Welcome to the CAVEAT Weekly Newsletter, where we break down some of the major developments and happenings occurring worldwide when discussing cybersecurity, privacy, digital surveillance, and technology policy.
At 1,450 words, this briefing is about a 7-minute read.
At a glance.
- SEC moves toward establishing a crypto framework.
- Court strikes down Click-to-Cancel.
SEC is establishing crypto ETF governance.
The news.
The United States (US) Securities and Exchange Commission (SEC) released new disclosure requirements for exchange-traded products (ETPs) related to cryptocurrencies. The document is a part of a larger effort to establish a new landscape for crypto funds.
The guidance outlines what issuers must include when applying to launch crypto-based ETFs, such as clear information on custody arrangements, liquidity, and risk factors. Additionally, the SEC is expected to release further guidance to streamline the application process and support more consistent fund approvals.
Industry leaders have already begun to take note of this initiative. Matt Hougan, the chief investment officer of Bitwise Asset Management, stated:
“The most interesting and important thing about this guidance is that it exists. It suggests that the SEC acknowledges that crypto ETPs are becoming part of the mainstream and so it’s trying to lay down rules of the road to save both issuers and SEC staff time and hassle.”
The SEC has also formed a new task force to help draft new crypto regulations, “refocused” its crypto enforcement team, and paused or dismissed numerous high-profile enforcement cases related to crypto companies.
The knowledge.
This latest move fits into a broader policy shift under the Trump administration, which aims to further legitimize cryptocurrencies through regulatory normalization and federal adoption. Outside of this effort, two key moves also include the dismissal of several major enforcement cases and the creation of a national crypto reserve.
Regarding these lawsuits, the SEC dropped its case against Binance, which is the world’s largest cryptocurrency exchange. When originally filed in June 2023, the government accused Binance of artificially inflating trading volumes and unlawfully facilitating the trading of several tokens that the former Biden administration believed should have been registered as securities.
When dismissing the case, the SEC argued that it was appropriate “in the exercise of its discretion and as a policy matter” and that it did not reflect its view on other cryptocurrency litigation. Outside of dismissing this case, the SEC dismissed other cases, such as the case against Coinbase in February 2025.
In conjunction with dropping these lawsuits, the Trump administration has also pushed to create a cryptocurrency reserve. In March 2025, the administration announced its intentions to form a strategic crypto reserve comprising five cryptocurrencies. By acquiring these currencies as digital assets, the Trump administration has given these assets increased credibility and leverage when it comes to influencing policy, given the US’s notable holdings of these coins.
The impact.
While these policies may not immediately impact the average consumer or shift the value of cryptocurrencies, they do mark a significant change in the US’s approach to managing digital assets. Taken together, President Trump’s policies reflect a strategy to increase cryptocurrencies' legitimacy and increase the federal government's purview over future crypto policy.
For investors, organizations, and developers involved in cryptocurrencies, people should understand that these policies reflect a change in the US’s approach to cryptocurrencies. As the US government continues to become increasingly involved in cryptocurrencies, this could shift the regulatory landscape for crypto and introduce greater changes to valuations.
Appeals court strikes down click-to-cancel rule.
The news.
On Tuesday, the US Court of Appeals for the Eighth Circuit overturned the Federal Trade Commission’s (FTC) “click-to-cancel” rule, citing that it did not follow procedure. With their ruling, the court found that the FTC erred while making the rule by failing to produce a preliminary regulatory analysis. For context, this analysis is a requirement for rules whose annual effects would exceed $100 million on the national economy. It is important to note that when issuing the rule, the FTC estimated that its costs would not exceed this threshold.
When issuing their opinion, the court wrote:
“While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing, the procedural deficiencies of the Commission’s rulemaking process are fatal here.”
The rule was set to go into effect on July 14th, 2025.
The knowledge.
Originally announced in October 2024, the FTC’s “click-to-cancel” rule was designed to require businesses to make it easier for users to cancel subscriptions. More specifically, the rule would have required companies selling subscriptions, such as gyms and streaming services, to make the cancellation process take as few steps as it took to sign up for the service. Additionally, the rule would have also required subscription sellers to provide all relevant information to consumers before subscribing.
When initially publishing this rule, Lina Khan, the former commissioner of the FTC, stated that “the FTC’s rule ends these tricks and traps, saving Americans time and money.” Consumer rights groups responded positively to the rule, emphasizing how it would better safeguard consumers from being trapped or tricked into paying for services they no longer wanted.
However, despite the good intentions of the rule, the FTC saw substantial pushback from business groups. Businesses argued that the rule both overstepped the FTC’s mandate and increased the burden on businesses.
Now that the rule has been officially overturned, it is unclear whether or not the FTC will redraft the rule to make it eligible. Dotan Hammer, a partner at the Pearl Cohen law firm, commented on this possibility. Hammer emphasized that if the FTC were to rewrite the rule that it would be “difficult to speculate a timeline for this, but it’s hard to imagine that it can be completed in any less than four-to-six months.”
The impact.
Now that this rule has been overturned, the FTC must decide whether or not it will go back to rewrite the rule following the proper procedures. However, if the FTC were to rewrite the rule, this would take some time to perform the required analysis and rewrite the provision. Furthermore, given that when originally passing the rule, the commission voted along party lines, it is unclear if the new administration still seeks to prioritize this effort.
For now, subscription businesses and users will continue to work within the existing system. However, people should understand that while this rule may have failed for now, it is likely that consumer rights groups and advocates will attempt to revisit the rule again over the coming months or years.
Highlighting key conversations.
In this week’s Caveat Podcast, our team held its Policy Deep Dive conversation. In this Deep Dive, we discussed Preemption and how federal lawmakers attempted to use this legal basis to pass a new AI moratorium. While the moratorium failed, the effort is reflective of a larger conversation brewing regarding how AI will be regulated within the US.
Like what you read, and curious about the conversation? Head over to the Caveat Podcast for the full scoop and additional compelling insights. Our Caveat Podcast is a weekly show where we discuss topics related to surveillance, digital privacy, cybersecurity law, and policy. Got a question you'd like us to answer on our show? You can send your audio file to caveat@thecyberwire.com. Hope to hear from you.
Other noteworthy stories.
Apple to fight $587 million EU antitrust fine.
What: Apple is challenging the European Union’s (EU) antitrust fine for breaching Digital Markets Act rules.
Why: On Monday, Apple announced its intention to challenge the EU’s April fine, which alleged the company’s technical and commercial restrictions prevent app developers from steering users to cheaper deals. For context, Apple made changes to its App Store in June to comply with the EU’s order by removing its technical and commercial restrictions on app developers.
Apple released a statement with this filing:
“Today we filed our appeal because we believe the European Commission’s decision - and their unprecedented fine - go far beyond what the law requires. As our appeal will show, the [European Commission] is mandating how we run our store and forcing business terms which are confusing for developers and bad for users.”
Czech government bans DeepSeek in public administration.
What: The Czech government formally banned the use of DeepSeek within the government, citing privacy concerns.
Why: On Wednesday, the Czech Republic banned any use of DeepSeek by government services. With this move, the government stated:
“The government decided on a ban on usage of AI products, applications, solutions, web pages, and web services provided by DeepSeek within the Czech public administration.”
The Czech Republic now joins Germany, Italy, and the Netherlands in restricting DeepSeek.