Blockchain and Digital Assets News and Trends – September 2025

This periodic bulletin is designed to help companies identify important legal developments governing the use and acceptance of blockchain technology, smart contracts, and digital assets.

While the use cases for blockchain technology are vast, this bulletin focuses on uses of blockchain and smart contracts in the financial services sector. With respect to digital assets, we have organized our approach to this topic by discussing them in terms of traditional asset type or function (although the types and functions may overlap) – that is, digital assets as:

• Securities
• Virtual currencies
• Commodities
• Deposits, accounts, intangibles
• Negotiable instruments
• Electronic chattel paper
• Digitized assets

In addition to reporting on the law and regulation governing blockchain, smart contracts, and digital assets, this bulletin will discuss the legal developments supporting the infrastructure and ecosystems that enable the use and acceptance of these new technologies. 

INSIGHT

Nasdaq proposes rule changes to tokenize equity securities and exchange-traded products

By Michael Fluhr, Era Anagnosti, Eric Forni, David Stier, Christopher Paci, Eric Hall

On September 8, The Nasdaq Stock Market LLC (Nasdaq) filed a Form 19b-4 with the Securities and Exchange Commission (SEC), proposing rule changes that would allow trading of equity securities and exchange-traded products (ETPs) in “tokenized form” on Nasdaq. Read more.

STATUTORY AND AGENCY DEVELOPMENTS

FEDERAL DEVELOPMENTS

SEC

• SEC’s Spring 2025 Regulatory Agenda includes new crypto asset regulations and deregulatory initiatives. On September 4, the SEC announced its Spring 2025 Regulatory Agenda, which introduces potential rule proposals focused on supporting innovation, capital formation, market efficiency, and investor protection. The agenda features plans to clarify the regulatory framework for crypto assets, including rules for the offer and sale of digital assets, and aims to provide greater certainty to the market. Potential rules include amendments to Exchange Act Rules to account for the trading of crypto assets on Alternative Trading Systems and national securities exchanges, rules relating to the offer and sale of crypto assets, potentially to include certain exemptions and safe harbors, and rules under the Investment Advisers Act of 1940 and the Investment Company Act of 1940 to improve and modernize the regulations around the custody of advisory client and fund assets, including crypto assets.

• SEC and CFTC announce coordinated approach to digital asset regulation. On September 5, SEC Chair Paul Atkins and Acting Chair Caroline Pham of the US Commodity Futures Trading Commission (CFTC) issued a joint statement outlining their collaborative efforts to harmonize regulations and foster innovation in financial markets, with a strong focus on digital assets and crypto products. The agencies plan to align product and venue definitions, streamline reporting standards, and coordinate capital and margin frameworks to eliminate regulatory uncertainty that has previously driven novel crypto products overseas. They intend to consider expanding trading hours for digital assets, facilitate the responsible listing of event contracts on prediction markets, and facilitate the onshoring of perpetual contracts that meet investor protection standards. The SEC and CFTC also propose a coordinated framework for portfolio margining to reduce capital inefficiencies and support cross-market strategies. Additionally, both agencies will explore “innovation exemptions” or safe harbors for decentralized finance (DeFi) protocols, enabling peer-to-peer trading of spot crypto assets and derivatives, while maintaining investor protections.

• SEC and CFTC announce joint initiative to clarify crypto spot trading framework. On September 2, the SEC and the CFTC issued a joint statement announcing a coordinated effort to clarify the legal framework for trading certain spot crypto asset products. The statement confirms that current law does not prohibit SEC- or CFTC-registered exchanges from facilitating trading in spot crypto assets, including those involving leverage, margin, or financing, provided they comply with applicable registration and regulatory requirements. The agencies encourage market participants to engage with staff regarding registration, clearing, market surveillance, data dissemination, and investor protections, aiming to foster innovation and fair, orderly markets for digital assets within the US. The announcement credits the President’s Working Group on Digital Asset Markets and its recommendation for regulatory clarity to support blockchain-based innovation domestically. 

