Lianna Inthavong – Global Investment Law Watch

United States: Second Circuit Applies Loper Bright to Reject Reliance on SEC Definition of Investment Adviser in Enforcement Action

Feb 27 2026

By: Thoreau A. Bartmann, Theodore L. Kornobis, and Varu Chilakamarri

The SEC has long taken the position that the “expectation” of receiving profits can satisfy the “receipt of compensation” element needed to be an investment adviser. In an important new summary order, and one of the first applying Loper Bright to the SEC, the Second Circuit vacated Advisers Act liability after concluding that courts must independently construe the statutory definition of “investment adviser” rather than defer to the SEC’s interpretation. The decision has potential implications whenever the SEC relies on its own interpretations of the securities laws in enforcement proceedings.

United States: Predicting the Future of Prediction Markets

Jan 28 2026

By: Todd S. Fishman and Sarah V. Riddell

Prediction markets—once a niche for political mavens and crypto enthusiasts—are gaining traction as platforms become regulated entities and gamified tools attract a broader audience.

United States: Disgorgement Debate: Supreme Court to Hear Sripetch v. SEC

Jan 15 2026

By: Hayley Trahan-Liptak, Christopher F. Warner, and Bridget K. McKelvey

The Supreme Court will soon once again weigh in on the US Securities and Exchange Commission’s (SEC) enforcement powers, this time addressing whether disgorgement is available without showing that victims suffered pecuniary harm. Last week, the Supreme Court agreed to hear SEC vs. Sripetch, et al., a Ninth Circuit decision affirming a disgorgement award despite the SEC’s failure to demonstrate defrauded investors suffered pecuniary harm.¹

Europe: UK FCA Looks to Accelerate Fund Tokenisation and Direct Dealing

Dec 01 2025

By: Andrew J. Massey, Kai Zhang, and Zainab Kuku

The FCA has published Consultation Paper CP25/28 with a view to accelerating the adoption of tokenisation by UK authorised funds. The consultation also proposes changes to allow direct dealing models, which would facilitate tokenisation as well as improve the operating environment for UK authorised funds generally.

United States: Giddy-Yup: SEC Approves Y’all Street’s Hometown Exchange

Oct 06 2025

By: Jennifer R. Gonzalez, Jessica D. Cohn, and William F. Cole

On 30 September 2025, the eve of the government shutdown, the Securities and Exchange Commission (SEC) issued an order granting the Texas Stock Exchange LLC’s (TXSE) registration as a national security exchange (the Order). TXSE, headquartered in Dallas, is the first national securities exchange to receive SEC approval in decades.

United States: No-Action Relief Issued for Crypto Custodied with State Trust Companies

Oct 01 2025

By: Keri E. Riemer, Richard F. Kerr, and Win Gustin

On 30 September 2025, the SEC’s Division of Investment Management (Staff) issued a no-action letter confirming that, with respect to the placement and maintenance of crypto assets, it would not recommend enforcement action if investment advisers, registered investment companies and business development companies (BDC) treated as a “bank” (and thus permitted to custody assets) a trust company organized under state law that is (i) supervised and examined by a state authority with supervision over banks, and (ii) permitted to exercise fiduciary powers under applicable state law (State Trust Company). The relief is subject to various conditions, including the following:

United States: The SEC “Flexes” Its (De)Regulatory Agenda

Sep 05 2025

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

The SEC’s latest regulatory agenda has officially been unveiled, and according to Chair Atkins the “regulatory agenda reflects that it is a new day” at the SEC. The regulatory agenda not only aims to clarify the regulatory framework for cryptocurrencies but also focuses on proposals to reduce compliance burdens and facilitate capital formation, including by providing investor access to private businesses.

United States: The White House Working Group on Digital Asset Markets Report: Establishing Clear Regulation Based on a Digital Assets Taxonomy

Aug 19 2025

By: Sarah V. Riddell and Vivian K. Bridges

The President’s Working Group on Digital Asset Markets Report (the Report) emphasizes that a clearly defined taxonomy is essential for establishing a regulated digital asset market and identifying the appropriate federal regulator (i.e., the SEC or CFTC) based on a digital asset’s functions.

United States: US$12.2 Trillion Opportunity–Executive Order Paves the Way for Easier 401(k) Plan Access to Alternative Investments

Aug 08 2025

By: Ruth E. Delaney, Robert L. Sichel, and Jennifer L. Klass

On 7 August 2025, President Trump signed an executive order intended to modernize the 401(k) investment universe, directing the Secretary of Labor to clarify the US Department of Labor’s (DOL) position on fiduciary duties in connection with offering products containing exposure to alternative assets to defined contribution plans, such as 401(k) plans, potentially establishing “appropriately calibrated safe harbors” for such investments. The order also directs the Securities and Exchange Commission (SEC) to ease access to alternative assets for such plans by revisiting applicable regulations and guidance, including that related to accredited investor and qualified purchaser status.

United States: The Great SEC Spring Clean Up–14 Proposals Wiped Away

Jun 13 2025

By: Lance C. Dial, Keri E. Riemer, and Lael R. Franco

Spring is a time of renewal, and the US Securities and Exchange Commission (SEC)–under its new chairman, Paul Atkins–has shown that. On 12 June 2025, the SEC withdrew 14 proposed rules impacting funds and asset managers, including several that had been vigorously opposed by the industry. A complete list is below, but highlights include proposed rules relating to safeguarding (custody), predictive data analytics (AI), ESG-related disclosures, outsourcing and cybersecurity.

Author:Lianna Inthavong