The One Big Beautiful Bill Act, enacted on July 4, 2025, modernizes and expands the already favorable tax treatment that applies to investments in qualified small business stock (QSBS). These changes benefit venture capital funds that intend to avail themselves of the tax benefits under the QSBS rules by (i) expanding the universe of companies that the funds can invest in, (ii) increasing the amount of gains that their respective investors can receive that are not subject to federal income tax and (iii) providing the funds with more flexibility in terms of timing their exits from these types of investments. The expansion of the QSBS rules under the Act should be a welcome development for venture capital funds and their investors.

On August 7, President Trump signed an Executive Order directing the DOL, the SEC, and Treasury (including the IRS) to review and revise guidance to facilitate the inclusion of alternative investments—such as private equity, cryptocurrency, and other non-traditional assets—in defined contribution retirement plans. The Executive Order follows action in May of this year by the DOL to rescind its 2022 guidance that discouraged fiduciaries from including cryptocurrency options in 401(k) retirement plans.

Last year in September, we published an alert about the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) final rule, which would have imposed certain anti-money laundering and combating the financing of terrorism (AML/CFT) program and other Bank Secrecy Act-related obligations on investment advisers (IA AML Rule) effective January 1, 2026.