In the second May edition of crypto regulatory affairs, the UK's FCA and Bank of England issued a joint call for input on tokenization in wholesale markets, outlining priority areas such as digital securities regulation, prudential treatment of tokenized assets, and CBDC feasibility. Deputy Governor Sarah Breeden signaled a softening stance on stablecoins, with draft rules for systemic issuers due next month and final stablecoin rules expected by year-end. Separately, the UK government imposed sanctions on 18 entities linked to Russia's sanctions evasion, including crypto exchange HTX, marking the first application of Regulation 17A to crypto firms. In the US, President Trump issued an executive order directing regulators to open banking services to crypto firms. The EU also launched a consultation on MiCA implementation. These developments highlight a global push to integrate crypto into regulatory frameworks while targeting illicit finance.

Key facts

• FCA and BoE call for input on wholesale tokenization, with roadmap due by year-end.
• UK sanctions HTX and others for supporting Russia's sanctions evasion via crypto.
• Trump orders US regulators to open banking services to cryptoasset firms.
• BoE signals softer stablecoin stance; draft systemic issuer rules next month.
• EU launches MiCA consultation to align member states' crypto regulations.