Sabal Law Week in Review: October 24–30, 2025
Catch up on this week’s key legal and regulatory updates impacting startups, funds, and emerging tech. Sabal Law breaks it down:
TradFi
Pro rata funds gain traction as seed VCs face capital shortages; specialists like SaaS Ventures and SignalRank enable emerging managers to maintain stakes in high-growth startups amid booming valuations.
Sixth Circuit judges question whether FINRA membership is voluntary, probing jury trial rights post-Jarkesy in appeal of SEC-upheld penalties.
Bank groups urge Fifth Circuit rehearing of OCC in-house enforcement ruling—related to FINRA scrutiny above—arguing it creates unconstitutional jury trial exemption for banks.
Europe VC giant Lakestar halts new fundraises for generalist VC funds, shifts to focus on existing portfolio like Revolut and defense unicorns.
FINRA integrates generative AI into market surveillance, risk reviews, and internal tools, estimating thousands of hours in efficiency gains.
Warburg Pincus and Madison International launch $300M real estate secondaries initiative targeting discounted residential, industrial, cold storage, and data center assets.
Morgan Stanley acquires EquityZen secondaries marketplace to boost wealth clients' access to startup stakes.
Federal Reserve cuts rates 25 basis points to 3.75%-4%, citing elevated uncertainty and downside employment risks; ends balance sheet reduction December 1.
Democrats warn DOL and SEC against easing 401(k) access to alts like crypto and private equity, citing volatility and conflicts.
DeFi
Former CFTC chairman J. Christopher Giancarlo criticizes Senate Democrats' proposed Treasury-controlled DeFi restricted list with KYC mandates as undemocratic and innovation-stifling.
Crypto.com applies for OCC national trust charter to enhance custody and staking services for institutional clients.
JPMorgan plans to accept Bitcoin and Ether as loan collateral for institutional clients by year-end, with third-party custody, expanding prior ETF collateral acceptance.
Trump nominates former Willkie attorney and SEC crypto task force member Michael Selig as CFTC chairman to advance U.S. as world’s crypto capital.
IBM launches Digital Asset Haven platform with Dfns to enable banks and firms to build blockchain custody and settlement services.
Citi partners with Coinbase to explore stablecoin payments and fiat-crypto conversions for corporate clients.
DBS and Goldman Sachs execute first interbank OTC cash-settled Bitcoin and Ether options trade to hedge crypto-linked exposures.
Visa expands stablecoin support to four new blockchains, enabling conversion to over 25 fiat currencies; stablecoin-linked card volume quadruples.
Mastercard negotiates a $2B acquisition of Zerohash for stablecoin infrastructure serving banks and fintechs.
Sports Investing
DraftKings acquires prediction-market platform Railbird for up to $250M to expand beyond sports betting.
FirstTracks Sports Ventures joins Austin FC ownership with minority stake, completing equity raise.
NBA star Jimmy Butler invests as minority owner in San Diego Wave FC.
ICYMI
Defense tech VC funding surges toward $10B record, driven by government contracts and structural demand despite hype concerns.
SPACs raise over $24B, many targeting crypto, nuclear, and AI.
Trump pardons Binance founder Changpeng Zhao, erasing conviction and potentially easing Binance's plea deal renegotiation.
Investment Adviser Association and other industry groups welcome FinCEN's proposed delay of AML rule for RIAs to January 2028, citing need for tailored compliance to avoid duplicative regulation.
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