Nano Banana Pro

 

Welcome to this week’s edition of the Block & Order Docket. In this issue:

• Blockchain policy groups expands focus on State-level policy and pressure for more regulatory guidance with the clock ticking on Getting Things Done this congress.
• How many hours should law firm associates be burning to learn how to use AI?
• When can we pay our taxes in Bitcoin? (assuming you weren’t liquidated this past week and still have gains…)

---

Crypto Policy & Advocacy

• Digital Chamber Launches State Network to Unify US Crypto Regulation. The advocacy group’s new State Network initiative partners with Future Caucus to educate lawmakers across states including New York, Arizona, Ohio, and New Hampshire, demonstrating a renewed focus on State-level politics. [CoinDesk].
• White House advances IRS authority to track foreign crypto transactions. The Office of Management and Budget is reviewing a proposed rule implementing the OECD’s Crypto-Asset Reporting Framework (CARF), which would mandate reporting of U.S. taxpayers’ cryptocurrency activity on foreign exchanges. [The Block]
• SEC Faces Critical 12-Month Window for Crypto Rulemaking. TD Cowen analysts emphasize that the SEC is running out of time to allow finalization and potential court defense by 2028, with priorities including staking guidance, token taxonomy clarification, and exemptive relief for tokenized equities through “Project Crypto.” Except a year-end surge including reintroduction of the proposed market structure bill. [The Block]
• Coalition Urges Tax and Regulatory Guidance. Over 65 crypto organizations, led by the Solana Policy Institute, have called on President Trump to direct federal agencies to issue long-stalled tax guidance, including IRS de minimis exemptions and Treasury clarification that staking and mining rewards are self-created property taxed only upon disposition. The letter also seeks SEC/CFTC exemptive relief and DOJ dismissal of charges against Tornado Cash developer Roman Storm. [The Block]. Check out our previous episode with the SPI’s Kristin Smith on Block & Order:

• Rep. Davidson Introduces Bill to Pay Federal Taxes in Bitcoin. Rep. Warren Davidson (R-Ohio) introduced the Bitcoin for America Act, proposing to authorize federal tax payments in Bitcoin, with proceeds directed to the Strategic Bitcoin Reserve. [The Block]
• Wisconsin Lawmakers Look to Ban VPNs. A proposed bill seeks to require that websites ban users connected by VPN-masked locations, highlighting risks to crypto operators (not to mention user privacy). [Electronic Frontier Foundation]

---

AI Legal Developments

• Court Orders OpenAI to Produce 20 Million ChatGPT Logs in Copyright Case. U.S. Magistrate Judge Ona Wang of the Southern District of New York ordered OpenAI to produce 20 million anonymized ChatGPT conversation logs in multidistrict copyright litigation brought by The New York Times and other publishers. The court dismissed OpenAI’s privacy and proportionality objections, though experts warn of inherent difficulties in truly anonymizing conversational data. Yikes! [National Law Review]
• AI News Summaries May Infringe Copyright, Court Rules. The U.S. District Court for the Southern District of New York denied a motion to dismiss copyright claims against Cohere Inc., holding that AI-generated “substitutive summaries” of news articles plausibly infringe protected expression. Watch out AI-assisted newsletter authors! [Copyright Lately]
• New York’s AI Companion Safeguard Law Takes Effect. Effective November 5, 2025, New York’s AI Companion Models Law mandates that providers of AI systems simulating human relationships disclose the AI nature of interactions and implement protocols to detect suicidal ideation or self-harm, with enforcement by the Attorney General and penalties up to $15,000 per day. The law forms part of a growing patchwork of state AI regulations. [Fenwick]. Maybe that’s Why a Trump Executive Order Would Ban State AI Laws. [The Verge]
• BigLaw Firms Are Scrambling to Invest in AI Training. Ropes & Gray permits up to 400 hours (or 20% of annual billable targets) for associates to experiment with 15+ approved AI platforms including Harvey and Microsoft Copilot, while Latham mandates a two-day AI Academy for 400 first-year lawyers. [Above the Law]

---

International Crypto Developments

• Over 60 violent “Wrench Attacks” have targeted cryptocurrency holders this year. High-profile cases including the abduction of Ledger co-founder David Balland and federal charges in Manhattan highlight how crypto’s irreversible transactions attract violent extortion, prompting industry adoption of specialized security training and apps. Legal counsel should consider integrating personal security protocols into broader compliance strategies protecting executives and high-net-worth clients. [The New York Times] (gift link)
• Delaware Chancery Court rules post-theft title transfers insufficient for in rem jurisdiction over Ether. In Timoria LLC v. Anis, Vice Chancellor Laster held that transferring stolen crypto to a Delaware subsidiary fails to establish jurisdiction over foreign defendants under due process standards, highlighting jurisdictional hurdles in cross-border digital asset disputes. Legal teams should consider proactive jurisdictional clauses in terms of use to mitigate enforcement risks. [Holland & Knight]
• Joint NYT and ICIJ investigation alleges $28 Billion in Illicit Funds Flowing Through Major Exchanges. An investigation by the International Consortium of Investigative Journalists and The New York Times revealed at least $28 billion in funds linked to hacking, theft, and extortion by cybercriminals from North Korea to Myanmar entered major exchanges over two years, underscoring urgent need to bolster anti-money laundering protocols and due diligence. [The New York Times] (gift link)

---

If you’ve made it this far, please subscribe to the Block & Order page. Have a great weekend everyone!