Lowenstein Crypto advises leading digital asset and cryptocurrency projects, exchanges, and trading firms. Our practice covers regulatory advice, transactions and structuring advice, investigations, and adversarial matters including commercial disputes, bankruptcy, and related litigation. As these markets continue their rapid growth and market participants continue to evolve and mature their businesses, we are providing this weekly digest as a resource that highlights and summarizes a selection of key recent legal regulatory developments.

SEC Staff Issues Statement Exempting Certain Crypto User Interfaces From Broker-Dealer Registration

On April 13, the SEC’s Division of Trading and Markets issued a staff statement providing that specified providers of user interfaces for crypto asset securities transactions will not be required to register as broker-dealers under Section 15(a) of the Securities Exchange Act of 1934, provided certain conditions are met. The statement applies to Covered User Interfaces–websites; browser extensions; or software applications, including those embedded in wallets–that enable users to prepare and transmit crypto asset securities transactions through self-custodial wallets. To qualify, the interface provider must operate as a neutral, nondiscretionary tool, meaning that the interface must not solicit or recommend specific crypto asset securities transactions, must allow users to control all trade parameters, and must display execution routes using only objective, pre-disclosed criteria. Compensation must be fixed, transparent, and unrelated to trade outcomes, execution venues, or counterparty selection. The statement does not cover interfaces that provide investment recommendations, handle customer funds or securities, negotiate transaction terms, take orders, or execute or settle trades. The statement is an interim measure while the Commission considers broader regulatory issues relating to crypto asset securities activities; absent further Commission action, it will be considered withdrawn five years from April 13, 2026. The SEC staff statement is available here.

Senate Returns From Recess With CLARITY Act Markup Window Open; White House Signals Stablecoin Yield Compromise Holding

On April 13, the U.S. Senate returned from its Easter recess, opening a critical legislative window for the Digital Asset Market Clarity Act (CLARITY Act). On the same day, Patrick Witt, Executive Director of the President’s Council of Advisors on Digital Assets, stated on X that “[p]rotecting software developers is one of the most important aspects of this bill. It’s a core pillar of making the U.S. the crypto capital of the world. Criminalizing code does nothing but drive innovation offshore.” Further, Senator Cynthia Lummis (R-Wyo.), the bill’s chief champion, has intensified calls for action, tweeting on April 9 that it is “the right time to pass the Clarity Act. If not now, when?”; on April 10, that “[t]his is our last chance to pass the Clarity Act until at least 2030”; and on April 11, that passage is “now or never.” The Senate Banking Committee’s fact sheet on the CLARITY Act is available here. Lummis’ X post is available here. Witt’s X post is available here.

SEC Director Highlights Tokenized Securities Efforts

On April 13, Jamie Selway, Director of the SEC’s Division of Trading and Markets, outlined the Division’s current priorities on tokenized securities and Regulation NMS reform. Selway disclosed that the Division is “currently working on an ‘innovation exemption’ recommendation to the Commission to allow certain trading venues to trade tokenized securities.” Selway’s remarks are available here.

Treasury Launches Cybersecurity Information-Sharing Initiative for Digital Asset Firms

On April 9, the U.S. Department of the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection announced a new initiative to extend to eligible U.S. digital asset firms and industry organizations the same actionable cybersecurity information that Treasury regularly shares with traditional U.S. financial institutions. Under the program, qualifying firms will receive, at no cost, timely threat intelligence designed to help them identify, prevent, and respond to cyber threats targeting their customers and networks. Tyler Williams, Counselor to the Secretary for Digital Assets, stated that the initiative “reflects the principles of the GENIUS Act by promoting responsible innovation grounded in strong cybersecurity and operational resilience.” The initiative builds Treasury’s broader efforts to combat illicit finance through technologies such as blockchain monitoring, application programming interfaces, and digital identity verification. The Treasury press release is available here.

Pakistan Reverses Eight-Year Crypto Banking Ban, Permits Banks To Service Licensed Digital Asset Firms

On April 14, the State Bank of Pakistan (SBP) issued Banking Policy and Regulation Department (BPRD) Circular Letter No. 10 of 2026, permitting SBP-regulated entities to open bank accounts for licensed virtual asset service providers (VASPs), formally reversing BPRD Circular No. 03 of 2018, which had prohibited all financial institutions from processing, using, trading, holding, or transferring virtual currencies. The reversal follows Pakistan’s enactment of the Virtual Assets Act, 2026, which established the Pakistan Virtual Asset Regulatory Authority (PVARA) as the statutory authority responsible for licensing, regulation, supervision, and oversight of virtual asset activities in Pakistan. Under the new framework, banks must verify each VASP’s PVARA license before onboarding. Notably, regulated entities remain expressly prohibited from investing, trading, or holding virtual assets using their own funds or customer deposits. A press release from the Pakistan Virtual Assets Regulatory Authority is available here.

UK FCA Publishes Perimeter Guidance Consultation Ahead of 2027 Crypto-asset Regime

On April 15, the United Kingdom’s Financial Conduct Authority (FCA) published a consultation paper seeking feedback on proposed perimeter guidance for the UK’s forthcoming crypto-asset regulatory regime, which is expected to come into force on October 25, 2027. The consultation outlines the FCA’s proposed interpretation of the scope of regulated crypto-asset activities, including issuing qualifying stablecoins, operating crypto-asset trading platforms, dealing in and arranging deals in qualifying crypto-assets, safeguarding crypto-assets, and arranging qualifying crypto-asset staking. The guidance is intended to help firms determine whether their activities will require FCA authorization when the application gateway opens on September 30, 2026. The FCA confirmed that the application window for firms seeking authorization will run from September 30, 2026, to February 28, 2027. The FCA’s consultation paper is available here.

Hong Kong Monetary Authority Issues First Stablecoin Issuer Licenses

On April 10, the Hong Kong Monetary Authority (HKMA) granted the city’s inaugural stablecoin issuer licenses to Hongkong and Shanghai Banking Corporation and Anchorpoint Financial Limited, a joint venture formed by Standard Chartered Bank, Hong Kong Telecommunications, and Animoca Brands. The licenses, issued under the Stablecoins Ordinance that took effect on August 1, 2025, authorize both entities to issue stablecoins denominated in Hong Kong dollars. HKMA Deputy Chief Executive Daryl Ho stated that the authority remains “open but cautious” about issuing additional licenses. HKMA’s press release is available here.