SabalLaw Week in Review: August 8–14, 2025

Written By Tyler Kirk

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

  • Private Right of Action: Supreme Court to rule on private right of action under ICA Section 47(b) by June 2026. Could limit activist challenges to fund governance, impacting private funds and co-investments.

  • Terraform Fraud Plea: Terraform Labs founder pleads guilty to $40B crypto fraud, facing up to 12 years. Highlights compliance risks for blockchain and DeFi startups.

  • Retail FinTech VC Surge: Q2 VC funding for retail FinTech hits $2.2B, up 17% QoQ, led by wealthtech ($1.3B). IPOs like eToro ($4B) and Chime ($9.1B) drive exits, helping LP liquidity.

  • Crypto Exchange Sanctions: Treasury re-sanctions Garantex and targets Grinex for cybercrime and sanctions evasion. Impacts blockchain firms navigating AML/CFT compliance.

  • DeFi Safe Harbor Push: a16z and DeFi Education Fund urge SEC for broker-dealer exemptions for DeFi apps. Supports blockchain innovation and regulatory clarity.

  • UK PE Rebound: UK private equity deals rise to £24.1B in Q2, led by KKR’s £2.4B OSTTRA buyout. US investors drive 31% of deals, impacting European PE strategies. UK & EU managers should seek ERA status to take U.S. LP capital directly. @SabalLaw can help!

  • US Asset Managers Lead: US firms like BlackRock double European AUM to $4.9T in a decade, outpacing UK ($2T) and French ($1.5T) growth. Strategy, UK/EU managers can attract U.S. LP capital as ERA.

  • Boston Celtics Sale: NBA approves $6.1B sale of Celtics to private equity-led group. Signals franchise & SportsTech investment opportunities for single & multi-family offices.

  • Bullish IPO Success: Crypto exchange Bullish goes public, raising $1.1B with 89% stock pop. Fuels FinTech and crypto market momentum. But see eToro & Chime post-IPO price drop.

  • DefenseTech VC Boom: DefenseTech VC hits $7B in 2025, led by Anduril’s $2.5B round. Regulatory hurdles create moats for startups. #AmericanDynamism

  • Competition Policy Shift: Trump revokes 2021 competition order, easing merger rules. FTC to focus on targeted antitrust enforcement, impacting speed of deals & exits.

ICYMI:

  • Crypto ETP In-Kind Approval: SEC approves in-kind creation/redemption for crypto ETPs (July 29). Enhances efficiency for blockchain investors.

  • Opportunity Zone Reforms: New law makes opportunity zones permanent, adds 10% basis step-up for 5-year investments. Benefits private equity and JVs.

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 www.saballaw.com to connect! #SabalLaw #StartupLaw #PrivateFunds #CoInvestments #FamilyOffices #Crypto #DigitalAssets

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