MoFo's Financial Markets & Innovation

CFTC Submits Event Contracts and Crypto Rules to OIRA

The CFTC submitted two rule proposals to the White House Office of Information and Regulatory Affairs (OIRA) that appear to establish event contracts as swaps while excluding traditional gambling, updates that could affirm the agency’s view that prediction markets are under its “exclusive jurisdiction” and beyond the reach of states. The rules, titled “Further Definition of ‘Swap’ to Include Event Contracts” and “Further Definition of ‘Swap’ to Exclude Casino-Style Gambling Products,” joined “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets,” a prerule submitted on September 17.

FRB Governor Discusses AI in Payments

In remarks to a conference on digital finance, Federal Reserve Governor Christopher Waller discussed the state of artificial intelligence in payments, noting that the payments industry has long been at the forefront of using AI to improve operations. He highlighted AI’s potential to improve cross-border payment efficiency and security, including more accurate sanctions screening and anti-money-laundering systems, AI-assisted optimization of payment routing, foreign exchange conversion, and liquidity management. Governor Waller discussed the emergence of “agentic commerce,” or the use of AI agents to make e-commerce purchases. He identified the biggest barriers to scaling agentic commerce as building sufficient trust among buyers and sellers, with key challenges including agent authentication, liability allocation when an agent makes an erroneous purchase, and the need to recalibrate fraud detection systems for agent payment patterns.

Federal Reserve Board Requests Comments on GENIUS Framework

On September 24, the Federal Reserve Board issued two notices of proposed rulemaking on a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act. The first proposal, titled “Implementing the Federal Reserve Board’s Responsibilities Under the GENIUS Act,” would require that Board-supervised payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets, such as short-term Treasury bills and other liquid assets. The proposal would also establish standardized capital requirements to address credit and operational risks, risk management standards, rules for Board-supervised firms that safekeep assets backing payment stablecoins, and rules on redemption and fees. The second proposal, titled “Application Procedures for Board-Supervised Insured Depository Institutions Seeking Approval for a Subsidiary To Issue Payment Stablecoins,” would establish a tailored application process for Board-supervised banks applying to issue payment stablecoins and would create a process governing appeals, hearings, and final determinations for applications. The application would include the submission of a business plan, financial information, policies and procedures, capital structure, certain biographical information for decision-makers, and certain certifications. Comments on both proposals are due on November 30, 2026.

Treasury Publishes Interim Rule on State “Similarity” Certifications

On September 30, the Treasury Department, on behalf of the Stablecoin Certification Review Committee (the “Committee”), published an interim final rule adopting regulations and forms to determine approval of certifications by state payment stablecoin regulators under the GENIUS Act. The interim rule establishes procedures used by the Committee in reviewing state “substantial similarity” certifications, the form and timing of recertifications, attestation forms for certification submission, and the procedures used for denial and appeal. While the interim rule was effective September 30, the Treasury Department will accept comments until November 30, 2026.

UK FCA Opens Applications for Crypto Firm Authorization

On September 30, the UK Financial Conduct Authority (FCA) opened their gateway for applications by crypto firms seeking to continue operations in the UK post the October 25, 2027 implementation date. Crypto firms will need to demonstrate to the FCA that they meet certain consumer protection, safeguarding, AML, market integrity, and financial resilience standards. The deadline for crypto firms to apply for continued operation is February 28, 2027, with the FCA expecting to make determinations on applications before the full crypto regulatory regime comes into force. The FCA originally published their cryptoasset policy statements on June 30, 2026. 

SEC Seeks Comment on New Pathways to Accredited Investor Status

On September 30, 2026, the SEC issued notices seeking public comment on six potential new pathways for individuals to qualify as accredited investors under Regulation D based on professional credentials or financial knowledge. The proposed designations would extend accredited investor status to individuals who pass a new FINRA-developed exam or hold certain CPA, CFA, CFP, Series 79, or Series 86/87 credentials. If adopted, the changes could expand the pool of eligible investors in private offerings.

Read more in our client alert.