Blockchain and Digital Assets News and Trends – October 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

Key capital market trends: Digital asset treasuries

By Era Anagnosti, Josh Kaufman, Ron Llewellyn, Kristin Boggiano, Stephen Alicanti, Margo Tank, and Gina Lee

US public companies increasingly embrace digital assets as part of their corporate treasury strategies. Known as digital asset treasury (DAT) companies, these public companies, at the core of their revamped business model, pursue long-term accumulation of significant reserves of digital assets while employing sophisticated, yield-enhancing trading strategies.

DATs have raised significant capital through a range of equity and equity-linked instruments, including public and private offerings, de-SPAC transactions, and reverse mergers, in order to actively acquire Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other alternative digital assets as reserve treasury holdings.

This trend represents a notable transformation in corporate treasury management, blurring lines between traditional finance and the broader digital asset ecosystem. Read more. 

STATUTORY AND AGENCY DEVELOPMENTS

FEDERAL DEVELOPMENTS

SEC

• SEC issues no- action letter to Double Zero. On September 29, the US Securities and Exchange Commission (SEC) Division of Corporation Finance issued a no-action letter, stating it will not recommend enforcement action based on certain “programmatic transfers” of 2Z tokens from Double Zero Network “Users” to “Network Providers” or “Resource Providers.” Days before, the DoubleZero Foundation, which supports the DoubleZero Network and its native 2Z token, sent a letter requesting a no-action letter from the Division. According to the Foundation, the DoubleZero Network constitutes a decentralized protocol enabling a marketplace for owners of underutilized private network fiber links (Network Providers) to sell the underutilized bandwidth to “Users” in exchange for fees paid in the native 2Z token. The Foundation describes the Network as a new “purpose-built internet.” Administration of the Network is facilitated by a decentralized group of “Resource Providers,” which calculate fees to Network Providers, maintain the DoubleZero Ledger, and perform other administrative functions. The Protocol “programmatically” rewards Resource Providers with 2Z payments.
  
  The Foundation refers to User payments to Network Providers (Provider Payments) and rewards to Resource Providers (Computation Payments), collectively as “Programmatic Transfers.” In its letter, the Foundation asked the Division of Corporation Finance to confirm it will not recommend enforcement action if the Programmatic Transfers are conducted generally as described above (and in more detail in the letter) without registering the transfers under Section 5 of the Securities Act, and without registering 2Z as a class of equity securities under the Exchange Act. The Foundation argued that the Programmatic Transfers did not satisfy the fourth prong of the Howey test – profits resulting from the entrepreneurial or managerial efforts of promoters or sponsors. The Foundation reasoned that any efforts resulting in profits are supplied by Network Providers and Resource Providers, not the Foundation, a promoter, or a sponsor. The Foundation further argued that the potential development of a secondary market does not alter the analysis, reasoning that secondary purchasers would primarily purchase 2Z for consumption.
  
  In a short letter, the Division of Corporation Finance responded that, “based on the facts presented, the Division will not recommend enforcement action to the Commission if, in reliance on your opinion as counsel, Programmatic Transfers that are conducted in the manner and under the circumstances described in your letter are not registered under Section 5 of the Securities Act and 2Z is not registered as a class of equity securities under Section 12(g) of the Exchange Act.” The Division did not provide any further explanation or reasoning.
  
  In a follow-up statement, SEC Commissioner Hester M. Peirce expressed additional support for the letter as offering “an opportunity to reflect on how we, as regulators, can foster innovation.”
  