CFTC

• CFTC clarifies registration requirements for foreign exchanges offering direct access to US participants, including digital asset markets. On August 28, the CFTC announced that it had issued an advisory reaffirming its registration framework for foreign boards of trade (FBOTs) that provide direct market access to participants located in the US, emphasizing that all non-US exchanges, including those offering cryptocurrency, virtual currency, or digital asset products, must register as FBOTs under Part 48 before granting such access. The advisory distinguishes between domestic boards of trade, which must register as designated contract markets (DCMs), and FBOTs, which operate outside the US and are subject to a separate registration process. The CFTC confirms that its FBOT registration framework applies to all asset classes, including digital assets, and provides a pathway for US traders and companies to legally access global markets for both traditional and digital products. According to CFTC Acting Chair Caroline Pham, the advisory is meant to address recent confusion regarding whether non-US exchanges should register as DCMs or FBOTs, and is a part of the CFTC’s “crypto sprint” initiative.

• CFTC announces next crypto sprint. On August 21, CFTC Acting Chair Caroline Pham announced the next CFTC crypto sprint initiative and invited feedback on the CFTC’s President’s Working Group report recommendations. Feedback and suggestions on the recommendations for the CFTC are invited by October 20.  

FINRA

• FINRA launches crypto and blockchain educational program. On August 25, the Financial Industry Regulatory Authority (FINRA) announced the availability of its Crypto and Blockchain Education Program, “designed to equip financial professionals with a comprehensive education to understand crypto assets and blockchain technology.” The program includes self-paced e-learning (available in October) and an in-person applied learning course in partnership with Georgetown University (available in 2026). Topics include crypto and blockchain terminology, blockchain operations and on-chain transactions, evolution of blockchain, types of crypto assets and related products, crypto ecosystem and markets, key considerations for firms, and common fraud schemes with crypto asset exposure. 

Federal Reserve

• FRB hosting payment innovations conference. On September 3, the Federal Reserve Board (FRB) announced that it will host a Payments Innovation Conference on October 21. The conference will feature panel discussions on several aspects of payments innovation, including the convergence of traditional and decentralized finance, emerging stablecoin use cases and business models, the intersection of artificial intelligence (AI) and payments, and the tokenization of financial products and services. The conference will be livestreamed at www.federalreserve.gov.

• FRB Governor speaks on technological advancements in payments. On August 20, FRB Governor Christopher Waller spoke at the Wyoming Blockchain Symposium 2025 to discuss current payments innovations. The speech covered cryptocurrencies, stablecoins, smart contracts, distributed ledger technology (DLT), and AI. Governor Waller noted the importance of the FRB engaging with innovators to better understand new technologies.

• FRB Vice Chair for Supervision speaks on embracing innovation. On August 19, FRB Vice Chair for Supervision Michelle Bowman spoke at the Wyoming Blockchain Symposium 2025 (see also link at 2:51:35). Vice Chair Bowman outlined the Federal Reserve's approach to technology and tools in the context of banking supervision. She discussed tokenization, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and bank use of AI, and further commented on the removal of “reputational risk” from consideration in the supervisory process. Finally, Vice Chair Bowman discussed principles for building a tailored and proportional regulatory framework, which includes maintaining America’s reputation for providing an open environment for innovation. 

DOJ

• Acting Assistant AG speaks at American Innovation Project Summit. On August 21, Acting Assistant Attorney General (AG) Matthew R. Galeotti spoke at the American Innovation Project Summit to “deliver fair notice and clarity around [DOJ] enforcement priorities.” Assistant AG Galeotti stated that the Department of Justice (DOJ) is “focused on rooting out bad actors from the digital asset ecosystem. We’re doing that so responsible innovators can build and users can act with confidence to take advantage of the opportunities presented by these new technologies.” Specifically, Galeotti noted that the DOJ “will not use federal criminal statutes to fashion a new regulatory regime over the digital assets industry” and “will not use indictments as a lawmaking tool.” Galeotti declared that the DOJ’s “view is that merely writing code, without ill-intent, is not a crime,” and where “software is truly decentralized and solely automates peer-to-peer transactions, and where a third party does not have custody and control over user assets, new 1960(b)(1)(C) charges against the third-party will not be approved. Though, if criminal intent is present, other charges may be appropriate.”

