Regulation
What law changes will have the biggest impact on technology that will shape the future of humanity?
How will the laws of Nation States impact Network States progress?
Questions
- What is a fair cost for legal expertise/judgement?
Real World Assets
What legal framework required for RWA Tokenization compliance?
Aim is to democratize access to the world's most valuable assets by tokenizing them on the blockchain.
- Redemption Tokens
- Fractional Interest
Securities
Product Solutions
Risks
Milestones
- 2022-10 | Gaming Considerations
- 2022-07 | FATF Crypto ID checks warning
- 2022-04 | US Air Force files trademark for new spaceverse metaverse technology/
Context
Legal Systems Influence
How do laws spread internationally? Understanding influence mechanisms helps predict which regulations will become global standards.
Data regulation is about keeping the ball clean, fast, and open—not trapped in jurisdictional rucks.
Influence Hierarchy
| Rank | Mechanism | How It Works | Dominant Jurisdiction |
|---|---|---|---|
| 1 | Brussels Effect | Market access forces global adoption | EU (GDPR, MiCA, AI Act) |
| 2 | Capital Markets | Access to US markets requires compliance | US (Securities, AML) |
| 3 | Commonwealth | Precedential authority (persuasive, not binding) | UK → AU, NZ, CA, SG, IN |
| 4 | Soft Law | Peer pressure, mutual evaluations | FATF (AML/CFT) |
Domain-Specific Influence
| Domain | Dominant | Mechanism | Key Laws |
|---|---|---|---|
| Data Privacy | EU | Brussels Effect | GDPR (de facto global standard) |
| Securities/Capital | US | Market access | Securities Act 1933, Howey Test |
| Crypto | Fragmented | Competing standards | MiCA (EU), GENIUS Act (US) |
| AI | Contested | EU comprehensive vs US sectoral | EU AI Act vs EO 14179 |
| AML/CFT | FATF | Soft law | Travel Rule (73% jurisdictions) |
Key Global Laws
Artificial Intelligence
| Law | Jurisdiction | Date | Key Provisions | Status | Source |
|---|---|---|---|---|---|
| EU AI Act | EU | 2024 (GPAI rules Aug 2025) | Risk-based framework, high-risk system requirements, GPAI obligations | Enacted | EUR-Lex |
| Executive Order 14179 | US | Jan 2025 | Revoked EO 14110, pro-innovation shift | Enacted | White House |
| Online Safety Act | UK | 2023 (enforced 2025) | Platform liability, applies to GenAI | Enacted | legislation.gov.uk |
| Interim Measures for GenAI | China | Aug 2023 | First admin regulation for GenAI, content moderation | Enacted | CAC |
Cryptocurrency & Digital Assets
| Law | Jurisdiction | Date | Key Provisions | Status | Source |
|---|---|---|---|---|---|
| MiCA | EU | Full effect Jan 2025 | CASP licensing, stablecoin reserves, AML, extraterritorial | Enacted | EUR-Lex |
| GENIUS Act | US | July 2025 | First federal stablecoin framework, 100% reserves, $10B federal threshold | Enacted | Congress.gov |
| CLARITY Act | US | House passed 2025 | Digital commodities classification, CFTC/SEC jurisdiction | Proposed | Congress.gov |
| DLT Act | Switzerland | Aug 2021 | Blockchain-enabling legal framework, DLT rights | Enacted | Fedlex |
| Payment Services Act | Singapore | 2019, amended 2024-25 | Enhanced VASP requirements, stablecoin framework | Enacted | SSO |
| Virtual Assets Law | Brazil | 2022, BCB rules 2025 | SPSAV licensing, segregation of assets | Enacted | BCB |
| PTSR | UAE | June 2024 | Local stablecoin payments only, CBUAE licensed | Enacted | CBUAE |
| Digital Assets Framework Bill | Australia | Nov 2025 | Platform licensing, 18-month transition | Proposed | legislation.gov.au |
Data Privacy
| Law | Jurisdiction | Date | Key Provisions | Status | Source |
|---|---|---|---|---|---|
| GDPR | EU | May 2018 | De facto global standard, extraterritorial, €20M/4% fines | Enacted | EUR-Lex |
| Digital Omnibus | EU | Nov 2025 | GDPR simplification, AI integration, DSAR reforms | Proposed | EC |
| Digital Services Act | EU | 2022 | Platform liability, content moderation | Enacted | EUR-Lex |
| Digital Markets Act | EU | 2022 | Big tech gatekeepers, interoperability | Enacted | EUR-Lex |
| CCPA | California/US | Jan 2020 | De facto US standard, consumer rights | Enacted | CA Legislature |
| PIPL | China | Nov 2021 | China's GDPR equivalent, data localization | Enacted | NPC |
Securities & Capital Formation
| Law | Jurisdiction | Date | Key Provisions | Status | Source |
