Disclosure: The opinions and opinions expressed here belong to the authors solely and do not represent the views or opinions of the crypto.news editorial.
Last week I was able to represent distributed AI in Capitol Hill in a digital chamber. For weeks, the news cycle is full of optimism for the first true procrypt government to take office. My time in DC has encouraged this hope.
It has a major impact on crypto and the larger technology sector as a whole. There is a lot of optimism that the Procrypt White House and the open-minded Congress will allow the United States to become the “world capital of artificial intelligence and crypto,” as President Trump pledged in Davos at the World Economic Forum.
The next few months will provide valuable windows to the crypto and AI industry. Crypto is likely to be the top three industries with its major driver, AI decentralized AI, allowing AI agents and applications to create trillion dollars of economic opportunities in the US.
The most interesting learning from this trip is to understand that many lawmakers accept industry inputs on how to define key concepts in Crypto and Web3 as starting points for regulating the crypto industry. That was it.
Clear law is the destination
During last week’s Capitol, the exciting movements within decentralized AI spaces, particularly decentralized AI infrastructure and AI agents, were frequently discussed. AI tokens are the backbone of the open, accessible, AI-native future of the future for the next decade, with a cumulative market capitalization of over $48 billion.
The surge in capital that enters AI, including President Trump’s $500 billion proposed inflynis initiative, points to a high industry interest and turning point.
However, the US currently has a blank slate. Stick to existing frameworks that include only L1 and L2 network tokens and limit the possibilities of AI utility tokens, or accept these new use cases and assets in a regulatory compliant way.
Nowadays, everyone is amazed by the executive order. However, it is important to remember that the legislative process takes time. The main point of discussion in my time in DC was financial innovation and technology in the 21st Century Act (FIT21) bill. It aims to provide a clear market structure framework for assessing whether tokens are security or merchandise.
Essentially, this is intended to answer the following questions: What is security? What is a product? What are products and non-security? The simplest methodology for classifying tokens should be based on activity.
For example, Layer 1 tokens designed to facilitate network activity should be categorized as utility tokens. As FIT21 passes through legislative gauntlets, there is a narrow window to ensure that new areas of utility tokens, such as decentralized AI and Depin tokens, are also defined as utility tokens.
Beyond goods and securities
The expected implementation of FIT21 invoices has made Clarity round the corner in the end. Some hope that the rules will be implemented by the end of this year. When lawmakers and the public think about AI, they think about big names, Openi, Microsoft, Google, humanity, and other big companies building centralized AI.
Decentralized AI has the ability to provide resources that traditional AI structures cannot. Currently, resources are highly centralized within Big AI, difficult to access by newcomers, and pose a threat to the future of fair AI solopreneurs. Openai and Microsoft are making large investments in servers, data centers and network infrastructure related to their training AI models. These high costs squeeze soloplaners and small teams, making it almost impossible to build an AI system without breaking the bank.
Decentralized AI infrastructure provides access to the more affordable resources needed to build a fair AI entrepreneur’s future: data, calculations, open source models, and hopefully capital too. Access can be democratized by encouraging participants to share resources through distributed networks.
Anyone in the world with additional GPU space or bandwidth can contribute to AI networks and receive payments by doing so, reducing the costs of those small teams, and contributors earn by contributions It allows you to redefine the availability, funding and how AI is built.
Return to the gold standard of innovation?
The future lies here. Millions of builders will quickly launch side hustles and create AI agents and AI applications. They use open source models, power them with distributed AI data and GPUs, find powerful utility-based use cases, launch tokens to bootstrap liquidity, and earn revenue through usage and fees Masu.
For example, Deepseek is famously known today to only spend $10 million, relying on less than 200 team members, and using minimal hardware to make LLMs that surpass ChatGpt or Claude. It has been developed. They are tied up to disrupt the market.
Just AI entrepreneurs shape our society, create many job opportunities, and bring together and create the next golden age for American entrepreneurship.
Again, in DC there was an obvious sense of optimism for our industry. While many lawmakers wanted to learn about AI and cryptography, some of the new lawmakers have technical expertise and backgrounds that they have never seen before on the Beltway. As an industry, we have a golden moment to educate the rest of the federal government.
If the US wants to remain at the forefront of AI innovation and attract top AI talent, policymakers must provide a clear pathway to building and growing these projects here.
