Regulatory Compliance & Growth in the U.S.A & Abroad
DARA
Digital Asset Regulatory Authority
A Self Regulated Organization
Presented By:
DARA U.S & DARA International
Blockchain Legal Institute Foundation
Digital Asset & Tech News From Around The USA
- Follow DARA on LinkedIn for News Posts
- Federal & State Updates
- Special Speaker: Isaac Manapola, TRM
- CLE classes & Conference Update
- Next Steps
Guest Speaker: Isaac Manipola, TRM
Isaac Manopla is a Strategic Partnerships Manager at TRM Labs and leads the Chainabuse initiative, the world’s largest crypto scam reporting platform used by law enforcement globally. He has extensive experience in blockchain analytics, crypto investigations, and digital forensics, and previously led risk and payment operations teams at Bitpanda. Isaac holds a degree in Business Administration (Accounting & Finance) and is a certified TRM Investigator and Advanced Crypto Investigator.
TRM & ChainAbuse
Chainabuse as TRM Labs’ public, crowdsourced platform for reporting and tracking crypto scams, phishing sites, and fraudulent services.
He will explain how victim and investigator reports are centralized, enriched with blockchain intelligence, and made searchable so that law enforcement, and industry can quickly spot patterns, link related cases, and prevent repeat victimization.
Isaac will also highlight how Chainabuse supports investigations in practice by turning individual reports into actionable intelligence that accelerates case building and cross-agency collaboration.
Trends Across the USA
- Artificial Intelligence Topics
- Legislative Updates
State-Level Legislative Map (2026 Trends)
The California and Louisiana bills you mentioned are part of a larger “Second Wave” of state AI laws. Here is who else is moving:
AI Transparency & Non-Human Disclosure
- Washington: Effective June 10, 2026, SB 5886 targets “forged digital likenesses.” Like California, Washington now mandates that any generative AI system with over 1 million users must embed provenance data (watermarks) so consumers can identify AI-generated content.
- Oregon: Recently signed SB 1546, which specifically regulates “companion chatbots.” It requires proactive disclosure of non-human status and mandates suicide-ideation detection protocols for AI interacting with residents.
- Colorado: The Colorado AI Act (SB 24-205) goes into effect June 30, 2026. It is the most aggressive in the nation regarding “high-risk” AI, requiring businesses to prove “reasonable care” in avoiding algorithmic discrimination in employment and housing.
Sovereign Procurement & "Countries of Concern"
- Utah & Florida: Following Louisiana’s lead, these states have introduced “Trusted Tech” frameworks. These bills prohibit state agencies from using AI or cloud infrastructure if the vendor has significant ties to specific foreign adversaries.
- Federal Alignment: This mirrors the GSAR Clause 552.239-7001 issued by the GSA, which now requires government ownership of all AI data inputs and “eyes off” data handling for federal contractors.
Legislative Breakthrough: The Clarity Act (Stablecoins)
The most significant hurdle to a unified federal stablecoin framework — the “Yield Issue” — has reached a potential compromise.
- The Compromise: The current text moves away from direct interest payments on stablecoins (which triggered securities concerns) and toward activity-based rewards (structured similarly to credit card loyalty programs).
- Market Outlook: Prediction markets (Polymarket) have jumped to a 64% probability of the Clarity Act becoming law in 2026.
- Timeline: A markup is scheduled for the week of May 11, with a floor vote targeted for June/July 2026.
- Impact for AGs: If passed, this will establish the first “Unified Framework” for token classification, custody, and market structure, providing AG offices with a clearer roadmap for state-level enforcement and consumer protection.
AI & Data Privacy: Regulation S-P Compliance (Due June 3)
The SEC’s updated Regulation S-P creates new, stringent requirements for Registered Investment Advisers (RIAs) that overlap with state consumer protection mandates.
- Incident Response: Firms must have written plans and notify customers of breaches within 30 days.
- Vendor Oversight: Service providers are now contractually required to notify firms within 72 hours of a breach.
- AG Working Group Focus: Monitoring whether firms are obtaining the required “attestations” from tech and AI vendors to ensure consumer data privacy is maintained across the supply chain.
Banking & Digital Asset Oversight (Federal Updates)
- FDIC (Tokenized Deposits): The FDIC has clarified that tokenized deposits are treated no differently than traditional deposits. This prevents “regulatory arbitrage” where firms might claim digital status exempts them from standard banking safeguards. (Comments due early June).
