On August 7, 2026, the Committee on Foreign Investment in the United States (CFIUS) published its 2025 Annual Report. Overall, filing volume increased, with 347 covered transactions reviewed compared to 325 the prior year. As with prior years, most transactions filed with CFIUS were cleared without mitigation.

When a party is subject to parallel litigation before both the U.S. International Trade Commission (ITC) and a U.S. district court, it may be able to seek a mandatory stay. To obtain a mandatory stay in the district court, the same claims and issues must be involved in both actions, and the party must seek the stay within 30 days of being named as a respondent in the ITC proceeding or within 30 days of the district court action being filed, whichever is later. 28 U.S.C. § 1659(a).

Ella Langley laments in her break-out song that she lost her boyfriend’s affection when a big-haired, two-steppin’ Texas gal waltzed in between them. While the charms of a Dallas blonde caused Ms. Langley’s beau to choose the lone star state over Tennessee, the bloom certainly came off the yellow rose in the get-rich-quick scheme addressed in Deutsch v. Comm’r. But as we’ll see, it still pays to be a good ol’ boy because in this memorandum decision rendered on August 14, 2026, the Tax Court put a right quick end to the taxpayer’s conniption about not being able to deduct his losses. The decision is important for two reasons: (1) the loss deduction was permitted even though the court could only speculate who absconded with the money and (2) losses incurred in investment schemes remain deductible even though many other itemized deductions have been repealed.

On August 20, 2026, the Small Business Administration (SBA) published a proposed rule that would fundamentally restructure the way the agency establishes small business size standards for federal contracting and lending programs. As described in the accompanying revised methodology white paper, the proposed rule revises the size-standard methodology for many industries across the economy, consolidates 995 size standards into 338, and shifts many industries into employee-based size standards. Comments on both the proposed rule and the revised methodology are due by September 21, 2026.

On August 3, 2026, Governor Greg Abbott directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive verification and audit of data center projects advancing through ERCOT’s interconnection process before additional projects are approved to move forward. The directive states that projects failing to comply with applicable PUCT, ERCOT and state-law requirements must be denied connection to the Texas power grid.

With only three months to go until the 2026 midterm elections, it remains uncertain whether the House and Senate will be controlled by one political party or if control of the two chambers will be split between the parties. However, it is increasingly likely that the margins for the majority in each chamber of Congress will be narrow. This means that companies, trade associations and other organizations will be fighting tooth and nail to achieve legislative and oversight priorities that align with their interests.

The Eleventh Circuit’s recent decision in Owoc v. The Liquidating Trustee on Behalf of the Liquidating Trust, No. 24-14048 (11th Cir. Aug. 10, 2026), highlights how tax considerations can materially affect the economics of a bankruptcy, especially where the debtor is an S corporation (S corp).

What Happened

On August 3, 2026, Governor Greg Abbott directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive verification and audit of data center projects advancing through ERCOT’s interconnection process before additional projects are approved to move forward. The directive states that projects failing to comply with applicable PUCT, ERCOT and state-law requirements must be denied connection to the Texas power grid.

On July 20, 2026, President Trump issued a sweeping Executive Order (EO) 14415 titled. “Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials.” In summary, the EO directs:

On August 6, 2026, President Trump issued Proclamation 11052 announcing the results of the Department of Commerce (Commerce) investigation under Section 232 of the Trade Expansion Act of 1962 into imports of polysilicon. The resulting action has significant implications for both the solar and semiconductor industries, covering polysilicon ingots and wafers, as well as downstream solar cells and modules. The Proclamation also foreshadows new tools that could be deployed in other future trade measures addressing supply chain risk for critical materials.

On August 11, 2026, the Small Business Administration (SBA) issued its final rule to remove the rebuttable presumption of social disadvantage for individually-owned firms. This rule significantly changes how individuals establish social disadvantage for purposes of admission into the 8(a) Business Development Program. Although the SBA received more than 100 comments on its proposed rule that was published on June 11, 2026 (discussed in our previous alert), the final rule essentially adopts the SBA’s proposed rule. This rule takes effect on September 10, 2026, and applies to all 8(a) applications pending on that date.