FinCEN

• Chinese money laundering networks exploit US financial system and digital assets for illicit activities. On August 28, the Financial Crimes Enforcement Network (FinCEN) published a report analyzing Bank Secrecy Act data from 2020 to 2024, revealing that Chinese money laundering networks (CMLNs) use a range of methods – including large cash deposits, trade-based money laundering, and front companies – to move illicit proceeds from activities such as drug trafficking, human trafficking, and real estate fraud through the US financial system. The report notes that CMLNs increasingly leverage digital assets and virtual currency, with financial institutions observing electronic deposits from virtual currency addresses and investment vehicles as part of suspicious transaction patterns. CMLNs use these digital channels alongside traditional methods to layer and transfer funds, often obscuring the source and purpose of transactions. The analysis also finds that CMLNs interact with US-based Chinese nationals, daigou buyers (meaning “buying on behalf of”), and students to facilitate these schemes, and that their access to US dollars and digital assets enables them to bypass Chinese capital controls and support global money laundering operations.

STATE DEVELOPMENTS

Virtual currency

• Wyoming intends to be the first state to issue a stablecoin. On August 19, Wyoming announced its plan to issue its own stablecoin, the Frontier Stable Token (FRNT). According to the announcement, an FRNT will be redeemable for one US dollar, and FRNT has been deployed on seven blockchains: Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, and Solana. However, FRNT is not currently available for purchase. The Wyoming Stable Token “Commission does not anticipate selling FRNT directly to the public. Instead, FRNT will be available for purchase through a network of authorized resellers that complete a robust ‘Know Your Business’ review by the Commission.”

Digital assets

• Illinois enacts a digital assets regulatory framework and kiosk registration requirements. On August 18, Illinois Governor JB Pritzker announced his signing of SB1797, the Digital Assets and Consumer Protection Act, and SB2319, the Digital Asset Kiosk Act. The Digital Assets and Consumer Protection Act grants the Illinois Department of Financial and Professional Regulation (IDFPR) “authority to regulate and supervise digital asset exchanges and other digital asset businesses” and “creates strong customer protections in line with those that currently apply to traditional financial services, such as investment disclosures, customer asset safeguards, and customer service standards.” Additionally, “[c]ompanies in the digital asset marketplace will be required to hold adequate financial resources to operate effectively and have plans and procedures for addressing critical risks, including cybersecurity, fraud, and money laundering, consistent with regulations for traditional financial services.” The act defines “digital asset business activity” broadly to include the exchange, transfer, or storage of a digital asset as part of a business or on behalf of a customer who has entered into an agreement with a business for its services, but excludes activities such as software development, certain decentralized finance operations, and transactions regulated by federal securities or commodities laws.
  
  The Digital Asset Kiosk Act places requirements on digital asset kiosk operators, such as requirements to “register with the IDFPR, provide reports that detail all kiosk locations, and provide full refunds to new customers who are victims of scams at kiosks.” Further, the Act caps transaction fees at 18 percent, with daily transaction amounts capped at $2,500 for new customers.
  
  Certain protections in the new laws take effect immediately, and digital asset businesses in Illinois have until July 1, 2027, to register with the IDFPR.

• Alabama securities regulator issues consumer alerts. In August, the Alabama Securities Commission published consumer alerts regarding bitcoin ATMs and crypto exchange-traded funds (ETFs).

INDUSTRY DEVELOPMENTS

• Paxos announces filing of national trust charter. On August 11, Paxos, a blockchain infrastructure and tokenization platform, announced that it “has filed an application to convert its New York Department of Financial Services (NYDFS) trust charter into a national trust charter under the supervision of the Office of the Comptroller of the Currency (OCC).” The announcement asserts that, “An OCC national trust charter will reinforce Paxos’s commitment to maintaining the highest global standards for safety and transparency.” Since 2015, Paxos has operated under oversight from the NYDFS after being granted a limited-purpose trust charter. Paxos issued USDP, its stablecoin, in 2018 under NYDFS oversight.

