The DigitalRegIntel Brief: Beyond the GENIUS Act: 3 Agency Moves That Actually Matter"
The DigitalRegIntel Brief
Weekly Regulatory Intelligence for AI, Crypto, Blockchain & DeFi Executives and Investors
Beyond Crypto: How Congress's Big Move Impacts All Digital Assets
Last week marked the most significant moment in U.S. digital asset regulation since Bitcoin's genesis block. Congress passed the country's first major standalone crypto legislation, the GENIUS Act, during what lawmakers dubbed "Crypto Week" (July 14-18), with President Trump signing it into law on Friday.
While industry lobbyists celebrated their $100+ million Congressional investment paying off, the real story for executives in AI, DeFi, and blockchain is unfolding at the agency level. The principles taking shape in crypto regulation often serve as a blueprint for other emerging technologies. Three recent developments show how the new framework will function in practice—and what project leaders across the digital landscape should watch for next.
SEC Defines the Edge: Tokenized Assets Are Still Securities
What Happened: On July 9, SEC Commissioner Hester Peirce issued a statement titled "Enchanting, but Not Magical: A Statement on the Tokenization of Securities," clarifying that tokenized, blockchain-based versions of stocks, bonds, or other securities remain fully subject to existing federal securities laws. (SEC Commissioner Statement, July 9, 2025)
Why It Matters: Peirce's statement officially kills the fantasy that putting an asset on blockchain creates regulatory arbitrage. "Tokenized securities are still securities," she noted, emphasizing that issuers, intermediaries, and traders must consider registration, disclosure, and anti-fraud rules. This principle is critical for any platform—including those in AI—that might use tokens to represent ownership or revenue streams.
Who's Affected: Real estate tokenization platforms, tokenized fund products, and DeFi protocols offering "synthetic" exposure to traditional assets. Any project leader promising "blockchain-native" versions of securities without proper registration should expect scrutiny from the SEC's new Crypto Task Force under Peirce.
CFTC Signals a Thaw: From Enforcement to Grace Periods
What Happened: On April 8, Acting CFTC Chairman Caroline Pham issued Release 9063-25, instructing staff not to pursue regulatory violations in digital asset cases unless there's evidence defendants knew about licensing or registration requirements. The guidance aligns with DOJ's broader crypto enforcement pivot under the Trump administration. (CFTC Release No. 9063-25, April 8, 2025)
Why It Matters: This represents a complete reversal from the "regulation by enforcement" era. The CFTC is focusing on resolving noncompliance matters that don't involve customer harm or market abuse, essentially offering amnesty for technical violations. For leaders in the rapidly evolving AI space, this signals a potential government model: providing grace periods for good faith actors while still hammering bad ones.
Who's Affected: Derivatives platforms, DeFi protocols with leverage products, and prediction markets operating in regulatory gray areas. This opens the door for compliant innovation but demands genuine customer protection measures in return.
Treasury's Pivot: Regulating the Use, Not the Tool
What Happened: On March 21, Treasury removed economic sanctions against Tornado Cash, the cryptocurrency mixing service that had been sanctioned since August 2022 for allegedly facilitating over $7 billion in cryptocurrency laundering. The move came after sustained legal challenges and shifts in the administration's approach to DeFi regulation. (Treasury Announcement, March 21, 2025)
Why It Matters: This represents a significant policy reversal from the Biden administration's aggressive stance toward privacy tools. While Treasury emphasized it "remains committed to disrupting malicious cyber actors," the Tornado Cash removal signals a more nuanced approach to distinguishing between technology and its misuse—a core debate for both DeFi privacy tools and open-source AI models.
Who's Affected: Privacy-focused DeFi protocols, mixing services, and any project offering transaction privacy features. While this doesn't provide blanket immunity, it suggests Treasury may pursue more targeted enforcement against specific bad actors rather than sanctioning entire protocols. Projects should still implement robust compliance frameworks.
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Next Week: The Future of Programmable Money
Now that the GENIUS Act is law, how will payment stablecoin regulations actually work in practice? We're analyzing the 180-day implementation timeline and speaking with regulatory experts about what "proper reserves" really means for Circle, Tether, and the dozens of stablecoin projects in development.
Plus: Early insights from the SEC's new Crypto Task Force roundtables and what they signal about securities token registration pathways.
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The DigitalRegIntel Brief cuts through regulatory noise to deliver actionable intelligence for builders, executives and investors in AI, Blockchain, Crypto and DeFi companies. We monitor 34 agencies across the US and EU, so you can focus on growth.
The DigitalRegIntel Team