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.
FDIC Chairman Addresses Congress on the Topic of Digital Assets
On Dec. 2, the Acting Chairman of the Federal Deposit Insurance Company (FDIC), Travis Hill, gave a statement before the House Committee on Financial Services. On the topic of digital assets, Hill mentioned that “the FDIC has taken a more open-minded approach with respect to banks that offer products and services related to digital assets, while maintaining our expectation that such activities are conducted in a safe and sound manner.” He specifically noted that earlier this year, the FDIC rescinded a requirement that certain financial institutions provide notice to the FDIC prior to engaging in digital asset activity. Hill called the requirement “a significant barrier to banks’ adoption of digital asset activity.” Hill also stated that the FDIC has begun to promulgate rules to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) and expects to issue a proposed rule in the coming months. Chairman Hill’s full statement can be read here.
CFTC Announces Launch of Listed Spot Cryptocurrency Trading on Regulated U.S. Markets
On Dec. 4, the Commodity Futures Trading Commission (CFTC) announced that spot cryptocurrency products will begin trading for the first time on CFTC-registered futures exchanges, marking a significant development in federally regulated digital asset markets. Acting Chairman Caroline D. Pham emphasized that the initiative aims to expand access to safer, regulated U.S. trading venues and follows recommendations from the President’s Working Group on Digital Asset Markets, as well as input from public consultations and interagency collaboration. The move also aligns with broader efforts to modernize regulatory frameworks, including steps taken through the CFTC’s Crypto Sprint to address tokenized collateral, stablecoins, and technical updates to rules governing derivatives market infrastructure. A CFTC press release can be read here.
The State of Connecticut Fires Legal Volley Against Sports Event Contracts
On Dec. 3, the Connecticut Department of Consumer Protection issued cease-and-desist orders to Robinhood, Kalshi, and Crypto.com, alleging they were operating unlicensed online gambling by offering sports-related prediction contracts to state residents. The department said the companies lack the required state wagering licenses and that their contracts may violate additional laws, including age restrictions. Robinhood defended its offerings as federally regulated through the Commodities Futures Trading Commission (CFTC), while the other firms did not comment. The dispute mirrors similar conflicts in New York and follows a Nevada ruling affirming some state authority over sports-based event contracts. Connecticut warned that noncompliance could bring civil or criminal penalties, noting that only DraftKings, FanDuel, and Fanatics are authorized for sports wagering in the state, while the broader prediction-market industry continues to test regulatory boundaries. The department’s news article can be read here.
New Crypto Reporting Requirements for UK Users
On Nov. 26, HM Revenue & Customs (HMRC) announced that beginning Jan. 1, 2026, UK crypto exchanges, classified as reporting crypto asset service providers (RCASPs), will be required to collect and report user information and detailed transaction data such as the types of crypto assets and the number of units involved. The policy expands the Organisation for Economic Co-operation and Development’s Cryptoasset Reporting Framework to cover both domestic and international activity of UK taxpayers. Its objective is to provide HMRC with standardized annual data that will strengthen tax compliance and help combat evasion. RCASPs must submit their first report by May 31, 2027, covering all transactions from Jan. 1 to Dec. 31, 2026. See official guidance here.
SEC Crypto Task Force To Host Financial Surveillance and Privacy Roundtable
On Dec. 15, previously scheduled for Oct. 17, the Securities and Exchange Commission’s (SEC) Crypto Task Force will host a financial surveillance and privacy roundtable that will bring together panelists at the forefront of developing technologies designed to protect individual privacy. The roundtable will also include an in-depth discussion of policy matters related to financial surveillance. The roundtable is open to the public. The registration link is available here, and the full announcement is available here.
UK Moves To Formally Recognize Digital Assets as Legal Property
On Dec. 2, the UK Parliament approved a new law that formally treats crypto and stablecoins as property. The act will formally codify a series of common law rulings that have treated digital assets as property. Additional consequences of the new law will mean that digital assets can be legally owned, inherited, and recovered. The bill still awaits approval from King Charles III. But once he approves it, digital assets will be protected under British property law. The full meeting in the House of Lords can be viewed here.
