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 Agriculture Committee Releases Discussion Draft of Bipartisan Market Structure Bill
On Nov. 10, the U.S. Senate Committee on Agriculture, Nutrition & Forestry (Committee) released a discussion draft of legislation that would grant the Commodity Futures Trading Commission (CFTC) broad authority to regulate digital commodities. Building on the Digital Asset Market Clarity Act of 2025 (Clarity Act) passed by the U.S. House of Representatives earlier this year, Chair John Boozman (R-AR) and Sen. Cory Booker (D-NJ) introduced the draft with the intention to provide, among other things, a clear definition of digital commodities, robust consumer protections such as asset segregation requirements, and requirements for the CFTC and Securities and Exchange Commission (SEC) to coordinate and collaborate on necessary inter-agency rulemakings. While much of the text remains bracketed pending negotiations, both senators emphasize the need for clearer rules and consumer protections in the crypto market. The effort complements a related draft from the Senate Banking Committee addressing securities regulations, with both sides seeking bipartisan consensus. See the Committee’s press release here and a copy of the draft bill here.
Coinbase Debuts Token Sales Platform
On Nov. 10, Coinbase launched a regulated token sale platform that aims to provide early-stage crypto companies a path to raise capital and give U.S. retail traders the opportunity to invest. The platform allows verified users to participate in primary token sales before assets are listed on exchanges, with purchases made exclusively in USD Coin (USDC). The first offering features Monad, an Ethereum-compatible layer 1 blockchain, with its MON token sale scheduled from Nov. 17 to Nov. 22. Coinbase will use an allocation algorithm that favors smaller purchase requests aimed to promote broader access and prevent large investors from dominating early distributions. To discourage short-term speculation, users who sell their tokens within 30 days of allocation may receive reduced access to future sales. Coinbase plans to host approximately one token sale per month, each open for a one-week window. The company’s press release can be read here.
New York Democrats Propose Restrictions on Prediction Markets
On Nov. 7, Democratic Assemblyman Clyde Vanel introduced Assembly Bill A9251 (Bill), which would enact oversight and regulation over contracts linked to events. The Bill frames prediction markets as platforms that provide customers with the ability to open speculative positions on outcomes of futures contracts. Further, the Bill prohibits contracts based upon catastrophic events, political events, security markets, deaths, and specific athletic events. Notably, however, event contracts are permitted for outcomes of athletic event tournaments and combinations of all outcomes of individual athletic events. The Bill also requires that any persons who have insider information be excluded outright from prediction markets. The full bill can be read here.
Uniswap Proposes Protocol Fee and Burn Mechanism
On Nov. 10, Uniswap introduced a governance proposal titled “UNIfication” that would activate the protocol fee mechanism and implement a UNI token burn system. The proposal outlines a plan for Uniswap governance to collect a portion of trading fees from Uniswap v2 and v3 liquidity pools. These protocol fees would be used to purchase UNI tokens on the open market and permanently remove them from circulation. The proposal also includes a retroactive burn of 100 million UNI tokens and estimates an annual burn value of approximately $500 million based on current trading volumes. The announcement led to a significant market reaction, with the UNI token price increasing by more than 38%. The proposal can be read here.
SEC Chair Paul S. Atkins Speaks on Crypto Tokens Classified as Securities
On Nov. 12, SEC Chair Atkins delivered remarks at the Federal Reserve Bank of Philadelphia, outlining the next phase of “Project Crypto.” Atkins expressed skepticism that most crypto tokens should be classified as securities, while acknowledging that certain tokens may have been sold as part of an investment contract and therefore could fall under existing securities laws. He reasoned that the majority of digital assets are unlikely to constitute “investment contracts,” as such contracts are typically capable of being performed and expiring over time. Atkins emphasized that, regardless of classification, the SEC remains committed to protecting investors from fraud in all its forms. However, he concluded his remarks by noting his view that the federal securities laws were not intended to encompass “every novel form of value, digital or otherwise.” The full text of Chairman Atkin’s speech can be read here.
IOSCO Publishes Final Report on Tokenization
On Nov. 11, the International Organization of Securities Commissions (IOSCO) published its final report on the tokenization of financial assets, warning that tokenization may introduce new risks for investors and market integrity. The report aims to guide regulators in understanding how tokenization is being adopted across capital markets and how existing frameworks may need to adapt. The report found that while tokenization can improve efficiency and transparency, it may also amplify risks such as ownership confusion, operational vulnerabilities, and technological dependencies. The report emphasized that most risks fall within current regulatory frameworks but acknowledged that the evolving nature of distributed ledger technology (DLT) requires ongoing scrutiny. IOSCO encourages regulators to coordinate responses and share insights to ensure investor protection and market stability as tokenization expands. The final report can be found here.
Mike Selig’s Senate Confirmation Hearing Date Set
Last month, Mike Selig, currently serving as Chief Counsel of the U.S. Securities and Exchange Commission (SEC) Crypto Task Force, was nominated by President Donald Trump to serve as Chairman of the Commodity Futures Trading Commission (CFTC). The nomination comes after Selig’s selection as the administration’s preferred candidate and follows the withdrawal of the prior nominee, Brian Quintenz. The nomination hearing before the U.S. Senate Committee on Agriculture, Nutrition & Forestry is scheduled for Wednesday, Nov. 19, at 3:00 PM ET. The live stream link for the hearing can be found here.
