Block & Order Weekly Docket (January 11, 2026)

Jan 11, 2026
Podcast Photo

Neon deal on a rain-slick street: a digital sneaker atelier gets packed up and shipped to its next owner. Nano Banana Pro 3.

Welcome to the first full Docket of 2026! Per Larry David, we are well past the “happy new year” statute of limitations, although arguably it should have extended to January 5th as the first business day of the year; in any event we are well past the cutoff, so you will not be receiving any happy new year wishes here.

However, we must still look forward to 2026. The regulatory pendulum looks poised to swing violently in the coming year. While the SEC shifts toward a deregulatory posture with an all-Republican panel, Congress is ramping up scrutiny on prediction markets following the geopolitical fallout of the Maduro capture. Simultaneously, physical security risks and governance implosions are redefining the “cost of doing business” in Web3.

Here is what is on the docket this week:

  • Federal Standoff: Senate committees push for crypto market structure markups despite predicted delays.
  • Agency Shift: The SEC enters a deregulatory era as the last Democrat, Commissioner Crenshaw, departs.
  • DeFi Precedent: Prosecutors appeal the “Code is Law” acquittal in the Mango Markets case.
  • State Power: Wyoming launches a sovereign stablecoin; Florida eyes a Bitcoin reserve.
  • AI Liability: Courts compel OpenAI to produce millions of training logs.
  • 2025 Retrospectives: A full dose of 2025 recaps.

Federal Policy & Legislative Friction

  • Senate Markups Clash With Predicted 2029 Implementation Timeline While the Senate Banking and Agriculture Committees have scheduled markups for market structure legislation next week, analysts at TD Cowen warn that partisan friction over DeFi and ethics provisions could delay full implementation until 2029. Obtaining the 60 votes required for passage remains a significant hurdle. CoinDesk | The Block
  • SEC Shifts to All-Republican Panel as Commissioner Crenshaw Departs The departure of Caroline Crenshaw leaves the SEC with an all-Republican bench. Chair Paul Atkins now has a clearer path to advance a deregulatory agenda, though Democratic vacancies may invite intense congressional oversight regarding future agency balance. The Block | Cointelegraph
  • Congress Targets Prediction Markets Following “Insider” Maduro Bets Rep. Ritchie Torres is introducing legislation to ban federal officials from using prediction markets after a trader netted $400k betting on the capture of Nicolas Maduro. The bill seeks to extend the STOCK Act to platforms like Polymarket, addressing concerns that government insiders could leverage state secrets for financial gain on decentralized event contracts. The Block | Rep. Torres Announcement | Bill Text (PDF)
  • USMS Accused of Violating Executive Order by Selling Forfeited Bitcoin So much for a Bitcoin reserve by executive order …. the U.S. Marshals Service reportedly liquidated $6.3 million in Bitcoin seized from Samourai Wallet, potentially violating a recent Executive Order mandating the retention of forfeited assets for a Strategic Bitcoin Reserve. Legal observers suggest this action by SDNY prosecutors highlights a friction between decentralized agency enforcement and centralized administration policy. Bitcoin Magazine

AI, Privacy & Emerging Liability

  • Court Orders OpenAI to Produce 20 Million Logs in Copyright Suit In a major discovery ruling, a New York federal judge ordered OpenAI to turn over 20 million ChatGPT logs to plaintiffs alleging copyright infringement. This decision sets a critical procedural precedent regarding data provenance and may force AI developers to reveal the extent to which protected IP is ingested and reproduced by Large Language Models. Law360 | Discovery Order (PDF)
  • FTC Settlement with Instacart Sets Precedent for AI Pricing The FTC secured a $60 million settlement with Instacart over allegations of deceptive algorithmic pricing and “bait and switch” fees. The enforcement action serves as a warning that regulators will apply traditional consumer protection standards to opaque AI-driven business models. JD Supra | FTC Press Release
  • Security Expert Warns of Shift to “Bulk Spying” via AI Bruce Schneier warns that government surveillance is evolving from passive data collection to active, AI-driven “bulk spying” capable of synthesizing private communications at scale. This shift poses new challenges for privacy counsel, as existing legal frameworks may not cover the automated summarization and analysis of data by third-party AI providers. Cointelegraph
  • New Federal AI Executive Order Reshapes Litigation and Preempts State Rules A recent AI-focused Executive Order directs the creation of an AI Litigation Task Force by January 11, 2026, and instructs federal agencies to challenge state AI laws deemed inconsistent with federal policy, raising preemption arguments for financial and tech firms facing multi-state AI compliance. National Law Review | Executive Order
  • State AI Laws Take Effect, but Federal Pushback Looms Multiple state AI statutes governing automated decision-making and model governance became effective on January 1, 2026, even as the new federal order signals a “minimally burdensome” approach and warns that states with onerous AI rules could lose certain federal benefits. King & Spalding | NCSL State AI Legislation Tracker

