Worldwide: Securities

The SEC has increased the financial thresholds for "qualified client" status under Rule 205-3, affecting when investment advisers may charge performance-based compensation.

The Securities and Exchange Commission (SEC) has proposed the first registration-exempt offering pathway designed specifically for crypto assets. On August 18, 2026, the SEC proposed Regulation Crypto Assets, which would create a tailored securities offering regime for certain investment contracts involving crypto assets (covered investment contracts). The proposal represents the SEC’s first crypto-specific offering framework, signaling the SEC’s intent to establish a structured exemptive regime through rulemaking even as Congress continues to debate comprehensive digital asset legislation.

Consistent with the CFTC’s stated objective of applying the “minimum effective dose” of regulation, the Proposed Rule is intended to reduce duplicative oversight while preserving appropriate protections for sophisticated investors. If adopted, it would provide qualifying SEC-registered investment advisers with relief from CPO and CTA registration with respect to qualifying pools, potentially lowering barriers to participation in the commodity interest markets.

As federal regulators and self-regulatory bodies intensify scrutiny of exaggerated AI capabilities in marketing, companies face mounting enforcement risks from multiple directions. This analysis examines the evolving landscape of AI washing enforcement, from the FTC's Operation AI Comply to SEC securities fraud actions, revealing patterns that expose both B2C and B2B marketers to liability. Understanding these enforcement trends and implementing proactive compliance measures has become essential for organiz

The SEC's Division of Corporation Finance has announced a significant policy shift regarding shareholder proposals under Exchange Act Rule 14a-8, eliminating its longstanding practice of responding to no-action letter requests. Companies must now independently determine whether shareholder proposals may be excluded from proxy materials without the benefit of Division guidance or feedback. This change fundamentally alters the shareholder proposal process that has been in place for decades.

The SEC's proposal to permit semiannual reporting offers public companies greater flexibility over periodic disclosure timing, but market forces and investor expectations may keep quarterly reporting as the dominant practice. Survey data reveals that most companies would either maintain Form 10-Q filings entirely or continue quarterly earnings releases while adopting semiannual SEC filings, raising questions about whether the regulatory change will meaningfully reduce compliance burdens or simply shift

This weekly digest from Lowenstein Crypto examines critical regulatory developments shaping the digital asset landscape, including the SEC's upcoming meeting on crypto asset regulation, major enforcement actions against alleged fraud schemes, and the OCC's renewed openness to chartering banks engaged in digital asset businesses. The analysis covers pivotal legal battles over Federal Reserve master account access and a landmark lawsuit against North Korea over a $1.5 billion exchange hack.

The Business Court of Texas recently issued its first published opinion interpreting the Texas Securities Act (TSA). In Thompson v. Anchor Capital GP LLC, 2026 Tex. Bus. 41 (1st Div. July 1, 2026), the court granted defendants’ motion for partial summary judgment on the plaintiffs’ TSA claim after holding that a secured promissory note was not a security. See id. ¶¶ 1–2, 27–32, 62–63.

The US Treasury repo market faces a fundamental transformation as SEC rules mandate central clearing for most Treasury repurchase transactions by June 2027. This regulatory shift is accelerating buy-side adoption of "sponsored repo" arrangements, requiring firms to navigate new operational frameworks, documentation requirements, and clearing relationships. Understanding the mechanics of sponsored membership and preparing for compliance will be critical for buy-side participants seeking to maintain efficient