On August 4, 2026, the Department of Commerce’s Bureau of Industry and Security (BIS) issued an unpublished notice, “Defense Priorities and Allocations (DPAS) Directive Allocation Order and Additional Requirements for Recoverable Critical Minerals and Materials (Directive),” requesting comments on a temporary final rule (TFR). The TFR, which implements a Presidential Determination under Title 1 of the Defense Production Act (DPA) broadly authorizing the Commerce Department to impose export restrictions on “recoverable critical minerals and materials” (CMMs). The TFR restricts, effective August 27, 2026, through August 27, 2027, the export of black mass in electrical and electronic waste (e-waste) and tungsten scrap, subject to adjustments and exceptions. This is the first allocation order restricting exports from the Department of Commerce and may foreshadow additional directives targeting other recoverable CMMs, as well as additional authorizations targeting other sectors.

The Tax Court’s August 6, 2026, decision in SIH Partners LLLP brought back a college memory of the three guys running what seemed to be a non-stop poker game in an on-campus dorm room. How could I know then that after graduation these risk jockeys would go on to form Susquehanna International Group (SIG), probably the most successful market maker on Wall Street? In the Tax Court case, SIG (through the named taxpayer) used a basket swap (a generally accepted risk mitigation strategy) to bolster a 10x after-tax return on a portfolio of Swiss stocks. But in an exceedingly rare instance, the smartest guys in the room (and certainly my alma mater) lost on the tax benefits from the trading strategy. This article looks inside the basket to unpack the trade and how the Internal Revenue Service (IRS) prevailed over traders whose specialty is trading strategies that “push legal boundaries” to reduce tax liability.

On July 28, 2026, the Federal Communications Commission’s (FCC) Public Safety and Homeland Security Bureau issued a Public Notice further expanding the categorical location-based prohibitions of the Covered List to include (1) foreign-produced power inverters and (2) foreign-produced advanced robotic devices. The Public Notice came a day after the FCC’s receipt of two National Security Determinations that determined such equipment “poses an unacceptable risk to the national security of the United States or the security and safety of United States persons.”

On July 27, 2026, the Tax Court released its decision in HRM Holdings Company. In the decision, the Tax Court prevented a consolidated group of corporations from accessing net operating loss (NOL) carryovers incurred by a predecessor of the common parent of the affiliated group. The decision has important ramifications for loss companies developing plans for NOL utilization. Mark Leeds and Nora Burke, both tax partners in Pillsbury’s New York office, regularly work with loss corporations on the myriad limitations faced by such corporations in accessing their tax attributes. In the linked White Paper, they analyze the new decision and offer thoughts on how the disallowance could have been avoided.

As most employers know, the Occupational Safety and Health Administration (OSHA) requires employers with more than 10 employees to keep a record of occupational injuries and illnesses on OSHA’s Form 300 (Log of Work-Related Injuries and Illnesses) and Form 301 (Injury and Illness Incident Report). The Occupational Safety and Health Act requires the Secretary of Labor to “prescribe regulations requiring employers to maintain accurate records of, and to make periodic reports on, work-related deaths, injuries and illnesses …. ” 29 U.S.C. § 657(c)(2).

On July 21, 2026, the Federal Communication Commission’s (FCC) Public Safety and Homeland Security Bureau (PSHSB) and Office of Engineering and Technology (OET) issued a Public Notice seeking comment on whether to expand the scope of restrictions on certain foreign-produced unmanned aircraft systems (UAS) and UAS critical components on the Covered List (Public Notice). The Public Notice proposes to prohibit the continued importation and marketing of certain previously authorized UAS and UAS critical components that qualify as “military-grade” devices.

On July 27, 2026, the California Supreme Court issued a unanimous published opinion in Fox Paine & Company et al. v. Twin City Fire Insurance, et al., S287404, holding that insurance policyholders may sue excess insurers for declaratory relief and breach of the implied covenant of good faith and fair dealing (including tortious bad faith) even if all the underlying insurance coverage has not yet been exhausted. It determined: “the absence of exhaustion is not fatal to these claims.” And it reversed a published decision of the California Court of Appeal.

