Private equity has historically operated within a governance environment in which external capital-market scrutiny largely constrained sponsor behavior. In particular, credible “exit” events, such as initial public offerings or sales to genuinely independent acquirers, have served as recurring moments of
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Sullivan & Cromwell Discusses Proposed SEC Regulation Crypto Assets
On August 18, 2026, the Securities and Exchange Commission proposed Regulation Crypto Assets, an offering and disclosure framework for “covered investment contracts” involving crypto assets that are not themselves securities. The proposal represents the next phase of the SEC’s “Project
How the Market Can Ease Private Credit’s Stress
The growth of private credit has been remarkably fast. Direct lenders have displaced banks and broadly syndicated lenders in much of the mid-market sector, promising borrowers speed and flexibility while offering investors high returns.
The asset class is now facing
Cleary Gottlieb Discusses DOJ Shuffling of Enforcement to Fraud Division
On August 18, 2026, the U.S. Department of Justice (DOJ) published a rule officially establishing the National Fraud Enforcement Division (the Fraud Division).[1] The rule, which takes effect on August 24, 2026, grants the Fraud Division authority over criminal
Why Prediction Markets and Securities Markets Require Different Regulatory Priorities
Prediction markets are in the regulatory crosshairs. In the United States, within the span of a few months this year, federal prosecutors brought the first criminal insider trading case involving an event contract against an Army master sergeant with a
The Supreme Court Reaffirms Its Embrace of Political Disclosure
Widely overlooked in the U.S. Supreme Court’s landmark campaign finance decision this term is a surprising and robust affirmation of disclosure for combating corruption. With this principle reinforced, we expect many states to strengthen and expand their campaign finance disclosure
Debevoise Discusses Empowering Consumers for the Green Transition Directive
The European Union’s Empowering Consumers for the Green Transition Directive (the “ECGTD”) makes important changes to the rules on how companies make environmental and other sustainability claims in relation to products or services sold to individual consumers, and changes to
The Values Primacy Paradigm in Corporate Governance
In January 2025, Target Corporation quietly dismantled the DEI infrastructure it had built in the wake of George Floyd’s murder. There was no press release and no acknowledgment of retreat. Within weeks, other public companies followed. Yet Costco made the
Morrison & Foerster Discusses DOJ Revival of Expedited Second Request Review
On July 23, 2026, the U.S. Department of Justice Antitrust Division (DOJ) announced that it would revive targeted Second Request investigations and published a revised model timing agreement.[1] Merging parties that agree to DOJ’s timing agreement during a Second
Prediction Markets and Regulation by Non-Enforcement
Kalshi and other prediction markets have been inundating the CFTC with self-certifications of binary options (i.e., prediction products or event contracts). The figure below shows total self-certifications to the CFTC and self-certifications from Kalshi since it began operating in 2021.