Crypto Law Brief: Europe Starts a Three-Month Clock on USDT, a Senator Demands Cantor’s Tether Records, and the NFL Takes Kalshi to the Supreme Court

Four developments from the past two days turn on the same question: who decides what a digital asset is, and who answers for it. Below: a European wind-down clock on the largest stablecoin in circulation, a Senate document demand to Tether's custodian, a billion dollars in forfeited bitcoin moving, and the NFL at the Supreme Court.

Europe Starts a Three-Month Clock on Non-MiCA Stablecoins

On October 8, the European Securities and Markets Authority directed crypto-asset service providers to stop offering stablecoins that lack MiCA authorization to EU clients, with remediation expected no later than three months out, an outer limit of January 8, 2027. The opinion names no tokens, but USDT is the largest stablecoin lacking authorization and PayPal's PYUSD the third largest.

This is not a new rule, only an interpretation of obligations already in force, which is why the runway is three months rather than a legislative cycle. What remains permitted is supervised wind-down. Firms serving EU clients should reread their terms of service, since forcing a conversion raises contract questions of its own.

A Senate Democrat Wants Cantor Fitzgerald's Tether Files by October 23

Also on October 8, Sen. Richard Blumenthal, ranking member of the Permanent Subcommittee on Investigations, sent Cantor Fitzgerald 13 document requests covering January 2023 forward, due October 23. They seek revenue from the Tether relationship, whether Cantor requires independent audits, how it monitors sanctions and anti-money-laundering compliance, and what the firm did about allegations that USDT moved through Iranian shadow banking. It puts Cantor's 5% stake at $10 billion, up from $600 million.

A ranking member's letter is not a subpoena, and Cantor can negotiate scope. The notable part is the theory: it treats a reserve custodian as having diligence duties of its own.

$1.01 Billion in Seized Bitcoin Moves, With No Sale Detected

On Thursday, wallets linked to the U.S. government moved 12,267 BTC, about $1.01 billion, out of an address holding coins seized in the 2016 Bitfinex hack, according to Arkham. The funds went to new unlabeled addresses with no exchange deposit recorded, more consistent with reshuffling than a sale, and a March 2025 executive order directs forfeited bitcoin into a Strategic Bitcoin Reserve rather than to market. For victims of the underlying theft, address changes are not distributions. Recovery runs through the forfeiture order and the Justice Department's remission process, on deadlines published on paper, not on a block explorer.

The NFL Asks the Supreme Court to Settle the Prediction-Market Split

The NFL filed a 24-page amicus brief on October 8 urging the Supreme Court to take up the Kalshi litigation and hold that states may enforce gambling laws against sports prediction contracts, citing nearly $2 billion traded on NFL games on opening Sunday of the 2026 season. The split is real: the Third Circuit sided with Kalshi against New Jersey in April, treating the contracts as swaps within the CFTC's jurisdiction, while the Ninth Circuit let Nevada enforce in late August and the Sixth Circuit allowed Ohio and Tennessee to do the same. The question underneath is preemption: whether federal registration displaces state licensing regimes. MLB, MLS, and the NHL have partnered with Kalshi or Polymarket; the NFL has not.

What This Means for You

If you hold USDT or PYUSD on an EU-based platform, do not wait for a January email; ask your venue whether it plans to convert, restrict, or close out balances. If you serve EU customers, the work is concrete: inventory every listed token against MiCA status, document each wind-down step, and align customer notices with your terms of service.

Exposure here sits with intermediaries as much as issuers. Custodians and service providers are increasingly asked what they knew about the assets passing through them, and "we only held the reserves" is a weaker answer than a year ago. For victims, forfeiture proceedings carry claim deadlines that run independently of any civil case, and a missed window is rarely curable.

At Coin Counsel, we work with individuals and businesses navigating the legal fallout of crypto fraud — whether you're a victim seeking recovery, a company facing regulatory scrutiny, or a project working to stay compliant in an increasingly complex legal landscape. The rules are evolving fast, and the cost of getting it wrong has never been higher. Contact us at coin-counsel.com to speak with a crypto-focused attorney today.

Disclaimer

This blog post is for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and Coin Counsel or Franco Law PLLC. The legal landscape surrounding cryptocurrency is rapidly evolving and varies by jurisdiction. Do not act or refrain from acting based on information in this post without first consulting a qualified attorney. If you believe you have been the victim of crypto fraud, contact us at coin-counsel.com for a consultation.