UK law
Bank of England and Financial Conduct Authority issue approach document on joint regulation of systemic stablecoin issuers
The Bank of England and FCA’s approach document sets out how the UK’s new stablecoin regime will operate when a stablecoin issuer becomes systemically important. Under the framework, the FCA will regulate all UK-issued qualifying stablecoins, while issuers whose stablecoins are recognised by HM Treasury as posing potential financial stability risks will be subject to joint FCA and Bank of England supervision. The paper explains how regulatory responsibilities will be divided, how firms will transition from FCA-only regulation to joint regulation, and how new issuers deemed “systemic at launch” will be onboarded. The Bank proposes a proportionate, staged approach, including transitional periods (typically 12–36 months), temporary waivers and scaling arrangements to help firms meet stricter requirements relating to backing assets, capital, reserves, redemption, safeguarding and direct payment-system access. The overall aim is to provide regulatory certainty, support innovation and growth, protect consumers, and safeguard UK financial stability as stablecoin use in payments expands.
FCA issues final crypto rules
The FCA has published its final cryptoasset regime, describing it as a major step towards making the UK a global hub for crypto innovation while strengthening consumer protection and market integrity. The new rules will require crypto firms, including trading platforms, custodians, intermediaries, stablecoin issuers and staking providers, to obtain FCA authorisation and comply with standards on financial resilience, capital requirements, stress testing, market abuse, insider dealing and market manipulation. The framework also introduces dedicated rules for stablecoins, with the FCA simplifying some requirements following consultation, including capital rules and trading requirements tailored to crypto markets. The regime follows legislation that brought cryptoassets within the FCA’s remit in February 2026 and will apply from 25 October 2027, with the authorisation gateway opening on 30 September 2026. The FCA says the framework is intended to provide regulatory certainty for firms while supporting innovation, although it emphasises that crypto remains a high-risk investment and consumers should understand the risks involved.
DRCF Thematic Innovation Hub calls for input on authentication and trust
The Digital Regulation Cooperation Forum (the joint forum of the FCA, CMA, ICO and Ofcom) has launched a call for input on “Authentication and Trust”, seeking views about digital verification and synthetic media/deepfakes. The initiative aims to help regulators understand how emerging technologies can support innovation while maintaining public trust. On digital verification, the DRCF is interested in opportunities and challenges relating to identity verification, customer onboarding, fraud prevention, open finance, smart data, and the growing use of AI agents acting on users’ behalf. On synthetic media and deepfakes, it is seeking evidence on both the benefits (such as personalised services, education, gaming and accessibility) and the risks (including fraud, misinformation, consumer harm and copyright infringement), as well as the effectiveness of tools such as watermarking, provenance frameworks and content labelling. The DRCF is particularly looking for practical examples, case studies and views on where regulatory frameworks may overlap or create friction, with the aim of informing future regulatory work and guidance across its member regulators. The consultation ends on 14 August 2026.
CJC publishes consultation update on use of AI in preparing court documents
The Civil Justice Council has recently published an update on its consultation on the use of AI in preparing court documents, which found broad agreement among respondents that existing professional duties and regulatory frameworks are generally sufficient to govern the use of AI in legal drafting. However, the consultation highlighted witness statements as the key area requiring further consideration, with concerns that AI-generated assistance could alter or influence a witness’s evidence in ways that undermine its authenticity, integrity or reflection of the witness’s own recollection. The working group also plans to examine issues relating to expert evidence and litigants in person, including whether additional transparency or disclosure requirements around AI use may be needed to support the administration of justice. The group will continue its analysis and produce a draft report for the CJC, with a final report expected later in 2026.
Strengthening Ofcom’s regulation of the BBC
Ofcom is proposing changes to how it regulates the BBC. The aim is to strengthen protections for audiences, particularly as people increasingly access BBC content online. It is seeking views on a proposed new code for BBC online material, which would introduce enforceable rules for BBC content posted online, including on BBC websites, apps, social media accounts (including reposts) and educational materials. The aim is to ensure that the BBC’s online material meets similar high standards to those audiences expect from traditional broadcast content, with the proposed rules tailored where necessary to reflect the differences between broadcast and online content. Historically, Ofcom has not had the power to enforce rules for BBC online material. However, it will now have powers to regulate that material fully, including on important issues such as due impartiality and the protection of under-18s. Ofcom’s consultation on the proposed new code, which also includes proposed procedures for handling complaints, investigations and sanctions, ends on 27 August 2026, with final decisions expected later this year. At that time, Ofcom will also publish guidance to accompany the code, explaining how it expects the BBC to apply the new rules in practice. Ofcom is also setting out how it will increase its oversight of BBC complaints. Audiences will still need to complain to the BBC first, but the BBC’s complaint decisions will now be subject to greater transparency and external scrutiny by Ofcom. Ofcom has been given a new duty to regularly review a sample of complaints that reach the BBC’s “stage 2” process, when they are escalated to the BBC’s Executive Complaints Unit. This will help give Ofcom confidence that complaints not brought to Ofcom directly do not raise issues warranting investigation under the Broadcasting Code. Ofcom has published a protocol for how these reviews will be conducted. It covers, among other things, its approach to sample selection, how it will report its findings, and next steps if it identifies issues needing investigation.
EU law
Report highlights importance of Digital Services Act for protection of minors online
The European Commission and Board for Digital Services have published their second annual report on systemic risks and mitigation measures under the Digital Services Act (DSA). It highlighted risks to children and young people online and how the DSA is building an effective long-term approach to combatting such risks. The report provides an overview of systemic risks present on very large online platforms and search engines (VLOPs and VLOSEs). These risks include the spread of illegal content, and the impact of design-related choices, such as recommender systems, which can contribute to or exacerbate risks to child safety online. The report also describes risk mitigation measures used by VLOPs and VLOSEs to combat these risks, ranging from targeted protection measures to user empowerment tools.
Prohibition on Russia Today also applies to websites accessible to the public free of charge
In Case C‑67/25 Traugott Ickeroth, the Court of Justice of the EU held that the EU prohibition on broadcasting content from the sanctioned Russian channel RT (Russia Today) applies not only to traditional broadcasters but also to individuals operating a publicly accessible website that republishes RT content, even where access is free and the site is funded solely through donations. The Court found that the concept of an “operator” covers any person who is directly or indirectly responsible for making prohibited content available, regardless of whether the activity is commercial, profitable, extensive or long-lasting. The ruling arose from German criminal proceedings against three individuals who had repeatedly made RT Germany videos available online. The Court concluded that a broad interpretation is necessary to achieve the EU’s objective of preventing the dissemination of Russian state propaganda and protecting public order and security within the EU.
