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 Chairman Atkins Delivers Remarks Outlining 2026 Crypto Regulatory Agenda
On Feb. 18, SEC Chairman Paul S. Atkins and Commissioner Hester M. Peirce delivered joint remarks outlining the SEC's comprehensive regulatory agenda for crypto assets in 2026. Chairman Atkins previewed key SEC initiatives, including: (i) guidance clarifying when crypto assets constitute investment contracts and when tokens may shed their securities status as networks mature; (ii) innovation exemptions to permit pilot trading of tokenized securities on novel platforms such as automated market makers; (iii) rulemaking on broker-dealer custody of non-security crypto assets, including payment stablecoins; (iv) transfer agent modernization to accommodate blockchain-based recordkeeping; (v) additional guidance and no-action letters addressing wallets and user interfaces that may not require registration; (vi) enabling "super-app" platforms that allow intermediaries to offer trading in crypto asset securities, non-security crypto assets, staking services, and traditional securities under a single license; and (vii) updating rules to support the integration of on-chain software systems, including decentralized systems and automated market makers, into U.S. securities markets. The remarks are available here.
SEC Staff Issues Net Capital Guidance Permitting 2% Haircut for Payment Stablecoins
On Feb. 19, the SEC's Division of Trading and Markets updated its Frequently Asked Questions Relating to Crypto Asset Activities and Distributed Ledger Technology with new guidance on the treatment of payment stablecoins under the broker-dealer net capital rules. In a related statement, Commissioner Peirce highlighted the significance of the new FAQ, which provides that the staff will not object if a broker-dealer treats a proprietary position in a payment stablecoin as having a "ready market" under Rule 15c3-1, and takes a haircut of only 2% of the market value of the greater of the long or short proprietary position in a payment stablecoin in calculating its net capital. Commissioner Peirce's statement is available here; the updated FAQs are available here.
California DFPI Issues Implementation Update and Application Guidance for Digital Financial Assets Law
The California Department of Financial Protection and Innovation (DFPI) issued a formal implementation update for the Digital Financial Assets Law (DFAL), confirming that any individual or company conducting covered crypto activity—including the exchange, transfer, or storage of digital financial assets—for or on behalf of California residents must, by July 1, 2026, hold a DFAL license, have submitted a license application, or qualify for an exemption. Applications for the DFAL license open via NMLS on March 9, 2026. The DFPI's application preparation guidance is available here.
Federal Reserve Staff Publishes Working Paper on Initial Margin for Cryptocurrency Risks in Uncleared Markets
On Feb. 11, the Federal Reserve Board (Fed) staff published “Initial Margin for Crypto Currencies Risks in Uncleared Markets.” The paper examines the prospective classification of cryptocurrency risks within the ISDA Standardized Initial Margin Model (SIMM) framework for the calculation of initial margin on trades sensitive to cryptocurrency risk factors in the uncleared (bilateral OTC derivatives) market. Consistent with the view that cryptocurrencies are digital assets that fundamentally rely on distributed ledger technology and induce financial risks significantly different from those in traditional risk classes such as commodities or FX, the Fed staff concluded that cryptocurrencies are best classified into a new risk class within SIMM, split into two buckets–pegged and floating (unpegged) cryptocurrencies–as risk factors and suggest a risk-weight calibration methodology consistent with existing SIMM approaches. The paper is available here.
Hong Kong’s SFC Grants First New Crypto Platform License Since June 2025
On Feb. 13, Hong Kong’s Securities and Futures Commission (SFC) granted a virtual asset trading platform license to Victory Fintech (VDX), an affiliate of publicly listed financial services firm Victory Securities. The authorization marks the first new addition to the approved list since June 17, 2025, bringing the total number of licensed platforms to 12. VDX received authorization covering Type 1 (dealing in securities) and Type 7 (providing automated trading services) regulated activities, while its affiliate VDX Custody Ltd. received authorization under Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance for custodial services. The SFC’s registry of licensed virtual asset trading platforms is available here.
Polish President Vetoes MiCA Implementation Bill for Second Time
On Feb. 12, Polish President Karol Nawrocki vetoed the Crypto-Assets Market Act for the second time, blocking legislation intended to implement the EU’s Markets in Crypto-Assets Regulation (MiCA) and establish a national licensing framework for crypto-asset service providers in Poland. Nawrocki described the bill as “practically identical” to the original Bill 1424, which he first vetoed on Dec. 1, 2025, and stated: “I will not sign a bad law just because it was passed again by the parliamentary majority. … Poland should attract innovation, not push it away.” The President maintained his objections to nontransparent domain-blocking provisions and the excessive complexity of the legislation compared to other EU member states’ MiCA implementations. The only substantive change from the original bill was a reduction of the maximum supervisory fee charged by the Polish Financial Supervision Authority (KNF) from 0.4 percent to 0.1 percent of firms’ revenue. Poland is now the sole EU member state without domestic implementing legislation for MiCA, and the KNF has warned that without a competent authority designated before the July 1, 2026 transition deadline, domestic crypto platforms will have no legal basis to continue operating. The announcement is available here.
