1. Changing regulations (and how to deal with it)

The current global regulatory policy cycle has been both as changeable and unpredictable as the weather. We’ve seen a deluge of consultations and policy debates spurred primarily by the EU’s Savings and Investment Union (SIU) policy package and the quest to make Europe more competitive. In the US, the SEC has canned a number of proposals inherited from the prior regime. Simultaneously a large number of growth and innovation type policy decisions including those related to areas such as digital assets and stablecoins, ETF structure, retailization of private markets, and rules such as its Names Rule are yet to be implemented.

Interestingly, both Europe and the US are largely in “deregulation” mode, but it doesn’t feel like that given the fervent debates and amount of consultation and policy analysis. Policies may appear and then disappear as quickly as they emerged (the quickly retracted section 899 of the Trump administration’s ‘Big Beautiful Bill’ for example) and something billed as “simplification,” “burden reduction,” or fostering market growth might merely complicate matters even more (think the EU Omnibus Directive or Securitisation Regulation).

Even framed as de-regulation or beneficial to the industry, there is a significant amount of work involved in any big policy analysis. Turnaround times for debate and comments to policymakers are often short and there is plenty to keep asset management policy watchers on their toes. Unfortunately, that work can be washed away when the proposed changes are dropped on a whim.

Action: Do not be complacent – deregulatory actions involve significant work. Discourse is now relentless. With the ever-changing news and policy cycle, it is important to maintain the ability to react without overreacting.

2. Get caught up with the SIU

The EU’s latest attempt at unjamming its capital markets is up and running in the shape of the Savings and Investments Union (SIU). In classic EU style its already resulted in an avalanche of reports, industry consultations, and calls for evidence.

The intent of the SIU is twofold: unlock citizens bank savings and reroute them into productive market investments to drive the EU’s digital, sustainable, and defence needs, while at the same time helping EU citizens become more financially self-reliant in what is hoped will become a virtuous circle.

However, despite the initial excitement around the change of focus that the SIU represents, the first two policy actions under its banner have largely been met with tepid reactions from market participants. The question will continue to be asked whether the EU really has it in its DNA to be able to regulate for growth and innovation and whether there is a willingness across the board for the EU to utilize its financial markets more effectively. With its “blueprint” for savings and investment accounts now released urging for easy access and tax incentivised investment accounts to be made available and a call for a concerted Financial Literacy campaign across the continent, it now falls to member states to show they can play their role in turning European savers into market investors. If not now, then when?

Action: Europe’s SIU involves an immense suite of policy changes so expect the feed of industry consultations to continue. Stamina and attention are needed as the SIU’s importance shouldn’t be understated. Its success (or failure) will largely dictate the future shape, size, and potential of the European fund markets so it requires serious attention and critical market defining decisions are being shaped now. Stay informed and get actively involved in advocacy groups.

3. Global plans ahead for digital assets and tokenization

While no longer novel, it certainly appears that digital assets and tokenization are entering a period of global maturation, stability, and regulatory clarity.

• Across Europe, the legislative landscape is fast evolving with a mixture of national rulemaking initiatives blending with pan-European frameworks such as Markets in Crypto Assets (MiCA) and DLT Pilot Regime. Switzerland too already has a thriving “Crypto Valley” and solid legislative basis in the shape of its DLT act.
• The US has also moved decisively on framing comprehensive rulemaking with the Genius Act, the Clarity Act, and a bill that would bar the Federal Reserve from establishing a central bank digital currency.
• The United Kingdom also has a comprehensive approach with the Financial Conduct Authority and HM Treasury actively consulting on various areas including the stablecoin issuance framework and crypto asset custody requirements.
• Asia cannot be ignored as many countries consider how to right size their efforts. Singapore stands out with its Project Guardian and its tailored stablecoin framework and multiple DLT projects working in tandem with other country partners.

Action: The shift from talk to policy action, as well as root and branch operational capability assessments is now well underway. Policy frameworks are fast becoming clearer for DLT, digital assets, and tokenization. It’s critical to stay attendant to this area, as a broader switch to digital assets and infrastructure could fundamentally reshape global asset management.