IJIRCSTJournal International Journal of Innovative Research in Computer Science and Technology I S Volume 13 Issue 6 Computer Science English November - December 2025 N N Y 2025 12 30 Computer Sciences Designing AI Driven Sandboxes for Digital Asset Innovation: A Policy Framework for the Regulators English Y 132 143 Mohammad Salman Iqbal English Y Waqar Ahmad English N Awais Amjad English N https://doi.org/10.55524/ijircst.2025.13.6.14 Artificial Intelligence (AI) and blockchain are growing rapidly. However, there is no single national framework that oversees these new technologies in the United States. Various states have varied rules, and this causes confusion and delays. Due to this reason, numerous new financial concepts cannot be safely tested, and consumers can have an increased risk. This paper proposes a new concept of Federal AI-Driven Crypto Regulatory Sandbox. This is a testing ground where companies and regulators can safely test their digital products in a controlled environment. The sandbox applies AI technologies to assist regulators in monitoring operations in real-time and identifying threats in the shortest time. The paper explains what the U.S. lacks in financial regulation in the context of the emerging hyper-technological age and proposes a simple model for the federal agencies. Its aim is to enhance safety, facilitate innovation and modernize the U.S. financial regulations for innovative products in the market. English AI, Blockchain, Crypto Regulation, Federal Sandbox, Financial Technology, Innovation https://ijircst.org/abstract.php?article_id=1423