Global Investment Law Watch – Exploring the legal and regulatory issues affecting the worldwide investment community.

United States: Hold on! SEC Proposes Updates to Custody Rules

Oct 02 2026

By: Thoreau A. Bartmann, Lance C. Dial, Jon-Luc Dupuy, and Pablo J. Man

The United States Securities and Exchange Commission (SEC) has long been concerned with investment advisers having access to client assets and investment companies’ safeguarding of fund assets. The custodial framework for investment companies dates back to 1941, and Rule 206(4)-2 (the Custody Rule) for investment advisers was adopted in 1962. Despite amendments and SEC staff guidance over the years, critics argue these rules have not been sufficiently flexible to evolve with modern markets, particularly digital assets.

United States: Open (Hand)book for SEC Exams: A Useful Tool for the Uninitiated

Oct 02 2026

By: Pablo J. Man, Neil T. Smith, and Hayley Trahan-Liptak

A call from the Staff at the Division of Examinations (Exams) of the Securities and Exchange Commission (SEC or the Commission) notifying a registrant of an exam has long induced uncertainty and concern, even though exams generally follow a standard playbook. Stating a goal of increased transparency and productivity, the SEC released The SEC Exam Handbook: A Practical Guide on Process and Engagement (the Handbook), which outlines a roadmap for examinations and the Commission’s expectations for registrants. For registrants who have been examined before, there will be no surprises.

United States: SEC Moves to Open Private Markets to Retail Investors

Oct 01 2026

By: Jon-Luc Dupuy, Timothy C. Foley, Hannah J. Munro, and Jordan A. Knight

On 30 September 2026, the SEC proposed rule amendments advancing Chairman Paul S. Atkins’ “responsible retailization” of private markets, expanding retail access to private-market strategies while adding key investor safeguards.

United States: ETFs, 351, and other Good Stuff: A Ruling and a Notice

Sep 29 2026

By: Joel D. Almquist, Edward B. Baer, and Kevin R. Gustafson

Official guidance from the IRS on Monday 28 September 2026, followed through on comments made by IRS and Treasury officials at a meeting of the Wall Street Tax Association (WSTA) back in July.

United States: Don’t HODL the Questions: SEC Staff Answers Questions on Crypto Taxonomy

Sep 29 2026

By Thoreau A. Bartmann, Lance C. Dial, and Sarah V. Riddell

The SEC and its staff continue their efforts to clarify the somewhat murky regulatory environment for crypto assets. On Friday, 25 September 2026, the staff of the SEC’s Division of Corporation Finance issued new FAQs on its March Taxonomy (the “Crypto FAQs”).

United States: Mark My Words: SEC Staff Guidance on Private Credit Valuation

Sep 28 2026

By Thoreau A. Bartmann, Sasha Burstein, Lance C. Dial, Pablo J. Man, and George Zornada

On 28 September 2026, the Chief Accountant and the Director of the Division of Investment Management issued a joint statement on fair valuation of private assets (the “Statement”). On its face, it doesn’t break much ground, as it mostly restates existing guidance. However, the most important thing about this statement may be that it was issued at all. With this statement, the underlying message is clear: the SEC staff is looking for robust valuation policies and procedures coupled with material disclosures.

United States: SEC and CFTC Open Door to Tokenized Markets After Clarity Fails to Advance

Sep 22 2026

By Tamika Bent, Timothy Foley, Sarah Riddell, and Sanjeev Bhasker

The SEC and CFTC have separately granted relief for the advancement of crypto-based trading infrastructure in US markets, in an apparent direct response to Congress’s stalled efforts to move the CLARITY Act forward.

United States: SEC Proposes Modernization Overhaul of Transfer Agent Rules

Sep 16 2026

By Jon Luc Dupuy and Timothy Foley

The SEC is proposing to substantively overhaul the securities transfer agent regulatory framework, which has largely remained unchanged since the paperwork-based system of the mid-1970s. Since this time, modern-day transfer agent operations have expanded in scope and complexity, outpacing rules mainly established prior to the advent of the Internet. Many of the SEC’s proposed changes are designed to technologically neutralize the rules for adaptation to the modern environment, including utilization of distributed ledger technology. However, there are several changes that fund advisers and their transfer agents should specifically note:

United States: Away With Pay to Play?

Sep 03 2026

By: Thoreau A. Bartmann, Lance C. Dial, Jennifer L. Klass, and Pablo J. Man

Sometimes, people like to give money to other people. Sometimes, those other people are politicians. Sometimes those politicians are officials of government entities whose funds investment advisers manage in exchange for compensation. There are lots of reasons someone would give money to politicians, but, over the last almost-sixteen years the SEC made it challenging for employees of investment advisers to give politicians money. Today the SEC has just proposed to undo that.

United States: Mid-Year Prediction Market Report: Uncertainty Prevails Amidst Extraordinary Federal Action

Aug 24 2026

Thoreau A. Bartmann, Tamika P. Bent, Sanjeev Bhasker, Todd S. Fishman, Sarah V. Riddell, and Andrew M. Wright

During the first part of 2026, the US Commodity Futures Trading Commission (CFTC or the Commission) has undertaken a sweeping campaign to protect its asserted exclusive jurisdiction over prediction markets—the markets on which event contracts are traded. This effort includes a set of wide-ranging public remarks by its new chairman outlining a broad regulatory program, a set of lawsuits and case filings across the country, and a series of administrative measures, including proposed rulemakings.