Capitol Hill: Where AI Dreams and Crypto Schemes Collide! 🤖💰

Last week, I had the dubious honor of representing decentralized AI on Capitol Hill with the Digital Chamber. You know, the place where optimism flows like cheap wine at a wedding? For weeks, the news cycle has been positively giddy about the first truly pro-crypto administration to take office. My time in D.C. only added fuel to this already blazing bonfire of hope. 🔥

There are massive implications for crypto and the larger technology sector, which is a fancy way of saying that everyone is trying to figure out how to cash in. With a pro-crypto White House and a Congress that seems to have finally taken off their blindfolds, there’s a palpable buzz that the United States could become the “world capital of artificial intelligence and crypto.” Yes, President Trump even promised this in Davos, which is like saying you’ll win the lottery while buying a ticket at a gas station. 🎟️

The next few months are like a golden ticket for the crypto and AI industries. Crypto could easily become a top three industry, with decentralized AI as the main driver. I mean, who wouldn’t want to create trillion-dollar economic opportunities in America? It’s like a game of Monopoly, but with real money and fewer family arguments. 💸

What struck me most during my trip was the realization that many Congress members are actually open to industry input on how to define key concepts in crypto and web3. It’s like they finally decided to ask the experts instead of just Googling it. 🙄

Clear legislation is the destination

During my time at the Capitol, I was treated to exciting discussions about decentralized AI infrastructure and AI agents. AI tokens, with a market cap of over $48 billion, are the backbone of an open, accessible, and AI-native future of the internet. Or so they say. 🤷‍♂️

The surge of capital going into AI, including President Trump’s proposed $500 billion infrastructure initiative, points to high stakes. It’s like watching a high-stakes poker game where everyone is bluffing, and the chips are made of dreams. 🃏

Yet, the U.S. has a blank slate right now—either stick with existing frameworks that only include L1 and L2 network tokens or embrace these new use cases and assets in a regulatory-compliant manner. It’s like choosing between a salad and a cheeseburger; one is healthy, and the other is deliciously risky. 🍔

Currently, everyone is buzzing about executive orders. But let’s not forget that the legislative process takes time. A major discussion point was the Financial Innovation and Technology for the 21st Century Act (FIT21) bill, which aims to provide a clear market structure framework to assess if a token is a security or a commodity. Spoiler alert: it’s complicated. 🤔

Essentially, this is meant to answer the burning questions: What is a security? What is a commodity? And what is that weird thing in the back of the fridge? The most straightforward methodology for categorizing tokens should be based on activities. It’s like trying to figure out if your cat is a pet or just a furry roommate. 🐱

For example, a Layer 1 token designed to facilitate network activities should be categorized as a utility token. As FIT21 makes its way through the legislative gauntlet, there’s a narrow window to ensure new areas of utility tokens—like Decentralized AI and DePIN tokens—are also considered and defined as utility tokens. It’s like trying to fit a square peg in a round hole, but with more paperwork. 📄

Beyond commodities and securities

With the expected implementation of the FIT21 bill, clarity is finally around the corner—and some are hoping to have rules implemented by the end of this year. When lawmakers and the general public think of AI, they think of Big AI—OpenAI, Microsoft, Google, Anthropic, and other massive companies building centralized AI. It’s like thinking of the ocean and only seeing the Titanic. 🚢

Decentralized AI has the ability to offer resources that traditional AI structures cannot. Currently, resources are extremely centralized within Big AI, making it hard for new entrants to get a foot in the door. OpenAI and Microsoft have made massive investments in servers, data centers, and network infrastructure related to training AI models. These high costs squeeze out solopreneurs and smaller teams, making it almost impossible to build AI systems without breaking the bank. 💔

Decentralized AI infrastructure provides access to

2025-02-19 15:40

Clear legislation is the destination

Beyond commodities and securities

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