US and EU regulators advance crypto rules as Mashinsky settles with New York
The CFTC opened work on leveraged retail crypto trading and prediction-market rules, ESMA set stablecoin expectations, and New York settled with Celsius co-founder Alex Mashinsky.
Why it matters: The week's actions set out how US and EU authorities intend to treat leveraged crypto trading, prediction markets and noncompliant stablecoins, shaping compliance for exchanges and token issuers.
Key points
- The CFTC issued an advance notice of proposed rulemaking on 5 October covering leveraged, margined or financed retail crypto transactions it calls CTXs.
- ESMA said on 8 October that MiCA-authorised firms should stop serving EU clients with noncompliant stablecoins, with pre-existing exposure remediated within three months.
- New York Attorney General Letitia James announced on 9 October a settlement barring Mashinsky from the securities, commodities and crypto industries, with conditional payments of up to $35m.
US and EU regulators moved forward on several crypto rulemaking fronts this week, while New York reached a settlement with Celsius co-founder Alex Mashinsky. Comments are due 60 days after Federal Register publication, and the agency may then decide whether to propose a formal rule.
On 9 October the CFTC also proposed defining qualifying event contracts as swaps, covering subjects such as politics, sports, culture and weather, with comments due 30 days after publication. It adopted an interim final rule at the same time excluding conventional casino and sportsbook products from the swap definition. The agency said contracts meeting the proposed definition would be commodity derivatives under its exclusive jurisdiction.
In Europe, ESMA published an opinion on 8 October saying MiCA-authorised crypto-asset service providers should stop offering EU clients services involving noncompliant asset-referenced and e-money tokens, covering trading, exchange, execution, advice, transfers, custody and portfolio management.
What to watch: The CFTC will take comments for 60 days after Federal Register publication on the CTX notice, and EU negotiations on ESMA supervision can begin only after the Parliament adopts its position.
Live updates on NewsFeeds:RegulationStablecoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
How this was produced: an AI model wrote this summary of Bitcoin.com News’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.
Not investment advice. Read the risk disclaimer.