How do leading legal experts and compliance professionals see the ever-changing crypto landscape, and what tips can they offer regulatory and compliance teams on how to cope with the new challenges presented by digital innovation in finance?

Joseph Silvia, Duane Morris, Chicago

Silvia, Partner at Duane Morris, encourages businesses to understand how cryptocurrency transactions are placed on the blockchain. Decentralized blockchains are immutable, which means that the data entered is irreversible.

“Any entry can’t be undone – you have to post a new transaction,” he says. “But this feature can help you identify gaps and red flags. And if you add in artificial intelligence trained to look for certain unusual patterns of activity based on the data it has been fed, those tools can help you do it faster, with more output.”

He cites the example that AI could go through a lot of transactional data to check whether a coin has passed through an address known to be associated with illicit activity, so the institution can raise red flags and apply further scrutiny.

Silvia describes how blockchain technology, such as smart contracts, can help with “if/then scenarios” that enable someone to spot something specific or perform something specific when certain events align – paying interest at a certain time of the month, for example. He suggests businesses need to demystify this area for everyone, from compliance and legal teams to sales representatives.

“We offer a general counsel boot camp, and explore cryptoasset programs to help them learn the basics and general framework for developing more effective legal strategies in this arena,” Silvia says, adding that any education to help identify risk and adjust anti money laundering playbooks to meet the specific risks of cryptoassets is ideal.

Kathy Enstrom, Moore Tax Law Group, Chicago

Enstrom, COO and Director of Investigations at Moore Tax Law Group, has extensive experience as an executive in the US Internal Revenue Service (IRS) criminal investigations unit and describes how the IRS tackled fraud using cryptoassets.

She says the IRS would have challenges tracking the flow of such assets when they went into a mixer, but the idea that the assets are anonymous is not quite true, since a person using the asset ends the anonymity.

To simplify investigations, the IRS works with specialist firms that can help track bitcoin, such as Chainanalysis, which follows money across blockchains to navigate mixers and smart contracts with automated analysis.

The number of criminal investigations the IRS was conducting that involved cryptoassets kept ticking up, so much so that by 2019/2020, it was specifically looking for people with backgrounds in cryptocurrency and would give such candidates preferential status, she says. “But we also provided some specific training to help investigators better understand these products, both internally and externally produced ones.”

Debra Brookes, Wyoming Stable Token Commission, Cheyenne

Brookes, Chief Risk and Compliance Officer at Wyoming Stable Token Commission, who previously served as the deputy virtual currency chief and head of supervision at the New York Department of Financial Services, calls the passing of the GENIUS Act “a historic day for the digital asset community. This will help provide the regulatory clarity the industry has long needed to flourish.”

However, she also says the moment should be seen as a “call to action” for the crypto community.

“As stablecoins enter a new era of unprecedented expansion, we must actively evolve our risk and compliance frameworks to match this scale. It is our collective duty to build robust, transparent systems that not only meet these new federal standards, but go further – protecting consumers from fraud and ensuring the integrity of the ecosystem as a whole,” she adds.

She hails the state of Wyoming for being at the forefront of digital asset innovation, and she says her agency is ready to partner with federal and industry players “to navigate this exciting new landscape responsibly.”

On August 19, 2025, Wyoming became the first US state to issue its own stable-value token called the Frontier Stable Token or FRNT.

Rather than selling directly to the public, the token will be sold through authorized resellers that (to date) include crypto exchange Kraken and the card issuing and stablecoin focused platform Rain, according to Wyoming governor Mark Gordon’s announcement.

Cyndi Rodriguez, CNR Advisory, San Francisco

Rodriguez, Founder and Principal at CNR Advisory and previously chief legal officer, general counsel and corporate secretary of Nasdaq Private Market, says that the pseudonymous, borderless, decentralized nature of cryptocurrency systems can raise financial integrity risks and challenges for companies dealing in virtual currencies.