Litigation & Enforcement Precedents

  • Prosecutors Challenge “Code is Law” Defense in Mango Markets Appeal The DOJ has appealed the acquittal of Avi Eisenberg, arguing that the judge’s ruling—which suggested DeFi protocols lack binding “terms of service”—fundamentally misinterprets fraud statutes. Prosecutors contend that treating high-tech market manipulation as contractually permissible creates a dangerous loophole for algorithmic financial crimes. DL News
  • Mark Cuban Wins Dismissal in Voyager Digital Class Action A federal judge dismissed a lawsuit against Mark Cuban and the Dallas Mavericks, ruling that plaintiffs failed to establish jurisdiction in Florida for claims related to the promotion of the bankrupt Voyager Digital. The decision provides a shield for celebrity endorsers, emphasizing the high evidentiary bar required to prove that promotional activities targeted specific jurisdictions. Cointelegraph

U.S. State & International Regulation

  • Wyoming Launches First State-Issued “Sovereign” Stablecoin The Wyoming Stable Token Commission has officially launched “FRNT,” a dollar-backed stablecoin managed by Franklin Templeton, marking the first time a U.S. state has issued its own digital asset. This move blends public oversight with private custody, potentially offering a blueprint for other states to integrate blockchain into treasury operations. The Defiant | Wyoming Stable Token Commission
  • Florida Narrows Scope of Proposed Strategic Bitcoin Reserve Florida lawmakers advanced a bill to create a state-managed crypto reserve, introducing a $500 billion market cap threshold that effectively limits the eligible asset solely to Bitcoin. The legislation imposes fiduciary standards similar to public trusts but notably excludes pension funds from direct exposure to the asset class. Cointelegraph | Florida SB 1038
  • Global Tax Dragnet Tightens with CARF Implementation Forty-eight jurisdictions have begun implementing the OECD’s Crypto-Asset Reporting Framework (CARF), mandating that service providers collect detailed transaction data starting this year. This coordinated effort aims to eliminate anonymity in cross-border transfers and standardize tax reporting ahead of the first data exchange in 2027. Cointelegraph | OECD CARF Framework
  • EU Crypto Tax Transparency Rules Switch On Under DAC8 From January 1, EU crypto-asset service providers must begin collecting customer transaction data for tax reporting, forcing global exchanges and custodians with EU users to align data retention and KYC practices ahead of forthcoming disclosures. Elliptic

Market Integrity, Governance & Security

  • Zcash Dev Team Resigns Amid Governance and Funding Crisis The entire development team behind Zcash (ECC) has resigned following a dispute with the Bootstrap board over the release of locked funds, causing the token’s price to plummet. This “constructive discharge” highlights the fragility of decentralized governance structures when nonprofit mandates clash with the operational realities of software development. CoinDesk | X Thread
  • Wrench Attacks Hit Record Highs, Driving Physical Security Costs Physical assaults and kidnappings targeting crypto holders reached record levels in 2025, forcing high-net-worth individuals to adopt “dead man’s switches” and executive protection. The trend indicates that as cybersecurity improves, criminals are pivoting to “meatspace” coercion to bypass on-chain defenses. DL News | Jameson Lopp’s Physical Bitcoin Attacks Tracker
  • Nike Divests From NFT Unit RTFKT as Brands Retreat Nike has sold its digital collectible subsidiary RTFKT, signaling a strategic retreat from the metaverse space amid a broader cooling of the NFT market. The divestiture complicates the legal landscape for “sunsetting” web3 projects, as earlier shutdowns of the unit have already triggered class-action litigation. CoinDesk

2025 Crypto Legal Retrospectives

The year ahead promises to test the boundaries of crypto regulation, AI governance, and decentralized infrastructure in ways we haven’t seen before. Block & Order is here for all of it. Stay tuned.

The materials in this article are for informational purposes only and are not legal advice. Do not act upon this information without first seeking advice from an attorney licensed in your jurisdiction.