Insights

On February 17, 2026, the CFTC filed an amicus brief in North American Derivatives Exchange, Inc. et al v. The State of Nevada on relation of the Nevada Gaming Control Board et al., asserting its exclusive jurisdiction over event contract markets (a.k.a., prediction markets).

Last week, the United States Environmental Protection Agency (EPA) rescinded its long-standing Greenhouse Gas Endangerment Finding and subsequent federal greenhouse gas emission standards for cars and trucks. The rescission lifts existing obligations on automobile manufacturers with respect to the measurement, control, and reporting of greenhouse gas emissions. It does not explicitly change greenhouse gas emission requirements applicable to other regulated sources such as power plants and oil and gas facilities. However, the rescission establishes a basis for rescinding greenhouse gas emission standards from such sources at a future date.

In a decision with significant implications for any non-lawyer who uses artificial intelligence tools to research or analyze legal matters, Judge Rakoff of the United States District Court for the Southern District of New York, in United States of America v. Heppner, 25-cr-00503-JSR, ruled on February 10, 2026 that documents generated through a public AI platform were not protected by the attorney-client privilege or the work product doctrine. Specifically, the Court granted the Government's motion to access documents that defendant Bradley Heppner created using the AI tool Claude before his arrest on federal fraud charges.

On January 28, 2026, the SEC Staff (the “Staff”) from the Division of Corporation Finance, the Division of Investment Management, and the Division of Trading and Markets issued a joint statement on tokenized securities. The statement builds upon and expands Commissioner Peirce’s July 2025 remarks, “Enchanting, but Not Magical,” emphasizing that innovations in tokenization should be approached as a process of regulated evolution. The statement provides the Staff’s views on tokenized versions of securities that are issued as crypto-assets and recorded on a distributed ledger technology (DLT), such as a blockchain network.

Over the past several years, out-of-court Liability Management Exercises (“LMEs”) have been utilized by struggling companies to mitigate financial distress, often by “uptiering” debt in order to gain access to augmented liquidity or to extend maturity runways. In a number of these situations, debtors have taken advantage of loose basket capacity and favorable non-pro rata and/or amendment provisions in credit agreements and indentures to subordinate older, existing credit facilities as well as a host of other disadvantages for non-participating minority lenders. This hostile dynamic has led to a number of protracted legal battles in the courtroom, including one commonly referred to as “Incora” – a contentious uptiering LME that has dominated lending headlines in recent years.

New OBBB provisions may shift how charitable deductions work in 2026 and beyond. This video explains the changes and outlines practical actions individuals can take to safeguard wealth and strengthen future charitable planning.

On December 8, 2025, the Market Participants Division, Division of Market Oversight, and Division of Clearing and Risk (collectively, “Divisions”) of the Commodity Futures Trading Commission (“CFTC”) issued guidance on the use of tokenized assets as collateral in the trading of futures and swaps. The Guidance follows a September 2025 request for comment on the use of tokenized collateral in derivatives markets, including on the recommendations made in a November 2024 report of the CFTC’s Global Markets Advisory Committee (“GMAC”).

Consistent with the GMAC’s recommendations, the Guidance acknowledges that CFTC regulations do not require any particular technology or operational infrastructure to transfer or hold eligible collateral, stating instead that “assets retain their margin eligibility so long as they satisfy applicable regulatory requirements”. The Guidance largely reiterates existing regulations without adding tokenization-specific standards. Nonetheless, the Guidance is significant because it reflects the Divisions’ concurrence with the GMAC’s conclusion that no changes to CFTC regulations are needed, and it identifies areas where
risk-focused analysis is expected.

This bulletin highlights certain key points in the Guidance, focusing on issues raised by the unique attributes of tokenization and considerations relevant to swap dealers subject to CFTC uncleared margin regulations.

On November 25, 2025, the federal banking agencies (agencies) adopted a final rule that implements in almost unchanged form all the changes described in our July 10, 2025, Client Alert titled “Federal Banking Agencies Propose Reduction in “Enhanced Supplementary Leverage Ratio” Requirements for US GSIBs and Corresponding Reductions in TLAC and LTD Requirements.”

On November 18, 2025, the Ninth Circuit Court of Appeals temporarily enjoined enforcement of California’s Climate-Related Financial Risk Act, Senate Bill 261 (SB 261) just as companies are preparing to meet the law’s first disclosure deadline on January 1, 2026. SB 261, which was challenged in court by the United States Chamber of Commerce (the Chamber) and other business groups, requires that certain United States-based entities with annual revenues over $500 million doing business in California publicly disclose their climate-related financial risks and mitigation measures.

On February 17, 2026, the CFTC filed an amicus brief in North American Derivatives Exchange, Inc. et al v. The State of Nevada on relation of the Nevada Gaming Control Board et al., asserting its exclusive jurisdiction over event contract markets (a.k.a., prediction markets).

Last week, the United States Environmental Protection Agency (EPA) rescinded its long-standing Greenhouse Gas Endangerment Finding and subsequent federal greenhouse gas emission standards for cars and trucks. The rescission lifts existing obligations on automobile manufacturers with respect to the measurement, control, and reporting of greenhouse gas emissions. It does not explicitly change greenhouse gas emission requirements applicable to other regulated sources such as power plants and oil and gas facilities. However, the rescission establishes a basis for rescinding greenhouse gas emission standards from such sources at a future date.