The rise of prediction markets has quickly become one of the most closely watched developments in the gaming industry. Companies such as Kalshi and Robinhood now offer event contracts that allow users to profit from correctly predicting the outcome of sporting events (among other real-world events). To supporters, these products are federally regulated commodity derivatives traded on a commodities exchange. To critics, they are simply sports betting platforms by another name.

Prediction markets, offered by platforms such as Kalshi and Robinhood, allow users to trade “event contracts” tied to future real-world outcomes, such as the results of sporting events and political elections, or the popularity of newly released music, movies and TV shows. Each event contract allows a user to pay between $0 and $1 to predict the answer to a yes-or-no question about a particular event—say, will the San Francisco Giants win their game against the Los Angeles Angels on Friday, July 24, 2026. As more people choose “yes,” the price of one “yes” contract rises, and the price of one “no” contract falls. When the game ends, if the Giants have won, everyone who bought a “yes” will get $1, and the “no” holders get nothing.

On July 14, 2026, Chief Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York issued a memorandum opinion in In re NFE Global Holdings Limited, et al., Case No. 26-11268 (MG), recognizing two English Part 26A restructuring plan proceedings as foreign main proceedings under chapter 15 of the Bankruptcy Code and giving full force and effect in the United States to the English court’s sanction order and restructuring plans, including the plan releases.

On July 1, 2026, the U.S. Nuclear Regulatory Commission (NRC) published a proposed rulemaking that, if implemented, would significantly revise the agency’s radiation protection framework. The proposed rulemaking is available here. Public comments are due on the proposed rule on August 31, 2026.

On July 13, 2026, the Department of Defense (DoD) announced that it was immediately suspending the roll out of Phase II of the Cybersecurity Maturity Model Certification (CMMC) program, set to go into effect on November 10, 2026. As we have previously reported here and here, Phase II of CMMC would have involved the roll-out of CMMC Level 2 Assessments conducted by Certified Third-Party Assessment Organizations (C3PAOs). Although DoD has suspended these third-party certification requirements, it has not suspended the enforcement of the underlying cybersecurity control requirements in contracts and subcontracts.

The Federal Communications Commission (FCC) kicked off America’s 250^th with a burst of national security-related items released prior to the July Fourth holiday, including a draft Third Report and Order and Third Further Notice of Proposed Rulemaking (the Order and the Further Notice, respectively) that builds on the agency’s ongoing efforts to expand the reach of its equipment authorization and Covered List rules. Up for consideration at the FCC’s July 22 open meeting, the Order as currently drafted would (1) close what the FCC refers to as the “component part loophole” to its Covered List rules; (2) require online marketplaces to display the FCC ID and compliance information statements at the point of sale; (3) require full certification for any modification or permissive change made by an entity identified on the Covered List; and (4) adopt a definition of “critical infrastructure” as used in the Covered List context.

In domestic and foreign insolvency proceedings, the ability to sell assets is often critical for debtors to fund creditor recoveries. Debtors, however, may possess inalienable assets, such as licenses or permits, which impact their ability to unlock value unless the required consents to transfer are obtained. For example, the U.S. Bankruptcy Code contains several provisions that restrict the ability of chapter 11 debtors to assume and assign certain types of contracts and licenses, which may delay or prevent asset sales.

On June 26, 2026, the Nuclear Regulatory Commission (NRC) published a proposed rulemaking, Modernizing Security Requirements, that includes revisions to the existing 10 C.F.R. Part 26 FFD framework. The proposed rule would modernize the Part 26 FFD framework by incorporating new technologies, reducing selected administrative burdens and aligning regulatory requirements more closely with potential radiological risk.

Regulations implementing California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54), which became effective as of May 1, 2026, face uncertainty as legal challenges roll in from states, industry groups and environmental public interest organizations. SB 54, enacted in 2022, establishes one of the nation’s most comprehensive packaging extended producer responsibility (EPR) programs.

The Merchant Marine Act of 1920, commonly known as the Jones Act, requires that goods transported between two points in the United States be carried on vessels that are U.S.-built, U.S.-flagged, U.S.-owned and U.S.-crewed. The law has long served as a cornerstone of U.S. maritime policy by supporting the domestic shipbuilding industry, maintaining a U.S. merchant marine and advancing national security objectives.

