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UK expands regulatory and infrastructure plans for digital finance

The Bank of England plans to publish draft rules for systemic stablecoins in June, as part of the UK’s broader digital asset regulatory framework.

Deputy Governor Sarah Breeden outlined the plans during the City Week conference in London.

According to officials, regulators are reviewing earlier proposals following industry feedback related to compliance and market impact. The proposals may include limits on overall stablecoin issuance and requirements for banks issuing stablecoins through separate legal entities.

Authorities are also considering branding requirements intended to distinguish stablecoins from insured bank deposits.

Breeden also referred to growing institutional interest in tokenised financial markets and distributed ledger-based settlement systems.

Several financial institutions, including HSBC, Euroclear, and London Stock Exchange Group, are expected to participate in the UK’s digital securities sandbox later this year.

Alongside private-sector initiatives, the Bank of England is also upgrading its Real-Time Gross Settlement infrastructure and exploring pilot projects involving tokenised government debt instruments. Authorities additionally aim to extend settlement operating hours toward near-continuous availability by the early 2030s.

Why does it matter?

The UK’s push to regulate stablecoins and support tokenized finance highlights how major economies are increasingly competing to become leading hubs for digital financial innovation.

Decisions taken by the Bank of England could influence how traditional banking, payments, and capital markets evolve globally as governments and institutions move toward blockchain-based financial infrastructure.

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European Commission opens consultation on crypto-assets regulation

The European Commission has launched a public consultation on the functioning of the EU’s Markets in Crypto-Assets Regulation, seeking feedback from stakeholders and the wider public as digital asset markets continue to evolve.

Implemented in 2024, MiCA established the EU’s harmonised regulatory framework for crypto-assets and related services. It covers crypto-assets, asset-referenced tokens, e-money tokens, stablecoins, their issuers and crypto-asset service providers operating across the bloc.

The Commission said crypto-asset markets and the wider policy landscape have continued to expand since MiCA was developed. It is assessing whether the current framework remains fit for purpose in light of market and international regulatory developments.

The consultation seeks feedback on MiCA’s main building blocks. It includes a public questionnaire for individuals and a targeted consultation covering more technical and legal questions for stakeholders such as digital asset issuers and service providers, financial institutions, technology providers, academia, think tanks, industry bodies, consumer organisations and the EU public authorities.

Feedback submissions are open until 31 August. The Commission said the responses will inform its future policy work on digital assets.

Why does it matter?

The consultation shows that crypto regulation is entering a more adaptive phase, in which policymakers are assessing whether existing rules can keep pace with evolving markets and international approaches. Any future adjustment to MiCA could affect stablecoin issuers, crypto service providers, investors and wider digital finance policy in the EU, while also influencing regulatory debates in other jurisdictions.

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PARITY Act pushes new US crypto tax relief framework

A bipartisan group of US lawmakers has introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields Act, known as the PARITY Act, as Congress continues expanding its focus on cryptocurrency regulation and taxation.

Representatives Steven Horsford, Max Miller, Suzan DelBene and Mike Carey introduced the proposal on 19 May, calling for clearer and more practical tax standards for digital assets. Supporters say the bill is intended to provide clarity, consistency and guardrails for the taxation of digital asset activities.

The proposal would create a deemed-basis rule for regulated, dollar-pegged payment stablecoins, treating certain digital dollars used like cash as cash for tax purposes. Lawmakers say the measure is designed to reduce administrative burdens for the Internal Revenue Service, provide consumer relief in routine transactions and prevent misuse through trading or arbitrage activity.

The bill would also provide tax certainty for foreign investors trading on US digital asset platforms, extend securities-lending tax principles to qualifying digital asset loans and apply anti-abuse provisions such as wash-sale and constructive-sale rules to digital assets.

Additional provisions would align the tax treatment of professional digital asset dealers and active traders with existing securities markets by allowing a mark-to-market election. The bill would also address the ‘phantom income’ issue for miners and stakers by creating an election for when digital asset rewards are taxed, modernise charitable contribution rules for digital assets and clarify that passive protocol-level staking by investment funds is not a trade or business.

