Insights

On March 12, 2026, the U.S. Commodity Futures Trading Commission (CFTC) took formal steps toward establishing additional regulations for prediction markets. The agency issued an Advanced Notice of Proposed Rulemaking (ANPRM) soliciting public input on potential new rules, and separately, released staff guidance outlining its views on how existing rules apply to prediction market platforms currently in operation. These developments signal a significant shift in the regulatory landscape for an industry that has grown rapidly over the past year.

On November 1, the President’s Working Group on Financial Markets (“PWG”), joined by the Federal Deposit Insurance Corporation (“FDIC”) and the Office of the Comptroller of the Currency (“OCC”), issued its long-awaited Report on Stablecoins (“Report”). The Report comes months after the PWG’s July 2021 meeting to discuss interagency work on stablecoins and preparation of the Report. The Report includes (1) a high-level background on stablecoins,1 (2) a description of potential risks associated with stablecoins, and (3) recommendations to Congress for legislation or, absent such action, descriptions of potential regulatory actions.

On August 26, 2020, the U.S. Securities and Exchange Commission (SEC) announced that it has finalized amendments to the definitions of accredited investor under Rule 501 of Regulation D and qualified institutional buyer (QIB) under Rule 144A of the Securities Act of 1933, as amended (the Securities Act). The SEC originally proposed the amendments on December 18, 2019, and the final version is largely consistent with the SEC’s proposed version. The amendments will be effective 60 days after publication in the Federal Register.

On July 28, 2020, the National Venture Capital Association (NVCA) released updates to its model legal documents for use in VC financing transactions (the NVCA Agreements). The NVCA Agreements have become the industry standard equity financing documents for Series A financings and beyond, and are used by startups, VC investors and lawyers in Silicon Valley and elsewhere. Prior to this round of updates, the NVCA Agreements were last updated in October 2019 and January 2018. 

The pandemic is affecting the entire world, particularly countries that were already in crisis, such as Venezuela, which are in a more vulnerable position to combat the consequences of the coronavirus. In collaboration with PAE-Legal, this alert provides an overview of the measures adopted by Nicolás Maduro in Venezuela. The pandemic—together with the previously existing shortages of gasoline, food and supplies—is significantly affecting commerce and threatens to completely shut down the country’s economy.

In our previous Crowell & Moring alert, we discussed how COVID-19 is affecting commercial activities and dynamics in Latin America, particularly in Colombia and Mexico. Our second edition focuses on the measures currently in place in two South American nations: Argentina and Peru. Like most of the region, unprecedented measures in Argentina and Peru are causing business interruptions across all industries, forcing companies to review their commercial agreements and determine whether “force majeure” or other similar concepts may help them to mitigate the disruption.

In a world battling a global pandemic, it was only a matter of time before COVID-19 and its impact on commercial relationships arrived in Latin America and the Caribbean. As the vast majority of countries in Latin America and the Caribbean have confirmed cases, governments have increasingly implemented unprecedented measures and other efforts to prevent the spread of the virus. 

For venture capital (VC) fund sponsors and investors – particularly (1) VC funds focused on investing in certain emerging and critical technologies, (2) VC funds with significant investor participation from sensitive jurisdictions, and (3) managers utilizing alternative structures or structures that provide investors with greater participation, access and information than customary for traditional well-established VC funds – the 2018 CFIUS amendments may impact the structuring of their funds and, once their funds have completed fundraising, the manner in which they make investments and interact with their investors.

The Government Contracts and Corporate Groups at Crowell & Moring LLP are pleased to announce our Compliance “Check-Up” for Government Contractors, focused on providing pre-sale advice to government contractors and private equity sponsors contemplating selling or fundraising in the current market.  Our team of over 80 experienced government contracts and transactional professionals stands ready to assist clients by providing (at no cost) a “Check-Up” – a diagnostic review of key diligence questions, aimed at identifying common compliance issues that can drive down sales prices and/or increase borrowing costs.  By identifying these issues early in the diligence process, sellers can avoid common traps that may negatively impact deal terms, complicate reps and warranties, and make post-merger integration more difficult and expensive.  For more information on our Compliance “Check-Up” for Government Contractors, please click here.

The American Jobs Act of 2011 ("AJA"), submitted by President Obama to Congress on September 12, 2011, would subject income received with respect to certain partnership profits interests, or "carried interests," to ordinary income rates and self-employment tax.  The basic approach of the legislation is to tax income from the performance of investment services as compensation, while still allowing favored tax treatment for interests resulting from actual capital investments by the partner performing the services, so long as that partner is treated similarly to other partners with respect to such a capital interest.

On June 22, 2011, the SEC adopted final rules and amendments to SEC rules under the Investment Advisers Act of 1940 (the "Advisers Act").  These rulemaking proceedings have significant importance to advisers to private funds.