Courtesy of Nano Banana Gemini 2.5

 

Welcome to our first (!) edition of Block & Order Weekly Docket where we summarize the week’s legal news in digital assets, AI, and other emerging technologies. Some trends we’ve noticed this week:

• Regulatory clarity is accelerating with the SEC’s token taxonomy framework and proposed bipartisan crypto market structure bill.
• Cross-border coordination against crypto-enabled crime is becoming a bigger national security priority.
• AI and quantum threats are converging with crypto.

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𝗖𝗥𝗬𝗣𝗧𝗢 𝗥𝗘𝗚𝗨𝗟𝗔𝗧𝗢𝗥𝗬 𝗙𝗥𝗔𝗠𝗘𝗪𝗢𝗥𝗞 & 𝗣𝗢𝗟𝗜𝗖𝗬

• 𝗦𝗘𝗖 𝗖𝗵𝗮𝗶𝗿 𝗔𝘁𝗸𝗶𝗻𝘀 𝗮𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝘀 𝗰𝗼𝗺𝗽𝗿𝗲𝗵𝗲𝗻𝘀𝗶𝘃𝗲 𝗰𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗳𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸. Under the new “Project Crypto” initiative, SEC Chair Paul Atkins unveiled plans for a “token taxonomy” grounded in the Howey Test that would clarify which digital assets qualify as securities while recognizing that tokens may evolve beyond investment contracts as networks decentralize. [CoinDesk] | [The Block]
• 𝗦𝗲𝗻𝗮𝘁𝗲 𝗔𝗱𝘃𝗮𝗻𝗰𝗲𝘀 𝗕𝗶𝗽𝗮𝗿𝘁𝗶𝘀𝗮𝗻 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗟𝗲𝗴𝗶𝘀𝗹𝗮𝘁𝗶𝗼𝗻. The Senate Agriculture Committee published a bipartisan draft that would grant the CFTC explicit authority over spot digital commodity trading while maintaining SEC jurisdiction over securities tokens. [Unchained] [CNBC]
• 𝗖𝗙𝗧𝗖 𝗹𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝘁𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝗽𝗲𝗻𝗱𝗶𝗻𝗴 𝗦𝗲𝗻𝗮𝘁𝗲 𝗰𝗼𝗻𝗳𝗶𝗿𝗺𝗮𝘁𝗶𝗼𝗻. The Senate Agriculture Committee scheduled a November 19 hearing for Michael Selig, the SEC’s crypto task force chief counsel, to chair the CFTC after President Trump withdrew his first nominee, potentially leaving Selig as the sole commissioner upon Acting Chair Caroline Pham’s departure. [Cointelegraph]
• 𝗜𝗥𝗦 𝗖𝗹𝗲𝗮𝗿𝘀 𝗣𝗮𝘁𝗵 𝗳𝗼𝗿 𝗦𝘁𝗮𝗸𝗶𝗻𝗴 𝗶𝗻 𝗖𝗿𝘆𝗽𝘁𝗼 𝗘𝗧𝗣𝘀. The IRS issued Revenue Procedure 2025-31, permitting investment trusts and grantor trusts holding digital assets to engage in staking on proof-of-stake networks without jeopardizing their tax-advantaged status, provided separate accounting and other conditions are met. [CoinDesk]
• a16z 𝘂𝗿𝗴𝗲𝘀 𝗧𝗿𝗲𝗮𝘀𝘂𝗿𝘆 𝘁𝗼 𝗲𝘅𝗲𝗺𝗽𝘁 𝗱𝗲𝗰𝗲𝗻𝘁𝗿𝗮𝗹𝗶𝘇𝗲𝗱 𝘀𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻𝘀 𝗳𝗿𝗼𝗺 𝗚𝗘𝗡𝗜𝗨𝗦 𝗔𝗰𝘁. In a letter to Treasury Secretary Scott Bessent, a16z crypto argued that decentralized stablecoins issued via autonomous smart contracts should fall outside the GENIUS Act’s oversight, proposing a control-based decentralization framework and zero-knowledge proof solutions for compliance. [The Block]

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𝗔𝗥𝗧𝗜𝗙𝗜𝗖𝗜𝗔𝗟 𝗜𝗡𝗧𝗘𝗟𝗟𝗜𝗚𝗘𝗡𝗖𝗘 & 𝗖𝗬𝗕𝗘𝗥𝗦𝗘𝗖𝗨𝗥𝗜𝗧𝗬