“A smart method to tackle such issues is the obvious one – implementing a strong compliance program at your business and insisting on the same with business partners and service providers,” she says. “For example, while issuance and transfer of cryptocurrency may not have to go through an intermediary and undergo the compliance checks that tend to happen during that process, notably the use and transfer of crypto often has to go through a cryptocurrency exchange or other virtual asset service provider.

“In this context, companies can look for the use of robust preventive measures, such as enhanced customer due diligence, transaction monitoring, recordkeeping, and obligations to report suspicious transactions. Companies can also use the same algorithms that are used to detect behaviors and patterns that are red flags for money laundering in fiat currency for virtual assets.”

Rodriguez says comprehensive know your customer (KYC) and customer due diligence (CDD) procedures are crucial. “The KYC aspect involves obtaining and verifying customer data, including name, date of birth, proof of identity, and address, when setting up a customer’s account, that will allow companies to confirm customer identity and track suspicious activity,” she says. “Performing CDD procedures is also important – companies should assess and manage the risks associated with their potential customers and perform the appropriate level of due diligence for that customer, which can involve ongoing monitoring of customer accounts and transactions.”

She adds that companies should be able to identify suspicious transactions, create alarms for any of these transactions that will alert their compliance team, and report suspicious transactions to their regulatory agency. “Companies can use technological compliance tools, including AI-powered ones, to streamline anti money laundering compliance and improve the detection of financial crimes,” she says, adding they should consider hiring specialists as compliance officers with regulatory backgrounds and experience in decentralized finance. “Hiring such people can help firms navigate the complexities and risks often associated with crypto transactions.”

Asked about the regulatory environment, Rodriguez says that, as a former regulator who worked on various US Securities and Exchange Commission rule making assignments, she expects a lengthy rule making process before any regulations are implemented. “The rule making process is also a moment for the industry to comment and advocate for practical requirements around capital, liquidity, operational standards and consumer protections. Legal and compliance teams should evaluate which regulatory pathway best suits their business model and actively participate in the rule making process through comment letters and continuous dialogue with their regulators,” she advises.

She says market participants should evaluate the implications of the GENIUS Act on business models. “They should assess the impact of key provisions of the act, such as the 1:1 reserve requirement that issuers must back stablecoins with high-quality liquid assets, the federal and state licensing requirements on issuers and the requirement that they be subject to the Bank Secrecy Act, and the redemption guarantees where users can convert stablecoins to US dollars, with issuers liable for delays or insolvency.”

She also thinks it will affect smaller firms. “While the act aims to provide clarity and foster trust, it’s anticipated to impose significant compliance costs, estimated at up to $5m a year for mid-sized issuers. This may be challenging for smaller firms, particularly start-ups.”

Anna Rosenberg, London Stock Exchange Group, New York City

“The passage of the GENIUS Act marks a major milestone in the evolution of US digital asset policy,” Rosenberg, Senior Manager for Government Relations at London Stock Exchange Group, says. “The act will provide some much needed regulatory clarity for any stablecoin issuers, by establishing a federal framework that includes 100% reserve backing, mandatory disclosures and clear consumer protections. This is definitely a win for both innovation but also for market integrity.”

And while it showcases the government’s government’s view that stablecoins are a core component of the financial system, Rosenberg thinks critics of the law are right to raise questions “about operational risks, systemic exposure and the need for strong oversight.” She says these are all valid concerns that the law and subsequent rule makings will address.

She suggests several aspects of the GENIUS Act that could easily get overlooked: the requirement that stablecoin issuers maintain the technical capability to freeze, burn or block transfers of stablecoins upon receipt of a lawful order from a federal agency or court.

Rosenberg points out that while freezing assets is a familiar tool in traditional finance “the concept of burning tokens – permanently deleting them from circulation – is unprecedented.”

She says of these legislative maneuvers: “The message from Congress and the Trump administration is clear – digital asset policy is no longer just a theoretical concept. It’s happening now, and the next six months will be decisive for the future direction of US policy in this space.”