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.
Crypto Firms Submit Coalition Letter to Senate Committee on Banking and Committee on Agriculture
A coalition of 115 digital asset builders, investors, and advocates submitted a letter to the Senate Committee on Banking and the Committee on Agriculture on August 27, advocating for the protections afforded to open-source software development, including preventing market participants from being forced into “unworkable regulatory categories” that are designed for traditional financial intermediaries. The coalition called for explicit federal protections for blockchain infrastructure developers and noncustodial service providers, reasoning that such protections will foster American innovation. See here for a copy of the letter.
CFTC Announces Enhancements to Its Market Surveillance and Fraud Detection Capabilities
On August 27, the Commodity Futures Trading Commission (CFTC) announced that it is enhancing its market surveillance and fraud detection capabilities using Nasdaq’s suite of surveillance technology. The improvements to the CFTC’s surveillance capabilities aim to equip the agency with automated alerts and cross-market analytics, which are intended to improve efficiency in analyzing market trends, identifying unusual trading activity, and better protecting against fraud, manipulation, and abuse across traditional and digital asset classes. See the CFTC’s press release here.
CFTC Launches Next Phase of Crypto Sprint Initiative
On August 21, the CFTC, under Acting Chair Caroline D. Pham, announced the next phase of its crypto sprint initiative to implement recommendations from the President’s Working Group on Digital Asset Markets report. Pham noted the importance of public feedback, which will assist the CFTC in considering relevant issues for trading activities on CFTC-registered exchanges. This initiative includes immediate stakeholder engagement on all CFTC-relevant recommendations aimed at advancing federal-level digital asset trading. Pham emphasized the administration’s priority to establish U.S. leadership in crypto innovation and highlighted public support for the CFTC’s spot crypto trading efforts, coordinated with the Securities and Exchange Commission’s (SEC) Project Crypto. The public is invited to submit feedback through the CFTC website by October 20, 2025. See the CFTC’s press release here. Comments in response to Pham’s initiative may be submitted here.
Kraken Engages SEC on Tokenization Amid Growing RWA Momentum
Kraken has opened discussions with the U.S. SEC’s Crypto Task Force to explore how tokenization can be integrated into regulated financial markets. In a meeting on August 25, Kraken presented a framework for tokenized trading systems, detailing transaction life cycles and legal considerations under existing securities laws. The exchange called for clearer regulatory guidance to foster innovation while ensuring investor protection. This engagement follows Kraken’s launch of xStocks, a platform offering tokenized versions of U.S. equities and exchange traded funds to offshore clients via Solana and BSC. The meeting aligns with growing industry and regulatory interest in real-world asset (RWA) tokenization, a sector that reached $26.5 billion in tokenized assets in August. Analysts project the RWA market could grow to $16 trillion by 2030, driven by promises of efficiency and broader investment access. See the memorandum from the Crypto Task Force here.
Thailand Launches World’s First Tokenized Government Bonds for Retail Investors
On August 27, Thailand launched the world’s first fully tokenized government bonds, called G-Tokens, in a Ministry of Finance-backed initiative aimed at modernizing sovereign debt markets and expanding access to retail investors. Listed and managed by KuCoin Thailand, the pilot issuance totals 5 billion baht (approximately US$150 million) and allows purchases for as little as 1,000 baht (US$30), compared to the 100,000 baht minimum for traditional bonds. The blockchain-based system enables 24/7 trading, automated payouts via smart contracts, and increased transparency, while still operating under regulatory oversight. Unlike previous government experiments with digital bonds, Thailand’s approach significantly lowers the entry barrier and positions tokenized bonds as a mainstream savings option. Although risks such as global regulatory differences and market volatility remain, the project marks a major leap in integrating blockchain with public finance and may set a precedent for other nations exploring financial innovation. See a post on X by KuCoin here.