• Exchanges partner to launch crypto crime response network. TRM Labs, a blockchain intelligence platform, announced on August 20 the launch of Beacon Network, described as “the first real-time cryptocurrency response network.” Beacon Network was built in collaboration with law enforcement and more than 20 exchanges and stablecoin issuers, and is “designed to prevent illicit funds from exiting the blockchain.” Law enforcement agencies globally actively contribute to Beacon Network by flagging addresses tied to critical threats and triggering alerts to help stop illicit actors from cashing out, enabling crypto platforms to proactively review and hold flagged deposits before withdrawal. Affiliate membership is free for verified exchanges and law enforcement partners.

ENFORCEMENT ACTIONS AND LITIGATION

FEDERAL

CFTC

• CFTC orders restitution and trading ban in Voyager digital asset fraud case. On September 15, the CFTC announced that the US District Court for the Southern District of New York issued a consent order against Stephen Ehrlich, former CEO of Voyager Digital Ltd. and related entities, requiring him to pay $750,000 in disgorgement to Voyager customers through bankruptcy liquidation procedures. The court also imposed a three-year registration ban on Ehrlich and prohibited him from managing or advising trading for others, as well as permanently enjoining him from violating anti-fraud provisions of the Commodity Exchange Act and CFTC regulations. The consent order follows a related settlement with the Federal Trade Commission announced last month. 

Department of the Treasury

• Treasury and State Departments target Garantex. On August 14, the Department of the Treasury issued a joint statement with the Department of State announcing the targeting of Garantex, a Russian-operated cryptocurrency exchange, for its involvement in money laundering and facilitating cybercrime, including hacking, ransomware, terrorism, and drug trafficking. The Department of State is offering two rewards, totaling up to $6 million, for information leading to the arrests and/or convictions of the leaders of Garantex, including Aleksandr Mira Serda (also known as Aleksandr Ntifo-Siaw). The Treasury’s Office of Foreign Assets Control (OFAC) announced it re-designated Garantex for processing over $100 million in transactions linked to illicit activities since 2019. OFAC announced it also designated Garantex’s successor, Grinex, and is taking action against three executives of Garantex and six associated companies in Russia and the Kyrgyz Republic that have supported the exchange’s involvement in malicious cyber activities. As part of the action, multiple digital asset public keys were added to OFAC’s Specially Designated Nationals List.

OCC

• OCC lifts Anchorage Digital consent order. On August 18, the Office of the Comptroller of the Currency (OCC) entered an order terminating its 2022 consent order with Anchorage Digital Bank, National Association. The consent order addressed compliance issues regarding Anchorage’s anti-money laundering (AML) program, asserting that the bank lacked internal controls for customer due diligence and procedures for monitoring suspicious activity. The termination order states that the OCC “believes that the safety and soundness of the Bank and its compliance with laws and regulations does not require the continued existence of the [Consent] Order.” See our May 2022 issue for more information on the consent cease-and-desist order.

DOJ

• DOJ seizes more than $2.8 million, including crypto. On August 14, the DOJ announced the unsealing of six warrants authorizing the seizure of over $2.8 million in cryptocurrency, $70,000 in cash, and a luxury vehicle. The cryptocurrency was seized from a wallet controlled by Ianis Aleksandrovich Antropenko, who is charged with conspiring to commit computer fraud and money laundering, and computer fraud and abuse. Allegedly, Antropenko used Zeppelin ransomware to target and attack businesses and individuals.

• Former CEO and CFO of Cred LLC sentenced. On August 29, the US Attorney’s Office for the Northern District of California announced that former Cred LLC executives Daniel Schatt and Joseph Podulka were sentenced to 52 months and 36 months in federal prison, respectively, for wire fraud conspiracy. Each had pleaded guilty to one count of wire fraud conspiracy in connection with their roles in defrauding customers of Cred LLC, a San Francisco-based firm that provided financial services to holders of cryptocurrency and other assets. Schatt and Podulka admitted to misleading customers and investors about Cred’s financial health and risks, particularly after the company's hedging partner withdrew, and a key Chinese partner defaulted on tens of millions of dollars. Cred’s business model involved offering loans backed by customers’ cryptocurrency and promising yield on crypto deposits, with operations relying on high-risk microloans in China and complex hedging strategies. The executives concealed the company’s deteriorating financial position following a sharp drop in bitcoin prices in March 2020, ultimately leading to Cred’s bankruptcy and over $140 million in customer claims, which the government now values at more than $1 billion.

