Regulatory Playbook

Trending Issues

California Updates Tax Regulations on Technology Transfer Agreements
09.04.2025

The California Department of Tax & Fee Administration (Department) held an interested parties meeting on July 24, 2025, to discuss proposed amendments to Sales and Use Tax Regulations 1502, Computers, Programs, and Data Processing, and 1507, Technology Transfer Agreements (TTA), and new Regulation 1507.1, Software Technology Transfer Agreements on July 24, 2025. The Department also issued a Discussion Paper containing the details. An overview of some of the proposals is presented below.

Court Declines to Halt Climate Disclosure Laws as CARB Pursues Delayed Rulemaking
08.28.2025

California’s landmark climate disclosure laws—SB 253, the Climate Corporate Data Accountability Act, and SB 261, the Climate-Related Financial Risk Act—are moving toward enforcement, with SB 261 requiring risk reporting by January 1, 2026. On August 13, 2025, the U.S. District Court for the Central District of California declined an industry request to put the statutes on hold. That ruling leaves the laws in force while the plaintiffs’ remaining First Amendment challenge proceeds. The plaintiffs quickly appealed the ruling to the Ninth Circuit and moved for an injunction in the district court to bar enforcement of SB 253 and SB 261 during the appeal. A hearing on that motion is scheduled for September 15, 2025. In the meantime, regulated companies must continue to prepare for the quickly approaching first reporting deadlines with no regulatory guidance to date and amid continued legal uncertainty.

FAR Council Increases Acquisition-Related Thresholds for Inflation
08.28.2025

Section 1908 of Title 41 of the United States Code requires that statutory acquisition-related thresholds be adjusted for inflation every five years, using the Consumer Price Index for All Urban Consumers (CPI). The statute excludes certain thresholds such as those under the Davis-Bacon Act, Service Contract Labor Standards, performance and payment bonds, and trade agreements. On August 27, 2025, the FAR Council—comprising the Office of Federal Procurement Policy, the Department of Defense (DoD), the General Services Administration, and the National Aeronautics and Space Administration (NASA)—issued a final rule that adjusted numerous acquisition-related thresholds for inflation as follows:

Clearing Space for Launch: Trump 2.0 Proposes Regulatory Overhaul to Enhance American Leadership in Space by 2030
08.28.2025

The first Trump administration galvanized significant and sustainable transformation of the U.S. space industry, including the reconstitution of the National Space Council, the creation of the U.S. Space Force, the formation of the Artemis Accords, and substantial regulatory reform aimed at the licensing of launch vehicles, Earth observation satellites, and next-generation broadband constellations, among others. On August 13, 2025, the second Trump administration released an ambitious Executive Order (EO), Enabling Competition in the Commercial Space Industry, to further build on the off-worldly successes of President Trump’s first term.

Following Investigation of Copper Imports, Trump Administration Takes Actions Targeting Imports and Domestic Sales
08.25.2025

On July 30, 2025, President Trump issued Proclamation 10962 following the investigation by the Department of Commerce (Commerce) under Section 232 of the Trade Expansion Act of 1962 of imports of copper in all forms and derivative products. President Trump concurred with the Secretary of Commerce’s finding that U.S. reliance on copper imports threatens to impair national security, ordering tariffs to be imposed. In addition, in a novel use of industrial policy authorities, the President ordered certain domestic sales requirements under the allocations authority of the Defense Production Act (DPA) with the goal of preserving feedstock for domestic copper producers.

NYDFS Imposes $2M Penalty for Violations of its Cybersecurity Regulation
08.21.2025

The New York State Department of Financial Services (NYDFS) announced on August 14, 2025, resolution of civil enforcement action requiring Healthplex, Inc., a licensed insurance agent and independent adjuster, to pay a $2 million civil penalty under a consent order for violations of the NYDFS cybersecurity regulation (23 NYCRR Part 500). The NYDFS alleges in the consent order that a threat actor gained access to Healthplex’s information systems through a phishing attack on an employee’s email account, and that Healthplex’s cybersecurity program was not adequately calibrated to protect against, mitigate or respond to the incident. As a result, the threat actor gained access to the private health data and sensitive nonpublic information (NPI) of tens of thousands of consumers.

