‘Not a Get Out of Jail Free Card:’ Boies Schiller’s Dan Boyle on Crypto’s Regulatory Reset

The U.S. government’s evolving approach to crypto regulation could mark a pivotal moment for payments innovation.

“There’s certainly a change in how the administration views the digital assets industry,” Dan Boyle, partner at Boies Schiller Flexner, told PYMNTS CEO Karen Webster. “This is not a confrontational posture.”

Until recently, the U.S. Department of Justice (DOJ) operated under what many in the industry perceived as a “regulation by prosecution” doctrine, aggressively pursuing high-profile crypto cases while offering little regulatory guidance. But the DOJ’s recent decision to pivot away from that stance, paired with growing bipartisan support for proposed frameworks for stablecoin regulation, signals a reimagining of how Washington approaches cryptocurrency oversight.

Boyle, who’s seen the cryptocurrency conversation from both the prosecutor’s desk and the defense table, believes that despite headline-making changes, crypto companies would be mistaken to interpret this as a green light to let down their guard.

“This shouldn’t be seen as a get out of jail free card. It’s just a change in posture and market participants have to recognize that,” he said.

Rather, it’s a pragmatic acknowledgment that blanket hostility doesn’t help to foster compliance or innovation. And as compliance improves among major exchanges and stablecoin issuers, Boyle anticipates a divergence within the crypto ecosystem.

“You’re going to see a divide between some companies which become compliant and others that want to stay outside of it,” he said. “You’ll just see less in the gray area.”

In other words, when it comes to cryptocurrency, sunlight may be the best disinfectant.

Playing Whack-a-Mole With Risk

Crypto’s global reach has created a cat-and-mouse game between innovation and illicit activity. From cross-border scams to unregulated online marketplaces, the challenge for regulators is to protect consumers without stifling progress. For many in the industry, the DOJ’s shift has introduced a new dilemma: where to refocus compliance efforts, and whether the enforcement risk has truly declined.

While enforcement risk remains, the GENIUS Act has emerged as a beacon of hope for crypto firms seeking clarity. If passed, it would be the first comprehensive U.S. framework for regulating stablecoins, a digital asset class often used as an off-ramp for criminal funds but increasingly embraced by mainstream financial institutions.

“The obvious growth in stablecoins and the fact that you have a lot of issuers ready to be fully compliant. It’s a hard argument for Congress to ignore,” Boyle said.

Yet not all stablecoins are created equal. Criminal organizations continue to exploit the flexibility and speed of stablecoins, particularly when issued outside the bounds of U.S. regulation.

“Even if stablecoins are the preferred medium for a lot of criminal activity, creating a regulated environment where these companies can operate in conjunction with law enforcement is probably a positive,” Boyle said.

His advice is to align with what is known: the administration’s enforcement focus, recent executive orders and global geopolitical shifts. That means preparing for scrutiny around transactions linked to Venezuela, Iran or known cartels. It also means considering proactive disclosure if risky activity is detected.

“Your risk has gone up higher,” Boyle said bluntly. “You’re going to have states and foreign regulators that still care about things like foreign bribery and kleptocracy. Those haven’t gone away.”

Regulation as a Catalyst for Innovation?

The current administration, in Boyle’s view, sees crypto not as a fad but as a lasting part of the financial ecosystem. And that opens the door for large enterprises that were previously sitting on the sidelines to explore partnerships, issue stablecoins or tokenize real-world assets.

“When you look at how the prior administration just kind of viewed [crypto] as an area that wasn’t particularly compliant … now there’s going to be a lot of freedom to develop new technology,” he said. “There’s some strategic value to being a world leader in digital assets … If my competitor is issuing a stablecoin or tokenizing assets, am I missing out if I don’t?”

Crypto is no longer an outsider technology. It’s moving into the mainstream, with all the legal, strategic and ethical responsibilities that entails. Still, the future could hinge on one crucial thing: defining what digital assets even are. After all, as Webster noted, if you ask 10 people what a digital asset is, you’ll get 15 different answers.

Boyle agreed, adding that, “even now, whatever definition we might come up with today, that may be obsolete in three to six months … Perhaps having more participants in the area is going to help us all understand what the scope of the category should be.”

Ultimately, for companies navigating crypto’s uncertain terrain, Boyle offered these final words of advice: don’t let your guard down, but don’t sit it out.

“It is a catalyst for innovation,” he said. “And there’s a lane now for companies who want to do it right.”