The measure arrives as Congress debates broader cryptocurrency legislation linked to market structure and stablecoin oversight, including the CLARITY Act. Together, the proposals show how US lawmakers are increasingly addressing digital assets through taxation, consumer protection, market integrity and financial regulation.

Why does it matter?

Crypto taxation remains one of the main barriers to wider digital asset use, especially for stablecoin payments, staking, lending and routine transactions. The PARITY Act would aim to make tax treatment more predictable while applying anti-abuse rules to digital assets that are more closely aligned with traditional financial markets. Its impact would depend on whether Congress can integrate tax reform with wider debates on stablecoins, market structure and investor protection.

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Meta reportedly cuts 8,000 jobs as AI investment and restructuring accelerate globally

Meta is reportedly cutting about 8,000 jobs globally as part of a restructuring aimed at reducing costs while increasing spending on AI infrastructure and products.

According to media reports, the cuts represent about 10% of Meta’s workforce and are intended, in part, to offset the cost of the company’s expanding AI investments. The reductions are expected to affect engineering and product teams in particular, with employees in several regions notified as the restructuring begins.

Reports also indicate that around 7,000 employees are being reassigned to new AI-focused teams, while thousands of open roles have been closed. The restructuring reflects Meta’s effort to redirect resources towards AI products, infrastructure and agent-based tools across its platforms.

In Ireland, reports said around 350 jobs were affected, representing a significant share of Meta’s local workforce. The company has not publicly confirmed all regional figures, but said affected employees and authorities had been notified.

The cuts come as Meta prepares for a major increase in AI-related capital expenditure. Reports say the company expects spending to rise sharply in 2026 as it builds infrastructure for AI models, personalised assistants and other AI-powered features across Facebook, Instagram, WhatsApp and its wider product ecosystem.

Staff concerns have also emerged around the pace of restructuring, internal communication and workplace monitoring linked to AI development. Reports cited employee unease over plans to monitor computer activity as part of AI training practices.

Why does it matter?

Meta’s restructuring shows how major technology companies are reallocating labour and capital around AI. The reported job cuts are not only a cost-saving exercise, but part of a wider shift in which companies are redirecting resources towards AI infrastructure, automation and agentic systems. The development also highlights a growing tension in the tech sector: AI is being presented as a long-term growth engine, while workers face uncertainty over how that transition will reshape roles, teams and investment priorities.

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Japan backs blockchain and AI-based financial infrastructure proposal

Japan has approved a policy proposal focused on blockchain technology and AI within future financial infrastructure development. The proposal reflects broader efforts to integrate digital technologies into financial systems and economic operations.

According to the proposal, backed by the ruling Liberal Democratic Party and endorsed by the government’s Policy Council, the initiative envisions expanded use of automated and continuously operating digital financial systems.

The proposal, titled the ‘Next-generation AI & Onchain Finance Concept’, envisions a system that enables 24/7 digital commerce through blockchain networks, including those supporting cryptocurrencies such as Bitcoin. The proposal describes blockchain technology as a potential foundation for future financial infrastructure because of its verification and record-keeping features.

The strategy includes consideration of tokenised financial instruments, including tokenised stocks and yen-denominated stablecoins. The proposal also discusses possible tokenisation models linked to the Bank of Japan’s current account deposits.

The Financial Services Agency has been tasked with developing a five-year roadmap to encourage both public and private sector investment in the initiative. Policymakers said the initiative is intended to support financial innovation and the development of programmable financial services.

Why does it matter?

Japan’s move is a major shift in how a leading economy is attempting to merge traditional monetary systems with blockchain and AI, potentially setting a benchmark for other countries exploring programmable finance and tokenised assets.

It could accelerate competition among jurisdictions to define standards for digital financial infrastructure, influencing how central banks, regulators and markets approach the integration of crypto, tokenisation and automated financial systems.