• DOJ seeks forfeiture of over $5 million in bitcoin stolen in SIM swaps. On September 9, the DOJ announced the filing of a civil forfeiture complaint against over $5 million in bitcoin, alleged to be illegally obtained gains from multiple Subscriber Identity Module (SIM) swap attacks against the cryptocurrency wallets of five US victims. The perpetrators laundered the stolen funds through multiple wallets, ultimately consolidating the funds into a single wallet at an online casino.

• USAG seeks forfeiture against over $12 million in crypto in a romance scheme. On September 9, the US Attorney General’s Office for the Northern District of New York announced it filed a civil forfeiture complaint against more than $12 million in tether cryptocurrency relating to a cryptocurrency investment fraud scheme targeting ten female Mandarin-speakers, who collectively lost more than $10.3 million. The complaint alleges that the unidentified perpetrator(s) contacted victims via unsolicited text messages and persuaded them to invest using a fraudulent website, ShakepayEX, designed to mimic a popular Canadian cryptocurrency exchange. Victims were unable to withdraw funds and were provided with fraudulent excuses and demands. Law enforcement used blockchain analysis and other investigative techniques to link the cryptocurrency to the scheme. The Federal Bureau of Investigation (FBI) continues to investigate the case.

• California man sentenced for laundering millions in digital asset scam. On September 8, DOJ announced that Shengsheng He, a California resident, received a 51-month federal prison sentence for laundering over $36.9 million in a digital asset investment scam that targeted US victims. The scheme, operated from scam centers in Cambodia, involved co-conspirators contacting individuals through unsolicited messages and promoting fraudulent digital asset investments, including the use of stablecoin Tether (USDT). He and his associates transferred victim funds through US shell companies, international bank accounts, and digital wallets, ultimately converting the money to USDT and moving it to wallets controlled by individuals in Cambodia. The court ordered He to pay over $26.8 million in restitution, and several co-conspirators, including those managing digital asset conversions and transfers, have pleaded guilty.

• Former CEO charged with $62.5 million investor fraud involving real estate, Broadway shows, and cryptocurrency. On September 9, the US Attorney’s Office for the Central District of California announced charges against Marco Giovanni Santarelli, former CEO of Norada Capital Management, for defrauding over 500 investors of approximately $62.5 million through a promissory note scheme. Santarelli solicited investments by promising high monthly returns from diversified assets, including cryptocurrency and digital assets, as well as real estate and Broadway shows, but instead invested in risky ventures that failed to deliver the promised safety and profitability. He used new investor funds to pay interest to earlier investors, concealed more than $90 million in debt, and inflated asset values on balance sheets. Federal authorities, including Homeland Security Investigations, the FBI, and the SEC, have seized over $5 million in proceeds and continue to pursue additional assets related to the scheme.

• Palm Coast, Florida hacker sentenced to ten years for cryptocurrency theft and fraud. On August 21, the US Attorney’s Office for the Middle District of Florida announced that Noah Michael Urban was sentenced to ten years in federal prison for conspiracy, wire fraud, and aggravated identity theft after Urban stole over $13 million in cryptocurrency from at least 59 victims through SIM swap attacks and hacking. Urban and his associates used stolen personal identification information to access victims' cryptocurrency accounts and wallets, transferring millions in virtual currency to themselves. The court ordered Urban to forfeit approximately $4.8 million in assets, including cryptocurrency, and to pay $13 million in restitution. The FBI investigation uncovered evidence on Urban’s computer linking him to the crimes, including cryptocurrency from the victims’ accounts. 

SPOTLIGHT ON INTERNATIONAL DEVELOPMENTS

• BIS proposes an approach for AML compliance. On August 13, the Bank for International Settlements (BIS) issued “An approach to anti-money laundering compliance for cryptoassets.” Takeaways include:

• Existing AML approaches relying on trusted intermediaries have limited effectiveness with decentralized record-keeping in permissionless public blockchains
• The public transaction history on blockchains can enable AML and other compliance efforts, such as FX regulations, by leveraging the provenance and history of any particular unit or balance of a crypto asset, including stablecoins
• An AML compliance score based on the likelihood that a particular crypto asset unit or balance is linked with illicit activity may be referenced at points of contact with the banking system ("off-ramps"), preventing inflows of the proceeds of illicit activity and supporting a culture of "duty of care" among crypto market participants”

DLA PIPER NEWS

• The Legal 500 ranks DLA Piper. DLA Piper was ranked in Tier 2 for FinTech, and Margo Tank was ranked as a “Leading Partner.”

