Weekly · US Crypto Framework & Sanctions Alignment · August 17–23, 2026

2026-08-23

New US frameworks for digital assets and compute

The United States is moving toward a more structured, albeit proposed, regime for the digital asset sector. On August 21, 2026, the SEC published a proposal for 'Regulation Crypto Assets'. This initiative aims to establish a tailored offering regime specifically for investment contracts involving crypto assets. In the world of securities, an investment contract is essentially any arrangement where money is invested in a common enterprise with the expectation of profit from the efforts of others. By proposing registration exemptions and a conditional safe harbor—a legal provision that protects certain activities from penalty if specific conditions are met—the SEC is signaling a shift toward a predictable pathway for asset launches. For founders and managers, this is a critical development; if adopted, it could replace the current climate of "regulation by enforcement" with a clear set of rules for how to bring a crypto asset to market without triggering immediate litigation. Businesses should begin assessing their current product roadmaps against these proposed exemptions to determine if their offerings could fit into this new, safer category.

Simultaneously, the CFTC is expanding its gaze toward the infrastructure of the modern economy. On August 21, 2026, the Commission issued a Request for Comment to better understand and oversee derivatives markets in compute. Compute derivatives are financial contracts whose value is tied to computing power or processing capacity—resources that have become the "new oil" for AI development. By seeking public responses, the CFTC is laying the groundwork for future oversight of how companies hedge their computing needs or speculate on the price of GPU power. For firms heavily invested in AI infrastructure or those providing high-performance computing (HPC) as a service, this is an early warning that the "compute" layer of the tech stack is entering the regulatory perimeter of financial derivatives.

Our read: The US is attempting to move from reactive policing to a proactive structural framework for both crypto assets and the underlying compute power that drives them.

Geopolitical alignment in Swiss and EU sanctions

There is a significant tightening of the sanctions perimeter in Europe, particularly regarding Switzerland's alignment with the European Union. On August 20, 2026, FINMA announced that the Swiss Federal Council decided to join the further measures of the EU's 20th sanctions package against Russia. This decision was made on August 19 and became effective immediately upon publication. For businesses operating in Switzerland or dealing with Swiss financial intermediaries, this means an immediate requirement to update screening protocols to match the EU's latest restrictive measures. This alignment reduces the "regulatory arbitrage" previously available in Switzerland, making it nearly impossible to maintain Russia-linked exposures in Switzerland that would be prohibited in the EU.

Further broadening the sanctions scope, the EU published an implementing regulation on August 20, 2026, amending restrictive measures against individuals and entities associated with ISIL (Da'esh) and Al-Qaida. While these are longstanding targets, the updates to the lists of sanctioned persons require an immediate refresh of KYC (Know Your Customer) and AML (Anti-Money Laundering) screening databases to ensure no prohibited transactions are facilitated.

Switzerland is also tightening its grip on Iranian exposures. On August 18, 2026, the Department of Economic Affairs, Education and Research (WBF) published changes to the annexes of the 2025 Ordinance on measures against the Islamic Republic of Iran. These changes update the specific lists of targets and prohibited activities. For managers overseeing trade finance or international payments, these updates necessitate a review of all Iranian counterparts to ensure compliance with the modified annexes.

Our read: Switzerland's rapid adoption of the EU's 20th package confirms that the Swiss financial center is now almost entirely synchronized with the EU's geopolitical stance on Russia.

Streamlining US investment adviser registrations

The CFTC is attempting to reduce the administrative burden on certain investment professionals by cutting through redundant paperwork. On August 21, 2026, the CFTC proposed amendments to the registration requirements for Commodity Pool Operators (CPOs) and Commodity Trading Advisors (CTAs). CPOs are entities that manage funds (pools) that trade in commodities, while CTAs provide advice or manage accounts trading in those markets.

The core of this proposal is the reduction of "duplicative regulation." Specifically, the CFTC is proposing a new exemption for certain investment advisers who are already registered with the SEC. This is a welcome move for managers who currently find themselves reporting the same data to two different regulators. Additionally, the proposal suggests increasing the Small Pool Exemption threshold. This threshold determines which small-scale funds are exempt from full registration; raising it allows more small managers to operate without the heavy overhead of full CFTC registration. Operationally, this could lower the barrier to entry for boutique hedge funds and commodity-focused investment vehicles, allowing them to allocate more resources to alpha generation rather than compliance reporting.

Our read: This proposal reflects a broader US trend toward "regulatory harmony," recognizing that overlapping SEC and CFTC mandates often create unnecessary friction for fund managers.

Tightening global clearing and liquidity standards

There is a concerted effort across the US and EU to ensure that the "plumbing" of the financial markets—the clearing houses—is resilient enough to withstand a systemic shock. In the EU, ESMA launched a consultation on August 18, 2026, regarding the reporting framework for clearing activity at recognized third-country Central Counterparties (CCPs). CCPs act as the middleman in a trade, guaranteeing that if one party defaults, the trade is still settled. ESMA is looking to create a standardized annual reporting framework under EMIR (European Market Infrastructure Regulation) for members and clients who clear through CCPs located outside the EU (such as those in the US or UK). For EU-based firms using global clearing houses, this means a likely increase in the volume and frequency of data that must be reported back to EU regulators.

In the US, the SEC is focusing on the actual liquidity—the available cash—held by these clearing entities. On August 21, 2026, the SEC approved a rule change relating to the LCH SA Liquidity Plan. LCH SA is a major systemic clearer; ensuring its liquidity plan is up to date is essential for market stability. Similarly, on August 18, 2026, the SEC approved changes to the Supplemental Liquidity Deposit Rules for the National Securities Clearing Corporation (NSCC). These rules govern how and when the NSCC can demand more collateral from its members to cover potential losses.

Adding to this, the SEC published a notice on August 18, 2026, regarding proposed amendments to the CMESC Stress Testing & Guaranty Fund Sizing Policy. Stress testing is the process of simulating a market crash to see if a firm has enough capital to survive. By amending how the Guaranty Fund is sized, the SEC is ensuring that the fund—which acts as the ultimate safety net—is large enough to absorb extreme volatility without requiring a taxpayer bailout. For institutional traders and clearing members, these changes may result in higher margin requirements or more frequent liquidity calls during periods of market stress.

Our read: Regulators are aggressively "fortifying the pipes" of the global financial system, which will likely increase the cost of clearing and the amount of idle capital firms must hold.

Technical updates to EU regulatory information

Finally, the EU has finalized two sets of technical standards that affect how corporate and regulatory data is handled. On August 18, 2026, the Commission published Delegated Regulation (EU) 2026/971, which provides standards on access to regulated information at the Union level. This regulation, which was decided on May 4, 2026, replaces an older 2016 regulation to modernize how the public and regulators access official company data.

Additionally, on August 20, 2026, the Commission published Delegated Regulation (EU) 2026/1282, amending the data to be monitored, reported, and published under Regulation (EU) 2019/1242. This decision was reached on June 12, 2026. These changes are largely administrative, updating the specific data points that firms must report to the Commission. While these are routine updates, compliance officers should ensure their reporting templates are updated to reflect the new Annexes IV and V to avoid technical filing errors.

Our read: These updates are part of the EU's ongoing effort to digitize and standardize regulatory reporting, reducing the reliance on legacy formats.

This overview is informational, not legal or compliance advice. Consult your lawyer or compliance specialist on specific decisions.