US Newsletter | March 2025

9 April 2025 | Americas | Publications

NEWSLETTER: Crypto and digital assets are still high on the regulator’s agenda, with the landscape continuing to evolve rapidly under the new administration. The recent $1.5 billion theft from Bybit’s cold wallet infrastructure acts as a stark reminder that even the most sophisticated platforms are still at risk. While the impact was profound, our insight piece examines how the lessons learned can help you improve your safeguards and minimise risks.

There are also new changes on the horizon for private fund managers with the SEC’s recent changes to Rule 506(c). The no-action letter, published on March 12 this year, clarifies exactly where the lines are drawn and answers some longstanding questions for private fund sponsors. The risk of getting it wrong remains serious, while offering opportunities for fund managers who are willing to get to grips with the new regulatory requirements.

Fund managers are getting a reprieve from the regulator on advertising investment performance due to the SEC’s update to its Marketing Rule FAQs. This guidance presents some welcome flexibility, allowing managers to showcase certain performance results on a gross basis without showing separate net returns in every case. So, it’s worth understanding what this means for advisers and compliance teams who want to maximise opportunities.

Lastly, we looked at the unique challenges small to mid-size RIAS face when establishing and maintaining a strong, future-proof compliance program. From meeting regulatory requirements under the Advisers Act to keeping up with industry best practices, it’s tough to know where to start. We’ve laid out the components worth considering when building a robust compliance program.

If you have any questions about or require guidance on any of the topics mentioned above, let us know.

Rebecca Thorpe, Global Head of Regulatory Consulting