- The Justice Manual revisions (1) reinforce DOJ’s efforts to limit the use of sub-regulatory guidance in enforcement actions; and (2) update DOJ’s policy regarding its ability to seek dismissal of qui tam lawsuits, emphasizing that attorneys should continue to assess whether dismissal is appropriate on an ongoing basis.
- The D.C. US Attorney’s Office consolidation of enforcement
IRS Proposal Would Tie Tax-Exempt Status to Expanded Racial Nondiscrimination Policies in Private Schools
The proposal would expand the conditions for maintaining Section 501(c)(3) status and eliminate existing exceptions for certain race-conscious programs.
On September 4, 2026, the Internal Revenue Service (IRS) published proposed regulations that would significantly expand the requirement that private schools holding tax-exempt status under Section 501(c)(3) maintain racially nondiscriminatory policies. The proposed rules, which would come into effect for taxable years beginning on or after May 31, 2027, prohibit any policy or practice that discriminates on the basis of race
What Defense Contractors Should Know About DOD’s Suspension of CMMC Phase 2
The suspension halts the third-party assessment requirement for defense contractors handling Controlled Unclassified Information (CUI), but cybersecurity obligations and potential FCA exposure remain.
By Anne W. Robinson, Kyle R. Jefcoat, Dean W. Baxtresser, Morgan L. Maddoux, Drew Diachenko, Chris Caulder, Ysa Gomez-Gonzalez, and Pascal Jakowec
In a July 13, 2026, memorandum (CMMC Reform Memorandum) and press release, the US Department of Defense (Department of War) suspended Phase 2 of the Cybersecurity Maturity
Latham Letter Delivers Regulatory Clarity for Data Center Securitizations
- Latham & Watkins obtained guidance from SEC Staff confirming that data center securitizations fall outside the definition of Exchange Act ABS.
- Since the inaugural issuances in 2018, lack of certainty about whether
President Trump Signs Executive Order Establishing AI Cybersecurity and Frontier Model Framework
- The Order directs federal agencies to strengthen cybersecurity across government systems and critical infrastructure, including through an AI cybersecurity clearinghouse and expanded access to AI-enabled defensive tools for state and local authorities.
- Federal agencies will design a voluntary framework by August 1, 2026, for
President Trump Issues Executive Order on Fintech Innovation, While FRB Proposes Payment Accounts
- The Order requires all federal financial regulators to review existing rules, guidance, and application processes within 90 days and take affirmative steps to encourage fintech innovation within
HSR Update: Fifth Circuit Grants Stay as FTC and DOJ Consider Revisions to HSR Form
The stay pauses litigation over the 2025 HSR form while the FTC and DOJ consider revisions.
By Kyra K. Bromley, Patrick C. English, and Peter M. Todaro
On May 26, 2026, the Fifth Circuit granted the US government’s unopposed motion to stay proceedings in Chamber of Commerce v. FTC (No. 26-40094) through December 31, 2026. The stay pauses litigation over the HSR form that took effect in February 2025 and significantly expanded premerger notification requirements. During the stay
DOJ Establishes National Fraud Enforcement Division
- The National Fraud Enforcement Division is dedicated to investigating and prosecuting fraud against “taxpayer dollars and taxpayer-funded programs.”
- The National Fraud Enforcement Division will target real and significant categories of alleged fraud, including healthcare fraud, tax fraud, benefits fraud, and schemes to misappropriate taxpayer dollars.
- The establishment of the National Fraud Enforcement Division further reinforces
New CFTC Enforcement Director Speaks on Priorities, Insider Trading in Prediction Markets, and Cooperation
Emphasizing an end to “regulation by enforcement,” the agency will focus on market integrity and fraud offenses and partner with registered exchanges and other authorities.
By Douglas K. Yatter, Catherine Young, and John Federico
On March 31, 2026, David I. Miller, the newly appointed Director of Enforcement at the Commodity Futures Trading Commission (CFTC), delivered remarks at NYU School of Law outlining the Division of Enforcement’s priorities under CFTC Chairman Michael Selig’s leadership.
Noting that “[t]he era of
FinCEN Proposes Regulations to Implement Whistleblower Program: 4 Key Takeaways
The program provides new financial incentives for whistleblowers to report information about potential violations of money laundering and sanctions laws.
By Joseph M. Bargnesi, Les P. Carnegie, Andrew P. Galdes, Eric S. Volkman, Douglas K. Yatter, Jewel Drigo, Allayne Thomas, and Nicole Kerrigan
On March 30, 2026, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice of proposed rulemaking (NPRM) to establish a whistleblower program designed to encourage