Weekly · Infrastructure adaptation and regulatory shifts · October 4–10, 2026
Key points
- US exchanges filed a package of rule changes to transition to 23-hour trading, including trading halt mechanisms.
- FinCEN withdrew two proposals for cryptocurrency regulation but simultaneously proposed prohibiting transactions with the A7 network.
- ESMA clarified that access to third-country depositaries will be maintained until legislation on the extension of MISP is adopted.
- The SEC proposed new rules for the custody of crypto-assets for funds and approved the listing of six 3x-leveraged ETFs.
- ESMA launched a data collection exercise on tokenized collateral for central counterparties and confirmed the appointment of Carlo Comperti as head.
US transition to 23-hour trading
On October 5, MIAX PEARL filed a proposal to amend risk management rules for exchange members in connection with the expansion of trading hours to 23 hours a day, five days a week. On October 8, Cboe EDGA, Cboe EDGX, and Nasdaq Texas joined the process by filing rule changes regarding the resumption of trading after the triggering of a Level 3 market-wide circuit breaker. On the same day, Nasdaq PHLX, Cboe BYX, Cboe BZX, The Nasdaq Stock Market, Nasdaq ISE, and Nasdaq GEMX published proposals in the Federal Register to amend market-wide circuit breaker and risk protection rules. All these initiatives took effect immediately, indicating a shift from individual filings to a coordinated industry-wide infrastructure reform.
FinCEN's dual policy in the crypto sphere
On October 6, FinCEN withdrew two previously proposed rules concerning cryptocurrencies. One of them concerned the mixing of convertible virtual currencies as a class of transactions posing a primary money laundering concern, while the second required banks and money transmitters to report on and verify customers for transactions involving digital assets in non-custodial wallets. On that same day, October 5, FinCEN issued a notice proposing special measures prohibiting covered financial institutions from conducting monetary transfers related to companies controlled by the A7 network, which is described as having ties to Russia, Iran, and terrorist proxy groups. This creates a contrast between the relaxation of general requirements for infrastructure and the tightening of targeted sanctions against specific evasion networks.
ESMA: access to CSDs and tokenization
On October 7, ESMA published a statement clarifying that EU market participants should not be prevented from accessing third-country central securities depositories (CSDs) after January 17, 2027, until the EU completes legislation on the extension of the MISP regime. On October 9, ESMA launched a Call for Evidence regarding the use of tokenized forms of collateral in EU central counterparties, setting a submission deadline of January 15, 2027. Previously, on October 8, ESMA also published an opinion stating that crypto-asset service providers (CASPs) authorized under MiCA must cease serving EU clients associated with non-MiCA-compliant stablecoins (ART and EMT).
SEC initiatives on funds and crypto custody
On October 6, the SEC proposed new rules for the custody of crypto-securities for regulated investment companies under the Investment Company Act of 1940, as well as changes to custody, reporting, and record-keeping rules for registered investment advisers under the Investment Advisers Act of 1940. In parallel, on October 5 and 6, the SEC proposed modernization of rules for interval funds, closed-end investment companies, and performance-based adviser compensation. On October 7, the SEC approved the listing and trading of six 3x-leveraged ETFs (gold, silver, Bitcoin, Ether, crude oil, natural gas) on the Cboe BZX exchange under the VS Trust.
Sanctions lists and personnel appointments
Between October 6 and 8, OFAC published a series of notices in the Federal Register, including new designations to the SDN list, unblocking, removal of duplicates, and updates to identification information in the SDN, NS-PLC, and SSI lists. On October 9, the EU Council confirmed the appointment of Carlo Comperti as President of ESMA, which takes effect on November 1, 2026. Also, on October 5, several Nasdaq entities filed coordinated rule changes reflecting the renaming of Nasdaq BX, Inc. to Nasdaq Texas, LLC.
What this means
If your business depends on access to EU or US infrastructure, pay attention to transition periods. In the EU, the key factor is uncertainty surrounding MISP legislation: if it is not adopted by January 17, 2027, access to third-country CSDs may be restricted, despite current ESMA assurances. In the US, the expansion of trading hours to 23 hours requires a review of risk management models, as trading halt mechanisms must now function under round-the-clock activity conditions, which changes the liquidity and volatility profile during night hours. If you work with crypto-assets, the regulatory landscape is becoming polarized: general requirements for non-custodial wallets in the US are being relaxed, but targeted prohibitions on specific networks (A7) and MiCA compliance requirements in the EU are tightening. Monitor the finalization of SEC rules on crypto-asset custody: if they are adopted as proposed, they will create standards for institutional custody that may become the de facto norm for other jurisdictions.
What was left out of frame
At first glance, OFAC's routine list updates and the renaming of Nasdaq BX to Nasdaq Texas have a cumulative effect. Frequent SDN list updates require constant synchronization of screening systems to avoid false positives or missed blocks. The renaming of Nasdaq entities requires updating legal and compliance documents, as references to old names in contracts or rules can become a source of technical errors. These changes, while not high-profile, are critical for operational continuity and the accuracy of compliance checks.
Our read
The period is characterized by a mixed signal on the tightening/relaxation axis: in the US, there is a relaxation of general regulatory requirements for crypto-infrastructure (withdrawal of FinCEN rules) while simultaneously tightening targeted sanctions and expanding the product lineup (3x ETFs). In the EU, supervisory expectations are tightening (MiCA, stablecoins) while attempting to maintain stability of access to infrastructure (CSDs). On the convergence/fragmentation axis, signals are contradictory: the US is moving toward unification of trading hours (23/5), which may create a new liquidity standard, while the EU maintains its own transition regimes and focuses on tokenization within the framework of MiCA, indicating a divergence in approaches to digital assets. The intensity of law enforcement remains high: OFAC actively updates lists, and ESMA publishes clear supervisory expectations, indicating a shift from consultations to practical requirements. The observed indicator of a reversal will be the adoption of legislation on the extension of MISP in the EU by January 17, 2027: if this happens, the risk of fragmentation of access to CSDs will decrease; if not, it will increase. The overall signal is mixed: regulators are adapting rules to new realities (23-hour trading, tokenization), but doing so unevenly, creating zones of heightened operational and compliance risk.
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.
Sources
- US exchanges filed circuit-breaker and risk-control rule changes for 23-hour trading — federalregister.gov (+8)
- FinCEN withdrew two proposed crypto-related rules on the same day — federalregister.gov (+1)
- FinCEN proposed a special measure targeting transactions involving A7 Network-controlled companies — federalregister.gov
- The SEC proposed custody, reporting, and disclosure rules for crypto securities and client crypto funds — federalregister.gov
- ESMA said EU market participants should not be cut off from third-country CSDs before MISP extension legislation is finalised — esma.europa.eu
- ESMA launched a Call for Evidence on tokenised collateral for EU central counterparties — esma.europa.eu
- ESMA said MiCA-authorised CASPs should stop serving EU clients with non-MiCA-compliant stablecoins — esma.europa.eu
- The SEC proposed modernization rules for interval funds, closed-end funds, and adviser performance-based compensation — federalregister.gov (+1)
- The SEC approved Cboe BZX listing of six 3x leveraged ETFs under the VS Trust — federalregister.gov
- OFAC published a series of SDN List designations, unblockings, and identifying-information updates — federalregister.gov (+3)
- Carlo Comporti was confirmed as the next Chair of ESMA effective 1 November 2026 — esma.europa.eu (+1)