/875 on the application of the joint EBA and ESMA guidelines on the suitability assessment of members of the management body of issuers of asset-referenced tokens and of cryptoasset service providers, and of the joint EBA and ESMA guidelines on the suitability assessment of shareholders and members, whether direct or indirect, with qualifying holdings in issuers of asset-referenced tokens and in cryptoasset service providers (EBA/GL/2024/09 and ESMA75- 453128700-10); and
    • Circular CSSF 25/876 on the application of the EBA guidelines on redemption plans under Articles 47 and 55 of MiCA (EBA/GL/2024/13).
  • (10 Feb 2025) The law of 6 February 2025 (in French), which implements recent EU regulations concerning cryptoassets, transfers of funds, European long-term investment funds (ELTIFs) and European green bonds has been published in the Luxembourg official journal (Mémorial A). In particular, the purpose of the law is to integrate MiCA and Regulation (EU) 2023/1113 on information accompanying fund transfers and certain cryptoassets into Luxembourg law and to adapt Luxembourg law accordingly. | CSSF press release (dated 17 Feb 2025).

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