  
• SEC no-action letter allows state trust companies to custody crypto assets. On September 30, the SEC Division of Investment Management issued a no-action letter responding to a request for no-action relief addressing state trust companies that provide crypto-asset custody services. The Division’s no-action letter suggests registered advisers and regulated funds may treat state trust companies as “banks,” as defined in the Investment Advisers Act of 1940 (Advisers Act), and the Investment Company Act of 1940 (Investment Company Act), for custody of crypto assets if they meet specified safeguards. The Division’s staff states it will not recommend enforcement if firms, before onboarding and annually, confirm the trust company’s state regulatory authorization to provide crypto custody, review Generally Accepted Accounting Principles (GAAP)-audited financials, and obtain and assess an independent internal control report that addresses custodial controls, including private key management and cybersecurity. The letter expresses that state trust companies should have written custodial agreements that prohibit lending or rehypothecation without prior written client or fund consent and require full segregation of client assets, along with disclosure of material risks to clients or boards, and a best-interest determination. As with all no-action letters, the SEC staff notes that this position is an exercise of enforcement discretion only, and does not change the Advisers Act or Investment Company Act custody provisions, or bind the SEC. In a dissenting statement, SEC Commissioner Caroline A. Crenshaw criticized the letter for eroding investor protections built into regulatory requirements for traditional “qualified custodians.”
  
  
• SEC approves generic listing standards for digital asset commodity-based trust shares. On September 17, the SEC announced it had approved rule changes by three national securities exchanges that adopt generic listing standards for exchange-traded products holding spot commodities. This includes digital assets, which enable exchanges to list and trade eligible “Commodity-Based Trust Shares” without submitting individualized filings. In its press release, the SEC stated that the approval was meant to streamline market access and support investor choice in capital markets while maintaining investor protections.
  
  
• Bank industry associations recommend SEC strengthen crypto custody requirements. The Bank Policy Institute, the Association of Global Custodians, and the Financial Services Forum announced that they submitted a letter with joint recommendations to the SEC to “strengthen crypto custody requirements to protect customers and the financial system” by adopting safeguards for digital asset investors, which are equivalent to those in place for custodian banks to protect investors in traditional assets. The letter argues that “If the SEC permits crypto firms or investment advisers to provide custody services outside of the existing qualified custodian framework, it is imperative that these custody providers be held to equally rigorous standards, including asset segregation requirements, ongoing regulatory oversight and prudential mandates equivalent to those that currently govern qualified custodians.” Key recommendations in the letter are that the SEC establish equal standards for all custodians and prohibit self-custody by investment advisers.

CFTC

• CFTC Chair launches tokenized collateral and stablecoin initiative. On September 23, the Commodity Futures Trading Commission (CFTC) announced the latest initiative in the CFTC’s “Crypto Sprint.” Led by Acting Chair Caroline D. Pham, the initiative will seek to integrate tokenized collateral, including stablecoins, into derivatives markets with the goal of modernizing collateral management requirements and improving capital efficiency. According to the announcement, the initiative seeks to deliver on a recommendation by the President’s Working Group on Digital Asset Markets to issue guidance for tokenized non-cash collateral as regulatory margin. The CFTC opened a public comment process through October 20, 2025 on subjects such as CFTC observer status in industry efforts, potential digital asset pilot programs, and possible regulatory amendments related to collateral management. The announcement further quotes supportive statements from industry participants that, among others, describe how stablecoins could serve as collateral to reduce costs, unlock liquidity, and strengthen market resilience.

Congress

• State securities administrators’ association encourages US House Committee to preserve states’ authority as crypto fraud fighters. On September 17, members of the North American Securities Administrators Association (NASAA) wrote a letter to the US House Committee on Financial Services encouraging the Committee to “preserve the critical role that state securities regulators play in our capital markets as fighters of fraud, market manipulation, and similar abuses … [including those] that involve crypto assets and fraud.” NASAA notes that its members have taken over 330 enforcement actions since 2017, which include bad actors misusing emerging technologies, such as distributed ledger technologies (DLT) and artificial intelligence (AI), in online fraud.

