In the field of cryptocurrencies, the Financial Conduct Authority (FCA) in the United Kingdom today proposed new guidelines on how to apply existing financial rules to cryptocurrencies, and Bitwise stated that the new U.S. listing rules will enhance cryptocurrency exchange-traded funds, and Google unveiled an open-source protocol for AI-powered payments using stablecoins.
The UK's Financial Conduct Authority is considering waiving some commercial finance rules for cryptocurrency firms.
The UK's Financial Conduct Authority published a consultation paper on Wednesday outlining the minimum standards that cryptocurrency firms must meet once this sector officially falls under its jurisdiction. The authority clarified that the rules are designed to strike a balance between innovation, competitiveness, consumer protection, and market integrity.
David Gill, the executive director of payments and digital finance, stated: "We want to develop a sustainable and competitive cryptocurrency sector that balances innovation, market integrity, and trust."
Gill added that although the proposals will not eliminate the risks of investing in cryptocurrencies, they will help companies meet common standards, allowing consumers a better understanding of what to expect.
The Financial Conduct Authority (FCA) stated that many of the requirements resemble obligations imposed on traditional financial institutions. This includes rules on operational resilience and controls against financial crimes. The authority has also opened discussions on unique issues related to cryptocurrency markets.
The FCA is seeking views on whether the consumer duty in the UK, which requires financial firms to deliver good outcomes for consumers, should also apply to cryptocurrency firms and crypto asset activities.
The authority is also seeking views on how to handle complaints related to cryptocurrencies, including the possibility of referring consumers to the Financial Ombudsman Service, which is the official body in the UK for resolving disputes between financial firms and consumers. Feedback is scheduled to be received in October and November, with final rules for cryptocurrency firms expected to be published in 2026.
New listing rules from the U.S. Securities and Exchange Commission (SEC) to boost cryptocurrency exchange-traded funds: Bitwise
Matt Hogan, Chief Investment Officer at Bitwise, stated on Monday that the SEC's streamlining of the approval process for cryptocurrency exchange-traded products could spur a wave of new offerings, but this does not guarantee their success.
He said: "The adoption of public listing standards - which may be applied in October - is likely to pave the way for a large number of new cryptocurrency exchange-traded products," adding that "the mere existence of a cryptocurrency exchange-traded product does not guarantee large inflows."
Hogan added: "It requires fundamental interest in the underlying asset. I believe that exchange-traded products based on assets like Bitcoin Cash will struggle to attract flows unless that asset itself revives."
He confirmed that the launch of exchange-traded products (ETPs) sets the stage for products to rise when "the fundamental factors begin to shift," making it easier for traditional investors to allocate capital to cryptocurrencies.
Currently, the SEC is reviewing cryptocurrency exchange-traded platforms on a case-by-case basis, which could take months. Issuers must submit detailed proposals showing that the underlying market has sufficient liquidity and is resistant to manipulation, among other requirements.
Google has unveiled an open-source protocol for AI payments with support for stablecoins.
Google has unveiled an open-source protocol that allows AI applications to send and receive payments, including transactions using stablecoins - highlighting the growing role of cryptocurrencies linked to the dollar in the emerging AI-driven internet.
Fortune magazine reported on Tuesday that this initiative is being launched in partnership with Salesforce, American Express, and more than 60 other companies. The stablecoin feature was developed in collaboration with the cryptocurrency trading platform Coinbase, and the Ethereum Foundation was consulted on the project.
James Truman, Head of Web3 at Google Cloud, confirmed the launch of the protocol, stating to Fortune magazine that the protocol is designed to support "current payment capabilities, as well as future capabilities like stablecoins."
Eric Ripple, an engineer at Coinbase, stated that the exchange worked with Google to make its payment systems compatible. He added to Fortune magazine: "We are all working to find a way to make AI transfer value to each other."
The payment system relies on Google's Agent2Agent protocol, launched in April, which provides a framework for AI agents to exchange information and interact more efficiently. It was developed with support from over 50 technical partners, including PayPal, Salesforce, SAP, and consulting firms like Deloitte, McKinsey, and PwC.
Tuesday's announcement comes amid increasing efforts to connect AI agents - independent software programs capable of making decisions without human intervention - to decentralized finance (DeFi) protocols. This integration could simplify trading, improve user interaction, and expand real-world payment use cases.
Cointelegraph