Fiduciary Duties for 401(K) Plan Designated Investment Alternatives

The US Department of Labor issued a proposed rule expanding fiduciary duty standards for 401(k) plan investment selection. The rule implements the August 2025 Executive Order on alternative asset access and introduces six non-exhaustive factors for fiduciary evaluation of plan investments. The rule provides a process-based safe harbor with significant deference for fiduciaries who adequately consider the specified factors. Public comments are due by May 29, 2026.

SEC Interpretation Clarifying Crypto Asset Securities Classification

The SEC issued an Interpretative Release on March 17, 2026, clarifying which crypto assets are and are not securities under federal securities laws. The release identifies four categories of crypto assets not considered securities: Digital Commodities, Digital Collectibles, Digital Tools, and Stablecoins meeting the GENIUS Act definition. The CFTC joined the interpretation, confirming alignment with its administration of the Commodity Exchange Act. The guidance provides significant clarity on applying the Howey test to crypto assets and investment contracts.

Joint Interpretive Release on Crypto Asset Classification

The SEC issued an interpretive release (with CFTC joining) establishing a framework for classifying crypto assets under federal securities laws. The release defines digital commodities (including Bitcoin, Ethereum, and 15 other named assets) as non-securities, provides guidance on when non-security crypto assets may become subject to investment contract analysis, and addresses protocol mining, staking, wrapping, and airdrops.

FTC Warning Letters on Debanking Nonbank Payment Platforms

The FTC, under Chairman Andrew Ferguson, issued warning letters on March 26, 2026, to four major nonbank financial infrastructure platforms and payment providers, cautioning that denying consumers access to payment services based on political or religious views may violate Section 5 of the FTC Act's prohibition against unfair or deceptive practices. The letters represent an expansion of the government's anti-debanking posture from prudential bank regulators to the broader financial infrastructure and payment processing ecosystem.

Banking Agencies Capital Framework Overhaul for GSIBs

The Federal Reserve, OCC, and FDIC jointly published proposed rulemakings on March 19, 2026, to overhaul capital requirements for U.S. banking organizations, including GSIBs. The proposals would replace the dual-calculation framework with a single standardized Expanded Risk-Based Approach (ERBA) and recalibrate GSIB surcharge methodology. Aggregate CET1 capital relief of approximately 4.8% (~$42.1 billion) is projected for Category I and II bank holding companies.

Treasury report urges risk-based AML/CFT for digital assets

The U.S. Department of the Treasury released its congressionally mandated Report on Innovative Technologies to Counter Illicit Finance Involving Digital Assets under the GENIUS Act. The report assesses systemic vulnerabilities in the digital asset ecosystem—including jurisdictional arbitrage and DeFi protocol gaps—and urges a technology-neutral, risk-based AML/CFT approach. While imposing no new requirements, Treasury signals that institutions should modernize controls now with advanced monitoring and identity solutions.

CFTC Enforcement Priorities - Insider Trading, Prediction Markets, Cooperation Policy

CFTC Director of Enforcement David Miller announced five enforcement priorities at NYU School of Law on March 31, 2026, marking a shift from 'regulation by enforcement' to focus on core fraud, abuse and manipulation prevention. Priorities include insider trading on prediction markets, energy market manipulation, retail fraud, AML/KYC violations, and repeated CEA violations. The Division also previewed a forthcoming Staff Advisory on cooperation, self-reporting and remediation that will establish a new path to declination.

SEC Charges Investment Adviser for Undisclosed Conflicts of Interest

The SEC announced settled enforcement charges against an SEC-registered investment adviser for failing to disclose material conflicts of interest related to cash-enhanced robo-advisor accounts. The adviser failed to disclose that its 30% cash allocation generated revenue for affiliated broker-dealer and bank entities. The firm agreed to pay a $500,000 civil monetary penalty without admitting or denying the SEC's findings.

SEC Cryptoasset Securities Classification Guidance

The SEC, joined by the CFTC, issued an Interpretive Release establishing a five-part token taxonomy distinguishing digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. Only digital securities are securities outright. The release clarifies that tokens can separate from investment contracts upon fulfillment of representations or passage of time, and that airdrops, mining, staking, and wrapping generally fall outside securities laws. The release supersedes the 2019 SEC Staff Framework for Investment Contract Analysis of Digital Assets.

AIFMD2 decree transforms Italian credit fund regulation April 16

AIFMD2 decree transforms Italian credit fund regulation April 16