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.
U.S. Department of Labor Proposes Rule to Open 401(k) Plans to Crypto and Alternative Assets
On March 30, the U.S. Department of Labor (DOL) released a proposed rule that would make it easier for 401(k) retirement plans to include cryptocurrencies. The proposal, titled Fiduciary Duties in Selecting Designated Investment Alternatives, responds to an executive order signed by President Donald Trump in August directing the DOL and the Securities and Exchange Commission (SEC) to expand access to alternative assets in retirement portfolios. The proposal builds on earlier actions, including the DOL’s May rescission of Biden-era guidance urging caution before adding crypto to 401(k) plans. The rule is open for public comment before finalization. The DOL’s press release is available here. The proposed rule as published in the Federal Register is available here.
U.S. Treasury Proposes First Rule to Implement the GENIUS Act, Seeks Public Comment on State Stablecoin Oversight
On April 1, the U.S. Department of the Treasury issued a notice of proposed rulemaking (NPRM) seeking public comment on its implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The NPRM would establish broad-based principles for determining whether a state-level regulatory regime is “substantially similar” to the federal regulatory framework. Under the GENIUS Act, stablecoin issuers with a consolidated total outstanding issuance of not more than $10 billion may opt for regulation under a state-level regime rather than direct federal oversight, provided the state regime meets that substantial-similarity standard. The Treasury will accept public comments on the NPRM for 60 days after its publication in the Federal Register. Treasury’s press release is available here. The proposed rule is available here.
Alabama Becomes Second State to Grant DAOs Legal Status Under the DUNA Act
On April 1, Alabama Governor Kay Ivey signed the Decentralized Unincorporated Nonprofit Association (DUNA) Act, making Alabama the second state after Wyoming to formally grant legal status to decentralized autonomous organizations (DAOs). The DUNA Act provides qualifying DAOs—those with at least 100 members joined for a common nonprofit purpose, such as governing a blockchain network—with full legal entity status, including the ability to own property, enter into contracts, and sue and be sued, while shielding individual members and administrators from personal liability. The Alabama law is modeled on Wyoming’s DUNA Act but diverges from the Wyoming statute in several respects, including (a) omitting Wyoming’s implied covenant of good faith and fair dealing for all members, (b) narrowing Wyoming’s prohibition on distributions by carving out an exception that permits distributions to certain third parties, and (c) confining membership and transferability provisions to “a membership interest” only, foregoing Wyoming’s broader recognition of any “property or instrument that confers a voting right.” The Alabama bill is available here. Wyoming's DUNA Act is available here.
Chainlink Labs and Anchorage Digital Launch Crypto-Aligned PAC Ahead of 2026 Midterms
On March 30, Chainlink Labs and Anchorage Digital announced that they are the founding contributors to the Blockchain Leadership Fund, a hybrid political action committee (PAC) formed to support candidates advancing digital asset and blockchain policy in the United States. The Blockchain Leadership Fund, organized with participation of members of The Digital Chamber, is structured as a hybrid PAC that can both make direct contributions to candidates and fund independent expenditures such as media buys. A Chainlink spokesperson said candidates willing to support the Digital Asset Market Clarity (CLARITY) Act, the crypto market structure bill currently moving through the Senate, deserve “sustained, organized support from the industry.” The Blockchain Leadership Fund’s Federal Election Commission filing is available here.
Ripple Edges Closer to National Trust Bank Status as OCC Rule Takes Effect
On April 1, the Office of the Comptroller of the Currency’s (OCC) final rule, detailed in Bulletin 2026-4, took effect, formalizing a regulatory framework that explicitly authorizes national trust banks to engage in non-fiduciary custody and safekeeping activities, including for digital assets. The rule directly enables Ripple Lab Inc.’s conditionally approved Ripple National Trust Bank charter to progress toward operational status. The OCC’s December 2025 announcement of conditional charter approvals is available here. OCC Bulletin 2026-4 is available here.
Australia Passes First Comprehensive Crypto Licensing Law
On April 1, Australia’s Parliament passed the Corporations Amendment (Digital Assets Framework) Bill 2025, creating the country’s first comprehensive regulatory framework for digital assets. The legislation requires crypto exchanges and custody providers to obtain an Australian Financial Services License, bringing them under the same core rules that apply to brokers and fund managers. The bill creates two new regulated categories under the Corporations Act–“digital asset platforms” and “tokenized custody platforms.” The law will take effect 12 months after receiving Royal Assent, with a transition period for businesses to comply. The bill’s full legislative record on the Australian Parliament website is available here. The Australian government’s announcement is available here.
Federal Reserve Governor Barr Flags Stablecoin Risks in Remarks on GENIUS Act Implementation
On March 31, Federal Reserve Governor Michael Barr delivered remarks at a Federalist Society event titled “The GENIUS Act in Practice: Key Questions for Stablecoin Regulation,” warning that stablecoins present significant concerns around money laundering, terrorist financing, and financial stability despite the passage of the GENIUS Act. Barr stated that “the quality and liquidity of stablecoin reserve assets are critical to their long-run viability” and cautioned that issuers have an incentive to maximize returns on reserve assets by extending the risk spectrum, which “can increase profits in good times but risks undermining confidence during market stress.” While acknowledging that the GENIUS Act made important progress in creating a regulatory framework for stablecoins, Barr emphasized that “a great deal will depend on how federal and state regulators implement the statute,” identifying reserve asset regulation, regulatory arbitrage, and capital and liquidity requirements as key outstanding issues. Barr’s remarks are available here.
DOJ Charges 10 Foreign Nationals in Crypto Wash Trading Scheme Following FBI Undercover Operation
On March 31, the U.S. Department of Justice (DOJ) announced charges against 10 foreign nationals connected to four cryptocurrency market-making firms–Gotbit, Vortex, Antier, and Contrarian–for allegedly orchestrating pump-and-dump schemes through wash trading. The charges stem from an undercover operation by the FBI and IRS Criminal Investigation in which federal agents created several cryptocurrency tokens to expose illicit wash trading services. Prosecutors allege the defendants acted as both buyers and sellers to artificially inflate trading volumes and prices, luring unwitting investors into purchasing cryptocurrencies at inflated values. Three defendants, including two CEOs, were arrested in Singapore and extradited to the United States, while two others already have pleaded guilty and been sentenced. Authorities have seized more than $1 million in cryptocurrency to date. If convicted, the defendants face up to 20 years in prison and fines of $250,000 per violation. The DOJ press release is available here.
UK Sanctions $20 Billion Crypto Marketplace Xinbi Linked to Southeast Asian Scam Networks
On March 26, the UK Foreign, Commonwealth & Development Office sanctioned Xinbi, a Chinese-language crypto marketplace that processed an estimated $19.9 billion in illicit flows between 2021 and 2025, under the UK’s Global Human Rights sanctions regime. The UK government described Xinbi as a cryptocurrency network through which stolen personal data is sold to fraudsters, and said the designation is part of broader efforts to dismantle Southeast Asian “scam centres.” The designation freezes all UK-linked assets and bars British banks, crypto firms, and individuals from interacting with the platform. The UK Foreign, Commonwealth & Development Office press release is available here.