- Risk-Based AML: The NCUA, FDIC, and OCC have proposed a shift from “prescriptive” to “risk-based” AML/CFT rules for banks and credit unions. This grants institutions more flexibility but places a higher burden of proof on their internal risk assessments. (Comments due June 9).
- Form PF Thresholds: A proposed rule aims to raise the AUM filing threshold for private fund managers from $150M to $1B. While this reduces the “paperwork” burden for smaller managers, it may reduce the visibility AGs have into smaller regional private funds.
Commodity Futures Trading Commission (CFTC)
- The CFTC filed lawsuits against New York and Wisconsin in response to the states’ lawsuits against CFTC-regulated prediction markets. (Press release)
- CFTC Chair Mike Selig published an op-ed in the Wall Street Journal entitled “Prediction Markets Aren’t a New Vegas,” saying “Claims that ‘insider trading is rampant,’ and that our insider trading rules are ‘fuzzier’ than others are simply untrue. I’ve made it clear time and time again that anyone who engages in insider trading will be found and prosecuted to the full extent of the law.”
Federal Reserve
On May 8, Federal Reserve Board Governor Lisa Cook will deliver remarks “Perspectives on Tokenization and Implications for the Financial System” at the Central Bank of West African States Conference on Digital Assets.
Correspondence
Senate Banking, Housing, and Urban Affairs Committee Ranking Member Elizabeth Warren (D-MA) and Senate Committee on Finance Ranking Member Ron Wyden (D-OR) sent a letter to Commerce Secretary Howard Lutnick and Tether CEO Paolo Ardoino requesting information about a reported loan from Tether to a trust benefiting Secretary Lutnick’s four children. (Letter to Commerce) (Letter to Tether)
Legislation
- The Senate unanimously passed a measure banning Senators and staff from participating in prediction markets.
- Sens. Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) released final text of their compromise agreement on stablecoin yield. (Punchbowl)
Upcoming
- On May 19, the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions holds a hearing on “Modernizing the BSA for Financial Crime in the 21st Century”
- On May 20, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Partnering for Innovation: How Bank-Fintech Collaborations Enhance Financial Infrastructure.”
April
On April 29, the House Financial Services Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Subcommittee hearing on “Examining Derivatives’ Role in the Treasury Market.”
DATA Privacy Bills
On April 22, 2026, the House Financial Services and House Energy and Commerce Committees announced two landmark data privacy bills, the GUARD Financial Data Act and the SECURE Data Act. Together, these bills represent a joint effort between the two committees to create a national standard on data privacy.
The bills would require technology companies and financial institutions to limit the collection of consumer data and obtain explicit opt-in consent when handling sensitive information. The legislation would also grant consumers the right to request deletion of their data, among other protections. You can read a one-pager about the bills here.
Developments Impacting Your Office
The developments discussed today can directly increase the responsibilities, risks, and opportunities for each State Attorney General (AG) offices, especially in areas like consumer protection, securities enforcement, retirement oversight, and crypto regulation.
Key Operational Impacts on AG Offices
Consumer Protection — Major increase in crypto complaints
Financial Litigation — Growth in digital asset fraud cases
Regulatory Drafting — New state crypto and retirement rules
Multi-State Actions — Likely rise in coordinated lawsuits
Technology Expertise — Need for blockchain forensic capability
Federal Coordination — More joint enforcement with DOJ, Treasury, CFTC
Biggest Strategic Risks for Attorney General Offices
These developments create five major legal risk zones:
1️⃣ Stablecoin insolvency cases
2️⃣ Crypto retirement losses
3️⃣ Federal preemption disputes
4️⃣ Tax fraud investigations
5️⃣ Digital asset consumer scams
Areas of Support & Upcoming Conferences
- State fintech legislation
- Attorney General advisory roles
- Workforce training in crypto compliance
- Public-sector blockchain adoption
- Evaluate stablecoin regulatory compatibility
- Consider digital asset compliance frameworks
- Expand enforcement capabilities
July 13th to July 17th
BlockchAIn Bootcamp & Workforce Expo with CLE classes
Blockchain Legal Institute
www.bli.tools
July 13th to July 17th
BlockchAIn Bootcamp & Workforce Expo with CLE classes
www.marylandblockchainassociation.org
Blockchain Legal Institute
Additional Resources
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