Treasury

• Treasury solicits comments on GENIUS Act implementation. On September 18, the US Department of the Treasury announced its publication of an advance notice of proposed rulemaking (ANPRM) requesting public input on Treasury’s future rulemaking to implement the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. Signed into law in July 2025, the GENIUS Act empowers Treasury to regulate issuers of stablecoins backed by US dollars. The GENIUS Act requires Treasury to establish rules ensuring stablecoins are adequately backed by sufficiently liquid reserves, even in the event of an issuer’s insolvency. The GENIUS Act also requires issuers to establish anti-money laundering (AML) and sanctions compliance programs. In the press release announcing the ANPRM, Treasury committed to achieving these goals with regulations “that encourage innovation in payment stablecoins.” Specifically, “Treasury is seeking public comment on potential regulations that may be promulgated by Treasury, including regarding regulatory clarity, prohibitions on certain issuances and marketing, Bank Secrecy Act (BSA) anti-money laundering (AML) and sanctions obligations, the balance of state-level oversight with federal oversight, comparable foreign regulatory and supervisory regimes, and tax issues,” as well as “other issues that Treasury should consider.” Treasury recently extended the comment period to November 4. Members of the public, particularly those with an interest in stablecoins, may submit comments through www.regulations.gov.

• Second annual FinCEN-FINTRAC symposium. The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) – the financial intelligence units (FIUs) of the United States and Canada – hosted the second annual FINTRAC-FinCEN Anti-Money Laundering and Anti-Terrorist Financing Symposium on September 15 and 16 in Washington, DC. The event brought together FIUs, law enforcement, and government officials from the US, Canada, Australia, and the UK, along with financial institutions from the US and Canada. The symposium covered a range of threats, including the misuse of cryptocurrency by transnational criminal groups, and professional money laundering networks, among others. FinCEN and FINTRAC also acknowledged rising threats posed by Chinese money laundering networks. Read more.

• FinCEN seeks comments on proposed survey of the costs of AML/CFT compliance. On September 29, FinCEN announced it is inviting the public to comment on a proposed survey on the costs of anti-money laundering and countering the financing of terrorism (AML/CFT) compliance. The proposed survey seeks to gather information on the direct compliance costs incurred by non-bank financial institutions (such as money services businesses, insurance companies, operators of credit card systems, and loan or finance companies) with AML/CFT compliance requirements and, to the extent these expenses overlap with those of other activities (such as fraud monitoring), the amount attributable to AML/CFT compliance. According to the announcement, responses will not be used for supervisory or enforcement purposes. Comments must be received on or before December 1.
  
  
• FinCEN issues proposed rule to postpone effective date of investment adviser rule. On September 19, FinCEN announced it issued a notice of proposed rulemaking to extend the effective date of the final rule establishing Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (IA AML Rule) from January 1, 2026, until January 1, 2028. This notice of proposed rulemaking follows the exemptive relief order that FinCEN issued on August 5. For more information, see our August 2025 issue.

OCC

• OCC announces conditional approval for chartering Erebor Bank. On October 15, the Office of the Comptroller of the Currency (OCC) announced its conditional approval of the de novo national bank charter application for Erebor Bank, National Association, headquartered in Columbus, Ohio. The application was submitted by directors and controlling shareholders of Erebor Group, Inc. (EGI), a Delaware corporation, to establish a full-service national bank. Erebor Bank will operate as a full service insured national bank, focusing on products and services tailored to technology companies and ultra-high-net-worth individuals that utilize virtual currencies. Notably, the bank intends to hold non-asset backed virtual currencies on its balance sheet to pay transaction fees (gas fees) under 12 USC 24(Seventh). The OCC has recognized this activity as convenient or useful to banks’ permissible crypto-asset custody services, and thus permissible as incidental to the business of banking. The OCC granted preliminary conditional approval upon determining that certain regulatory and policy requirements are met.

STATE DEVELOPMENTS

Blockchain

• NYDFS issues guidance to banking institutions on the use of blockchain analytics. On September 17, the New York State Department of Financial Services (NYDFS) announced it issued an industry letter advising all New York banking organizations, including branches and agencies of foreign banks, to reference its prior guidance on blockchain analytics when engaging in or considering new virtual currency-related activities. Recognizing the growing exposure of traditional banking institutions to virtual currency, NYDFS encourages these organizations to leverage blockchain analytics tools to strengthen their compliance and risk management frameworks. Suggested uses include screening customer wallets for crypto activity, verifying the source of virtual asset funds, monitoring for money laundering or sanctions risks, assessing third-party exposures, and evaluating customer activity against expected thresholds. NYDFS emphasizes that these examples are not exhaustive and that risk controls should be tailored to each institution’s business model and risk appetite.  

