Regulators are advancing significant shifts in digital-asset oversight, with the SEC outlining its “Project Crypto” framework and the IRS opening the door for staking within crypto ETFs. Litigation continues to evolve—from developments tied to FTX and meme-token promotions to actions targeting Bitcoin ATM practices and NFT-related fraud. Market activity remains strong as issuers pursue blockchain-native securities, real-estate developers launch tokenized projects, major platforms consolidate, and corporates expand their Bitcoin holdings.

Regulatory Updates

SEC Lays Out “Project Crypto” Vision
In his November 12, 2025 speech, SEC Chair Paul Atkins outlined the agency’s new crypto strategy under “Project Crypto,” emphasizing a practical regulatory framework grounded in fairness and economic substance. He proposed a clearer token taxonomy that differentiates among digital commodities or network tokens, digital collectibles, digital tools, and tokenized securities, while emphasizing that only the last category should be treated as securities.  

Atkins explained how the Howey test applies in a way that recognizes investment contracts can come to an end. When addressing the question, “How can a non-security crypto asset separate from its original investment contract?” Atkins noted the answer is straightforward: “the issuer either fulfills the representations or promises, fails to satisfy them, or they otherwise terminate.”

Atkins encouraged developing tailored exemptions and regulatory regimes, including potential roles for super-apps and non-SEC trading venues, to promote innovation, capital formation, and clarity for creators, intermediaries, and investors.

SEC Division of Examinations Announces 2026 Priorities
The SEC’s Division of Examinations has released its 2026 priorities, highlighting focus areas for investment advisers, investment companies, and broker-dealers, with attention to fiduciary duty, custody of client assets, compliance with amended Regulation S-P, and overall operational and compliance risks. The priorities also emphasise emerging technology, including the use of algorithmic tools and AI, along with continued scrutiny of cybersecurity practices such as incident response, vendor oversight, and data protection. Notably, the Division did not include a separate crypto or digital-asset category this year, marking a shift from past priority lists. | Read more

IRS Guidance Opens Door for Crypto-ETFs to Stake
The IRS has issued Revenue Procedure 2025-31, which provides a safe harbor allowing publicly traded trusts (like certain crypto ETFs) to “stake” their digital assets without jeopardizing their status as investment or grantor trusts for U.S. income tax purposes. Importantly, they can now distribute staking rewards to investors (either in kind or as cash) on a quarterly basis without triggering entity-level tax issues. | Read more

SEC-CFTC Turf Battle Intensifies as Regulator Floats New Token Classification
A senior Wall Street regulator has signaled that U.S. agencies may soon look to adopt a clearer framework for classifying crypto tokens. The regulator acknowledged that longstanding industry custom calls for more predictable rules. Speaking on the evolving regulatory landscape, the official noted that token classification remains central to determining whether the SEC or CFTC should assume primary oversight. The comments come amid increasing pressure from lawmakers and market participants to harmonize federal approaches to token issuance, trading, and secondary market conduct. The informal preview suggests that regulators may be open to redefining current jurisdictional boundaries, potentially drastically altering compliance expectations across the crypto ecosystem. | Read More

Feds Launch Strike Force to Combat Southeast Asia-Based Crypto Scams
Federal authorities have launched a new “Scam Center Strike Force,” aimed at dismantling large-scale crypto-fraud networks that operate out of Southeast Asia. The authorities are pairing the initiative with fresh sanctions against a Burmese armed group involved in related activities. The interagency task force will be led by the DOJ, FBI, Secret Service, and OFAC. It will target “pig butchering” schemes that use social engineering tactics and forced labor to siphon billions in digital assets from U.S. victims. Officials report that the strike force is already operational and has already seized and forfeited more than $401 billion in illicit crypto and is coordinating actions in Burma, Indonesia, and Thailand. Banking groups have welcomed the effort, noting that it is a critical step toward curbing rapidly escalating crypto-investment scams. | Read More

Litigation Updates

Unusual Hearing Held Ahead of the Trial for Former FTX Executive’s Wife to Determine Whether a Plea Promise was Broken
At a hearing before a Manhattan Federal Judge, former interim Manhattan U.S. Attorney Danielle Sassoon rejected crypto lobbyist Michelle Bond’s claim that prosecutors implicitly promised not to charge her while negotiating a guilty plea with her husband, ex-FTX executive Ryan Salame. Sassoon testified that no such assurance was ever made, emphasizing that any off-book non-prosecution commitment would violate DOJ procedure. Contemporaneous notes from the FTX prosecution team reflected the same. | Read More

“Hawk Tuah” Girl Added to Class Action Lawsuit Against the Creators of Her Meme Coin
Social-media influencer Haliey “Hawk Tuah” Welch has been newly added as a defendant in a federal class-action lawsuit concerning a Solana-based meme token. Previously excluded from the initial complaint, the amendment alleges Welch was paid up to $325,000 (including $125,000 upfront and an additional $200,000 upon promotional milestones) to promote the token, and that she was a “critical component” of a marketing funnel designed to draw retail investors. Importantly, Welch had previously been cooperating with the law firm leading the litigation and was initially left out of the suit. | Read More

AG Claims that 93% of Athena BTC ATM Deposits are Scam-Related
On September 8, 2025, Attorney General Brian L. Schwalb filed suit against Athena Bitcoin, Inc., one of the U.S.’s largest operators of Bitcoin automated teller machines (BTMs), alleging that Athena preyed on vulnerable District of Columbia residents by facilitating scam-funded deposits and charging exorbitant, undisclosed fees. The victims’ median age was 71. | Read More

