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.

Michael Selig Receives Nomination as CFTC Chairman

On Oct. 27, President Donald Trump nominated Michael Selig, the current chief counsel for the Securities and Exchange Commission (SEC) Crypto Task Force and senior adviser to SEC chairman Paul Atkins, as the 16th chairman of the Commodity Futures Trading Commission (CFTC). Selig’s nomination is Trump’s second attempt to fill the position after former nominee Brian Quintenz was withdrawn from consideration. Acting chair Caroline Pham will continue to serve until (and if) the U.S. Senate confirms Selig. Follow Selig’s nomination process here. 

Kalshi Files for Permanent Injunction and Declaratory Relief Against New York Regulator Over Cease-and-Desist Letter

On Oct. 27, Kalshiex LLC (Kalshi) filed a complaint against the New York State Gaming Commission (NYSGC) in the U.S. District Court for the Southern District of New York, seeking a permanent injunction and declaratory relief with respect to NYSGC’s alleged intrusion by the CFTC’s exclusive authority over federally designated derivatives exchanges. The complaint comes after NYSGC sent Kalshi a cease-and-desist letter on Oct. 24, alleging violations of New York gaming laws and threatening civil penalties and fines unless Kalshi shuts down the distribution of event contracts within the state. Kalshi asserts, among other things, that the CFTC is the exclusive regulator with respect to futures trading and that event contracts are recognized financial tools that may be used to hedge against event-driven volatility. See a copy of the complaint here.

President Trump’s Pardon of Binance Founder Triggers Senate Inquiry

On Oct. 28, seven Senate Democrats, led by Sen. Elizabeth Warren (D-MA), called for a federal investigation into President Donald Trump’s pardon of Binance founder Changpeng Zhao, who previously pleaded guilty in a major money laundering case. In a letter to Attorney General Pam Bondi and Treasury Secretary Scott Bessent, the lawmakers questioned the pardon’s legality and warned it could undermine confidence in federal law enforcement and embolden future white-collar crimes. They also raised concerns over possible financial ties between Zhao and Trump through the crypto firm World Liberty Financial, in which Trump reportedly retains an interest. The senators urged the Department of Justice and the Treasury Department to respond by Nov. 4, outlining whether the pardon was influenced by these connections and how it may affect ongoing regulatory enforcement. See a press release by the House Committee on the Judiciary here.

ASIC Clarifies Application of Existing Laws to Digital Assets

On Oct. 29, the Australian Securities and Investments Commission (ASIC) issued updated guidance clarifying how existing financial laws apply to digital assets, including stablecoins, wrapped tokens, tokenized securities, and digital asset wallets. The update, part of Information Sheet 225, confirms that many digital assets are considered financial products under current law, requiring providers to hold a financial services license to ensure consumer protections. ASIC has introduced transitional support, including a sector-wide no-action position until June 30, 2026, and proposed regulatory relief for distributors and custodians of certain stablecoins and wrapped tokens. Feedback on these proposals is welcomed until Nov. 12. The revised guidance aligns with the government’s proposed Digital Assets Platform reforms and aims to provide regulatory clarity to support responsible innovation while maintaining enforcement against serious misconduct. See an ASIC media release here.

Financial Accounting Standards Board Votes To Add Technical Agenda Item for Stablecoins as Cash Equivalents

On Oct. 29, the majority of the Financial Accounting Standards Board (FASB) voted to include on their technical agenda the question of whether certain stablecoins should qualify as cash equivalents on corporate balance sheets. Specifically, the research project will explore whether certain digital payment assets (e.g., stablecoins) are cash equivalents and what the accounting standards for certain digital asset transfers (e.g., crypto lending) should be. Cash equivalents generally include highly liquid investments that are readily convertible to known cash amounts and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. See the FASB’s board meeting handout here.

Members of the IASB Vote To Require Additional Disclosures Regarding Non-Cash Transactions

On Oct. 29, members of the International Accounting Standards Board (IASB) voted to require additional disclosures by companies with respect to non-cash transactions, including, but not limited to, selling goods in exchange for cryptocurrencies. Given the economic similarities between non-cash transactions and cash transactions, the IASB members determined that non-cash transactions, including transactions involving cryptocurrencies, should be disclosed to investors to assist those investors in reconciling financial accounts with cash-flow statements. See the IASB staff paper here.

French Legislative Proposal Seeks To Integrate Bitcoin and Stablecoins into France’s Financial System

On Oct. 28, the French Parliament reviewed a new crypto bill proposed by Éric Ciotti, leader of the Union of Rights for the Republic (UDR). The legislation seeks to integrate bitcoin and euro-denominated stablecoins into France’s financial system through several key initiatives. These include the creation of a national bitcoin reserve of 420,000 BTC, the promotion of stablecoins for everyday transactions and tax payments as an alternative to traditional payment networks like Visa or Mastercard, and a €200 exemption threshold for tax-free usage. The bill also proposes favorable tax treatment for cryptocurrency miners, flexible regulatory frameworks for data centers, and the recognition of bitcoin as acceptable collateral for certain loans. See a post on X from Ciotti here.