Regulatory Playbook

Trending Issues

Treasury and IRS Issue Proposed Regulations Under IRC Section 45Z Clean Fuel Production Credit
03.06.2026

Recently, the U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) released long-awaited proposed regulations (the Proposed Regulations) under Section 45Z of the Internal Revenue Code of 1986, as amended (IRC), providing comprehensive guidance on the clean fuel production credit (CFPC) enacted by the Inflation Reduction Act of 2022 and amended by the One, Big, Beautiful Bill Act of 2025 (OBBBA). The Proposed Regulations largely follow the approach taken in last year’s draft form of proposed regulations (Draft Regulations) that was included as part of IRS Notice 2025-10. As discussed below, however, the Proposed Regulations include several significant modifications from the Draft Regulations in response to comments submitted to Treasury and amendments to IRC Section 45Z made by the OBBBA.

The Pendulum Swings Back: DOL Proposes to Restore 2021 Independent Contractor Framework
03.03.2026

The Department of Labor (DOL) proposal marks the latest shift in a continuing cross-administration debate over how workers should be classified under federal law. In January 2021, at the end of the first Trump administration, the DOL adopted a rule that emphasized two “core” factors in the economic reality analysis—control over the work and opportunity for profit or loss. That rule sought to provide greater predictability by giving those factors more weight than the remaining considerations.

Robust Sourcing for Private Equity Acquisitions Five Key Considerations for Stand Up, Transition and Cost Optimization
03.04.2026

Private equity (PE) firms increasingly recognize that value creation depends on disciplined procurement of business services, particularly technology, in addition to financial engineering and operational optimization. Whether establishing a standalone services environment, especially in the case of a carveout, replacing services provided under a transition services agreement (TSA), optimizing costs after deal closing, or reaping synergies presented by an acquisition, PE firms aim to “get it right once.” Engaging a robust sourcing team comprising specialized attorneys and experienced sourcing experts is essential to mitigate risk, control costs and enhance the enterprise value.

Office of the Comptroller of the Currency Proposes GENIUS Act Implementing Rules for Payment Stablecoins
03.03.2026

On February 25, 2026, the Office of the Comptroller of the Currency (OCC) issued a Notice of Proposed Rulemaking proposing regulations to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) for the issuance of payment stablecoins and certain related activities by entities subject to OCC jurisdiction.

NRC Issues Proposed Rule Establishing Licensing Framework for Fusion Machines
03.03.2026

In late February 2026, the NRC issued a proposed rule titled Regulatory Framework for Fusion Machines, which regulates the possession, use and production of byproduct material associated with fusion machines under Part 30 rather than under the reactor licensing framework applicable to fission facilities. The proposal amends provisions across Parts 20, 30, 37, 50, 72, 110, 150, 170 and 171 to integrate fusion machines into the byproduct material structure.

The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026: Greater Compliance, Broader Application and the Road to FCA Authorization
03.02.2026

Following Parliament’s approval, on February 4, 2026, the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 were published, with most provisions expected to apply from October 2027.

The Fiscal Year 2026 National Defense Authorization Act Expands Defense Procurement Sourcing Restrictions Related to Critical Minerals and Advanced Batteries
02.27.2026

The Fiscal Year 2026 National Defense Authorization Act (FY 2026 NDAA), signed into law on December 18, 2025 (Pub. L. 119-60), includes several provisions affecting critical mineral and materials sourcing for DoD procurements. Many of these changes will be implemented through updates to the Defense Federal Acquisition Regulation Supplement (DFARS), particularly restrictions under 10 U.S.C. § 4872 (covered materials) and related DFARS clauses. These include adding additional materials subject to sourcing restrictions from China, Russia, North Korea and Iran, and clarifying timelines for entry into effect of certain restrictions. The FY 2026 NDAA also provides for a new battery-related prohibition tied to foreign entities of concern (FEOCs) and for opportunities for stakeholder and private sector engagement to accelerate compliance with DFARS sourcing restrictions. These provisions have significant implications for contractors and sub-contracts (at all tiers) supplying material for or incorporated into DoD contracts including related to compliance with the restrictions and opportunities to supply DFARS-compliant material.

U.S. Trade Representative Issues Request for Comments on a Plurilateral Critical Minerals Trade Agreement
02.27.2026

On February 26, 2026, the U.S. Trade Representative (USTR) published a Federal Register Notice requesting comments regarding a plurilateral “Agreement on Trade in Critical Minerals” and policy actions to support critical minerals supply chain resilience. Comments are due by March 19, 2026. This Notice builds upon various policies of the Trump administration over the past year including supporting domestic investments in the United States (which we discuss here), and the President’s directive following an investigation under Section 232 of the Trade Expansion Act of 1962 of imports of processed critical minerals (which we discuss here, here and here) for the Department of Commerce and USTR to negotiate agreements with partners to address national security risks and consider “price floors for trade in critical minerals and other trade-restricting measures.”