The 2026 FIFA World Cup is in full swing, bringing spectators from around the world to the United States, Canada and Mexico. Running from June 11 through July 19, the five-and-a-half-week tournament features matches across 16 premier North American host cities. Inevitably, government officials will be among the attendees—in some cases hosted by corporate or personal contacts. As organizations and individuals plan or participate in tickets, entertainment and hospitality, it will be important to do so with an understanding that the tournament presents a heightened set of legal and ethics risks.

A new Country Report prepared by the Saudi Center for Commercial Arbitration (the SCCA) offers one of the most comprehensive assessments of Saudi Arabia’s arbitration framework to date. The Report, which will form part of the upcoming edition of the UNCITRAL Digest of Case Law on the Model Law on International Commercial Arbitration, is significant both for the scale of the case law it analyses and for its article-by-article comparison of the UNCITRAL Model Law (the Model Law) against the 2012 Saudi Arbitration Law (the Arbitration Law) and the 2025 Draft Saudi Arbitration Law (the Draft Law). The Draft Law was published for public consultation on September 24, 2025, and the consultation period closed on October 24, 2025. We previously reported that the enactment of the Saudi Civil Transactions Law (the CTL), by which the codifying of many Sharia principles into a unified legal framework expressed largely in accordance with international norms, enhances commercial predictability and is intended to allay the concerns of foreign investors unfamiliar with uncodified Sharia jurisprudence. The CTL provides a comprehensive statutory basis for key contractual principles governing contractual issues that commonly arise in commercial disputes, including arbitrations where the governing law selected is that of Saudi Arabia. The development of the Saudi arbitration framework to bring it even further into line with international arbitration practice is the next step aimed at increasing investor and commercial party confidence in the Saudi legal system.

On June 22, 2026, the White House issued two executive orders (EOs) focused on advancing quantum information science and technology (QIST) and preparing for post-quantum cryptography challenges. The new EOs—titled “Ushering in the Next Frontier of Quantum Innovation” (Quantum Innovation EO) and “Securing the Nation Against Advanced Cryptographic Attacks” (Cryptography EO) —establish a whole-of-government approach to strengthening the U.S. quantum science and manufacturing ecosystem while protecting U.S. national security interests as quantum technologies mature.

A recent Ninth Circuit decision reaffirms an important distinction for employers operating in national-security-adjacent workplaces: Not every employment decision involving a security-sensitive position is shielded from judicial review. In Gonzales v. Battelle Energy Alliance, LLC, the Ninth Circuit affirmed the district court’s judgement after a jury found in favor of security police officer (SPO) Roman Gonzales on Americans with Disabilities Act (ADA) retaliation and “regarded as” disability-discrimination claims. On appeal, Battelle had argued that its decision to terminate Gonzales’ employment was a nonreviewable security determination under the U.S. Supreme Court’s decision over three decades ago in Department of Navy v. Egan. The Ninth Circuit disagreed, distinguishing between a true security-clearance decision, and the revocation of a fitness-for-duty certification under 10 C.F.R. § 1046.

On June 23, 2026, the FAR Council issued four proposed rules implementing the next phase of the Revolutionary FAR Overhaul (RFO), the Administration’s initiative to simplify and modernize the Federal Acquisition Regulation (FAR). The proposals would revise twenty parts of the FAR and continue the effort launched under Executive Order 14275, Restoring Common Sense to Federal Procurement. While the proposed rules generally follow the framework established through the Phase 1 model class deviations issued in 2025, the rulemakings demonstrate that Phase 2 is not merely a codification exercise. Instead, the FAR Council is using the notice-and-comment process to refine, consolidate and in some cases materially revise the policies reflected in the existing RFO deviations.

On June 3, 2026, the European Supervisory Authorities (the EBA, EIOPA and ESMA, collectively, the ESAs) published their inaugural joint report on major ICT-related incidents under Article 22 of the Digital Operational Resilience Act (DORA). The report covers major incidents reported across the EU financial sector in 2025 by financial entities subject to DORA, including credit institutions, payment institutions, insurance undertakings, investment firms and other regulated entities. The report provides an anonymized and aggregated overview of 3,383 major incidents, offering the first comprehensive, cross-sectoral picture of how the industry is faring under DORA’s new operational resilience framework. For financial entities and their ICT third-party service providers (ICT Providers), the report carries several important messages about how the ESAs are approaching operational resilience—and where they expect continued improvement.

