This Week in Crypto Law
The opinion editorial below was written by Alex Forehand and Michael Handelsman for Kelman.Law.
The final full week of May offered further evidence that crypto regulation is entering a new phase. Several of the industry’s most significant legal battles appear to be winding down, while policymakers and financial institutions are increasingly focused on broader questions of market structure, financial stability, and systemic risk. At the same time, major crypto firms are once again looking toward public markets, signaling renewed confidence in the regulatory landscape.
Blockchain.com Eyes Public Markets
Blockchain.com has reportedly confidentially filed for a U.S. initial public offering, becoming the latest major crypto company to pursue access to public capital markets. The move follows a period of significant regulatory uncertainty and enforcement activity that caused many crypto firms to postpone public-market ambitions. A successful IPO filing would signal growing confidence that the regulatory environment has become sufficiently stable for major digital asset businesses to operate as public companies. It also suggests that institutional investors may be increasingly comfortable with crypto-related businesses.
ECB Pushes Back on Euro Stablecoin Expansion
The European Central Bank warned against proposals designed to encourage broader adoption of euro-denominated stablecoins. ECB officials expressed concerns that widespread stablecoin adoption could create risks for banks and broader financial stability. The debate highlights a growing divide between Europe and the United States regarding digital asset policy. Stablecoins are increasingly viewed not merely as crypto products but as potential competitors to traditional banking and payment systems.
Fenwick & West Settles FTX-Related Claims
Fenwick & West agreed to pay $54 million to resolve claims arising from its legal work for FTX. The settlement is among the latest developments stemming from the collapse of FTX and the resulting wave of litigation. Legal exposure from major crypto failures is expanding beyond founders and exchanges. Lawyers, auditors, consultants, and other professional advisors increasingly face scrutiny regarding their roles in high-profile crypto businesses.
CFTC Seeks to Withdraw Gemini Penalty
The Commodity Futures Trading Commission is moving to withdraw a $5 million penalty previously imposed on Gemini. According to the agency, the original enforcement action may have relied on flawed whistleblower information and problematic investigative methods. This development goes beyond merely slowing enforcement activity. Regulators are now revisiting and, in some cases, unwinding decisions made during prior enforcement campaigns, potentially reshaping the government’s relationship with the industry.
Concerns Grow Over Crypto-Related Banking Risks in Europe
A senior official from UniCredit warned that Europe may be less prepared than the United States to manage financial shocks arising from crypto and stablecoin exposure. The comments reflect growing concern among policymakers and financial institutions about how crypto-related stress could affect traditional banking systems. The conversation surrounding crypto regulation is increasingly focused on systemic risk and financial stability rather than solely investor protection. Regulators are paying closer attention to the potential interaction between digital assets and the broader banking sector.
Staying informed and compliant in this evolving landscape is more critical than ever. Whether you are an investor, entrepreneur, or business involved in cryptocurrency, our team is here to help. We provide the legal counsel needed to navigate these exciting developments. If you believe we can assist, schedule a consultation here.
This Week in Crypto Law Archive:
This Week in Crypto Law (May 16, 2023)
This Week In Crypto Law (May 2, 2026)
This Week in Crypto Law (Apr. 26, 2026)
