SabalLaw Week in Review: August 29–September 4, 2025
Catch up on this week’s key legal and regulatory updates impacting startups, funds, and emerging tech. @SabalLaw breaks it down:
CFTC Grants No-Action Relief for QCX: The CFTC exempts QCX LLC and QC Clearing LLC from certain swap data reporting requirements for fully collateralized binary options and variable payout contracts. Polymarket’s acquisition of CFTC-licensed QCX secures regulatory clearance for U.S. operations, including sports betting. This opens a $107B market for fintech platforms, offering exchange-style trading in all 50 states.
SEC and CFPB Push Deregulation: Regulators aim to clarify crypto rules, ease compliance burdens, and rethink the consolidated audit trail. The CFTC will codify no-action relief and seek prediction market feedback, fostering innovation in securities and digital assets.
Carlyle AlpInvest Raises $20B: Carlyle’s secondary fund hits $15B with $3.2B in co-investments, and another $2B from wealth channels, supporting liquidity for private equity and family offices in a constrained exit market.
Polymarket’s NFL Betting Surge: Over $600K wagered on the NFL opener, outpacing Betfair.
SEC Addresses Private Fund Valuations: Commissioner Uyeda emphasizes accurate valuations for private funds under the Fair Value Rule, critical for private equity, venture capital, and 401(k) alternative investments.
SEC Fines Meridian $75K: Meridian Financial settles for misleading “no conflicts” claims and recordkeeping failures, reinforcing Marketing Rule compliance for investment advisers.
SEC and CFTC Align on Crypto: Joint statements under Project Crypto and Crypto Sprint enable spot crypto trading on registered exchanges, advancing blockchain and fintech innovation.
Coinbase Launches Hybrid Futures: Coinbase Derivatives introduces Mag7 + Crypto Equity Index Futures, blending tech stocks and crypto ETFs for diversified venture financing exposure.
Commerce Posts GDP on Blockchain: The Commerce Department hashes Q2 GDP (3.3%) on nine blockchains, promoting transparency in digital assets and fintech.
Apollo Targets $5B Sports Fund: Apollo plans a $5B fund for sports investments, expanding private equity opportunities in Sportstech and co-investments.
Schroders: 45% Want Private Assets: A survey finds 45% of 401(k) participants would invest in private equity/debt, supporting Trump’s push for alternatives in retirement plans.
• HarbourVest Warns on Evergreen Funds: Excess open-ended funds may lower returns, favoring scaled GPs in private equity and emerging manager strategies.
Small Buyout Funds Excel: Funds under $250M achieve 15.4% IRR, outperforming larger peers, benefiting emerging managers.
Vanguard Pays $19.5M: Vanguard settles for misleading advisor incentive disclosures, reinforcing fiduciary duties and conflict disclosures.
Connexa and JuCoin’s $500M Platform: The aiRWA platform tokenizes real-world assets, bridging traditional and digital finance for fintech and blockchain investors.
FinTech IPOs: Figure ($526M) and Gemini ($317M) target Nasdaq listings, boosting capital formation in fintech and digital assets.
FinCEN Promotes Info Sharing: Guidance encourages cross-border data sharing to combat illicit finance, supporting fintech and blockchain compliance.
FTC Seeks Input on Noncompetes: The FTC launches a public inquiry to assess the scope and impact of noncompete agreements, aiming to inform future enforcement and promote labor mobility in emerging tech.
CFTC Settles Compliance Cases: Acting Chair Pham’s enforcement sprint resolves violations with $8.3M in penalties.
Stripe and Paradigm Launch Tempo: The new layer 1 blockchain focuses on stablecoin payments, advancing fintech and blockchain scalability.
Kraken Acquires Breakout: Kraken integrates Breakout’s prop trading model, offering leveraged bitcoin trading for skilled fintech traders.
Anchorage Adds Starknet Staking: Institutional staking for STRK tokens at 7.28% APR enhances DeFi opportunities in digital assets.
Fed Plans Payments Conference: An October 21 event will explore stablecoins, tokenized assets, and AI in finance, signaling crypto’s banking integration.
Galaxy Tokenizes Stock: Galaxy Digital tokenizes GLXY shares on Solana, enabling 24/7 trading for blockchain-based securities.
Ondo Tokenizes U.S. Assets: Ondo Finance launches 100+ tokenized stocks and ETFs on Ethereum, scaling digital asset access for global investors.
UK VC Slows, PE Thrives: UK venture capital cools under macro pressures, but private equity grows with smaller deals fueled by AI, biotech, and secondaries. U.S. investors drive half of the UK’s top 20 deals.
IQM Raises $320M: Europe’s largest quantum computing VC round supports emerging tech innovation for startups.
ICYMI
SEC Drops Biden-Era Rules: The SEC scraps 14 proposals on cybersecurity and ESG, prioritizing innovation in securities and crypto.
CFTC’s Enforcement Advisory: The CFTC issues guidance on self-reporting and cooperation, using a mitigation credit matrix to streamline compliance for fintech and derivatives firms.
Robinhood and Kalshi’s NFL Markets: Robinhood partners with Kalshi for CFTC-regulated football prediction markets, expanding Sportstech and fintech.
Commerce’s Blockchain GDP: Q2 GDP data hashed on blockchains sets a precedent for immutable economic data in digital assets.
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.saballaw.com to connect! #SabalLaw #StartupLaw #PrivateFunds #EmergingManagers #PrivateEquity #VentureCapital #CoInvestments #FamilyOffices #Crypto #DigitalAssets