|---|---|---|---|---|---|
| Securities Act 1933 | US | 1933 | Foundation for token securities analysis | Enacted | SEC |
| Howey Test | US | 1946 | Investment contract definition (SEC v. Howey) | Case law | SEC |
| Dodd-Frank Act | US | 2010 | Post-crisis financial regulation | Enacted | SEC |
| DLT Pilot Regime | EU | 2023 | Tokenized securities sandbox | Enacted | EUR-Lex |
Anti-Money Laundering
| Law | Jurisdiction | Date | Key Provisions | Status | Source |
|---|---|---|---|---|---|
| FATF Rec 15/16 (Travel Rule) | International | 2019 updates | VASP requirements, 73% jurisdictions compliant | Soft law | FATF |
| BSA Travel Rule | US | 1970s, crypto 2019 | $3,000 threshold (differs from FATF $1,000) | Enacted | FinCEN |
Regulatory Bodies Quick Reference
| Domain | US | EU | UK | Singapore |
|---|---|---|---|---|
| Securities/Tokens | SEC | ESMA | FCA | MAS |
| Commodities | CFTC | ESMA | FCA | MAS |
| Crypto/VASP | SEC/CFTC/FinCEN | ESMA (MiCA) | FCA | MAS |
| Stablecoins | OCC/Fed | EBA | BoE | MAS |
| AML/CFT | FinCEN | National FIUs | FCA | MAS |
| Data Privacy | FTC (+ states) | EDPB | ICO | PDPC |
| AI | FTC/Sectors | EC (AI Act) | Ofcom | IMDA |
Digital Identity
Who owns your face when anyone can put you in a video saying anything?
The tools are already cheap enough to cause harm at consumer scale — photo plus seconds of audio produces realistic video. The barrier is no longer capability, it's intent. The regulatory question: does your likeness belong to you, or is it unowned territory until someone misuses it in a way that happens to be illegal?
| Jurisdiction | Approach | Scope | Gap |
|---|---|---|---|
| EU | Transparency obligation (AI Act) | Mandatory labeling of AI-generated/manipulated media when shared publicly | Doesn't establish ownership — tells you it's fake, doesn't prevent creation |
| Denmark | Ownership entitlement (proposed) | Face, voice, likeness treated as copyright-style right — takedown, compensation, platform liability | Proposed only — not yet law |
| NZ | Narrow patch (Deepfake Bill) | Amends Crimes Act and Harmful Digital Communications Act for non-consensual intimate images only | Political deepfakes, fake endorsements, synthetic identity theft — all uncovered |
Three distinct philosophies:
| Philosophy | Who Does It | What It Means |
|---|---|---|
| Transparency | EU | You must label fakes — but making them is legal |
| Ownership | Denmark (proposed) | Your likeness is yours — unauthorized use has civil and criminal remedy |
| Patch | NZ | Fix the worst harm, wait on the rest |
The ownership model (Denmark) is the only one that treats identity as an asset. Transparency (EU) helps after the fact. Patching (NZ) leaves most synthetic identity misuse in a legal vacuum.
The blockchain connection: Identity ownership without verification infrastructure is unenforceable. Decentralized identity on chains like SUI provides the cryptographic proof layer — verifiable credentials that prove a likeness is authorized or unauthorized. Without on-chain attestation, enforcement depends on platforms self-policing. With it, the ownership right has teeth.
Laws are foundations to any platform. In an age where IP has no moat but identity is absolutely critical, the regulatory frame a country chooses determines whether its citizens own their digital selves or rent them.
DePIN Regulatory Frontier
DePIN creates new regulatory challenges—decentralized networks managing physical infrastructure blur traditional jurisdictional boundaries.
Key questions unresolved:
- Who is liable when a decentralized network fails?
- How do securities laws apply to infrastructure tokens?
- What AML obligations apply to permissionless protocols?
- How do data sovereignty laws apply to distributed storage?
Emerging approaches:
- Switzerland's DLT Act provides most advanced framework
- EU MiCA applies to CASPs but unclear on pure protocols
- US applying existing frameworks (SEC/CFTC) case-by-case
- Singapore MAS taking innovation-friendly approach
Watch: Industry calls for DePIN-specific regulation signal inflection point.
AI Agents & Regulation
- What agents exist? What is required to train them?
- What industry specialities are best to target?
- How will AI-to-AI commerce on crypto rails be regulated?