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Spotify verification badges target AI slop and voice impersonation

Spotify has introduced new verification badges for podcast shows and reinforced its impersonation policies as AI tools make it easier to clone voices, imitate creators and produce misleading audio content.

The new Verified by Spotify badge will appear on selected podcast show pages and in search results. According to Spotify, the badge identifies a show as the official presence of a creator, publisher or brand, helping listeners understand who they are hearing and giving creators a clearer way to establish authenticity on the platform.

Also, Spotify said the badge will begin appearing on select shows and expand over the coming months. Eligibility will depend on factors including sustained listener activity, good standing under Spotify’s platform policies and verified audience authenticity, including safeguards against fraudulent or bot-driven listenership.

Spotify is introducing podcast verification badges and stronger impersonation rules as AI slop expands into audio, voice cloning and creator identity. — Image via Magnific

The company also reaffirmed that its policies prohibit unauthorised impersonation, including through AI voice cloning. Spotify said it will remove podcast shows and content that impersonate another creator or host’s likeness without permission, whether through AI-generated voices or other methods.

However, the move shows how concerns over AI slop are expanding from low-quality visual and written content into audio and identity. In podcasting, the issue is not only whether synthetic content is poor quality, but whether listeners can tell when a voice, host or show is authentic.

Spotify framed the update as part of a broader effort to protect creators and give listeners clearer signals about who they are hearing. The company said podcasting depends on trust between creators and audiences, and that authenticity is becoming more complex as AI lowers the barrier to producing and distributing audio content.

Why does it matter?

AI slop is moving beyond visual clutter and into identity. In podcasting, synthetic voices and impersonation can directly affect the creator’s reputation, listener trust and the credibility of audio platforms. Spotify’s verification badges and impersonation rules show how platforms are beginning to respond not only with content moderation, but with identity signals, authenticity checks and stronger creator protections.

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US lawmakers push permanent CBDC ban over surveillance concerns

Republican lawmakers are seeking to permanently block the creation of a US central bank digital currency as the House prepares to consider an amended housing bill later this week.

Representatives Mike Flood and Warren Davidson are pushing to remove language that would allow a restriction on a US CBDC to expire in 2030. Their proposal is intended to prevent what they describe as a future pathway for developing or issuing a digital dollar.

The debate follows earlier House action on the Anti-CBDC Surveillance State Act, sponsored by Representative Tom Emmer. According to Congress.gov, the bill would prohibit a Federal Reserve bank from offering products or services directly to individuals, maintaining accounts for individuals or issuing a central bank digital currency. It would also restrict the Federal Reserve Board from using a CBDC to implement monetary policy or from testing, studying, creating or implementing one, subject to exceptions in the bill.

Debate over central bank digital currencies in the United States has increasingly focused on privacy, financial surveillance and government control over payment systems. Critics warn that a digital dollar could expand state oversight of financial activity, while supporters of CBDC research argue that central bank digital money could modernise payments and support financial inclusion.

Lawmakers backing permanent restrictions have repeatedly cited civil liberties concerns and pointed to China’s digital currency model as a warning against state-controlled digital money. The dispute also reflects a broader divide over whether the future of digital payments should be led by public central bank infrastructure or by private-sector instruments such as stablecoins and other digital assets.

Why does it matter?

The debate could shape the direction of US digital finance policy by limiting the Federal Reserve’s ability to develop or even test a digital dollar. A permanent CBDC restriction would reinforce a policy preference for private-sector payment innovation, including stablecoins and cryptocurrencies, while narrowing the role of public central bank money in future digital payment systems. It also places the United States on a different path from countries that are actively exploring or deploying CBDCs as part of payment modernisation and financial sovereignty strategies.

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White House pushes fintech integration into US banking framework

US President Donald Trump has signed an executive order directing federal financial regulators to review rules and supervisory practices that may be limiting fintech and digital asset firms’ access to traditional financial services and payment infrastructure.

The order says federal regulators should identify regulations, guidance, supervisory practices and application processes that could be updated to support innovation, competition and fintech partnerships with federally regulated financial institutions.

