FinTech & Digital Currencies – Global Investment Law Watch

United States: Did you Predict This? Why Prediction Markets may be Your Next Compliance Headache

Apr 03 2026

By: Thoreau A. Bartmann, Lance C. Dial, Todd S. Fishman, Pablo J. Man, and Sarah V. Riddell

Prediction markets and event contracts have gone mainstream. Prediction market platforms offer contracts on virtually any event you can imagine, and increasingly advisers and their personnel, including portfolio managers, are signing up. If your compliance program hasn’t caught up to the issues that prediction markets raise, you may have a problem you don’t know about yet.

United States: A Place for Every Token and Every Token in its Place: The SEC “Airdrops” Its New Crypto Taxonomy

Mar 18 2026

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

On 17 March 2026, the SEC and CFTC issued a joint interpretive release establishing a formal taxonomy for crypto assets and when such assets are securities under federal law, which is a critical analytical point in determining if regulations apply. While the release is an interpretation of existing laws, and not a final rulemaking, it is a major step toward a durable crypto regulatory regime.

United States: NFA Updates Digital Asset Obligations

Oct 22 2025

By: Sarah V. Riddell, Cheryl Isaac, and Gustavo De La Cruz Reynozo

On 17 October 2025, the National Futures Association (NFA) announced that it will be eliminating interpretive guidance requiring digital assets-related disclosure obligations for NFA members. The NFA Board unanimously concluded that NFA Interpretive Notice 9073 (Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities), which was originally adopted by the NFA to require members to disclose specific risks associated with their digital asset activities and inform customers that the NFA does not have jurisdiction over spot digital assets, was outdated and should be reevaluated. The NFA expects to propose updated disclosure requirements in the future after it receives input from impacted members. In the meantime, commodity pool operators (CPOs) and commodity trading advisors (CTAs) remain obligated to appropriately disclose material risks related to their offerings (regardless of asset class).

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: Going for Two! SEC Approves Multi-Crypto Asset ETP

Aug 01 2025

By: Rich Kerr and Keri Riemer

On 29 July 2025, the US Securities and Exchange Commission (SEC) approved a proposed rule change to list and trade shares of a multi-crypto asset exchange-traded product (ETP), under NYSE Arca Rule 8.201-E. This marks the first time that the SEC has approved the listing of an ETP that will invest in more than one type of crypto asset on a spot basis; until now, the SEC has only approved listing rules permitting single crypto asset ETPs to be listed. The approved multi-crypto asset ETP (the Trust) will invest in both bitcoin and ether on a spot basis.

United States: In Cash or In-Kind—SEC Approves Options for Creations and Redemptions of Crypto ETP Shares

Aug 01 2025

By: Rich Kerr, Keri Riemer, Joshua Durham, and Lael Franco

On 29 July 2025, the US Securities and Exchange Commission (SEC) issued an order approving proposed rule changes to permit various exchange-traded products (ETPs) to engage in creations and redemptions of their shares with authorized participants (APs) on an in-kind basis. The proposed rule changes were submitted by the Nasdaq Stock Market LLC, Cboe BZX Exchange, Inc. and NYSE Arca, Inc. (Exchanges) with respect to the ETPs seeking to engage in in-kind creations and redemptions.

United States: That’s Genius! House of Representatives Passes GENIUS Act of 2025

Jul 18 2025

By: Keri E. Riemer and Richard F. Kerr

On 17 July 2025, the US House of Representatives passed the Guiding and Establishing National Innovation for US Stablecoins of 2025, or the GENIUS Act of 2025. The bill establishes a regulatory framework for payment stablecoins (i.e., digital assets which an issuer must redeem for a fixed monetary value).

United States: Staff Shares Disclosure ABCs for ETPs

Jul 03 2025

By: Keri E. Riemer and Richard F. Kerr

As part of its effort to provide greater clarity on the application of federal securities laws to crypto assets, on 1 July 2025, the SEC’s Division of Corporation Finance (Division) released a statement (Statement) addressing its views about the application of certain disclosure requirements to crypto asset exchange-traded products (ETPs).

Category:FinTech & Digital Currencies