TibbiЯacer

$TIBBIR Act II ... Loading ... Regulators face a generational opportunity to reshape identity infrastructure for a crypto and AI-native economy. Tokenization is making the world machine-readable —and identity tokens form the critical personalization layer that will determine how individuals and entities interact with digital agents, financial systems, and cross-border commerce. By embracing tokenized decentralized identity now, Treasury can establish a regulatory framework that transforms compliance from a friction point into an architectural advantage: instead of bolting KYC/AML onto legacy systems, we can build verified identity into the token layer itself—making compliance machine-readable, portable, and privacy-preserving by design. This is not only about combating illicit finance more effectively; it is about positioning U.S. regulatory standards as the 1 global infrastructure for trusted digital transactions. The alternative—regulating yesterday's centralized identity silos while the world moves to tokenized, decentralized, AI-mediated systems—means ceding both security and competitiveness. Our ask is straightforward: we propose that Treasury, under its existing authorities, issue a no-action letter establishing a six-month regulatory sandbox pilot that enables financial institutions, digital-asset firms, and identity service providers to test reusable, privacy-preserving digital identity credentials in live environments. The sandbox would cover use cases such as stablecoin and other digital-asset transactions, integrating blockchain analytics, AI-based fraud detection, and wallet-security solutions to evaluate how portable “verify-once, reuse-many-times” credentials can strengthen AML/CFT compliance, reduce fraud, and protect consumer privacy—without new legislation or rulemaking. By allowing industry participants to experiment safely within existing frameworks, Treasury can generate empirical evidence to guide future rulemaking and establish the foundation for a modern, trusted digital-identity infrastructure across the financial system." https://downloads.regulations.gov/TREAS-DO-2025-0070-0204/attachment_1.pdf

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