What Trump’s 401(k) Means for Alternative Assets
President Trump signed an executive order that aims to allow more private equity, real estate, cryptocurrency and other alternative assets in 401(k) retirement accounts. Alternative asset managers would have access to the $12 trillion market for all defined-contribution plans and Blackstone has welcomed the decision, according to a spokesman for the firm.
Critics warn of higher fees, lower liquidity and reduced disclosures. Lawyers have started preparing for potential lawsuits filed by investors that do not understand the risk landscape and the complexity of these investments.
Implications for brokers and their clients:
- Regulatory oversight and litigation risk will rise, requiring proactive compliance frameworks.
- Greater public exposure to volatile assets like crypto will heighten reputational risk.
- Litigation reform might be necessary before the industry expands into the market.
Source: Reuters. (August 7, 2025). Trump signs order broadening access for alternative assets in 401(k)s.
Is Cannabis Reclassification Finally on the Horizon?
Discussions around reclassifying cannabis as a Schedule III substance have been underway for some time. Progress has remained slow but on Monday, President Trump announced that a decision could be made within the next few weeks. Reclassification would mean easier access to funding, lower tax burdens, and potentially more interest from institutional investors and more M&As.
Implications for brokers and their clients:
- Reclassification could trigger companies to scale fast, increasing operational risk.
- There may be an increased risk of enforcement actions during transitional periods as compliance readiness catches up with regulatory changes.
- Discrepancies between federal and state requirements could create compliance gray areas.
Source: Reuters. (August 12, 2025). How US marijuana reclassification could help cannabis companies.
Perplexity Sued by Major Japanese Newspaper
Yomiuri Shimbun is suing Perplexity over the unauthorized use of 120,000 of their articles between February and June. The company is seeking ¥2.2 billion ($14.7 million) in damages. This case is hardly the first of its kind and highlights the growing risks around IP in AI systems.
Implications for brokers and their clients:
- The growing use of generative AI increases litigation risk for AI developers with potential for high-value damages.
- Tech E&O policies should be reviewed for AI-related risks.
- Cross-border disputes may complicate compliance as copyright laws vary worldwide.
Source: The Japan Times. (August 8, 2025). Major Japan newspaper sues ‘free-riding’ AI firm Perplexity.
The SEC Announces Launch of ‘Project Crypto’
On July 31, Chairman Atkins of the SEC announced the launch of ‘Project Crypto’. The purpose of the initiative is to update US securities laws to help America can become the “crypto capital of the world”.
The SEC’s Crypto Task Force will focus on clear rules for crypto asset distribution, custody, and trading, aiming to bring back companies that left the US due to past regulatory crackdowns. The SEC will also expand industry engagement through a second series of crypto roundtables.
Implications for brokers and their clients:
- The transitional period may bring new regulatory and operational risks.
- Firms may face challenges in adapting business models during this period.
- Policies should be reviewed for crypto-specific risks.
Source: JD Supra. (August 11, 2025). Weekly Blockchain Blog – August 2025 #2.
FinCEN Notice Warns of Virtual Currency Kiosk Risk
The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) warns of malicious actors using virtual currency kiosks to launder drug money and conduct fraud and cybercrime. In a notice released on August 4, FinCEN urged financial institutions and virtual currency kiosk operators to identify and report suspicious activity.
Implications for brokers and their clients:
- Companies should review the warning signs listed by FinCEN.
- Regulatory and reputational risk grows for companies that fail to report suspicious activity.
- Policies should be reviewed to ensure that crypto-related losses will be covered.
Source: Financial Crimes Enforcement Network (FinCEN). (August 4, 2025). FinCEN Issues Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments and Other Illicit Activity.
Alternative Therapeutics: Inside the EU’s New Life Sciences Strategy
The European Commission’s new Life Sciences Strategy aims to tackle persistent challenges in the sector. These include regulatory fragmentation across EU Member States, obstacles to conducting multi-country clinical trials, and difficulties in securing market access for advanced therapies and innovative technologies. A central component of the plan is the European Biotech Act, set to take effect by 2026.
Implications for brokers and their clients:
- Closely track the strategy’s implementation and any forthcoming regulations, especially those that create new or streamlined pathways for Advanced Therapy Medicinal Products (ATMPs) and other biotech innovations.
- Anticipate possible changes in compliance expectations and patient safety requirements.
- Ensure policies remain adequate considering potentially broader clinical trial scopes.
Source: Mondaq. (August 11, 2025). The European Commission Publishes An EU Life Sciences Strategy.