Howlin’ Wolf’s blues classic, “Back Door Man,” tells the story of a paramour who sneaks out the back of his married girlfriend’s home to avoid being caught by her cuckolded husband. Recent news reports suggest that New York City is acting no better than this clandestine philanderer in its audits of private funds operating from NYC offices. Specifically, it is being reported that the City is using a back door to getting more income subject to the NYC unincorporated business tax (UBT) by challenging the allocation of private fund operating expenses to management companies. The theory is subtle, but the dollars may not be. For fund managers, this is not just a fight over bookkeeping. It is a fight over the line between taxable services income and non-taxable investment profits.

Virginia has further expanded its restrictions on post-employment non-compete agreements. In addition to the existing categorical ban on the use of non-competes with “low-wage employees,” the new legislation, which was signed into law by Governor Abigail Spanberger on April 13, 2026, creates a new condition on entering into non-compete agreements with all other employees.

On April 1, 2026, the Department of Commerce (Commerce) announced the first Call for Proposals under the American AI Exports Program. The Program is intended to support the export of full-stack AI technology packages to allied and partner countries, by inviting industry-led consortia to submit proposals for export packages for designation under the AI Exports Program. Designated packages may receive priority government advocacy for export promotion and export licensing review, and referrals to various U.S. Government agencies including the Export-Import Bank of the United States (EXIM), which launched its ExportAI initiative on May 21, 2026.

On June 11, 2026, the Small Business Administration (SBA) issued a proposed rule that would significantly change how individuals establish social disadvantage for purposes of the 8(a) Business Development Program. The 8(a) Program creates contracting preferences for small businesses owned and controlled by “socially and economically disadvantaged” individuals. The Small Business Act defines socially disadvantaged individuals as “those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.” For decades, SBA regulations provided for two alternative tests under which an individual could establish social disadvantage. First, members of certain designated groups—including Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans and Subcontinent Asian Americans—were entitled to a rebuttable presumption of being socially disadvantaged. Second, individuals who were not members of one of the designated groups were permitted to submit personal statements supported by facts and evidence showing that he or she experienced social disadvantage.

The U.S. Department of Labor (DOL) recently issued proposed regulations establishing a new prudence safe harbor for fiduciaries selecting designated investment alternatives for participant-directed retirement plans. The proposed rules, issued pursuant to Executive Order 14330, reflect the DOL’s view that litigation risk has discouraged fiduciaries from considering certain investment strategies and seeks to provide greater clarity regarding the fiduciary process required under ERISA.

Against a backdrop of significant geopolitical and economic shifts, China’s outbound direct investment has maintained steady growth. ODI reached US$174.4 billion, representing a 7.1% year-on-year increase.

On June 4, 2026, the House Homeland Security Subcommittee on Cybersecurity and Infrastructure Protection held a hearing on “The AI Security Landscape: How Frontier Models, Agentic AI, and AI Coding Tools Are Reshaping Cybersecurity and Critical Infrastructure Resilience.” The hearing focused on how advanced AI systems are changing both sides of the cybersecurity equation: giving defenders new tools to identify, prioritize and remediate vulnerabilities, while also giving adversaries the ability to scale vulnerability discovery, exploitation, reconnaissance and malware development.

On June 4, 2026, the Tax Court released its memorandum decision in Paschall v. Comm’r. The decision is a classic example of reaching the right result for all the wrong reasons. The decision required the taxpayers to treat Cardano tokens that a digital wallet provider, eToro, transferred to them for renting already-held tokens in proof-of-stake transactions as immediately taxable income. The issue was no more complicated than finding that the taxpayers received rent in exchange for leasing their digital assets. The decision, however, mistakenly treats the taxpayers as though they acted as blockchain validators and then stretches the application of income recognition principles to find that the compensation that they received should be taxable upon receipt. The mistakes made by the court are highlighted by proposed legislation scheduled for consideration by the House Ways and Means Committee on June 9, 2026 (“Digital PARITY Act”). That bill would allow validators to defer tax on tokens awarded in validation transactions beginning in 2026. The definition of validators in the proposed legislation would not include taxpayers who lend tokens to actual validators. Both developments, and their interaction, are examined below.

