Sabal Law Week in Review: September 19–25, 2025

Written By Tyler Kirk

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

  • Treasury’s Financial Literacy Meeting: Treasury Secretary Scott Bessent hosts a public meeting on September 24 to tackle payments fraud, discussing national trends and federal efforts under Executive Order 14247.

  • No Tax on Tips Deduction: Treasury and IRS propose rules for a $25,000 deduction on qualified tips, targeting tipped occupations, with phase-outs for incomes above $150,000.

  • OFAC Settles with ShapeShift: ShapeShift AG settles with OFAC for $750,000 over 17,183 digital asset transactions with users in sanctioned countries like Cuba and Iran.

  • FCA’s eComms Review: The UK’s FCA reports 178 breaches in unmonitored bank communications, pushing AI surveillance and behavioral compliance for global standards. Firms with global footprints still need to stay vigilant on e-comms compliance.

  • UK-US Transatlantic Taskforce: Bessent and UK Chancellor Reeves launch a taskforce to boost digital assets and capital markets collaboration, reporting in 180 days.

  • CFTC’s Tokenized Collateral Initiative: Acting CFTC Chair Pham seeks feedback by October 20 on using stablecoins as collateral in derivatives markets to enhance liquidity.

  • Banks Demand Crypto Custody Standards: Bank trade groups take aim at RIAs urge the SEC to apply bank-level standards to crypto custodians to protect investors.

  • Hedge Funds Push CFTC Exemption: The Managed Funds Association seeks to end dual CFTC-SEC registration for hedge funds, citing cost and inefficiency.

  • SEC-CFTC Harmonization Roundtable: A September 29 event will explore aligning SEC and CFTC rules to reduce investor costs and enhance platform efficiency.

  • SEC Drops Lemelson Bar: The SEC halts its effort to bar hedge fund manager Gregory Lemelson, reflecting a focus on serious fraud cases under Chair Atkins.

  •  Clarity Act Delay Concerns: The crypto industry fears delays in confirming CFTC Chair Brian Quintenz could jeopardize the Clarity Act, key for digital asset regulation.

ICYMI

  • SEC’s Project Crypto: Back in July, SEC Chair Atkins launched “Project Crypto” to create clear rules for digital asset custody and trading, aiming to bring crypto innovation back to the US by providing an “innovation safe harbor.”

Stay ahead with Sabal Law PLLC’s tailored solutions in securities, private funds, co-investments, venture financing, private equity, FinTech, SportsTech, DefenseTech, and blockchain. Schedule a Consultation or visit www.Sabal Law.com to connect! #Sabal Law #StartupLaw #PrivateFunds #EmergingManagers #WealthManagers #PrivateEquity #VentureCapital #CoInvestments #FamilyOffices #Crypto #DigitalAssets

Tyler Kirk
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