In a decision with significant implications for any non-lawyer who uses artificial intelligence tools to research or analyze legal matters, Judge Rakoff of the United States District Court for the Southern District of New York, in United States of America v. Heppner, 25-cr-00503-JSR, ruled on February 10, 2026 that documents generated through a public AI platform were not protected by the attorney-client privilege or the work product doctrine. Specifically, the Court granted the Government's motion to access documents that defendant Bradley Heppner created using the AI tool Claude before his arrest on federal fraud charges.

On January 28, 2026, the SEC Staff (the “Staff”) from the Division of Corporation Finance, the Division of Investment Management, and the Division of Trading and Markets issued a joint statement on tokenized securities. The statement builds upon and expands Commissioner Peirce’s July 2025 remarks, “Enchanting, but Not Magical,” emphasizing that innovations in tokenization should be approached as a process of regulated evolution. The statement provides the Staff’s views on tokenized versions of securities that are issued as crypto-assets and recorded on a distributed ledger technology (DLT), such as a blockchain network.

Over the past several years, out-of-court Liability Management Exercises (“LMEs”) have been utilized by struggling companies to mitigate financial distress, often by “uptiering” debt in order to gain access to augmented liquidity or to extend maturity runways. In a number of these situations, debtors have taken advantage of loose basket capacity and favorable non-pro rata and/or amendment provisions in credit agreements and indentures to subordinate older, existing credit facilities as well as a host of other disadvantages for non-participating minority lenders. This hostile dynamic has led to a number of protracted legal battles in the courtroom, including one commonly referred to as “Incora” – a contentious uptiering LME that has dominated lending headlines in recent years.

New OBBB provisions may shift how charitable deductions work in 2026 and beyond. This video explains the changes and outlines practical actions individuals can take to safeguard wealth and strengthen future charitable planning.

On December 8, 2025, the Market Participants Division, Division of Market Oversight, and Division of Clearing and Risk (collectively, “Divisions”) of the Commodity Futures Trading Commission (“CFTC”) issued guidance on the use of tokenized assets as collateral in the trading of futures and swaps. The Guidance follows a September 2025 request for comment on the use of tokenized collateral in derivatives markets, including on the recommendations made in a November 2024 report of the CFTC’s Global Markets Advisory Committee (“GMAC”).

Consistent with the GMAC’s recommendations, the Guidance acknowledges that CFTC regulations do not require any particular technology or operational infrastructure to transfer or hold eligible collateral, stating instead that “assets retain their margin eligibility so long as they satisfy applicable regulatory requirements”. The Guidance largely reiterates existing regulations without adding tokenization-specific standards. Nonetheless, the Guidance is significant because it reflects the Divisions’ concurrence with the GMAC’s conclusion that no changes to CFTC regulations are needed, and it identifies areas where
risk-focused analysis is expected.

This bulletin highlights certain key points in the Guidance, focusing on issues raised by the unique attributes of tokenization and considerations relevant to swap dealers subject to CFTC uncleared margin regulations.

On November 25, 2025, the federal banking agencies (agencies) adopted a final rule that implements in almost unchanged form all the changes described in our July 10, 2025, Client Alert titled “Federal Banking Agencies Propose Reduction in “Enhanced Supplementary Leverage Ratio” Requirements for US GSIBs and Corresponding Reductions in TLAC and LTD Requirements.”

On November 18, 2025, the Ninth Circuit Court of Appeals temporarily enjoined enforcement of California’s Climate-Related Financial Risk Act, Senate Bill 261 (SB 261) just as companies are preparing to meet the law’s first disclosure deadline on January 1, 2026. SB 261, which was challenged in court by the United States Chamber of Commerce (the Chamber) and other business groups, requires that certain United States-based entities with annual revenues over $500 million doing business in California publicly disclose their climate-related financial risks and mitigation measures.

Chapman wrote the book on the marketplace lending regulatory landscape that the entire industry has come to rely upon. First published in 2013, the 2025 update covers a vast array of topics including recent federal, state, and litigation developments and a new section on digital assets, highlighting blockchain, stablecoin legislation, and potential impacts on the marketplace lending industry. This edition reflects post-election regulatory shifts, ongoing true lender litigation, and new challenges for products such as Buy Now Pay Later and Earned Wage Access. 

On November 10, 2025, the IRS issued Revenue Procedure 2025-31, providing formal guidance addressing how trusts that qualify as investment trusts under Treas. Reg. § 301.7701-4(c) and grantor trusts for Federal income tax purposes can engage in digital asset staking without jeopardizing their favorable tax treatment. This guidance clarifies the conditions under which staking activities may be conducted while maintaining classification as both an investment trust and a grantor trust. The procedure establishes a safe harbor with detailed structural and operational requirements for eligible trusts, providing greater certainty for trustees and beneficiaries navigating digital asset investments. In particular, the safe harbor provides sponsors of trusts operating as crypto asset exchange-traded products (“ETPs”) a grantor trust compliant path to timely meet redemption requests in circumstances when the “unstaking” of a staked digital asset takes longer than the trust’s normal T+1 settlement cycle for redemptions.