A Digital Assets Revolution? White House Report Outlines a Realignment in Federal Regulatory Policy
08.21.2025

On July 18, 2025—mere days after Bastille Day—President Trump signed the GENIUS Act, creating the first unified U.S. legal framework for payment stablecoins. The White House also released a sweeping policy report on digital assets that signaled a deliberate break from the regulatory status quo shortly after. Just as the storming of the Bastille marked the beginning of a revolution against entrenched authority, the Trump administration’s report challenges the existing regulatory order by seeking to rework existing frameworks and calling for an innovation-first approach to digital asset oversight. The Report, titled “Strengthening American Leadership in Digital Financial Technology” was mandated by President Trump’s executive order Strengthening American Leadership in Digital Financial Technology. The executive order directed the Secretary of the Treasury to work in consultation with the heads of other financial and national security agencies to produce a report assessing the implications of digital assets for financial stability, consumer and investor protection, and systemic risk. The resulting document (“the Report”) represents the administration’s effort to realign federal regulatory policy with its stated priorities: fostering innovation, curbing regulatory overreach, and restoring a market-oriented approach to digital finance.

Antitrust Division Announces First-Ever Antitrust Whistleblower Rewards Program
08.19.2025

The Antitrust Division of the U.S. Department of Justice (DOJ) on July 8, 2025, announced a new Whistleblower Rewards Program designed to uncover and prosecute anticompetitive conduct that harms consumers, taxpayers, and market competition, focused on postal-related operations and federal procurement. This is the first time the Antitrust Division has authorized financial rewards for whistleblowers—a significant shift considering the Division’s emphasis on the Leniency Program which was first established in 1978 and revised in 1993. The payment to reporting individuals may be made for up to 30 percent of a criminal fine of at least $1 million following a conviction or deferred or non-prosecution agreement. The new Whistleblower Rewards Program provides another avenue for individuals with credible, specific, and timely information to report.

FAA Releases Long-Awaited BVLOS Proposed Rule
08.15.2025

On August 5, 2025, U.S. Department of Transportation Secretary Sean Duffy announced the release of the long-awaited Notice of Proposed Rulemaking (NPRM) on the beyond visual line of sight (BVLOS) rule, also known as Part 108. After years of drafting and delays, the proposed rule would create a standardized regulatory framework to enable commercial drone operators to fly beyond visual line of sight, removing the need to apply for individual waivers. It has the potential to unlock commercial drone operations at a large scale (and quickly), particularly drone delivery. Comments are due by October 6, 2025.

Navigating Tip and Overtime Deductions Under the OBBBA: What Employers Need to Know Now
08.13.2025

The “One Big Beautiful Bill Act” (OBBBA) introduces significant federal tax relief for certain workers and may change how employers manage wages, tips, and overtime. Sections 70201 and 70202 of the OBBBA are particularly noteworthy, as they establish new above-the-line deductions for qualified tips and qualified overtime compensation. These provisions present both opportunities and compliance challenges, especially for employers in states like California where state wage standards exceed federal requirements.

The Trump Administration Accelerates AI and Data Center Development with Executive Order and DOE Site Selections
08.08.2025

A new executive order (EO) issued on July 23, 2025, and a parallel Department of Energy announcement, signal a coordinated federal effort to accelerate the siting and development of data centers and supporting infrastructure on public lands. Building on the DOE’s April 2025 Request for Information (RFI), soliciting industry feedback for developing AI infrastructure on DOE-managed lands, these actions lay the groundwork for a new wave of AI-driven data center growth and position federal lands as a strategic backbone for national AI infrastructure.

Legal and Tax Considerations in Home Service Business Roll-Ups: A Primer for Buyers and Sellers
08.07.2025

M&A activity in the home services sector—HVAC, plumbing, electrical, pest control, landscaping and other skilled trades—has surged in recent years. Private equity (PE) firms and fundless sponsors are pursuing roll-up strategies to consolidate fragmented markets, realize economies of scale and build regional or national platforms.