Digital assets

• Updated NYDFS guidance on virtual currency custody. On September 30, 2025, the NYDFS announced it issued updated guidance for its BitLicensees and limited purpose trust companies providing virtual currency custody services with NYDFS licenses. The new directive, which replaces its 2023 guidance, reinforces the requirement for custodians to segregate and separately account for customer assets, prohibits the use of customer virtual currency for the custodian’s own benefit, and clarifies standards for sub-custody arrangements, which now require prior NYDFS approval and must meet stringent regulatory and disclosure requirements. The guidance also mandates clear, written disclosures to customers regarding custody practices, the nature of the custodial relationship, and any sub-custody arrangements, with an emphasis on ensuring that customers retain equitable and beneficial ownership of their assets at all times. NYDFS says that these measures are designed to maintain trust and enhance customer protection in New York’s regulated virtual currency sector, particularly in the event of insolvency.

• California DFPI proposed amended regulations on DFAL and MTA. On September 19, the California Department of Financial Protection and Innovation (DFPI) issued a Notice of Modification to its proposed regulations implementing the Digital Financial Assets Law (DFAL) and amending the Money Transmission Act (MTA). This modified proposal, which resulted from a public comment period, seeks to reduce regulatory overlap and provide greater clarity for the digital asset industry in California. Most notably, the modified proposed regulations would expand the exemptions under the MTA, clarifying that a DFAL licensee will not require a separate money transmitter license for most activities directly tied to digital asset transactions, such as transmitting payments for the purchase/sale of virtual currency, or selling or issuing stored value that can be used exclusively for the purchase, sale, or exchange of virtual currency. The regulations also include technical amendments for licensing applications, such as a refined definition of "control" and specific disclosure requirements for executive officers. The modified regulations were open for comment until October 15, as the state prepares for the DFAL's licensing deadline of July 1, 2026.

INDUSTRY DEVELOPMENTS

• Group of leading international banks explores issuance of a 1:1 reserve-backed form of digital money. A consortium of ten major global banks announced on October 10 a joint initiative to explore a stablecoin-like digital asset pegged to G7 currencies. The project aims to create a reserve-backed form of digital money for use on public blockchains, with the goal of improving efficiency and reducing costs for cross-border payments and capital markets, while adhering to strict regulatory compliance. The project is currently in the early stages of a feasibility study, which includes engaging with regulators across multiple jurisdictions. The consortium includes TD Bank Group, Citi, Bank of America, Barclays, Goldman Sachs, Deutsche Bank, Banco Santander, BNP Paribas, MUFG Bank, and UBS.

• Nasdaq publishes whitepaper on crypto wash trading. The Nasdaq Stock Market LLC (Nasdaq) recently published “Wash Trading in Crypto Markets: What Financial Institutions Need to Know,” which asserts that wash trading – where an investor buys and sells the same asset to create artificial market activity – “has emerged as one of the most persistent threats to market integrity.” The paper summarizes proposed regulatory frameworks that address wash trading in the US (the Digital Asset Market Clarity Act), Canada (the Canadian Securities Administrators or CSA), and the Middle East, as well as enacted regulations in the EU (the Markets in Crypto-Assets or MiCA), Asia, and the UK. The paper also discusses recent enforcement actions targeting market manipulation in digital assets and sets forth an overview of detection and prevention practices.

ENFORCEMENT ACTIONS AND LITIGATION

FEDERAL

CFTC

• CFTC wins USD6.8 million order in crypto-themed commodity pool fraud. On September 25, the CFTC announced that the US District Court for the Middle District of Tennessee entered a consent order against Michael and Amanda Griffis for operating “Blessings Thru Crypto,” a fraudulent commodity pool that raised more than USD6.5 million from at least 145 participants. The order requires USD5,528,121 in restitution and a USD1,355,232 civil penalty. The Griffises allegedly solicited funds through real estate contacts and claimed they would trade commodity futures on the “Apex Trading Platform” with guidance from an individual known as “Coach Wendy.” According to the consent order, however, they sent more than USD4 million to an illegitimate overseas exchange and used remaining funds for personal expenses. 

