Derivatives, Legislative and Regulatory Weekly Update (August 29, 2025)
Client Alert | August 29, 2025
From the Derivatives Practice Group: This week, Commissioner Johnson announced that she will depart the Commodity Futures Trading Commission on September 3. Acting Chairman Pham will be the sole remaining Commissioner.
New Developments
Commissioner Kristin Johnson Announces Departure from CFTC. On August 26, Commissioner Kristin Johnson, who joined the CFTC more than three years ago, announced that she will depart the agency later this year. Her term of service ended earlier this year in April 2025, and her last day at the Commission will be on September 3, 2025. Following Commissioner Johnson’s departure, Acting Chairman Pham will be the sole remaining Commissioner. [NEW]
Acting Chairman Pham Announces FBOT Advisory to Provide Regulatory Clarity for Non-U.S. Exchanges. On August 28, the CFTC’s Division of Market Oversight today issued an advisory to reaffirm the foreign board of trade (“FBOT”) registration framework for non-U.S. entities legally organized and operating outside the United States that seek to provide persons physically located in the United States with direct market access to their trading platforms. The advisory provides a reminder that a FBOT must be registered with the CFTC in accordance with the procedures, requirements, and conditions set forth in the Part 48 rules. The CFTC’s FBOT registration framework applies to all markets, regardless of asset class, and includes both traditional and digital asset markets. [NEW]
CFTC Enhances Market Oversight with Advanced Surveillance Technology Platform. On August 27, the CFTC announced that it is enhancing its market surveillance and fraud detection capabilities by deploying Nasdaq’s industry-leading suite of surveillance technology. As the CFTC embraces an expanding regulatory remit, Nasdaq’s Market Surveillance platform will support the agency’s mission to promote market integrity. The upgraded technological capabilities follow CFTC Acting Chairman Caroline D. Pham’s pledge in March to secure an enhanced market surveillance system as part of a broader effort to modernize the agency and replaces the CFTC’s ‘90s-era legacy system. [NEW]
Acting Chairman Pham Announces Next Crypto Sprint Initiative. On August 21, CFTC Acting Chairman Caroline D. Pham announced that the CFTC will begin its next crypto sprint initiative to implement the recommendations in the President’s Working Group on Digital Asset Markets report. Starting August 21, Acting Chairman Pham will begin stakeholder engagement on all other report recommendations for the CFTC. She announced CFTC’s crypto sprint earlier in August.
New Developments Outside the U.S.
ESMA and the European Environment Agency Sign Memorandum of Understanding to Strengthen Cooperation in Sustainable Finance Area. On August 20, ESMA and the European Environment Agency (“EEA”) signed a Memorandum of Understanding (“MoU”) whose purpose is to strengthen cooperation in sustainable finance. The MoU focuses on environmental factors and their integration in the EU sustainable finance framework, including the supervision of the framework. The MoU also outlines how ESMA and the EEA will exchange expertise, information and data with one another and support mutual capacity building activities.
New Industry-Led Developments
ISDA and Joint Trades Submit Letter to BCBS Calling for Recalibration of Cryptoasset Prudential Standards. On August 25, ISDA, in partnership with a coalition of leading global financial trade associations (“Joint Trades”), and with advisory support from Boston Consulting Group, Ashurst, and Sullivan & Cromwell, submitted a letter to the Basel Committee on Banking Supervision (“BCBS”). The letter called for a pause and recalibration of the Cryptoasset Exposures Standard (i.e., SCO60). The Joint Trades urged BCBS to delay the implementation of SCO60, currently scheduled for January 2026, to allow time for a targeted consultation and redesign of the framework. The letter also argued that the current standard imposes overly conservative and punitive capital requirements that do not accurately reflect the actual risks of cryptoassets and are inconsistent with established market risk practices. The letter emphasized the need for a more balanced approach that aligns with actual risk profiles and encourages responsible innovation within the regulatory framework. [NEW]
ISDA Responds to CDSC Consultation on Common Carbon Credit Data Model. On August 12, ISDA responded to a consultation from the Climate Data Steering Committee (“CDSC”) on a Common Carbon Credit Data Model. ISDA members believe the Group-of-20 carbon data model initiative is a positive step in addressing data gaps and interoperability from a top-down perspective. The response supports the setting up of a standard global carbon data taxonomy with appropriate ongoing maintenance and oversight through global industry bodies and a consensus process, which can be a more lasting and durable solution overall.
ISDA and FIA Respond on Australian Clearing and Settlement Facility Resolution Regime. On August 11, ISDA and the Futures Industry Association (“FIA”) submitted a joint response to the Reserve Bank of Australia (“RBA”) on its consultation on guidance for Australia’s clearing and settlement facility resolution regime. The associations welcome publication of the draft guidance, which provides greater clarity and transparency on the RBA’s approach to the resolution of clearing and settlement facilities in Australia. However, the associations encourage the RBA to provide greater detail on certain aspects of its approach to resolution, including explicit assurance that the power to direct a central counterparty to amend its rules would not be used to amend any rights that any clearing participant has to terminate contracts with or take other action against a clearing house and, more broadly, under what circumstances the RBA would use this direction power.
The following Gibson Dunn attorneys assisted in preparing this update: Jeffrey Steiner, Adam Lapidus, Marc Aaron Takagaki, Hayden McGovern, Karin Thrasher, and Alice Wang*.
Gibson Dunn’s lawyers are available to assist in addressing any questions you may have regarding these developments. Please contact the Gibson Dunn lawyer with whom you usually work, any member of the firm’s Derivatives practice group, or the following practice leaders and authors:
Jeffrey L. Steiner, Washington, D.C. (202.887.3632, jsteiner@gibsondunn.com)
Michael D. Bopp, Washington, D.C. (202.955.8256, mbopp@gibsondunn.com)
Michelle M. Kirschner, London (+44 (0)20 7071.4212, mkirschner@gibsondunn.com)
Darius Mehraban, New York (212.351.2428, dmehraban@gibsondunn.com)
Jason J. Cabral, New York (212.351.6267, jcabral@gibsondunn.com)
Adam Lapidus, New York (212.351.3869, alapidus@gibsondunn.com )
Stephanie L. Brooker, Washington, D.C. (202.887.3502, sbrooker@gibsondunn.com)
William R. Hallatt, Hong Kong (+852 2214 3836, whallatt@gibsondunn.com )
David P. Burns, Washington, D.C. (202.887.3786, dburns@gibsondunn.com)
Marc Aaron Takagaki, New York (212.351.4028, mtakagaki@gibsondunn.com )
Hayden K. McGovern, Dallas (214.698.3142, hmcgovern@gibsondunn.com)
Karin Thrasher, Washington, D.C. (202.887.3712, kthrasher@gibsondunn.com)
Alice Yiqian Wang, Washington, D.C. (202.777.9587, awang@gibsondunn.com)
*Alice Wang, a law clerk in the firm’s Washington, D.C. office, is not admitted to practice law.
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