Non-Fungible Insights: Blockchain Decrypted

On May 29, 2025, the Division of Corporation Finance of the U.S. Securities and Exchange Commission (SEC) issued a statement (Staking Statement) clarifying that certain staking activities do not constitute securities offerings and are exempt from registration under the federal securities laws.

On May 15, 2025, the Division of Trading and Markets of the U.S. Securities and Exchange Commission (SEC) released a set of Frequently Asked Questions (FAQs) addressing the application of SEC Rule 15c3-3 (the Customer Protection Rule) to the custody of crypto assets that are securities by broker-dealers.

On May 7, 2025, the Office of the Comptroller of the Currency (OCC) published Interpretive Letter 1184 (“IL 1184”), which confirms that national banks may execute and settle digital asset trades on behalf of their customers, so long as the bank acts in an agency capacity and the activity is conducted in a safe and sound manner.

On April 24, 2025, the Federal Reserve Board (Board) announced that it had withdrawn key supervisory guidance published during the prior Administration that, for more than two years, had constrained state member banks and other Board-supervised banking organizations from engaging in digital asset activities.

On February 27, 2025, the Securities and Exchange Commission released a staff statement (Staff Statement) that clarifies that meme coins, defined as “a type of crypto asset inspired by internet memes, characters, current events, or trends for which the promoter seeks to attract an enthusiastic online community to purchase the meme coin and engage in its trading,” are not securities.

David Sacks, the White House Crypto Czar, led a joint press conference with key congressional leaders to provide insight into a bipartisan roadmap for digital asset legislation, ushering in the “Golden Age” of digital assets. Sacks emphasized the need for domestic innovation, regulatory clarity, and a move away from the prosecution and persecution of the digital assets industry. Sacks’ objective is to collaborate with the executive branch working group for digital assets and the SEC’s Crypto Task Force to accomplish the task that President Trump assigned in his Executive Order regarding digital assets.

On January 21, 2025, the SEC’s Acting Chairman, Mark T. Uyeda, announced the formation of an SEC Crypto Task Force (CTF) led by Commissioner Hester Peirce. On February 4, 2025, Peirce laid out 10 of the CTF’s top priorities, which are not exhaustive, nor are they presented in order of priority or order of expected completion. Overall, the focus of the CTF is to take a new approach to regulating digital assets and create clear and practical policy measures geared towards innovation.

On January 23, 2025, President Trump signed an Executive Order (EO) on digital assets, blockchain technology, “and related technologies across all sectors of the economy,” demonstrating a dramatic shift in tone and approach from the Biden Administration. On the same day, the Securities and Exchange Commission (SEC) rescinded Staff Accounting Bulletin (SAB) No. 121 (SAB 121), removing a major impediment to financial institutions offering digital asset services.

The Third Circuit Court of Appeals held that the SEC’s denial of Coinbase’s petition for rulemaking clarifying how and when federal securities laws apply to digital assets was arbitrary and capricious. The Court ordered the SEC to provide a more complete explanation for its denial of the petition.

On November 18, 2024, in Samuels v. Lido DAO, the United States District Court for the Northern District of California denied some defendants’ motions to dismiss, finding that the plaintiff sufficiently alleged that a decentralized autonomous organization (DAO) is a partnership under California law, and consequently that these defendants may be liable as general partners. The court relied chiefly on the plaintiff’s argument that these defendants “meaningfully participated” in the DAO’s governance.

The Fifth Circuit Court of Appeals held that Tornado Cash’s immutable smart contracts are not the “property” of a foreign national or entity, meaning smart contracts cannot be blocked under the International Emergency Economic Powers Act (IEEPA) and OFAC overstepped its authority in sanctioning Tornado Cash.

On November 21, 2024, a federal court vacated a controversial SEC rule that expanded the definition of securities “dealer” in a way that could encompass participants in DeFi protocols, finding that the agency had overstepped its legal authority.

Regulatory uncertainty has haunted the digital asset space since its inception. The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been engaged in a multi-year turf war over which agency has the power to regulate various aspects of digital assets.

On July 17, 2024, the Financial Services and Treasury Bureau (FSTB) and Hong Kong Monetary Authority (HKMA) jointly issued a legislative proposal on stablecoin regulation in response to a two-month public consultation period with industry stakeholders. The consultation—which began earlier this year—generated 108 responses from market participants, industry associations, business organizations, and individuals, many of whom expressed support for a “well-regulated environment” as “a prerequisite for sustainable and responsible development of the stablecoin ecosystem in Hong Kong.”

On February 16, 2024, the Cabinet of Japan approved a bill to amend, among three other laws, the Limited Partnership Act for Investment (the Act). The proposed amendment provides for crypto assets to be added to the list of assets that investment limited partnerships (LPs) can acquire or hold.

On February 7, 2024, the Securities and Exchange Commission (SEC) announced charges against TradeStation Crypto, Inc. for “failing to register the offer and sale of a crypto lending product” that it offered to U.S. investors from approximately August 2020 to June 2022.

Winston’s “NFT Litigation and Regulatory Proceedings Tracker” on Lexis+ provides timely updates on significant litigation and administration proceedings involving NFTs brought by U.S. regulatory agencies and private litigants.

Yesterday marked a historic milestone in the history of bitcoin. On January 10, 2024, the U.S. Securities and Exchange Commission declared effective the applications to list shares of the following 11 spot bitcoin exchange-traded products and greenlighted the commencement of trading shares of the spot bitcoin ETPs beginning today.

Although the U.S. Securities and Exchange Commission in 2022 approved two exchange-traded funds (ETF) holding bitcoin futures, the Commission has rejected several efforts to list bitcoin spot ETFs.

On August 10, 2023, French securities regulator Autorité des marchés financiers (AMF) published a press release announcing amendments to Book VII of its General Regulation as it relates to digital assets service providers (DASPs) to be consistent with the enhanced registration requirements introduced by the DDADUE Law.