SEC Sends Crypto Custody Plan To White House

By Aislinn Keely

The U.S. Securities and Exchange Commission is preparing to update regulations for investment advisers and funds holding crypto assets on their clients' behalf, sending planned amendments to its custody rules to the White House for review.

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Connecticut Sues Kalshi To End 'Free-For-All' Wagering

By Brian Steele

Connecticut on Wednesday became the latest state to sue prediction market Kalshi for allegedly offering illegal sports gambling to its users, asking a court to shut down unlicensed wagers in the state and opening a new front in a legal battle that has previously reached the Second Circuit.

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Crypto CEO Says Investors Lack Proof In Refund Fraud Suit

By Sydney Price

The CEO of Power Block Coin LLC, which does business as SmartFi, asked the Pennsylvania federal court for a win in a suit alleging he refused to fulfill their "buyback guarantee" of SmartFi tokens, saying the investors cannot even show they personally bought the tokens.

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Fed's Cook Says Trump Has 'No Lawful Basis' To Fire Her

By Hailey Konnath and Jon Hill

Federal Reserve Gov. Lisa Cook told the White House on Wednesday that President Donald Trump lacks a legally valid reason to fire her, arguing that previous mortgage fraud allegations leveled against her are untrue and would not justify removal.

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SEC, AI Startup Settle Action Over $5.3M Offering

By Katryna Perera

An artificial intelligence startup and its founder have agreed to pay the U.S. Securities and Exchange Commission over $100,000 to resolve claims that they raised more than $5.3 million from investors through misleading statements about the company's revenue, current valuation and customer demand.

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Fla. Judge Trims Claims In Bitcoin ATM Code Theft Suit

By David Minsky

A Florida federal judge allowed most of an Illinois software company's claims of bitcoin ATM source code theft to proceed against its former developer and others, but tossed two counts of conversion after finding the allegations couldn't be sustained. 

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Student Loan Suit Draws Line On Testimony In Trust Litigation

A recent interlocutory opinion from the Southern District of New York shows securitization experts can explain servicing practices but cannot substitute for authenticated loan-level ownership proof or intent evidence, signaling that parties in student loan trust cases should sharpen recordkeeping and tracing strategies, says attorney Stanley Tate.

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Calif. Bill Curbing PE Role In Litigation Heads To Newsom

By Lauren Berg

A California bill to ban corporate investors from influencing litigation strategy is heading to Gov. Gavin Newsom's desk after passing with bipartisan support from the state Legislature.

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Pillsbury Settles Ex-Recruiting Director's Pregnancy Bias Suit

By Grace Elletson

Pillsbury Winthrop Shaw Pittman LLP has settled a Black former director's suit claiming the law firm fired her weeks after she shared that she was pregnant and would need accommodations, according to a Tennessee federal court filing.

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DOJ Flags Breach Of Internal Policies In Apple Suit

By Bryan Koenig

The U.S. Department of Justice told a New Jersey federal judge Tuesday that its staffers breached internal policies when they shared personally identifiable information with an outside discovery vendor that was hired not by the department, but instead by the DOJ's state attorneys general partners, in the monopolization case against Apple.

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Prosecutors Say Goldstein Must Stay Behind Bars

By Jared Foretek

Federal prosecutors told the Fourth Circuit on Tuesday to keep convicted Supreme Court attorney Thomas Goldstein behind bars while he appeals his conviction, arguing that he remains a serious flight risk with wealthy overseas connections and "an ongoing danger" whose tax crimes continued "even after conviction."

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Arizona Atty Reprimanded For Series Of AI Errors

By Matt Perez

An Arizona federal judge has formally reprimanded a lawyer who admitted to filing four briefs that contained errors including false quotes and a faulty case summary generated with artificial intelligence amid an employment discrimination suit, noting the lawyer previously faced sanctions on two separate occasions for violating court rules.

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House Committee Wants DOL IG To Widen Info-Sharing Probe

By Benjamin Morse

Top House Education and Workforce Committee Republicans urged the U.S. Department of Labor's watchdog Wednesday to expand its review of information-sharing arrangements with outside groups, asking whether three additional agencies improperly disclosed confidential investigative material during the Biden administration.

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