Agencies covered by the review include the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration and the Consumer Financial Protection Bureau.

Within 90 days, regulators must review existing rules and processes affecting fintech firms, particularly small and emerging companies. The review will examine barriers to partnerships with banks, credit unions, broker-dealers, investment advisers and other regulated institutions, as well as application processes for bank charters, deposit insurance, licences, registrations and authorisations.

The order also asks the Federal Reserve Board to evaluate whether uninsured depository institutions and non-bank financial companies, including firms involved in digital assets and other novel financial activities, could receive broader access to Reserve Bank payment accounts and payment services. The review will also cover companies participating directly in real-time payment networks.

The Federal Reserve is asked to assess legal authority, financial stability risks, legal obstacles and possible options for expanding such access where permitted by law. It must also examine whether the 12 regional Federal Reserve Banks apply consistent standards when granting or denying access to Reserve Bank accounts and payment services.

If the Federal Reserve concludes that existing law allows direct access for covered firms, the order asks it to establish transparent application procedures and make decisions on complete applications within 90 days.

The order comes amid continued pressure from fintech and digital asset companies seeking clearer pathways into core financial infrastructure. The White House said the policy aims to reduce unnecessary barriers to entry while balancing innovation with safety and soundness, consumer and investor protection, market integrity and financial stability.

Why does it matter?

The order could reshape how fintech and digital asset firms interact with the US banking system, but only if regulators conclude that broader access is legally and prudentially viable. Its significance lies in putting bank partnerships, licensing processes and Federal Reserve payment access under formal review, potentially opening new pathways for non-bank financial companies while raising questions about oversight, financial stability and the boundaries between banks and fintech firms.

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OECD review highlights growth and regulatory challenges in ASEAN digital trade

The OECD has published a Digital Trade Review of the Association of Southeast Asian Nations, examining regional growth in digital trade and related regulatory challenges. According to the report, ASEAN digital trade exports reached approximately US$387 billion.

The OECD said ASEAN benefits from trade openness, increasing digital adoption, and evolving regional policy initiatives. The report noted that uneven participation and fragmented domestic regulations may limit further digital trade integration across the region.

The review identified barriers, including restrictions affecting cross-border data flows, telecommunications, digital services, and trade facilitation systems. The OECD highlighted the importance of regulatory alignment and progress towards paperless trade systems.

The report also discussed opportunities related to AI adoption, including reforms linked to tariffs, data flows, and digital services regulation. These findings underline the importance of coordinated reforms to strengthen ASEAN’s role in the global digital economy.

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US crypto usage rises to 10% in 2025, Fed reports

Crypto adoption in the United States rose to 10% of adults in 2025, up two percentage points from the previous year, according to the Federal Reserve’s latest report on the economic well-being of US households.

The figure marks a rebound from 7% in 2023 and 8% in 2024, though it remains below the 12% recorded in 2021, when the survey first asked about cryptocurrency. The Federal Reserve notes that its online survey may include respondents who are more technologically connected than the overall population.

The data shows that crypto is used far more commonly as an investment tool than as a payment method. Around 9% of adults bought or held cryptocurrency as an investment in 2025, while 2% used it to buy something or make a payment, and 1% used it to send money to friends or family.

Among adults who used cryptocurrency for financial transactions, the most common reason was that the recipient preferred cryptocurrency. Other reasons included faster transfers, privacy and lower cost.

Transactional crypto use remained more common among unbanked adults, with 6% using cryptocurrency for financial transactions compared with 2% of banked adults. The Fed also found higher transactional use among adults who used nonbank check cashing or money orders. However, it stressed that crypto use for transactions remained very low even among those groups.

Why does it matter?

The Fed’s data show that crypto use in the United States is rebounding, but it still primarily functions as an investment rather than a mainstream payment tool. Payment use remains limited, including among adults who are more likely to rely on nonbank financial services, suggesting that digital assets have not yet become a broad alternative to traditional payment systems.

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