Sabal Law Week in Review: August 1–7, 2025

Written By Tyler Kirk

Catch up on this week’s key legal and regulatory updates impacting startups, funds, and emerging tech. Sabal Law PLLC breaks it down:

  • • {Banking: New executive order directs regulators to probe banks for denying services based on beliefs or lawful activities. Regulators must review practices within 120 days and take remedial action if needed.

  • • Retirement: Executive order pushes DOL and SEC to ease rules for 401(k) plans to include crypto, private equity, and real estate. Reviews due in 180 days to boost diversification. Affects fund formation and private equity strategies, including risk factor disclosures. Affects existing institutional LPs who may have more competition for allocations.

  • • Crypto Staking: SEC staff declares certain liquid staking activities and tokens outside securities laws, under Howey test, because providers act “ministerially.”

  • • Crypto Mixers: Tornado Cash co-founder convicted of unlicensed money transmission but deadlocked on money laundering and sanctions charges.

  • • CFTC No-Action: CFTC grants no-action position to Railbird Exchange and QC Clearing, easing swap data reporting for binary options and variable payout contracts. Supports SportsTech and FinTech innovation. 

  • • Art: Senate bill proposes adding art dealers and auction houses to BSA, targeting high-value transactions. Exempts small businesses and artists. Affects alternative investments in art, including art funds and other fractionalized ownership structures. Cost of compliance expected to increase.

  • • Investment Adviser AML Delay: FinCEN delays AML/CFT rule for investment advisers to 2028, aligning with deregulatory review. Impacts advisers of SMAs by delaying rule. Practical impact on private fund managers is likely muted because many already have AML programs or are required through side letters to have them.

  • • Crypto Kiosk Risks: FinCEN urges financial institutions to report suspicious activity at crypto kiosks, citing scams targeting older adults.

  • • Privacy: SEC Commissioner Peirce highlights blockchain’s role in disintermediation, urging protection of privacy-enhancing tech. Addressed BSA & AML law extensively. Signals desire to rethink the third-party doctrine, 4th Amendment, and money laundering.

  • • Spot Crypto: CFTC seeks input by August 18 on listing spot crypto contracts on DCMs, aiming to clarify trading rules. Impacts crypto exchanges and investors. 

  • • Ripple Case: SEC and Ripple drop appeals, ending 2020 lawsuit. Ripple pays $125M fine for institutional XRP sales violations.

Stay ahead with Sabal Law PLLC’s tailored solutions in securities, private funds, co-investments, venture financing, private equity, FinTech, SportsTech, DefenseTech, and blockchain. DM me or visit [Insert Website URL] to connect! #SabalLaw #StartupLaw #PrivateFunds #CoInvestments #FamilyOffices #Crypto #DigitalAssets

Tyler Kirk
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