• Chambers FinTech Legal ranks DLA Piper in four categories, including Band 2 for Blockchain and Cryptocurrencies, and Band 3 for Payments and Lending, with Margo Tank individually recognized in Blockchain and Cryptocurrencies and Payments and Lending.

• DLA Piper’s Commodities, Digital Assets, and Carbon Compliance and Enforcement team draws on decades of collective experience in the commodities and securities industry to help companies navigate new and complex commodities enforcement matters, including those related to agriculture, metals, energy, digital assets, and carbon/sustainable commodities, among others. 

RECENT AND UPCOMING EVENTS

• As part of DC Fintech Week, Global Digital Finance (GDF) and DLA Piper will be hosting a public/private sector roundtable on October 14. The roundtable will cover key topics for the continued development of US crypto legislation. For event details and information, contact Margo Tank.

• David Stier presented as part of a panel on the Practising Law Institute’s CLE webinar "The GENIUS Act and Stablecoins – A Look Ahead" which features leading voices in digital assets law to unpack how the GENIUS Act reshapes stablecoin regulation, licensing, AML/sanctions compliance, and the US’s role in global payments. The CLE was recorded on August 21 and is available here.

• Era Anagnosti moderated a panel discussion on Crypto Treasury Strategies: What You Should Know on September 18, at 12pm EST, hosted by Deal Flow Events. The panel discussed treasury strategies regarding various types of digital assets, including objectives and key considerations, measuring performance, deal structures, capital formation, regulatory and governance considerations, microcaps, and exchange-traded funds (ETFs). 

PUBLICATIONS

• DLA Piper published the newest edition of its Global Influencer Marketing Guide. The guide was prepared by DLA Piper’s global Advertising Team and covers key aspects of influencer marketing across 31 jurisdictions. It can be a useful reference tool when working with influencers across the globe.

• DLA Piper published its global financial services report, Financial Futures: Disruption in US and Global Financial Services, after asking nearly 800 financial services decision-makers around the world about key disruptors impacting senior leaders in financial institutions and fintechs. Access our report and read about the challenges and opportunities that AI; digitization; and environmental, social and governance (ESG) pose for the financial services industry.
  
  
• In the book, Banking [on] Blockchain: A Legal and Regulatory Primer, published by the American Bar Association, David Stier, Emily Honsa Hicks, and Eric Hall co-authored a chapter on anti-money laundering (AML)/know your customer (KYC) requirements and the Bank Secrecy Act (BSA), as well as provided general editorial assistance on other chapters. The book is a comprehensive guide to the legal and regulatory landscape surrounding the use of blockchain technology, decentralization, and digital assets within the financial services, and offers guidance on how financial institutions may navigate the complex regulatory environment.
  
  
• Cryptocurrency and Digital Asset Regulation, published by the American Bar Association and co-edited by Deborah Meshulam and Michael Fluhr, includes chapters by Meshulam, Fluhr, and Margo Tank.

LISTEN

Digital Transformation – The never-ending journey. Digital transformation is more than a trend – it’s a continuous journey. Our Tech Index 2024 looks at the rise of blockchain to the advancements in AI and the potential of quantum computing – the evolution never stops. Organizations are encouraged to adapt and lead the way in this ever-changing landscape. Mark O'Conor, Paul Allen, and Chloe Forster take a deep dive into digital transformation.

READ

Interplay between MiCA and PSD2 for transfers of electronic money tokens – EBA No Action Letter on authorisation requirements and applicable rules

“Fair banking” Executive Order targets politicized debanking and reputational risk 

Digital Transformation and Paperless Transactions News and Trends

Market Edge – covering SEC developments for publicly traded companies  

Contacts

Learn more about our Blockchain and Digital Assets practice by contacting any of our editors:

Margo Tank
Michael Fluhr
Liz Caires
Eric Hall