Bank of England Hosts FXJSC Legal Sub-Committee on AI and Crypto Regulation
On 17 March 2026, the Legal Sub-Committee of the London Foreign Exchange Joint Standing Committee (FXJSC) convened at the Bank of England under the leadership of Sharon Blackman from Citigroup to explore regulatory changes in the FX market. Key discussions revolved around the EU Benchmarks Regulation (BMR), the regulation of cryptoassets, and the implications of artificial intelligence (AI). Caroline Dawson from Clifford Chance highlighted the EU's emphasis on essential benchmarks and a new exemption framework for non-central bank benchmarks. The UK plans to identify systemically important benchmarks, with HMT assessing its regulatory structure. The committee also examined the EU Markets in Crypto Assets Regulation (MiCAR) and acknowledged the limitations of current digital asset legislation. AI's potential in FX was acknowledged, with differing regulations in the UK and EU. The committee will revisit the 2018 Competition Guidance and keep an eye on ISDA consultations, with FCA rules anticipated in the summer. A process to appoint a deputy chair was started, with one application submitted. Various financial institutions were represented at the meeting.
Key facts
- Meeting held on 17 March 2026 at Bank of England, Threadneedle Street, London.
- Chaired by Sharon Blackman of Citigroup.
- EU BMR moving to narrower scope, focusing on critical, significant, climate-related, and commodity benchmarks.
- Specific exemption regime emerging for non-central bank benchmarks.
- UK to revert to designating systemically important benchmarks; HMT reviewing framework.
- EU MiCAR focuses on categorization and supervisory responsibilities for cryptoassets.
- Stablecoins may be tested in Digital Securities Sandbox.
- UK treats AI as a tool; EU AI Act imposes transparency requirements.
- FMLC paper: AI has no legal agency; liability remains with human actors.
- Committee to review 2018 Competition Guidance and monitor ISDA consultations.
- FCA rules on UK cryptoasset regulation expected in summer 2026.
- Deputy chair appointment process initiated for Legal Sub-Committee.
- Members include Bank of England, FCA, LSEG, Bank of America, Standard Chartered, Goldman Sachs, Deutsche Bank, JP Morgan, NatWest, HSBC, Clifford Chance, CLS, UBS, Morgan Stanley, XTX Markets.
Entities
Institutions
- Bank of England
- Citigroup
- Clifford Chance
- Financial Conduct Authority
- London Stock Exchange Group
- Bank of America
- Standard Chartered
- Goldman Sachs
- Deutsche Bank
- JP Morgan Chase
- NatWest Markets
- HSBC
- CLS
- UBS
- Morgan Stanley
- XTX Markets
- FXJSC
- HMT
- FMLC
- ISDA
Locations
- London
- United Kingdom
- Threadneedle Street
- EC2R 8AH