Cryptocurrency, Digital Assets, and Blockchain

On April 13, 2026, the Staff of the SEC’s Division of Trading and Markets issued a statement (“Statement”) setting out its views on when a person that creates, offers, and/or operates certain user interfaces used to prepare transactions in crypto asset securities (a “Covered User Interface Provider”) may do so without registering as a broker-dealer under Section 15(a) of the Securities Exchange Act of 1934. The Statement is the latest in a series of federal regulatory developments aimed at reconciling crypto industry practices within the existing securities and derivatives regulatory framework, following the SEC and CFTC’s joint guidance on the status of certain crypto assets and the CFTC’s recent no-action relief for a crypto wallet technology vendor. Commissioner Hester M. Peirce issued a separate statement commending the Staff but calling for a more permanent approach.

Chapman welcomes partner Cris Cicala to our Asset Securitization and Structured Finance Group; Cryptocurrency, Digital Assets, and Blockchain Group; and Compliance, Regulatory and Payments Group. Cris has an extensive digital assets practice advising funds, financial institutions, fintech companies, and digital-native market participants in matters involving digital assets and blockchain. He also has particularly deep experience in representing Latin American and European financial institutions and their US branches in both US domestic and cross-border transactions.

Read the latest edition of On-Chain Spotlight for key regulatory, market, and litigation developments shaping the Blockchain and digital assets industry.

Read the latest edition of On-Chain Spotlight for key regulatory, market, and litigation developments shaping the Blockchain and digital assets industry.

Read the latest edition of On-Chain Spotlight for key regulatory, market, and litigation developments shaping the Blockchain and digital assets industry.

Chapman partners Juan Arciniegas, Curtis Doty, Peter Hong, and Morrison Warren co-authored an article published by Thomson Reuters / Practical Law, providing essential guidance on the rapidly evolving landscape of cryptocurrency. As digital assets continue their march into mainstream finance, a new generation of investment products is reshaping how institutions and individuals gain exposure. Navigating this space requires understanding critical distinctions that carry real consequences for performance, costs, and compliance.

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.

Read our synopsis of key regulatory, market, and litigation developments shaping the blockchain and digital assets industry.

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 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.

Chapman welcomes partner Christian Brockman to our Corporate and Securities Department and Investment Management Group. A leader at the intersection of finance and technology, Christian brings a unique commercial perspective from his experience as general counsel to guide private fund sponsors and institutional investors through their most complex transactional and regulatory matters, with a particular focus on the digital asset and cryptocurrency ecosystem.

The Digital Chamber released a new report: "Beyond Merit: How the SEC's Division of Investment Management Blocked Permissible Investments in Digital Assets." The report seeks to provide a workable framework to turn historical Division of Investment Management actions regarding digital assets into a path forward for the increased availability of digital assets in investment company products. Chapman's Rick Coyle and Morrison Warren assisted in the preparation.

Chapman's quarterly Regulatory Update contains an overview of the latest regulatory actions, market happenings, and litigation and enforcement activity in the investment management space.

Chapman's quarterly Regulatory Update contains an overview of the latest regulatory actions, market happenings, and litigation and enforcement activity in the investment management space.

At a time when the digital asset market is badly in need of good news, the International Swaps and Derivatives Association (ISDA) has delivered the long-awaited ISDA Digital Asset Derivatives Definitions (the “Definitions”).

Chapman represented the Chamber of Digital Commerce in connection with its “Spot Bitcoin ETF Initiative” which set out to gain a deep understanding of the industry’s experience in pursuit of a registered Spot Bitcoin ETF and provide insight into the most realistic avenues for ultimately getting the SEC to approve this widely anticipated investment product.