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ARTICLE · 13 FEBRUARY 2025

Financial Markets And Funds Quick Take | Issue 35

Katten
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Katten's Financial Markets and Funds Quick Take is a monthly newsletter highlighting key noteworthy developments potentially affecting financial markets and funds.

United StatesFinance and Banking
Katten Muchin Rosenman LLP
Katten Muchin Rosenman LLP
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Katten's Financial Markets and Funds Quick Take is a monthly newsletter highlighting key noteworthy developments potentially affecting financial markets and funds.

'Smart Contracts' Ruling Forces a Blockchain Development Rethink

By Daniel Davis, Alexander Kim

Published by Bloomberg Law, the article looks at the recent decision by the US Court of Appeals for the Fifth Circuit in the case of Van Loon v. US Treasury and its significant implications for blockchain technology, particularly concerning the distinction between mutable and immutable smart contracts. Smart contracts are self-executing programs on a blockchain that operate when specific conditions are met. The court clarified that immutable smart contracts, which cannot be altered once deployed, do not fall under the legal definition of property and are beyond the sanctioning authority of the Office of Foreign Assets Control (OFAC) under the International Emergency Economic Powers Act. Read Katten's

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SEC Proposes Rule Amendments To Expand Retail Access To Private Markets

The SEC has proposed sweeping amendments to expand retail investor access to private market strategies, including changes to performance-based compensation rules for registered investment advisers and modernization of the interval fund framework. The proposals also explore new credential-based pathways for individuals to qualify as accredited investors, potentially opening private offerings to a broader pool of eligible participants.
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SEC Approves FINRA’s New “Outside Activities” Rule

The Securities and Exchange Commission has approved FINRA Rule 3290, which will replace existing rules governing outside business activities and private securities transactions for registered persons. This new rule narrows the scope to focus on investment-related activities while maintaining similar supervisory obligations for member firms. Understanding the key changes and implementation requirements will be critical for broker-dealers as they update their compliance policies and procedures.
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SEC Proposes Rule Changes And Seeks Comments On Additional Accredited Investor Pathways

The Securities and Exchange Commission has proposed six new pathways for individuals to qualify as accredited investors, moving beyond traditional income and wealth thresholds. These changes would allow qualification through professional certifications like CPA, CFA, and CFP designations, as well as through a new FINRA-administered exam testing securities knowledge.
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New NYSE Delisting Rules: What Microcap Companies Need To Know About The $0.25 Minimum Trading Price

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FDA Seeks Public Feedback On Regulatory Approach For Generative AI-Enabled Medical Devices

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FCA Finalises Cryptoasset Perimeter Guidance Ahead Of The New UK Regime

The Financial Conduct Authority has released comprehensive perimeter guidance for the UK's new regulated cryptoasset activities regime, clarifying when firms will need authorization and how the regulatory framework applies to qualifying cryptoassets and stablecoins. The guidance addresses critical questions about scope, territorial application, and the narrower "by way of business" test that determines which entities fall under the new regulatory requirements.
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The CFTC Sets Its Sights On Retail Leveraged Crypto Transactions

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California Partially Eliminates California Invasion Of Privacy Act Claims Faced By Many Companies

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The SEC’s Long-Awaited Crypto Proposal

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The AI Apocalypse: ‘I’m Sorry, Dave. I’m Afraid I Can’t Do That’

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California Affordable Housing: HCD’s Final Loan Portfolio Restructuring Guidelines: What Owners And Investors Need To Know

California's Department of Housing and Community Development has issued final Loan Portfolio Restructuring Guidelines that impose a 50 percent housing reinvestment fee on certain uses of extracted equity from affordable housing refinancings. While the fee can be avoided by allocating proceeds to six enumerated categories, developers and investors are questioning whether these rules strike the right balance between preserving affordability and enabling capital recycling.
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Katten