160 THE US-ISRAEL | Legal Review 2025/26 continuous process, not an annual exercise. The obligation to provide current, accurate, non-misleading disclosure does not pause between filing periods. The AI disclosure challenge deserves specific attention. Israeli companies are among the most active developers and deployers of artificial intelligence technologies. The SEC’s Cyber and Emerging Technologies Unit has explicitly flagged “AI washing” - the misrepresentation of AI capabilities in investor communications - as an enforcement priority. In a market environment where AI claims command premium valuations, the temptation to amplify capability narratives is understandable. The enforcement consequences of doing so inaccurately are severe. Finally, the decision about where to incorporate deserves serious legal and strategic consideration at the earliest possible moment in a company’s life. The trend toward US incorporation among Israeli founders has real commercial logic, but it carries legal consequences - for regulatory classification, for FPI status, and for the governance framework applicable to the company - that need to be fully understood before the decision is made. There is no universal right answer; there is only an informed one. The Israeli technology sector has always operated under pressure. What is different now is the complexity of the regulatory and geopolitical environment bearing down simultaneously on companies that are, in many cases, also managing extraordinary commercial opportunities. The clients we work with are resilient - the question for 2026 is whether their legal and compliance infrastructure is equally so. SHIBOLET & CO. High-Tech Department | US Capital Markets Representing Israeli companies listed on US exchanges and dually listed on the TASE
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