☕️Regulatory Reach Around

Good morning.

Global crypto exchange OKX is urging the government to refrain from directly regulating digital assets like stablecoins but has welcomed draft legislation that introduces financial licensing arrangements for products including digital wallets or exchanges that hold assets for customers.

OKX Australia chief executive Kate Cooper told Capital Brief that the platform is supportive of the proposed licensing requirements for "digital asset platforms" and "tokenised custody platforms" led by Treasury. However, the setting of minimum regulatory standards relating to asset holding, transactional and settlement functions, among others, have been left to ASIC to define.

But Cooper has expressed concerns that the two government arms may have inconsistent approaches to their regulatory reach, around the digital assets sector.

She told Capital Brief that the approach taken in the draft bill is more likely to enable industry to “continue to innovate” and to “bring the best of our products that we have globally onto Australian shores”, whereas ASIC’s approach could be "stifling innovation”.

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Market movers

Shares in defence tech company DroneShield fell again Thursday after it revealed that three directors, including CEO Oleg Vornik, sold millions worth of stock during a period when the market was acting on incorrect information about a US contract.

The company blamed the error on its US team and is now reviewing its disclosure policies amid mounting investor pressure.

The quick sync

• Ashurst’s US merger marks a fresh push by top Australian firms into the American legal market. (Capital Brief)

• Trump administration flags concerns over quotas as Labor eyes end-of-year passage. (Capital Brief)

• Sussan Ley’s most detailed defence speech sparks backlash from Liberal MPs after bypassing her defence spokesman Angus Taylor. (Capital Brief)

• Nvidia’s blowout quarter fuels the megacycle-versus-bubble debate driving the AI economy. (Capital Brief)

Trading floor

M&A

• FIRB extends Cosette’s Mayne Pharma takeover review amid factory protection disputes. (Capital Brief)

• Insignia sale to CC Capital delayed pending FIRB and APRA approval. (The Australian)

• Crown sells Melbourne Capital Golf Club to Fox family for $100m. (AFR)

• Startmate’s Michael Batko sells Startup Striders to Currents after LinkedIn call out. (Startup Daily)

• Tavner family sells Doors Plus retail portfolio for $30m. (AFR)

Capital Markets

• A2 Milk raised its FY26 revenue outlook after strong Q1 sales and favourable currency shifts. (Capital Brief)

• Nvidia’s earnings beat sparked a tech rally and eased AI-bubble worries. (Capital Brief)

• Liontown’s first digital spodumene auction drew strong demand and a strong price. (Capital Brief)

• Bruce Buchanan’s adtech company Rokt preps investors for potential multibillion-dollar 2026 exit. (AFR)

• DroneShield defended major director share sales made the same day it issued (and withdrew) an incorrect $7.6m contract announcement. (Capital Brief)

• Rising Healius share price cools private equity interest. (The Australian)

• APRA warns liquidity pressures and risky home lending could amplify financial shocks across super funds and banks. (Capital Brief)

• Rail First secures $439m debt refinancing with global lenders. (AFR)

• Australia ceded hosting COP31 to Turkey, but Bowen will lead the negotiations. (Capital Brief)

• US market pressure is pushing Australian law firms to choose between global expansion or staying independent. (Capital Brief)

• Assembly Funds reopens property fund to raise capital. (AFR)

• Sonic Healthcare shares rise after reaffirming EBITDA guidance and lowering costs. (Capital Brief)

• Worley shares dip as earnings shift to H2 amid restructuring costs. (Capital Brief)

• Barmy Army fans to boost Australian economy by $300m during Ashes. (AFR)

• Charter Hall upgrades FY26 earnings guidance on stronger investment activity. (Capital Brief)

• Barrenjoey grows profitable but ECM market smaller than founders expected. (The Australian)

• ASX tech stocks rally on Nvidia earnings, but AI bubble worries persist. (Capital Brief)

• Monash IVF cuts earnings guidance after patient registrations fall. (AFR)

• ByteDance hits USD480b valuation in share auction amid strong investor interest. (Capital Brief)

• Walmart lifts outlook on strong online sales and shifts listing to Nasdaq. (Capital Brief)

• KKR aims to raise USD15b for new Asia private equity fund. (Capital Brief) (Reuters)

• US adds 119,000 jobs in September; unemployment rises to 4.4%. (Capital Brief)

• OKX backs licensing for exchanges but warns against regulating stablecoins. (Capital Brief)

• Nvidia boosts ASX tech stocks but bubble fears linger. (Capital Brief)

VC 

• ByStorm Beauty wins $30,000 in government-backed women founder program. (Startup Daily)

People moves

• Meta’s chief AI scientist Yann LeCun is leaving Meta to start an AI venture focused on advanced machine intelligence. (Capital Brief)

• HSBC’s Anita O’Brien joins Commonwealth Bank after regional restructure. (AFR)

• CSIRO to cut 350 research jobs amid stagnant government funding. (Startup Daily)

• Entain cuts 10% of staff, ends nine-day fortnight to save $60m. (AFR)

• Magellan’s global equities chief Arvid Streimann quits after an internal probe, pushing shares lower. (Capital Brief)

• Greg Meyerowitz narrowly retains Deep Yellow board seat amid CEO exit controversy. (AFR)

• Mineral Resources scraps CEO transition plan, keeping Chris Ellison while redesigning succession program. (Capital Brief)

The watercooler