Ninth Circuit Rules That Federal Courts May Invalidate Arbitration Agreements Implemented to Subvert an Ongoing Class Action
02.27.2026

The Ninth Circuit has ruled that the broad authority that FRCP 23(d) grants federal judges to oversee class actions includes the power to invalidate arbitration agreements where their rollout appears designed to prevent or discourage class member participation.

NIST Launches AI Agent Standards Initiative and Seeks Industry Input
02.25.2026

In January and February 2026, the National Institute of Standards and Technology (NIST), through its Center for AI Standards and Innovation (CAISI), launched a new AI Agent Standards Initiative to support the development of interoperable and secure AI agent systems, issued a Request for Information (RFI) on securing AI agent systems, and announced a series of virtual listening sessions to identify barriers to artificial intelligence adoption, including in the financial sector.

Extended Producer Responsibility Laws: Strategic Considerations for Trade Associations as Compliance Expands and Litigation Unfolds
02.25.2026

Extended Producer Responsibility (EPR) laws regulating packaging materials are now in effect in several states and expanding rapidly nationwide. As we’ve discussed previously, these laws are designed to shift the costs of managing packaging waste from municipalities to “producers,” a term typically defined broadly and depending on the situation, vaguely to include brand owners, manufacturers, importers, distributors, wholesalers and retailers that introduce covered packaging materials into a state’s marketplace. EPR programs require producers to register with a designated third party—typically referred to as the Producer Responsibility Organization (PRO)—that manages the program, report detailed packaging data, and pay fees to support recycling and waste management systems.

Enforcement Landscape Heightens Risk Around Surveillance Pricing in California and at the Federal Level
02.24.2026

California has entered 2026 with an aggressive enforcement posture toward surveillance pricing—the practice of using consumer personal information to set individualized prices for goods or services. The California Attorney General (AG) has explicitly linked this practice to potential violations of the California Consumer Privacy Act, as amended, (CCPA) and has begun formal investigative sweeps targeting businesses across retail, grocery and hospitality sectors. Meanwhile, California’s parallel antitrust reforms (AB 325) targeting algorithmic pricing deepen legal exposure for companies that use shared or data‑driven pricing systems.

Cal/OSHA Proposes Inspection “Walkaround Rule”
02.24.2026

As previously alerted, federal OSHA’s May 2024 walkaround rule clarified that employees, like employers, have the right to designate a non-employee third party to be their representative during worksite inspections. If federal OSHA establishes a new standard, state-plan states such as California must adopt their own standard that is at least as effective as the new federal standard within six months. (See 29 CFR 1953.5(a)(1).) Although late, in February 2026, Cal/OSHA published a Notice of Proposed Rulemaking seeking to add a section to the California Code of Regulations titled, “Regulating the Process for Representatives of Employers and Authorized Representatives of Employees to Accompany the Division During Workplace Inspections.” The proposed new 8 C.C.R. section 331.8 consists of four subsections, which are summarized below.

DOJ’s First Antitrust Whistleblower Award: The New “Race to Report” and What Companies Should Do Now
02.20.2026

On January 29, 2026, the U.S. Department of Justice (DOJ) announced the first whistleblower reward payment under the Antitrust Division’s Whistleblower Rewards Program. DOJ reported that it paid $1 million to an individual whose information contributed to criminal charges and a deferred prosecution agreement (DPA) with EBLOCK Corporation, under which EBLOCK agreed to pay a $3.28 million criminal penalty. DOJ’s program guidance contemplates potentially significant awards for eligible whistleblowers, subject to eligibility requirements and DOJ discretion.

A Sea Change in California Antitrust Law? CLRC Single-Firm Proposal Raises the Stakes for Algorithmic Pricing
02.18.2026

On January 20, 2026, California Law Revision Commission (CLRC) staff circulated a draft final recommendation addressing single-firm conduct. The proposal recommends amending the Cartwright Act, California’s antitrust statute, by creating new prohibitions against single-firm conduct, which would add new Sections 16729–16731 to the Business and Professional Code. “Single-firm” (or “unilateral”) conduct simply refers to conduct that a company engages in on its own, as opposed to through agreements or coordination with other unrelated parties (i.e., other companies, associations or individuals who are not under common control). The CLRC’s recommendations do not change the law unless and until the California Legislature enacts them.

