California's regulatory authorities have launched an investigation into deepfake technology powered by advanced AI systems, raising fresh questions about synthetic media detection and user protection. The probe highlights mounting concerns over potential misuse of generative AI for fraudulent purposes. This regulatory scrutiny reflects broader global momentum toward establishing clearer guidelines for AI-generated content accountability. