Senate Crypto Bill Moves Toward Markup Sans Ethics Rules

By Aislinn Keely

Senate banking committee Republicans released the latest version of a bill to regulate crypto markets that will serve as the base text for a Thursday markup, which could be complicated by Democrats' calls for ethics provisions and banks' opposition to language around stablecoin rewards.

Bill attached | Read full article » | Save to favorites »

DC Circ. Asks Why Gov't Used 'Toxic' Detail In Crypto Trial

By Nadia Dreid

The D.C. Circuit didn't seem sure which way to come down Tuesday morning on the various arguments put forth by the convicted operator of the Bitcoin Fog crypto mixer in an attempt to overturn his conviction.

Read full article » | Save to favorites »

Online Betting Co. Kalshi Must Face Wis. Tribe's IGRA Claim

By Joyce Hanson

A Wisconsin federal judge has ruled that the Ho-Chunk Nation can sue prediction market platform Kalshi under the Indian Gaming Regulatory Act, but he stripped racketeering and false advertising allegations from the tribe's gambling lawsuit targeting the company's sports event contracts.

Order attached | Read full article » | Save to favorites »

PayPal Settles Gov't DEI Probe With Small Biz Program

By Sarah Jarvis

The U.S. Department of Justice announced Tuesday that it has reached a settlement with PayPal Inc. to end an investigation into what the department said was a discriminatory investment program for Black- and minority-owned businesses.

Settlement attached | Read full article » | Save to favorites »

CFTC's Selig Says AI Regulations May Be On The Horizon

By Jessica Corso

U.S. Commodity Futures Trading Commission Chair Michael Selig said Tuesday that his agency may introduce regulations regarding the use of artificial intelligence by exchanges and other regulated entities as a newly created innovation task force has started meeting with companies expressing an interest in the new technology.

Read full article » | Save to favorites »

Senate Puts Warsh On Track To Replace Powell As Fed Chair

By Jon Hill

The U.S. Senate on Tuesday confirmed Trump nominee Kevin Warsh to a board seat at the Federal Reserve, moving him one step closer to taking over from Jerome Powell as chairman of the central bank.

Read full article » | Save to favorites »

Brief

Trump Admin Will Take CFPB Funding Fight To 9th Circ.

By Jon Hill

The Trump administration will challenge a California federal court decision that ordered the Consumer Financial Protection Bureau to continue drawing funding from the Federal Reserve, setting the stage for renewed litigation over the agency's access to cash.

Notice attached | Read full article » | Save to favorites »

Shopify Must Face Most Buy Now, Pay Later Antitrust Claims

By Emilie Ruscoe

E-commerce company Shopify Inc. can't shed monopolization claims brought by buy now, pay later payment platform Sezzle Inc., although a Minnesota federal judge has trimmed the dispute.

Order attached | Read full article » | Save to favorites »

Google, Apple, Lenovo Hit With IP Suits Over Tap-To-Pay Tech

By Theresa Schliep

A Delaware company has lodged lawsuits against Google, Apple and Lenovo alleging that they have infringed its patents covering contactless payment technologies, targeting the use of tap-to-pay systems in their smartphones and wearable devices.

3 documents attached | Read full article » | Save to favorites »

Bitcoin Depot Allowed Crypto Scam Via ATMs, Couple Says

By Zak Kostro

Bitcoin Depot systematically facilitated fraud involving cryptocurrency through its bitcoin ATM network, which targeted consumers who have lost thousands of dollars through the machines, according to a proposed class action in Idaho federal court brought by a couple who alleged they fell victim to such a scam.

Complaint attached | Read full article » | Save to favorites »

Blockchain Analytics Biz Raises $120M Series D Funding

By Jade Martinez-Pogue

Blockchain analytics firm Elliptic on Tuesday announced that it has hit a valuation of $670 million after closing its latest funding round with $120 million of investor commitments.

Read full article » | Save to favorites »

Where The Preemption Fight Over Prediction Markets Stands

While the Third Circuit's recent ruling in Kalshi v. Flaherty remains a significant win for the federal government in its quest to regulate prediction markets, the Fourth, Sixth and Ninth Circuits appear more skeptical, indicating that this fight is likely headed for the Supreme Court, says Johnny ElHachem at Holland & Knight.

Read full article » | Save to favorites »

Operational AI Washing: A New Securities Class Action

In rising claims of operational AI washing — plaintiffs alleging that artificial intelligence was invoked to explain corporate business decisions in ways that may obscure underlying financial distress — earnings calls, restructuring disclosures and board-level communications will serve as key defense evidence, say attorneys at Akerman.

Read full article » | Save to favorites »

CFPB Rule Recalibrates Fair Lending Compliance

A close reading of the Consumer Financial Protection Bureau's new final rule on fair lending enforcement reveals a thoughtful and disciplined effort to realign enforcement with statutory text, evidentiary rigor and practical compliance realities, says Alan Kaplinsky at Ballard Spahr.

Final Rule attached | Read full article » | Save to favorites »

Mass. Draft Regs Signal Nationwide Scrutiny Of Junk Fees

Massachusetts Attorney General Andrea Campbell's new draft regulations for assisted living facilities is only her latest move in the war on junk fees — and part of a national reordering of consumer protection enforcement in which states are aggressively and creatively asserting authority, says Steve Provazza at Arnall Golden.

Read full article » | Save to favorites »

4 Emerging Approaches To AI Protective Order Language

Over the last year, at least five federal district courts have issued or analyzed specific protective order provisions restricting the use of generative artificial intelligence platforms with protected materials, establishing that proactive AI-specific provisions are now standard practice and demonstrating that no single model works for every case, says Joel Bush at Kilpatrick.

Read full article » | Save to favorites »

How They Won It

Attys For Tufts Profs Didn't Blink In A Tenure Standoff

By Julie Manganis

When Jennifer Henricks and Kevin Peters first learned what was happening to tenured professors at Tufts University School of Medicine in Boston a few years ago, they knew that what was at stake involved more than just a dispute over the terms of a contract.

Order attached | Read full article » | Save to favorites »

Palestinian Ex-Associate Slaps DLA Piper With Bias Claim

By Lynn LaRowe

DLA Piper has been hit with a federal civil rights lawsuit in Illinois from a former summer associate alleging discrimination, a hostile work environment and retaliation based on her identity as a Palestinian, Gazan, Arab and Muslim woman.

Complaint attached | Read full article » | Save to favorites »

Fired Immigration Judge Says Trump Can't Skirt Bias Laws

By Grace Elletson

A former immigration judge urged a D.C. federal court not to throw out her bias suit challenging her firing, arguing the U.S. Department of Justice was pushing the "breathtaking proposition" that the president was empowered to commit unlawful discrimination.

1 document attached | Read full article » | Save to favorites »

Law Student Can't Get School To Nix Kirk Comment Discipline

By Mike Curley

A Texas federal judge on Tuesday said the court cannot force Texas Tech University's leaders to rescind a reprimand against a law student who allegedly celebrated following the death of Charlie Kirk, as the university has sovereign immunity.

Memorandum attached | Read full article » | Save to favorites »

Michigan Dems Noncommittal On Trump's Judicial Pick

By Courtney Bublé

Michigan's two Democratic senators played it coy on Tuesday when asked if they would support the district court nominee for their state that the president announced the night before.

Read full article » | Save to favorites »