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.
Upcoming Event: Financial Innovation & Crypto Symposium | December 2, 2026
Join Lowenstein Sandler, Rutgers Law School, and Florida State University College of Law on December 2 at Lowenstein’s New York office for the Financial Innovation & Crypto Symposium. Featuring SEC officials, industry leaders, and leading scholars, the program will explore tokenization, enforcement trends, and regulatory developments shaping the future of digital assets through panel discussions and fireside chats.
The event will take place from 8:15 a.m. to 2 p.m. ET, with opportunities to connect over breakfast and a networking lunch. Register here.
SEC Includes Securities Tokenization as 2027 Examination Priority
On October 23, the U.S. Securities and Exchange Commission (SEC) announced its fiscal year 2027 examination priorities, identifying the tokenization of securities as an emerging area of regulatory focus. In particular, the SEC’s Division of Examinations (Division) indicated that examinations under Regulation Systems Compliance and Integrity will address emerging trends, including the tokenization of securities, extended trading hours, and quantum computing. The Division also identified tokenization as an area of heightened risk in its examinations of clearing agencies, alongside default management, securities lending, and operational risks. Notably, the 2027 priorities do not include a stand-alone examination category for crypto assets generally, marking the second consecutive year in which the SEC has omitted a dedicated crypto assets section after including one in its fiscal year 2025 priorities. See the examination priorities here.
OCC Releases Statement Encouraging Community Banks To Enter Payment Stablecoin Market
On October 26, the Office of the Comptroller of the Currency (OCC) released a statement encouraging community banks to consider becoming permitted payment stablecoin issuers, or establishing subsidiaries to do so, under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The announcement followed the OCC’s issuance of a final rule implementing the GENIUS Act for entities subject to its jurisdiction. On October 27, Comptroller of the Currency Jonathan Gould reiterated the OCC’s support for community bank participation in the payment stablecoin market, emphasizing that the final rule establishes a pathway for community banks to issue payment stablecoins through subsidiaries and imposes requirements calibrated to the size and risk of the issuer. Gould also emphasized that the rule applies the same standards to bank and nonbank issuers, with the aim of providing a level regulatory playing field. The OCC’s statements signal its intention to facilitate community bank participation in the emerging payment stablecoin market alongside larger financial institutions and nonbank issuers. See the OCC’s post on X here. See Gould’s remarks here.
Canada Proposes Stablecoin Regulations, Citing Alignment With U.S. GENIUS Act
On October 24, the Canadian government published proposed stablecoin regulations for public comment, seeking to implement Canada’s Stablecoin Act. The proposed regulations would establish a regulatory framework for issuers of fiat-backed stablecoins that are not prudentially regulated financial institutions, including requirements to register with the Bank of Canada, maintain reserves backed at least one-to-one by high-quality liquid assets, and provide redemption rights to stablecoin holders. The proposed regulations would also prohibit issuers from paying interest or yield tied to holding stablecoins, require issuers to initiate redemption payments within three business days of a request, and cap redemption fees at 1 percent of the redeemed amount. In developing the framework, the Canadian government expressly referenced the GENIUS Act and the European Union’s Markets in Crypto-Assets Regulation, emphasizing the importance of international regulatory alignment and reducing compliance burdens for issuers operating across jurisdictions. See the statement here.
OCC Grants Final Approval for Ripple National Trust Bank
On October 26, Ripple announced that the OCC had granted final approval to establish Ripple National Trust Bank (RNTB), a federally supervised national trust bank, following conditional approval in December 2025. According to Ripple, RNTB’s approved activities include managing the segregated reserves backing Ripple’s U.S. dollar-denominated stablecoin, RLUSD, acting as collateral trustee of those reserves for the benefit of RLUSD holders, and providing fiduciary digital asset custody services upon opening. RLUSD will continue to be issued by Standard Custody & Trust Co., Ripple’s limited-purpose trust company regulated by the New York State Department of Financial Services. The approval establishes a federally supervised national trust bank to support Ripple’s stablecoin reserve management and digital asset custody activities while leaving stablecoin issuance with its existing state-regulated subsidiary. See the press release here.
Hong Kong SFC Approves First Secondary Trading of Tokenized Public Funds
On October 26, Hong Kong’s Securities and Futures Commission (SFC) announced the first-ever approval of secondary trading of tokenized public investment funds on an SFC-licensed virtual asset trading platform. The approval follows the SFC’s April 2026 regulatory framework permitting secondary trading of tokenized SFC-authorized investment products, subject to requirements addressing fair pricing, orderly trading, liquidity provision, investor disclosures, client onboarding, and regulatory notifications. The framework is principally designed for tokenized open-ended investment funds, although the SFC may consider other types of investment products subject to appropriate requirements. The approval marks a significant step in implementing Hong Kong’s regulatory framework for secondary trading of tokenized investment products. See the announcement here.