Delaware Supreme Court Erects a “Formidable Obstacle” to Proving Counterparty Aiding and Abetting Liability in Merger Transactions
08.07.2025

On June 17, 2025, the Delaware Supreme Court reversed a nearly $200 million judgment against TC Energy (formerly TransCanada), which had been found liable for allegedly aiding and abetting fiduciary breaches by the former CEO and CFO of Columbia Pipeline Group, Inc. (Columbia) during merger negotiations. The Court’s decision affords significant protections against claims that buyers aided and abetted fiduciary breaches by those on the seller side by requiring that plaintiffs show the buyer’s actual knowledge of both the underlying seller-side breach and the wrongfulness of the buyer’s conduct.

Attorney General Bondi Issues Guidance to Recipients of Federal Funding “Regarding Unlawful Discrimination”
08.04.2025

On July 29, 2025, U.S. Attorney General Pam Bondi issued a memorandum for all federal agencies titled “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination.” The Guidance “clarifies the application of federal antidiscrimination laws to programs or initiatives that may involve discriminatory practices, including those labeled as Diversity, Equity, and Inclusion (DEI),” and “provides non-binding best practices to help entities avoid the risk of violations.” The Guidance is not premised on a change in antidiscrimination laws articulated by Congress, the Supreme Court, or even lower courts. Rather, the Guidance highlights certain practices that “the federal government has turned a blind eye toward or even encouraged,” but which the current administration deems illegal. The Guidance is specifically directed to “[e]ntities that receive federal financial assistance,” but it indicates the Administration’s policies around DEI more broadly. The Guidance states that it is interpreting Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972 (both of which apply only to entities receiving federal financial assistance), Title VII of the Civil Rights Act of 1964 (which applies to employers with more than 15 employees), and the Equal Protection Clause of the Fourteenth Amendment (which applies to states).

“Everything Right Is Wrong Again”: Trump 2.0 Presages Overhaul of Federal Income Tax Rules for Digital Assets
08.04.2025

So, in the same manner that a marginal downtown nightlife scene has been reframed as the heart of modern music, let’s explore how the Cryptocurrency Report issued by the Trump administration in July 2025 envisions repositioning digital asset taxation. The Report provides a series of recommendations. It does not contain any legislative language. In many instances, it notes that guidance is needed without offering any recommendations as to the direction of such guidance.

OSHA Proposes Removing Application of General Duty Clause to Inherently Risky Professional Activities
08.01.2025

On July 1, 2025, OSHA proposed a rule titled, “Occupational Safety and Health Standards; Interpretation of the General Duty Clause: Limitation for Inherently Risky Professional Activities.” The proposed rule is intended “to exclude from enforcement known hazards that are inherent and inseparable from the core nature of a professional activity or performance.”

New International Court of Justice Advisory Opinion Raises Global Liability Stakes Around GHG Emissions and Climate Change amid U.S. Federal Regulatory Retreat
07.31.2025

On July 23, 2025, the International Court of Justice (ICJ) issued a unanimous Advisory Opinion asserting the scope of states’ obligations under international law concerning the protection of the climate system. The Advisory Opinion is a long-awaited response to the U.N. General Assembly’s March 2023 request that ICJ advise regarding the obligations of U.N. member states to protect the climate and environment from anthropogenic emissions of greenhouse gases for present and future generations and the legal consequences to member states whose acts or omissions have caused harm. Proceedings leading up to the Advisory Opinion garnered the highest level of participation in the history of the ICJ and its predecessor organization—with hearing statements by 96 different national governments and 11 international organizations.

