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# Compliance & Regulatory

Oracle layers: 3.0 | Status: In Development

Regulatory interpretation is one of the highest-value oracle problems and one that Oracle 1.0 cannot touch. Questions like:

* "Does Protocol X qualify as a security under latest SEC guidance?"
* "Does this transaction trigger a reporting obligation under MiCA?"
* "Has this entity been added to a sanctions list?"

These require reading regulatory language, cross-referencing precedent, and producing a reasoned judgment exactly what Oracle 3.0's Proof of Reasoning is built for.

The output is an auditable reasoning trail: the PromptSpec specifies the regulatory question, the evidence bundle contains the source documents, and the reasoning trace shows how the conclusion was reached. This audit trail is valuable in itself as compliance teams demonstrate *how* they reached a determination, not just *what* the determination was.