State Energy Regulatory Approaches to Powering Data Centers
02.17.2026

The rapid expansion of data centers—driven by cloud computing, artificial intelligence and hyperscale digital infrastructure—has transformed what were once localized land-use and utility ratemaking concerns into issues of statewide and federal economic and energy policy. While our recent commentary focused on an emerging federal regulatory framework to power data centers, including in pending proceedings before the Federal Energy Regulatory Commission (FERC), states are simultaneously moving to legislate, regulate, incentivize, and in some cases constrain data center development. These state-level actions are ever more consequential to the economics of data center projects, impacting everything from site selection and interconnection timelines to long-term operational risk.

The Trump Administration Launches Plurilateral Initiative and a Strategic Reserve to Secure Critical Minerals Supply Chains
02.17.2026

In recent weeks, the Trump administration has announced significant actions aimed at securing critical mineral supply chains. These actions include outcomes from the U.S. State Department’s Critical Minerals Ministerial, which include the launch of a new plurilateral initiative, Forum on Resource Geostrategic Engagement (FORGE), as well as the signing of bilateral Memoranda of Understanding (MOUs) with 11 countries and an Action Plan between the United States and Mexico. These actions also include the announcement of Project Vault, a new strategic reserve for critical minerals supported by a $10 billion loan from the Export Import Bank of the United States (EXIM) (the largest loan in EXIM’s history) as well as approximately $2 billion in private capital.

Treasury Issues Request for Information on CFIUS Known Investor Program
02.13.2026

On February 6, 2026, the U.S. Department of the Treasury (Treasury) issued a Request for Information (RFI) seeking public input on CFIUS Known Investor Program (KIP). The RFI signals Treasury’s intent to formalize and begin implementation of the KIP announced in May 2025.

Reported Draft Executive Order Signals Expanded Federal Coordination on Quantum Computing
02.12.2026

The White House is reportedly drafting an executive order (EO) focused on quantum information science and technology (QIST). The EO would establish a whole-of-government approach to strengthening the U.S. quantum ecosystem. The reported draft, titled “Ushering in the Next Frontier of Quantum Innovation,” would assign significant roles to the White House Office of Science and Technology Policy (OSTP) and multiple agencies, including the Departments of War (DoW), Commerce (DOC) and Energy (DOE), and emphasizes workforce development initiatives, increased manufacturing capacity and counterintelligence protections for quantum research.

Fourth Circuit Holds That Anti-DEI Executive Orders Are Likely Not Facially Unconstitutional
02.12.2026

On February 6, 2026, the U.S. Court of Appeals for the Fourth Circuit issued a final Order in the case NADOHE v. Trump, permanently vacating a district court’s preliminary injunction against several provisions of Executive Order (EO) 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” and EO 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (as discussed in a previous client alert, the Fourth Circuit temporarily stayed the injunction in March 2025). The EOs sought to deter diversity, equity, and inclusion (DEI) initiatives. The plaintiffs challenged the provisions that directed federal agencies to terminate all “equity-related” grants and contracts, to require all federal funding recipients to certify that they do not “promot[e] DEI” that violates antidiscrimination laws, and to identify targets for civil investigations into “illegal DEI.” The plaintiffs—an association of diversity officers in higher education, an association of university professors, and the City of Baltimore—argued that these provisions were facially unconstitutional under the First Amendment and Fifth Amendment. While the Fourth Circuit held that the “plain text” of the EOs alone did not provide enough of a foundation for an injunction that relied on a facial challenge, the court’s decision did not rule out future challenges to the Trump administration’s interpretation and application of the EO provisions.

New Executive Order Seeks to Limit Stock Buy Backs and Executive Compensation for Underperforming Defense Contractors (Part 2)
01.30.2026

(This is the second of two alerts examining this issue.)
In Part 1 of this client alert, we briefed the substance of President Trump’s January 7, 2025, Executive Order (EO) titled “Prioritizing the Warfighter in Defense Contracting” and provided preliminary observations. As we detailed, the EO gives broad discretion to the U.S. Secretary of War to designate underperforming contractors and directs the Secretary, within 30 days of the EO’s issuance and on an ongoing basis thereafter, to notify defense contractors of such designations. The 30-day deadline for the Secretary to designate underperforming contracts is February 6, 2026. Contractors receiving a notice of underperformance on February 6 will only have until Saturday, February 21 to submit to the Secretary a remediation plan that has the approval of their Board of Directors. While the EO directs the Secretary to allow fifteen days for contractors to submit a Board-approved remediation plan, the EO also allows the Secretary to initiate immediate action if the contractor and Secretary reach an impasse during the 15-day negotiation window. Part 1 of this Client Alert advised defense contractors to identify issues related to delivery, quality, schedule and cost of their existing defense contracts. This second part expounds upon how organizations can best prepare to react to underperformance notices from the Secretary.