SabalLaw Week in Review: October 3–9, 2025
Catch up on this week’s key legal and regulatory updates impacting startups, funds, and emerging tech. Sabal Law breaks it down:
The U.S. Supreme Court on October 6 declined to hear a case from whistleblowers alleging the SEC miscalculated their awards for uncovering a major Texas fraud, raising concerns about the SEC’s whistleblower program’s future.
Coinbase announced on October 6 its pursuit of a national trust company charter from the OCC to expand its custody business, aiming to streamline oversight and integrate digital assets with traditional finance.
The crypto insurance market is improving as of October 6, with traditional carriers increasingly offering coverage for well-run crypto firms, though pricing remains high and tailored policies are critical.
Walmart-backed OnePay will offer bitcoin and ether trading on its app later in 2025, partnering with Zerohash to enhance its digital finance offerings, as announced on October 6.
The U.S. Senate Finance Committee held a hearing on October 1 to discuss crypto asset taxation, following IRS guidance easing corporate crypto tax rules under the CAMT.
The OCC and FDIC proposed rules on October 7 to define “unsafe or unsound practice,” revise MRA issuance, and eliminate “reputation risk” from supervision, addressing past regulatory actions that may have strained ties between traditional finance and DeFi.
FinCEN issued FAQs on October 9 to clarify suspicious activity reporting, helping financial institutions focus resources on high-value law enforcement data rather than low-priority reports.
Jim Pallotta’s Raptor Group backed a $200 million blockchain-focused fund by Raptor Digital, launching soon, as announced on October 6.
The SEC, under Chair Paul Atkins, plans to formalize an “innovation exemption” by the end of 2025 or early 2026 to support digital asset development, despite delays from the government shutdown, as stated on October 7.
Stand With Crypto launched a campaign on October 8, sending 250,000 letters to U.S. senators to preserve stablecoin yield provisions in the GENIUS Act against banking lobby efforts.
North Dakota announced on October 8 its plan to issue the Roughrider stablecoin in 2026 through the Bank of North Dakota, focusing on bank-to-bank transactions to enhance payment efficiency.
Ares Management closed a $5.3 billion Infrastructure Secondaries fund on October 8, targeting private infrastructure assets to provide liquidity solutions.
The government shutdown, ongoing as of October 8, has frozen the IPO market, with SEC staffing shortages halting registration statement reviews, limiting companies’ ability to launch traditional IPOs.
The AFL-CIO opposed a Republican draft crypto bill on October 6, citing insufficient oversight and risks to retirement plans from expanded crypto trading.
A leaked Senate Democrats’ proposal on October 9 for regulating DeFi drew industry criticism for potentially banning decentralized finance by requiring front-end operators to register as brokers.
Sports Investing:
Apollo launched Apollo Sports Capital on September 29, led by CEO Al Tylis, to invest in credit and hybrid opportunities across sports franchises and events.
Arctos unveiled Arctos Capital Markets on October 3, connecting high-net-worth investors with sports franchise ownership opportunities.
Avenue Capital Group closed its Avenue Sports Fund on October 3 with over $1 billion, targeting investments in sports teams and adjacent businesses.
NYSE parent Intercontinental Exchange invested $2 billion in Polymarket on October 7, valuing the prediction market platform at $8 billion.
Kalshi sued Ohio regulators on October 8 over a ban on its sports event contracts, while Pennsylvania’s Gaming Control Board warned Congress that prediction markets may bypass state gambling laws.
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