FINMA publishes guidance on risks associated with the custody of crypto-based assets (January 26 2026)
In its new guidance, FINMA draws attention to the particular risks associated with the safekeeping of cryptobased assets such as Bitcoin or Ether.
These arise because of the associated technology (distributed ledger). Expertise and a robust technical infrastructure are needed to mitigate these risks. If the custody takes place abroad, additional complex legal issues may arise – especially if the custodian becomes insolvent. Among other things, it must be ensured that customers’ cryptobased assets do not form part of the custodian’s bankruptcy assets.
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BIS Bulletin – Financing the AI boom: from cash flows to debt (January 7, 2026)
The BIS) Bank for International Settlements, (published a Bulletin examining the AI investment boom in the United States, highlighting a sharp rise in spending on AI-related infrastructure such as data centers and IT manufacturing facilities and its increasingly material contribution to GDP growth.
It argues that the scale of current and expected capital expenditures is pushing leading tech firms to shift from funding investment primarily through operating cash flows toward greater reliance on debt financing, with private credit emerging as a fast-growing source of funding. While the Bulletin views near-term macroeconomic and financial stability risks as moderate, it stresses that the boom’s durability depends on AI firms meeting high earnings expectations and notes a notable tension between buoyant equity valuations and comparatively restrained debt market pricing.
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SEC Issues Proposed Statement on Tokenized Securities (January 28, 2026)
As part of an effort to provide greater clarity on the application of the federal securities laws to crypto assets, the Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets are providing their views on the taxonomies associated with tokenized securities.
A tokenized security is a financial instrument enumerated in the definition of “security” under the federal securities laws that is formatted as or represented by a crypto asset, where the record of ownership is maintained in whole or in part on or through one or more crypto networks. There are a variety of models used to tokenize securities and they vary in terms of structure and the rights afforded to holders.
Tokenized securities generally fall into two categories:
- securities tokenized by or on behalf of the issuers of such securities; and
- securities tokenized by third parties unaffiliated with the issuers of such securities. This statement is intended to assist market participants as they seek to comply with the federal securities laws and prepare to submit any necessary registrations, proposals, or requests for appropriate action to the Commission or its staff. We stand ready to engage regarding any questions.
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SEC Proposes Amendments to the Small Entity Definitions for Investment Companies and Investment Advisers for Purposes of the Regulatory Flexibility Act (January 7, 2026)
The Securities and Exchange Commission proposed amendments to the rules that define which registered investment companies, investment advisers, and business development companies qualify as small entities for purposes of the Regulatory Flexibility Act (RFA).
The RFA requires federal agencies to conduct certain analyses, with the goal of minimizing the significant economic impact of federal rulemaking on small entities. This proposal would raise the small entity thresholds for investment companies and advisers. It is designed to help the Commission better tailor its analyses to address the specific regulatory challenges that these small entities face and consider adapting its rulemaking accordingly.
Specifically, this proposal would:
- Increase the asset-based thresholds under which investment companies and investment advisers are deemed small entities;
- Update the way that related funds’ assets are aggregated for purposes of defining small entities; and
- Provide for inflation adjustments to the asset-based thresholds by order every 10 years.
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