The chemical industry is subject to complex and ever-evolving laws and regulations. New standards governing the production and use of chemicals are implemented every year worldwide, and existing laws and regulations are constantly changing to keep pace with new information and scientific advancements. Chemical Industry Regulatory Update provides a monthly digest of recent legislative and regulatory developments and related industry news.
Regulatory Changes Reshaping the Adhesives and Sealants Market
The ASC's 2025-2030 North America Adhesives & Sealants Market Report, prepared by Smithers, examines how changing legislation, tariffs and other regulatory developments are affecting the industry. The report also covers raw material availability, pricing, technology innovations and market trends across the U.S., Canada and Mexico, providing companies the valuable insight they need for strategic planning through 2030. Learn more.
CARB’s Final Climate Disclosure Rule Sets SB 253 Deadline, Leaves SB 261 Paused
The Bottom Line
California’s climate disclosure rules are now final. On October 12, 2026, the Office of Administrative Law approved the California Air Resources Board’s (CARB) Initial Regulation, which took effect the same day. The final rule largely formalizes the changes CARB proposed in July 2026, turning months of proposals and guidance into binding requirements. For companies covered by SB 253, it locks in a November 10, 2026 deadline for first-year Scope 1 and Scope 2 emissions reports. It also makes certain changes impacting SB 261, although that law remains paused pursuant to a Ninth Circuit injunction. Read more.
Where Should U.S. Companies Base Their Asia M&A Platforms?
For U.S. companies pursuing acquisitions across Asia, the entity selected to serve as a regional holding company can materially affect deal execution, financing, governance, tax analysis, and exit flexibility. The best platform is not necessarily located where the first target is located; it should support the buyer’s anticipated investment corridor, investor base, and operating model. Singapore, Hong Kong, the Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), and Malaysia’s Labuan International Business and Financial Centre (IBFC) are among the principal “neutral” locations to evaluate. None eliminates target-country approvals or diligence. Learn more.
Formation Structure in Venture-Backed Companies: A Q&A Guide
Q: Why does entity formation structure matter so much for founders seeking venture capital?
For founders pursuing private financing, the choice of entity formation structure is one of the most consequential early decisions they will make. A poorly considered formation can create friction with investors, generate unnecessary tax liability, and complicate future fundraising rounds, while thoughtful planning at the outset pays dividends throughout a company’s lifecycle.
Q: Why do venture capital investors prefer Delaware C-corporations?
Venture capital investors overwhelmingly prefer Delaware C-corporations because the Delaware General Corporation Law offers a well-developed body of case law, predictable judicial outcomes through the Court of Chancery, and flexible corporate governance provisions. The C-corporation structure allows for preferred stock issuance with the rights institutional investors expect, including liquidation preferences, anti-dilution protections, and board representation. Founders who organize as LLCs or S-corporations may need to convert before closing a financing round, adding cost, delay, and potential tax consequences when momentum matters most. Continue reading.
Buried Alive? ERISA Claims Exhaustion Isn’t Necessarily Dead After Bolton
The en banc Eleventh Circuit in Bolton v. Inland Fresh Seafood Corporation of America, Inc. overruled Mason v. Continental Group, Inc. “to the extent [Mason and its progeny] hold that ERISA itself requires exhaustion of statutory claims (including those alleging a breach of fiduciary duty).” The term “exhaustion” simply means that, before suing, a participant must first pursue the claim through the plan’s own internal claims and appeals process and give plan fiduciaries a chance to resolve it. The decision ends the Eleventh Circuit’s run as the only circuit to impose a mandatory exhaustion requirement on fiduciary breach claims, and it revives an ESOP class action that had been dismissed solely for failure to exhaust. Keep reading.
U.S. Importer of Canadian Products Challenges Section 338 Tariffs
On October 20, 2026, Gellert Global Group Corp. (Gellert) filed a complaint in the U.S. Court of International Trade (CIT) challenging the 50% ad valorem tariffs placed on Canadian products by President Donald Trump under Section 338 of the Tariff Act of 1930, 19 U.S.C. § 1338. The complaint seeks class action status for all importers of record that have paid, or will pay, Section 338 duties on entries made on or after August 22, 2026.
Section 338 is a provision of the Tariff Act of 1930, commonly known as the Smoot-Hawley Tariff Act. Until July 2026, no president had used it to impose tariffs in the nearly 100 years since its enactment. In the complaint, Gellert argues that the Trump administration’s use of it is the “latest attempt” to use, “through a statute never designed for the purpose, the tariff power that the Constitution assigns to Congress.” This complaint is the first court challenge of Section 338. Learn more.
Employment Legislation Outlook
Check out the latest Employment Legislation Outlook. This monthly digest is designed to keep you apprised of upcoming major state law changes in areas including paid sick and safe leave laws, family and parental leave, recreational and medicinal marijuana use, workplace gun laws, asking candidates about salary history and unpredictable scheduling.
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