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.

Senate Banking Committee Crypto Hearing Postponed

On Jan. 15, U.S. Senate Banking Committee Chairman Tim Scott (R-S.C.) announced that the Committee will be postponing the markup hearing for the comprehensive digital asset market structure legislation which was originally scheduled for Jan. 15. “I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith,” said Scott. The announcement came shortly after the largest U.S. crypto exchange, Coinbase, publicly voiced concerns with the latest draft of the bill. Read the official press release here.

Senate Agricultural Committee Postpones Release of Crypto Market Structure Bill and Hearing

On Jan. 12, U.S. Senate Committee on Agriculture, Nutrition, and Forestry Chairman John Boozman (R-Ark.) said in a statement that the committee has decided to hold the markup hearing for the proposed crypto market structure legislation during the last week of January. The hearing was initially scheduled for Jan. 15. The reason for the delay, according to Boozman, is to ensure that the legislation has the broad support it requires. The full statement is available here. 

Draft Digital Asset Bill Released

On Jan. 12, the U.S. Senate Banking Committee released an amended draft of the Digital Asset Market Clarity Act, which was slated for consideration at a since-postponed Jan. 15 markup hearing. The original version of the CLARITY Act passed the U.S. House of Representatives on July 17, 2025, and was referred to the Senate Banking Committee on Sept. 18, 2025. The amended draft introduces a two‑part classification framework, defining digital assets as either “ancillary assets” (presumed securities subject to disclosure) or “network tokens” (treated as commodities). It also directs the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to jointly promulgate rules enabling capital‑efficient portfolio margining across securities, derivatives, and digital commodities, clarifies that stablecoin issuers are not deemed to be paying interest if third parties offer rewards, codifies that tokenized securities are to be treated for all regulatory purposes as the underlying instruments they represent, and requires intermediaries that interact with decentralized finance entities to implement exam-ready risk programs. See the official press release for the amended draft here and the full text of the bill here.

Senators Introduce Blockchain Regulatory Certainty Act

On Jan. 12, Sens. Cynthia Lummis (R-Wyo.) and Ron Wyden (D-Ore.) unveiled the Blockchain Regulatory Certainty Act (BRCA), stand-alone legislation to clarify that unless blockchain developers and service providers control or handle user funds, they should not be classified as money transmitters under federal or state law. The bill is designed to remove regulatory ambiguity that might expose developers to criminal liability based on how users utilize decentralized protocols, a concern heightened by the convictions of the Tornado Cash developers in 2024. The BRCA would make clear that writing software and maintaining networks does not themselves trigger money-transfer requirements, addressing fears that current rules could stifle innovation or drive development offshore. The bill can be read here, and a press release can be read here.

Tennessee Issues Cease‑and‑Desist to Prediction Market Exchanges; Federal Court Temporarily Blocks Order Against Kalshi

On Jan. 9, the Tennessee Sports Wagering Council (SWC) sent cease‑and‑desist letters to Polymarket, Kalshi, and Crypto.com, ordering the prediction market exchanges to immediately remove any sports‑related contracts accessible to Tennessee customers and to refund any pending sports‑related wagers to customers by the end of the month. The same day, Kalshi sued Tennessee’s Attorney General and the SWC in federal court, arguing that the state lacks legal authority to regulate the company. On Jan. 12, a U.S. District Judge granted Kalshi emergency relief by temporarily barring Tennessee regulators from enforcing the cease‑and‑desist order against the platform. U.S. District Judge Aleta Trauger found that Kalshi was likely to succeed on the merits and that enforcement would cause irreparable harm, issuing a temporary restraining order that maintains the status quo while the case proceeds toward a Jan. 26 preliminary injunction hearing. The order can be read here, and the cease-and-desist letter is available here.

CFTC Chairman Selig Launches CFTC Innovation Advisory Committee

On Jan. 12, CFTC Chairman Michael S. Selig launched the Innovation Advisory Committee (IAC) to gather expertise and recommendations on innovations in the financial markets. The CEO Innovation Council participants, which include the CEOs of Polymarket, Cboe Global Markets, CME, Nasdaq, and Kalshi, will serve as the charter members; however, Selig is seeking additional nominations to join the IAC by Jan. 31, 2025. The announcement is available here.

SEC Concludes Zcash Investigation

On Jan. 16, Zcash Foundation announced that the SEC had concluded its inquiry of the company. The SEC originally subpoenaed Zcash in August 2023 in connection with certain crypto-asset offerings. Neither the SEC nor Zcash has released extensive details regarding the substance of the inquiry. However, according to the press release, after more than two years of uncertainty, Zcash received a positive outcome, stating that the SEC “does not intend to recommend any enforcement action or other charges against Zcash Foundation regarding this matter.” Read the Zcash press release here.