Treasury

• FinCEN issues final rule severing Huione Group from the US financial system. On October 15, FinCEN announced the issuance of a final rule “severing Huione Group from the US financial system.” Huione Group is Cambodia-based and serves as a node for laundering proceeds of cyber heists carried out by the Democratic People’s Republic of Korea and for transnational criminal organizations in Southeast Asia perpetrating virtual currency investment scams, commonly known as “pig butchering” scams, among others. FinCEN’s action finalizes its prior rulemaking that identifies Huione Group as a financial institution of primary money laundering concern. Covered financial institutions are now prohibited from opening or maintaining correspondent accounts for, or on behalf of, Huione Group, and are required to take reasonable steps not to process transactions for the correspondent account of a foreign banking institution in the US if such a transaction involves Huione Group.

Federal Court

• Central District of California finds Bored Ape NFTs are not securities. On September 30, 2025, Defendant Yuga Labs secured dismissal of a securities class action brought in the Central District of California based on allegations that various digital assets Yuga created and sold constitute securities. In Adonis Real, et al. v. Yuga Labs, Inc., et al. (2025 US Dist. LEXIS 194981, Case No. CV 22-8909 FMO (BFMx) (USDC Central Distr. Calif., Sept. 30, 2025)), the court held plaintiffs had failed to plead the assets constitute securities under the Supreme Court Howey test.
  
  According to the operative pleading, Yuga created and sold a variety of digital assets, including Bored Ape and other NFTs, and the ApeCoin cryptocurrency. Plaintiffs allegedly purchased these various assets and filed a putative class action against Yuga and other defendants, asserting various claims resting on the premise that these digital assets constitute securities, sold without registration.
  
  Addressing only the issue of whether the digital assets constitute securities under the Howey test, the court dismissed with leave to amend. The court held that plaintiffs had failed to plausibly plead any investment of money or expectation of profits, reasoning that while plaintiffs have alleged a subjective profit motive, the focus of the inquiry is what purchasers were offered or promised, and allegations generally focused on consumptive use, not functionality. On this score, the court noted that many defendants in similar cases do not even challenge the investment of money requirement.
  
  The court held that plaintiffs also failed to plead commonality, reasoning that plaintiffs failed to plead their fortunes were tied to those of other investors or to the success of defendants. The court contrasted plaintiffs’ allegations with those in complaints held to allege commonality in the sale of digital assets, in which the digital asset promoter retained greater control over the assets, such as by controlling the underlying blockchain or a private marketplace.
  
  The court held that plaintiffs had plausibly pleaded that any profits arose from the efforts of others (the final Howey prong). The court relied on allegations about defendants’ ongoing efforts, such as Yuga’s ownership of various intellectual property associated with the subject NFTs and promises of “roadmap activations.”
  
  Having failed to plead facts to support three Howey elements, the court held that plaintiffs had failed to plead that the various digital assets constituted securities, though the court did grant leave to amend.

DOJ

• “Bitcoin Jesus” agrees to pay USD50 million to settle tax evasion charges. On October 14, the US Attorney’s Office for the Central District of California announced that it had filed a motion to voluntarily dismiss the government’s criminal tax case against cryptocurrency investor Roger Keith Ver, known as “Bitcoin Jesus,” after he paid nearly USD50 million in taxes, penalties, and interest under a deferred prosecution agreement. According to the agreement, Ver has admitted he failed to report ownership of more than 130,000 bitcoin and capital gains on his 2016 tax return, and understated his 2014 tax liability. The filing notes that Ver signed a closing agreement covering 2014 and 2017, and that the US can reindict him if he breaches the deal, including by filing a refund claim. Prosecutors previously alleged he concealed bitcoin holdings across two companies after renouncing US citizenship in 2014. Ver had challenged the constitutionality of his tax liability in a motion to dismiss filed in December 2024, which will remain unresolved.