The 2026 ICC Arbitration Rules (2026 Rules) mark a significant procedural reset for ICC arbitration. The central theme is efficiency, reducing front-end formalities and expanding faster track provisions for disputes that can be resolved on a compressed timetable. The most symbolic change is the end of mandatory Terms of Reference (ToR), long viewed as a defining feature of ICC arbitration. The broader package is ambitious beyond the revisions addressed to the ToR. The Rules also codify procedures for early determination, expand expedited procedures, enhance the availability of emergency relief and strengthen arbitrator disclosure obligations. Together, these changes modernize ICC practice intending to reduce costs while preserving flexibility for complex cases.

The U.S. Environmental Protection Agency (EPA) has proposed major amendments to the 2024 National Primary Drinking Water Regulations (NPDWR) for per- and polyfluoroalkyl substances (PFAS) in the form of two proposed rules published on May 20, 2026. The proposals would extend compliance deadlines while preserving enforceable limits for two PFAS compounds, PFOA and PFOS, and rescind drinking water standards for four additional PFAS compounds.

Qualified Small Business Stock, or QSBS, remains one of the most valuable tax incentives available to founders, early employees and startup investors. Under Section 1202, eligible taxpayers may exclude a significant amount of gain from the sale of QSBS. Recent commentary, however, has focused on whether Treasury and the IRS may soon issue guidance addressing “stacking” through multiple trusts.

On the eve of Memorial Day Weekend, the Securities and Exchange Commission (SEC) announced charges against Foot Locker for violating the Commission’s Whistleblower Protection Rule (Exchange Act Rule 21F-17(a)). The settled enforcement action, which included a $148,000 civil monetary penalty, resulted from Foot Locker improperly requiring departing employees to waive their rights to collect whistleblower awards from the SEC. This matter is notable because the Commission authorized this enforcement action even in the absence of apparent fraud or investor harm, and notwithstanding the company’s remedial measures and cooperation.

On May 12, 2026, the Government Accountability Office (GAO) issued a decision concluding that the Department of Commerce’s May 2025 press release announcing the non-enforcement of the Biden-era Artificial Intelligence Diffusion Rule (the “AI Diffusion Rule”) is itself a “rule” for purposes of the Congressional Review Act (CRA), and therefore the CRA requires federal agencies to submit new rules to both houses of Congress and the Comptroller General of the GAO before the rules can take effect. Congress has the ability to pass a joint resolution of disapproval that, if signed by the President (or enacted over a veto), nullifies the rule and bars the agency from issuing one in “substantially the same form” in the future.

In a recent precedential opinion, the Federal Circuit affirmed a ruling that patent claims directed to poultry treatment methods were invalid as indefinite because the term “about” failed to inform skilled artisans of the claimed pH range with reasonable certainty. Enviro Tech Chem. Servs., Inc. v. Safe Foods Corp., No. 2024-2160 (Fed. Cir. May 4, 2026).

On May 5, 2026, the U.S. Securities and Exchange Commission (the “SEC” or the “Commission”) issued a proposed rule and related form amendments that would permit public companies to elect to file semiannual interim reports on a new Form 10-S in lieu of quarterly reports on Form 10-Q. If adopted, the proposal would represent a significant shift in the U.S. periodic reporting framework—one that has required quarterly interim reporting for more than half a century. The election would be available to all reporting companies regardless of filer status, revenues, or market capitalization, and would be made via a checkbox on the company’s Form 10-K. The comment period ends 60 days after publication in the Federal Register.

On May 7, 2026, the Department of Defense/War (DOD) issued a proposed rule, “Defense Federal Acquisition Regulation Supplement: Mitigating Risks Related to Foreign Ownership, Control, or Influence” (“Proposed Rule”), to implement Section 847 of the National Defense Authorization Act (NDAA) for FY 2020 (Section 847) to mitigate risks related to beneficial ownership or foreign ownership, control or influence (FOCI).