• 𝗔𝗻𝘁𝗵𝗿𝗼𝗽𝗶𝗰 𝗱𝗲𝘁𝗲𝗰𝘁𝘀 𝗖𝗵𝗶𝗻𝗲𝘀𝗲 𝘀𝘁𝗮𝘁𝗲-𝘀𝗽𝗼𝗻𝘀𝗼𝗿𝗲𝗱 𝗔𝗜-𝗱𝗿𝗶𝘃𝗲𝗻 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻. In a landmark disclosure, Anthropic revealed the first documented large-scale cyber espionage campaign where AI agents handled 80-90% of tasks, exploiting Claude Code through jailbreaking to infiltrate approximately 30 global targets including financial institutions and government agencies. [Anthropic]
• 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗔𝗜 𝘄𝗶𝗻𝘀 𝗽𝗮𝗿𝘁𝗶𝗮𝗹 𝘃𝗶𝗰𝘁𝗼𝗿𝘆 𝗶𝗻 𝗚𝗲𝘁𝘁𝘆 𝗜𝗺𝗮𝗴𝗲𝘀 𝗰𝗮𝘀𝗲. The UK High Court dismissed Getty’s secondary copyright infringement claim, ruling that Stability AI’s model does not constitute an infringing copy absent evidence of stored copyrighted material, though the court upheld trademark infringement claims under Sections 10(1) and 10(2). [ChatGPT Is Eating The World]
• 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵𝗲𝗿 𝘂𝗿𝗴𝗲𝘀 𝗺𝗶𝗴𝗿𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝗽𝗼𝘀𝘁-𝗾𝘂𝗮𝗻𝘁𝘂𝗺 𝗲𝗻𝗰𝗿𝘆𝗽𝘁𝗶𝗼𝗻. Smart-contract researcher Gianluca Di Bella warned that “harvest now, decrypt later” attacks necessitate immediate adoption of post-quantum encryption standards, noting that no mature post-quantum zero-knowledge proof equivalents exist yet for smart contracts. [Cointelegraph]
• 𝗗𝗲𝗲𝗽𝗳𝗮𝗸𝗲 𝘃𝗼𝗶𝗰𝗲 𝘀𝗰𝗮𝗺𝘀 𝘁𝗮𝗿𝗴𝗲𝘁 𝗰𝗿𝘆𝗽𝘁𝗼 𝗵𝗼𝗹𝗱𝗲𝗿𝘀. Rising incidents of AI voice cloning impersonating family members to solicit cryptocurrency transfers highlight the need for enhanced fraud detection and investor education measures. [Bloomberg]

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𝗜𝗡𝗦𝗧𝗜𝗧𝗨𝗧𝗜𝗢𝗡𝗔𝗟 𝗔𝗗𝗢𝗣𝗧𝗜𝗢𝗡 & 𝗠𝗔𝗥𝗞𝗘𝗧 𝗗𝗘𝗩𝗘𝗟𝗢𝗣𝗠𝗘𝗡𝗧𝗦

• Coinbase 𝗹𝗮𝘂𝗻𝗰𝗵𝗲𝘀 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗲𝗱 𝘁𝗼𝗸𝗲𝗻 𝘀𝗮𝗹𝗲𝘀 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺. Coinbase unveiled a platform for early-stage token sales with investor protections including USDC-only purchases, fair allocation mechanisms, and six-month team lock-ups, debuting with blockchain startup Monad on November 17. [Unchained]
• 𝗦𝗼𝗙𝗶 𝗯𝗲𝗰𝗼𝗺𝗲𝘀 𝗳𝗶𝗿𝘀𝘁 𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗯𝗮𝗻𝗸 𝘁𝗼 𝗼𝗳𝗳𝗲𝗿 𝗰𝗿𝘆𝗽𝘁𝗼 𝘁𝗿𝗮𝗱𝗶𝗻𝗴. SoFi Technologies launched direct cryptocurrency services for Bitcoin, Ethereum, and Solana within FDIC-insured accounts, following pivotal OCC and FDIC guidance that clarified banks’ authority to provide crypto custody and trading without intermediaries. [Bitcoin Magazine] | [Cointelegraph]
• 𝗖𝗼𝗶𝗻𝗯𝗮𝘀𝗲 𝘁𝗼 𝗿𝗲𝗶𝗻𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗶𝗻 𝗧𝗲𝘅𝗮𝘀 𝗰𝗶𝘁𝗶𝗻𝗴 𝗹𝗲𝗴𝗮𝗹 𝗰𝗹𝗶𝗺𝗮𝘁𝗲. The exchange announced plans to move its incorporation from Delaware to Texas, with Chief Legal Officer Paul Grewal citing the state’s more predictable legal environment and reduced Chancery Court litigation risks. [Cointelegraph]

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𝗖𝗥𝗬𝗣𝗧𝗢 𝗘𝗡𝗙𝗢𝗥𝗖𝗘𝗠𝗘𝗡𝗧 & 𝗖𝗥𝗜𝗠𝗜𝗡𝗔𝗟 𝗔𝗖𝗧𝗜𝗩𝗜𝗧𝗬

• 𝗡𝗲𝘄 𝗦𝘁𝗿𝗶𝗸𝗲 𝗙𝗼𝗿𝗰𝗲 𝘁𝗮𝗿𝗴𝗲𝘁𝘀 𝘁𝗿𝗮𝗻𝘀𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 “𝗽𝗶𝗴 𝗯𝘂𝘁𝗰𝗵𝗲𝗿𝗶𝗻𝗴” 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀. U.S. authorities launched the Scam Center Strike Force, led by the U.S. Attorney for D.C. and coordinating Justice, Treasury, and State Departments, to dismantle Southeast Asian romance and investment scams that defraud Americans of billions in cryptocurrency annually. [CoinDesk] | [Law360]
• 𝗦𝗮𝗺𝗼𝘂𝗿𝗮𝗶 𝗪𝗮𝗹𝗹𝗲𝘁 𝗖𝗘𝗢 𝘀𝗲𝗻𝘁𝗲𝗻𝗰𝗲𝗱 𝘁𝗼 𝗳𝗶𝘃𝗲 𝘆𝗲𝗮𝗿𝘀 𝗳𝗼𝗿 𝘂𝗻𝗹𝗶𝗰𝗲𝗻𝘀𝗲𝗱 𝗺𝗶𝘅𝗶𝗻𝗴. Keonne Rodriguez received the statutory maximum sentence for conspiring to operate an unlicensed money transmitting business, with prosecutors alleging Samourai’s tools facilitated laundering over $237 million in illicit funds while generating $6 million in fees. [Bitcoin Magazine]