• DOJ seizes record-breaking USD15 billion in bitcoin from pig butchering scams. On October 14, the US Attorney’s Office for the Eastern District of New York announced an indictment of Chen Zhi, chairman of Prince Holding Group, and filed a civil forfeiture action tied to a Cambodia-based operation accused of running large-scale cryptocurrency investment scams using forced-labor compounds. Prosecutors allege that the enterprise executed “pig butchering” schemes that solicited victims worldwide, including in the US, and then laundered proceeds through sophisticated virtual-asset tactics, including “spraying” and “funneling” across numerous addresses before reconsolidation. Authorities seized approximately 127,271 bitcoin – valued at about USD15 billion – from unhosted wallets and placed the assets in US custody, while describing additional flows through exchanges, traditional bank accounts, and Prince Group’s online gambling and cryptocurrency mining businesses. The indictment describes physical coercion within compound operations, documents Chen’s direct oversight and records of profits and “phone farms,” and alleges that co-conspirators used political influence and bribes to shield the scheme. In a separate announcement, the US Department of the Treasury designated Prince Group as a transnational criminal organization and announced sanctions on 146 associated entities.

• CEO admits to Ponzi scheme involving more than 90,000 investors. On September 17, the US Attorney’s Office for the Eastern District of Virginia announced that Ramil Ventura Palafox, CEO of Praetorian Group International, pled guilty to wire fraud and money laundering for operating a bitcoin Ponzi scheme. According to the announcement, Palafox claimed to trade bitcoin and promised investors daily returns of 0.5 percent to 3 percent. He took in more than USD201 million from more than 90,000 investors between December 2019 and October 2021, including at least 8,198 bitcoin valued at about USD171.5 million and USD30.3 million in fiat currency. Palafox ran an online portal that reported fictitious gains while using investor funds for luxury vehicles, homes, personal purchases, and payouts to earlier investors, resulting in at least USD62.7 million in losses.

STATES

• Delaware court permits unjust enrichment claim against stablecoin issuer. On August 18, in an unpublished opinion, the Superior Court of Delaware denied a motion to dismiss filed by stablecoin issuer Circle Internet Financial (Ventura v. Circle Internet Financial, LLC, CA No., N25C-01-109 CLS, (Sup Ct De. Oct. 7, 2025)). The dispute involves over 511,435 USDC that plaintiff Ofir Ventura transferred to an incorrect, but visually similar, Ethereum address. Ventura alleged unjust enrichment based on allegations that Circle benefits from interest on corresponding US dollar reserves when tokens sit in inaccessible wallets, and a request for replacement under Delaware UCC § 8-405 that turns on whether USDC qualifies as a “security” and as a “certificated” instrument, potentially in bearer form. The court found the pleadings support a plausible unjust enrichment theory and identified open factual questions about Article 8’s definition of “security,” the meaning of “securities exchanges or securities markets,” and whether a blockchain token may function as a certificate. The ruling is significant for potentially opening Circle and other stablecoin issuers to liability for failing to replace stablecoins that are lost or stolen. On October 7, the Court denied Circle’s motion for re-argument.

SPOTLIGHT ON INTERNATIONAL DEVELOPMENTS

• EU banking consortium to launch euro-pegged stablecoin in 2026. A consortium of nine leading European banks announced on September 25 plans to launch a stablecoin pegged to the euro. The initiative will be spearheaded by a newly formed company based in the Netherlands, with the first issuance targeted for the second half of 2026, subject to full compliance with the EU’s Markets in Crypto-Assets Regulation (MiCA). The project aims to establish a new digital payment standard for Europe, enabling near-instant, low-cost, 24/7 cross-border payments and settlements, and offering a European alternative to the US-dominated stablecoin market. The consortium includes ING, UniCredit, CaixaBank, Banca Sella, KBC, Danske Bank, DekaBank, SEB, and Raiffeisen Bank International.
  
