Daily · EU Stablecoin Rules and US Market Hours · October 8, 2026

Key points

ESMA Opinion on Non-Compliant Stablecoins

On 8 October 2026, ESMA published an opinion clarifying supervisory expectations for crypto-asset services involving asset-referenced tokens (ARTs) and e-money tokens (EMTs) that do not comply with the Markets in Crypto-Assets Regulation (MiCA). The opinion states that crypto-asset service providers (CASPs) authorised under MiCA should cease providing services related to non-MiCA-compliant stablecoins to clients in the European Union.

This requirement applies to the full range of crypto-asset services covered by MiCA. These include the operation of trading platforms, exchange services, execution of orders, placing of crypto-assets, reception and transmission of orders, and investment services. The opinion was published on 8 October 2026.

US Exchanges Adjust Circuit Breakers for 23-Hour Trading

Several US exchanges filed proposed rule changes with immediate effectiveness to amend market-wide circuit breaker and risk protection rules. These amendments are in connection with the industry's expansion of trading hours to 23 hours per day, 5 days per week. The filings were published in the Federal Register on 8 October 2026.

Nasdaq PHLX LLC filed a change to Rule 3101 concerning the resumption of trading following a Level 3 market-wide circuit breaker halt. Cboe BYX Exchange, Inc. and Cboe BZX Exchange, Inc. filed changes to Rules 11.29 and 11.30, respectively, for the same purpose. The Nasdaq Stock Market LLC filed a change to Rule 4121. Nasdaq ISE, LLC and Nasdaq GEMX, LLC each filed changes to their Market Wide Risk Protection rules.

Additionally, Cboe EDGA Exchange, Inc. filed a change to Rule 11.23, Cboe EDGX Exchange, Inc. filed a change to Rule 11.24(b)(2), and Nasdaq Texas, LLC filed a change to Rule 4121. All these filings concern the resumption of trading following a Level 3 Market-Wide Circuit Breaker Halt in connection with the expanded trading hours and were granted immediate effectiveness.

FCA Proposes 90-Day Notice for Illiquid Funds

The FCA proposed new rules requiring investors to give 90 days' notice to access long-term investment funds that invest in illiquid assets, such as property. Under the current regime, some of these funds allow people to take money out daily with no notice period. The FCA noted that during periods of stress or volatility, there is a risk that some funds may suspend all payments due to a lack of available cash.

The proposals bring the UK into line with new international liquidity standards for open-ended funds. Existing funds would have 2 years to comply and must give investors at least 1 year's notice. The consultation covers authorised fund managers of non-UCITS retail schemes (NURS). The FCA is asking for feedback on the proposals by 11 December 2026. Michelle Beck, director of markets at the FCA, stated that the rules will help firms make it clearer whether a fund offers quick access or is built for longer-term investments.

FINMA Revises Video and Online Identification Circular

On 8 October 2026, FINMA partially revised its practice in Circular 2016/7 “Video and online identification.” FINMA stated that the revision took into account the latest technological developments. The revision particularly considered the Federal Act on Electronic Identity Credentials and Other Electronic Credentials (E-ID Act), which is due to come into force.

Sanctions Updates and Routine Regulatory Filings

SECO published a change to the annex of the Swiss regulation on economic measures against the Republic of Iraq (SR 946.206) on 8 October 2026. OFAC published a notice concerning sanctions actions, including the unblocking of one or more persons removed from the Specially Designated Nationals and Blocked Persons List (SDN List) and updates to the identifying information of persons currently on the list.

Investors Exchange LLC (IEX) filed a proposed rule change to amend its fee schedule pursuant to IEX Rule 15.110(a) and (c), granted immediate effectiveness. The FCA published survey findings on the compliance functions of corporate finance firms, noting that 382 out of 411 surveyed firms responded. The US SEC submitted three information collections for OMB review: Rule 17a-19 and Form X-17A-19, Rule 2a-7, and Rule 30b1-8 and Form N-CR. The OCC invited comment on the renewal of its Community Reinvestment Act Qualifying Activity Confirmation Request Form information collection.

Our read

ESMA's opinion signals a hardening of the EU's stance on stablecoins, forcing MiCA-authorised CASPs to segregate or delist non-compliant assets from their EU client offerings. This creates an immediate operational burden for firms managing multi-jurisdictional stablecoin products, requiring distinct product and counterparty changes across the stack. Simultaneously, the US expansion of equity trading hours to 23 days per week necessitates a fundamental recalibration of risk management systems, as circuit breaker resumption logic must now accommodate significantly longer sessions. For firms trading US markets, this changes when liquidity and risk controls operate, impacting execution strategies and market-making algorithms. The FCA's proposed 90-day redemption notice for illiquid funds aligns UK practice with international standards, reducing the risk of suspension during stress but altering the liquidity profile for investors in property-focused schemes.

This digest was produced automatically by a large-language-model system from the regulator publications and official sources listed below; it is AI-generated content and may contain inaccuracies. It is not legal advice — verify wording and deadlines against the original documents.

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