Youtubers “Nelk Boys” Dealing with Crypto Fraud Claims
A California federal judge refused to dismiss most civil fraud and conspiracy claims against Nelk Boys founders Kyle Forgeard and John Shahidi over their $23 million “Full Send Metacard” NFT offering. The suit, brought by purchaser Trenton Smith, alleges the influencers promised extensive real-world and metaverse perks, including access to business ventures, events, apparel, gyms, and casinos, but never intended to follow through. Judge Fred Slaughter held that Smith pleaded sufficient facts suggesting the defendants planned from the outset to siphon proceeds, pointing to allegations that the Metacard treasury was drained within four months of the January 2022 launch while the defendants continued marketing the NFTs and collecting an additional $4.3 million in royalties. | Read More

Legislative Updates

FDIC to Overhaul Consumer Complaint Procedures
The FDIC announced significant changes to its consumer complaint process. It will be shifting away from its longstanding practice of forwarding complaints to banks towards a more centralized, internal review model. Under this new framework, the FDIC will directly evaluate and triage allegations of misconduct, with a focus on systemic issues and possible violations of consumer protection laws. The agency has emphasized that this new process is designed to enhance consistency, improve regulatory insight, and streamline how consumers interface with federal banking oversight. Moving forward, financial institutions should anticipate more frequent inquiries and potentially heightened scrutiny as the FDIC transitions to this investigative-focused approach. | Read More

Senators Introduce Draft Crypto Bill to Shift Oversight to the CFTC
A new bipartisan Senate discussion draft would significantly reshape the U.S. crypto regulations by transferring major oversight powers from the SEC to the CFTC. Proposed by John Boozman (R-Arkansas) and Cory Booker (D-New Jersey), the bill proposes classifying most tokens as digital commodities, expanding mandatory registration and disclosure requirements, and directing Congress to ensure that the CFTC is properly staffed and bipartisan in composition. The draft mirrors earlier House efforts and reflects the intensifying congressional engagement on market structure reform. However, key disagreements on DeFi and AML provisions remain unresolved. With strong Republican interest and ongoing Democratic negotiations, the bill marks one of the most meaningful steps toward comprehensive federal crypto market legislation to date. | Read More

Market Updates

Figure Technology Files S-1 for Proposed Blockchain-Native Equity Securities Offering
On November 17, 2025, Figure Technology Solutions (NASDAQ: FIGR) publicly filed a Form S-1 registration statement with the SEC for its Series A Blockchain Common Stock, marking the first proposed issuance of fully blockchain-native public equity securities. The Blockchain Stock will exist entirely on the Provenance Blockchain rather than being held with the Depository Trust & Clearing Corporation. The issuance will also feature a unique CUSIP and 24/7 trading capabilities on Figure’s ATS. The convertible shares will be settleable exclusively via blockchain infrastructure and highlight advancing integration of traditional capital markets with on-chain features like lending and stablecoin settlement. I Read More

Trump Organization and Dar Global Launch Tokenized Luxury Resort in the Maldives
On November 17, 2025, the Trump Organization announced a partnership with Saudi-backed developer Dar Global to develop the Trump International Hotel Maldives, featuring 80 ultra-luxury villas, with the project becoming the world’s first fully tokenized hotel development, allowing fractional ownership via blockchain-based digital tokens. This innovative financing model aims to democratize investment in high-end real estate, potentially reducing reliance on traditional debt while expanding access to crypto investors ahead of the resort’s planned 2028 opening. | Read More

Coinbase Acquires Solana-Based DEX Vector to Expand Consumer Trading
Coinbase is continuing its acquisition streak by announcing on November 21, 2025, that it is purchasing decentralized exchange Vector, a Solana-native platform. Coinbase’s stated objective is to integrate advanced on-chain trading tools into its consumer arm and enhance liquidity for perpetuals and spot markets. The deal builds on Coinbase’s aggressive M&A strategy, strengthening its position in high-throughput ecosystems amid growing institutional and retail demand for Solana-based products. | Read More

Bitcoin Treasury Companies Continue Aggressive Acquisition Plans
Amidst downward trends in the price of Bitcoin in recent weeks, companies with significant Bitcoin holdings have continued with expansive acquisition plans. Between November 10-16, 2025, Michael Saylor’s Strategy Inc. acquired an additional 8,178 Bitcoin for approximately $836 million at an average price of $102,171. Hot on the heels of this announcement, Tokyo Stock Exchange-listed Metaplanet approved a $135 million perpetual preferred share offering explicitly aimed at accelerating Bitcoin acquisitions and reinforcing its strategy as Asia’s leading corporate BTC holder.

Kraken Files for U.S. IPO Amid Wave of Exchange Consolidation
On November 20, 2025, cryptocurrency exchange Kraken confidentially submitted paperwork for a potential U.S. initial public offering, signaling plans to capitalize on favorable regulatory shifts and join peers like Coinbase in public markets. The move comes as exchanges pursue growth through listings and acquisitions, highlighting maturation in crypto infrastructure amid heightened investor interest in regulated platforms. | Read More

Recent Insights

Our team continues to monitor rapidly evolving developments in financial regulation, enforcement, and digital assets. Stay informed with deeper insights from our team on the latest legal developments in the digital asset industry.

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