  
• ESRB issues recommendation on stablecoins. The European Systemic Risk Board (ESRB), a macro-prudential oversight body of the EU, published a report on October 20 regarding three issues central to the crypto-asset ecosystem: stablecoins, crypto-asset investment products, and multi-function groups. With regard to stablecoins in particular, the report notes that, while MiCA contains clear provisions for stablecoins jointly issued by two or more entities established within the EU, the regulation does not explicitly regulate the case of a multi-issuer scheme involving a third-country leg. Accordingly, the ESRB recommends that the commission does not consider the schemes as being permitted within the current MiCA framework. Alternatively, the ESRB urges relevant authorities to mitigate the financial stability risks arising from such schemes through appropriate safeguards.
  
  
• EBA publishes AML report on crypto-activities. On October 9, the European Banking Authority (EBA) published a report on tackling money laundering and terrorist financing (ML/TF) risks in crypto-asset services through supervision. This report summarizes the lessons learned from actions taken by AML/CFT competent authorities and the EBA regarding the identification and management of ML/TF risks associated with crypto-asset businesses. It examines strategies some entities have used to circumvent AML/CFT supervision, including unauthorized operations, forum shopping across Member States, improper use of the reverse solicitation exemption, weak AML/CFT frameworks, opaque ownership and governance structures, and multi-entity arrangements involving high-risk counterparties. The EBA also recommends competent authorities to pay attention to specific ML/FT factors to ensure the effective application of the new EU framework.
  
  
• EBA proposes technical standards for the prudential treatment of banks' crypto-asset exposures. On August 5, the EBA published draft technical standards on the prudential treatment of crypto-asset exposures under Regulation (EU) 2024/1623 of the European Parliament and of the Council of May 31, 2024 amending Regulation (EU) No 575/2013 (Capital Requirements Regulation). The draft Regulatory Technical Standards (RTS) set out the technical framework for credit institutions to calculate and aggregate crypto-asset exposures for prudential purposes. They clarify the capital treatment for asset-referenced tokens (ARTs) – which are linked to traditional assets – and for other crypto assets, including unbacked tokens such as Bitcoin and ARTs referencing crypto assets. The RTS also detail methodologies for determining own funds requirements related to credit risk, counterparty credit risk, market risk, and credit valuation adjustment risk.
  
  
• Bank of Canada calls for national stablecoin regulation. In a speech on September 18, Ron Morrow, Executive Director of Payments at the Bank of Canada, warned that Canada is falling behind global peers in regulating stablecoins, citing that cryptocurrencies pegged 1:1 to a fiat currency or stable assets such as gold. He urged federal and provincial regulators to “work quickly and collaboratively to evolve our regulatory frameworks.” Read more.
  
  
• Canadian AML regulator fines KuCoin operator more than CAD14 million. On September 25, a Canadian AML regulator from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) announced a CAD19,552,000 administrative monetary penalty against Peken Global Limited (operating as KuCoin) for three violations under Canada’s AML and anti-terrorist financing laws. FINTRAC accused KuCoin of failing to register as a foreign money services business; failing to report 2,952 large virtual currency transactions of CAD10,000 or more between June 1, 2021 and May 8, 2024; and failing to file 33 suspicious transaction reports despite indicators involving darknet marketplaces, mixers/tumblers, questionable gambling sites, ransomware, theft, and exposure to an entity designated by the US Office of Foreign Assets Control. According to the announcement, FINTRAC used blockchain analytics to identify unreported large virtual currency transactions and asserts that these reporting failures deprive authorities of critical financial intelligence. In its own public statement, KuCoin states it has appealed the penalty to the Federal Court of Canada.
  
  
• Canada’s FINTRAC publishes new guidance for title insurers and private automated banking machine acquirer services. Beginning October 1, 2025, title insurers and acquirer services related to private automated banking machines (ABMs) in Canada must comply with and fulfill new obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its regulations. To support compliance, FINTRAC has published new guidance for these sectors. Read more.
  
