SabalLaw Week in Review: September 5–11, 2025
Catch up on this week’s key legal and regulatory updates impacting startups, funds, and emerging tech. @SabalLaw breaks it down:
Paxos Updates USDH Stablecoin Proposal: Paxos revised its USDH plan with PayPal and Venmo integrations for seamless payments and $20M in incentives.
Private Credit Turns to Secondaries: Firms sell loan portfolio stakes to improve DPI amid slow M&A and maturing funds. Volume hits $18B this year.
OCC Tackles Debanking: OCC issued bulletins to end politicized debanking, assessing it in licensing and CRA ratings per EO 14331.
SEC Hosts Crypto Privacy Roundtable: SEC's Crypto Task Force sets October 17 event on surveillance and privacy tech, building on EO and prior reports.
FTC Warns on Healthcare Noncompetes: Chairman Ferguson sent letters to employers and staffing firms to review restrictive agreements for compliance. Follows withdrawal of nationwide ban.
FTC Drops Noncompete Ban Appeal: Agency abandons defense of rule after court losses, shifts to case-by-case enforcement.
FDIC Outlines Reforms: Acting Chairman Hill detailed updates like CAMELS revisions, capital tweaks, crypto clarity, and debanking rules. Rescinds prior policies to boost growth.
Figure IPO Boosts Blockchain Lending: Blockchain lender Figure debuted at $31.28/share, valuing it at $5.3B+ after $787.5M raise. Focuses on fast HELOC issuance.
SEC Sues Adviser Over Privacy Breach: Agency charged Parker Austin and his firm for emailing client data to personal accounts, violating Reg S-P. Also alleged putting clients in unapproved strategies.
Lawsuit Challenges SEC Investor Caps: ICAN sued to end $200K income threshold for accredited investors, claiming it discriminates and violates rights.
Private Fund Adviser Settles SEC Claims: Vukota entities pay $9.7M over misrepresentations in private real estate and false marketing. Hid conflicts in real estate fund deals.
Nasdaq Proposes Tokenized Trading: Exchange seeks SEC approval to trade tokenized equities via DTC, maintaining investor rights.
SEC and CFTC Team Up on Crypto: Agencies plan Sept 29 roundtable on DeFi, 24/7 trading, and event contracts. Eye safe harbors and spot crypto guidance.
SEC Lost Gensler Texts: Watchdog report blames IT errors for erasing a year's texts; some unrecovered, impacting FOIA. Agency disabled messaging.
ICYMI:
Chiron Launches $150M Sports Fund: Backed by athletes like Gronkowski, targets mid-major colleges with media/tech partners.
McLaren F1 Valued at £3B+: existing majority Owners buy out 30% stake held by a private equity minority investor.
Underdog Partners with Crypto.com: Enables event contracts for sports leagues like NFL, compliant with federal rules.
Bill Expands Accredited Investor Definition: House-passed legislation back in July letting investors who pass an exam invest in private markets, bypassing income/wealth thresholds.
Blue Jeans Golf Raises $20M: Series B for Golf Ranch expansion to 12 locations by 2026, blending tech and community golf.
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