Daily · Crypto Rulemaking and UK Sanctions · October 13, 2026

Key points

CFTC Crypto Asset Rulemaking

The Commodity Futures Trading Commission (CFTC) issued an advanced notice of proposed rulemaking on 13 October 2026. The notice concerns section 2(c)(2)(D) of the Commodity Exchange Act (CEA). The CFTC is seeking public comment on its intent to develop and establish fit-for-purpose rules implementing this section with respect to transactions and markets in crypto assets.

This action signals upcoming rulemaking that could shape compliance, market structure, and product design for crypto asset transactions. It represents a formal step toward regulatory clarity in the digital asset space under the CEA framework.

UK Motor Finance Scheme Challenges

The Upper Tribunal has confirmed it will hear legal challenges to the Financial Conduct Authority's (FCA) motor finance compensation scheme between 16 and 26 February 2027. The scheme was challenged by three lenders—Volkswagen Financial Services, Mercedes Benz Financial Services, and Crédit Agricole Auto Finance—and by Consumer Voice, represented by Courmacs Legal.

The scheme is currently partially suspended. Firms must keep preparing for the scheme and progress complaints as far as possible. Lenders must comply with the scheme rules that remain in force, including sending letters to some consumers not owed compensation under the scheme. Firms should plan for the possibility that, if the scheme or parts of it are quashed, there may be no motor finance compensation scheme and no complaint handling pause.

New UK Human Rights Sanctions Regime

The United Kingdom made the Global Human Rights and International Humanitarian Law Sanctions Regulations 2026 on 13 October 2026. These regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13). The regime establishes a sanctions basis for deterring, and providing accountability for, activities which, if carried out by or on behalf of a State, would amount to serious violations of certain human rights by that State.

The regime also covers serious violations of international humanitarian law and obstruction of the delivery or distribution of, or access to, humanitarian assistance around the world. Compliance teams may need to map this new UK sanctions basis to human rights, humanitarian law, and humanitarian assistance exposure.

FCA Criminal Enforcement Actions

Kerry Nelson, director of Nexus Independent Financial Advisers Limited and Nexus Investment Managers Limited, and Jacqueline Stephens, the firms' business operations manager, pleaded guilty at Portsmouth Crown Court on 12 October 2026. They admitted defrauding 4 clients between January 2019 and January 2023, with total client losses of £2m. They admitted using false documents as part of the fraud. Nelson also admitted a money laundering offence after money was withdrawn from the firms, which she used to fund her extravagant lifestyle. Sentencing is scheduled for 10 December 2026 at Portsmouth Crown Court. The FCA will seek confiscation proceedings to deprive Kerry Nelson of any financial benefit from her criminal conduct. The FCA started criminal proceedings against Nelson and Stephens in February 2025.

On 13 October 2026, 3 individuals were arrested following a joint operation by the FCA and the National Crime Agency (NCA). More than 100 FCA and NCA staff took part in searches at 5 residential premises in London and Manchester. More than 30 mobile phones, laptops, and tablets were seized in searches conducted by FCA investigators. All 3 suspects are in the process of being interviewed by the FCA at police stations in London and Manchester. In 2025/26, the FCA secured 4 insider dealing convictions, with 2 resulting in record sentences totalling 11 years of imprisonment. Twelve people were fined a total of £1.77m for insider dealing, market manipulation, and making misleading statements in 2025/26.

EU Supervisory Priorities and Reporting

The Joint Committee of the European Supervisory Authorities (EBA, EIOPA, and ESMA) published its Annual Work Programme for 2027 on 13 October 2026. The programme sets out priorities for addressing cross-sectoral risks and strengthening coordination across the European Union's financial sector. Key priorities include digital operational resilience, technological innovation, sustainable finance, securitisation, and cross-sectoral risk monitoring. Under the Digital Operational Resilience Act (DORA), the ESAs will continue oversight activities relating to critical ICT third-party service providers. The ESAs will work towards strengthening the financial sector's preparedness against cyber threats.

ESMA outlined the European Common Enforcement Priorities (ECEP) for the 2026 annual financial reports of listed issuers on 13 October 2026. Focus areas for IFRS financial statements include geopolitical risks and uncertainties, restructuring provisions, and debt restructuring. Focus areas for sustainability statements under ESRS include continuing progress in applying materiality assessment and providing connected information on impacts, risks, and opportunities (IROs), policies.

US Market Infrastructure Updates

The SEC granted temporary summary effectiveness, not to exceed 120 days, to a proposed twenty-ninth amendment to the National Market System Plan To Address Extraordinary Market Volatility. The amendment would revise the time for calculating the consolidated price in connection with overnight trading.

CME Securities Clearing Inc. filed a notice of designation of a longer period for SEC action on a proposed rule change to adopt standards for establishing cross-margin arrangements and to adopt a cross-margin arrangement with Chicago Mercantile Exchange Inc. This would allow clearing members to net margin across the two clearing houses, reducing capital requirements for firms clearing both securities and futures.

The Department of the Treasury's Office of Foreign Assets Control (OFAC) published General License 60 under the Venezuela Sanctions Regulations and a sector determination pursuant to a January 10, 2020 Executive Order related to Iran. Both were previously made available on OFAC's website but formally published in the Federal Register on 13 October 2026.

Our read

The CFTC's advanced notice marks a significant step toward formalizing crypto asset regulation under the Commodity Exchange Act, requiring firms to prepare for potential changes in market structure and compliance obligations. The UK's new human rights sanctions regime expands the scope of sanctions compliance beyond traditional geopolitical conflicts, necessitating updated screening and monitoring processes for entities with global operations. The confirmed hearing dates for the motor finance scheme challenges provide a clear timeline for UK lenders to maintain operational readiness for either outcome, while the FCA's continued criminal enforcement actions underscore the personal liability risks for financial advisers and firm directors.

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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