  
• Canadian authorities shut down TradeOgre cryptocurrency exchange. On September 18, the Royal Canadian Mounted Police (RCMP) reported that its Federal Policing Eastern Region executed Canada’s largest cryptocurrency seizure, recovering more than CAD56 million from the exchange platform TradeOgre. The RCMP initiated the investigation in June 2024 after receiving a tip from Europol, and investigators specializing in financial crime, cybercrime, and cryptocurrencies found that TradeOgre operated in contravention of Canadian laws by failing to register with FINTRAC as a money services business, and by not identifying its clients. RCMP alleges that most funds transacted on the platform came from criminal sources and that the platform’s anonymity features attracted money laundering activity. The operation marks Canadian law enforcement’s first-ever dismantling of a cryptocurrency exchange.
  
  
• Portugal to implement MiCA. Portugal is one of the few EU Member States where MiCA is not in effect. This delay stems from a period of parliamentary instability, including two snap elections in two years, which resulted in a delayed adoption of the necessary implementation measures. Recently, however, the Portuguese government has submitted a law to parliament to implement MiCA, and parliament has approved the proposal. Read more.
  
  
• Switzerland consults on new crypto and stablecoins regulation. On October 22, the Swiss Federal Council launched a consultation on an amendment to the Financial Institutions Act. The bill is aimed at improving the clarity on supervisory perimeter for stablecoins and crypto-asset services. The Federal Council is proposing two new license categories: (1) payment instrument institutions, replacing the existing fintech license and (2) crypto-institutions, which provide various services with cryptocurrencies. The reform aims to enhance legal certainty, strengthen market confidence, and improve Switzerland’s competitiveness in the crypto-asset ecosystem.
  
  

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

• Kristin Boggiano will present as part of a panel on the NBI virtual CLE course “Cryptocurrency Law: Stablecoins, Blockchain, and More” on February 20, 2026. The course “offers a practical understanding of cryptocurrency law, covering key US laws and regulations, tax treatment, and litigation trends. Participants will learn how the SEC, CFTC, Internal Revenue Service (IRS), Department of Justice (DOJ), and FinCEN approach cryptocurrency, and how to advise businesses in transactions, compliance, and disputes.” Registration will open soon. For more information, contact Kristin Boggiano.
  
  
• Kristin Boggiano will present as part of a panel on “Applied Intelligence: AI’s Impact Across Digital Assets, Credit, Legal & Data Governance” on November 6 from 5:30–7:30 pm ET at DLA Piper’s New York City office. The panel will explore how AI is being operationalized across domains – from digital assets and electronic trading to credit structuring, research and trading, and data governance – and discuss how it is reshaping workflows, what has measurably improved, and the governance frameworks to keep humans in the loop and directing outcomes. Registration is open now.
  
  Topics will include:
  
  
  • Trustworthy AI: Model risk, policy, and control frameworks that stand up to audit and time
  • Human-in-the-loop: Patterns that raise quality and reduce liability
  • Executive metrics: Accuracy, drift, latency, unit cost, and “fitness for purpose”
  • Information integrity and governance: Provenance, documentation, and dataset quality
  • Legal and regulatory horizon: Where policy is heading – and staying compliant without stalling innovation 

• Curtis Mo presented as part of a panel on “Navigating the capital markets and public company readiness” on October 7 and 9 in San Francisco and Palo Alto. The panel brought together top executives, capital markets leaders, and advisors to share actionable insights on navigating the initial public offering (IPO) and special-purpose acquisition company (SPAC) process – from market timing and regulatory requirements to operational shifts and lessons from recent public debuts.
  
  
• As part of DC Fintech Week, Global Digital Finance (GDF) and DLA Piper hosted a public/private sector roundtable on October 14. The roundtable covered key topics for the continued development of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and responses to the US Department of the Treasury’s Advance Notice of Proposed Rulemaking (ANPR) on the implementation of the GENIUS Act. For event details and more 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.
  
  
• Michael Fluhr was interviewed by Crypto Law Summit on “Navigating Crypto’s Regulatory Uncertainty: Practical Strategies for Digital Asset companies in a Shifting Enforcement Landscape,” and the Q&A was published in the Databird Business Journal on September 20.
  
  
• Era Anagnosti moderated a panel discussion on Crypto Treasury Strategies: What You Should Know on September 18, 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 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 sustainability 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

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Contacts

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

Margo Tank
Michael Fluhr
Liz Caires
Eric Hall