Account Abstraction (ERC-4337)
Account abstraction (ERC-4337) transforms Ethereum wallets from simple key-pair accounts into programmable smart contract wallets — enabling institutional-grade features like multi-signature approval, automated compliance rules, and social recovery without changing the base Ethereum protocol.
Bank Secrecy Act (BSA)
The Bank Secrecy Act (1970) requires US financial institutions — including crypto businesses and tokenization platforms — to maintain AML programs, report suspicious activity, and keep records of cash transactions over $10,000.
ERC-3643 — The Institutional Security Token Standard
ERC-3643 (formerly the T-REX protocol) is the most widely adopted Ethereum token standard for tokenized securities, embedding investor identity verification, transfer restrictions, and regulatory compliance directly into the token's smart contract logic.
FinCEN — AML, KYC, and the Travel Rule for Tokenized Assets
FinCEN governs AML and KYC compliance for crypto money services businesses and proposed Travel Rule implementation requiring sender and receiver information for crypto transfers over $3,000, directly shaping compliance infrastructure for tokenized assets.
FINRA — Broker-Dealer Oversight for Digital Securities Trading
FINRA, the SEC-authorized self-regulatory organization overseeing US broker-dealers, requires all digital securities ATS operators to be FINRA members and has issued regulatory guidance on crypto due diligence standards and AML programs.
On-Chain KYC/AML
On-chain KYC/AML systems store verified investor identity claims on a blockchain, enabling smart contracts to automatically check investor eligibility at the point of token transfer — eliminating the need for centralized compliance gatekeepers on every transaction.
Smart Contract
A smart contract is a self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predefined conditions are met — eliminating intermediaries from financial transactions and enabling programmable compliance in tokenized assets.
Zero-Knowledge Proofs (ZKPs) for Compliance
Zero-knowledge proofs enable a party to prove a statement is true (e.g., 'I am an accredited investor') without revealing the underlying evidence — enabling regulatory compliance on public blockchains while preserving investor privacy.