Streamline, Simplify, Deregulate: The FCC Adopts “Direct Final Rule” Approach to Expedite Rule Deletions
07.31.2025

Earlier this year, Federal Communications Commission (FCC) Chairman Brendan Carr initiated a sweeping initiative to review “every rule, regulation, or guidance document” that could be eliminated “for the purposes of alleviating unnecessary regulatory burdens.” At its July Open Meeting, the Commission voted 2-1 to adopt a Direct Final Rule framework to enable it to act expeditiously in the In re: Delete, Delete, Delete proceeding to repeal certain legacy regulations that have become “outdated, obsolete, unlawful, anticompetitive, or otherwise no longer in the public interest.” The principal feature of the Direct Final Rule approach is to permit the elimination of rules without the notice and comment procedures typically required under the Administrative Procedure Act (APA). The FCC’s lone Democrat, Commissioner Anna Gomez, dissented, expressing concern that the Direct Final Rule process circumvents essential transparency and due process safeguards, sidestepping a mechanism for public involvement.

Navigating New Waters: Getting Ahead of Extended Producer Responsibility Laws
07.28.2025

Companies across the United States are working diligently to understand their obligations and comply with packaging-related Extended Producer Responsibility (EPR) laws recently enacted by several states, including California (SB54), Colorado (HB22-1355), Maine (LD1541), Maryland (SB901), Minnesota (HF3911), Oregon (SB582B) and Washington (SB 5284). Other states, including Connecticut (HB06225), Hawaii (HB750), Illinois (HB4064), Massachusetts (H.833), New Jersey (SB426), New York (S1460), Rhode Island (S0939) and Tennessee (SB573) have recently proposed EPR bills, though some have been vetoed.

DORA Now Fully in Effect: Financial Entities and Their Service Providers Reach Critical Milestone
07.28.2025

Since the EU Digital Operational Resilience Act (DORA) Regulation (EU) 2022/2554 came into effect on January 17, 2025, EU financial entities and providers of information and communications (ICT) services (ICT Providers) have shifted from compliance planning to active implementation of both internal and external measures in line with the new requirements introduced by DORA—by remediating contracts for ICT services, completing the financial entities’ registers of information detailing the contractual arrangements between the financial entity and its ICT Providers. However, the subcontracting requirements under DORA were significantly delayed, but the Commission Delegated Regulation (EU) 2025/532 supplementing Regulation (EU) 2022/2554 of the European Parliament and of the Council with regard to regulatory technical standards specifying the elements that a financial entity has to determine and assess when subcontracting ICT services supporting critical or important functions (Subcontracting RTS) have now been published and entered into force on July 22, 2025.

Judge Starr’s Ruling in Metals.com Case Raises Jurisdictional Questions About CFTC Authority
07.24.2025

In CFTC v. TMTE Inc. (Metals.com), Judge Brantley Starr of the U.S. District Court for the Northern District of Texas issued an opinion that casts doubt on whether the Commodity Futures Trading Commission (CFTC) can assert antifraud jurisdiction over transactions involving gold and silver bullion under the Commodity Exchange Act (CEA). While the case involves alleged misconduct in the sale of precious metals to retirees, the court’s reasoning—if adopted more broadly—could implicate the scope of the CEA with respect to other non-agricultural products, including digital assets, interest rates, foreign exchange, energy products and energy attributes.

From Paychecks to Perks: Navigating New OBBBA Rules on Compensation
07.24.2025

The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, may have made headlines for its political theatre, but included in the OBBBA are changes that will significantly reshape the compensation and employee benefits landscape. While many of these changes only become effective in 2026, proactive employers should begin planning now to address these changes, communicating these changes to employees and modifying plan documents and pay practices to accommodate these changes. Failure to adequately address these changes could lead to missed tax savings for employers and hamper employers’ efforts to recruit and retain key talent.

CFTC Permits Listing of Perpetual Futures on BTC and ETH: A Regulatory Milestone for U.S. Crypto Derivatives
07.22.2025

Perpetual futures contracts—or “perps”—are a form of derivative that, unlike traditional futures, do not have an expiration date. They have become the dominant form of crypto derivatives trading globally, but until now, have largely been unavailable on regulated U.S. exchanges. On April 21, 2025, the Commodity Futures Trading Commission (CFTC) issued a 30-day Request for Comment (RFC) seeking public input on the risks and characteristics of perpetual derivatives. The comment period closed on May 23, 2025. While the RFC generated a broad range of industry and academic responses, the CFTC has not yet issued any new rulemaking, interpretive guidance or staff advisory in response.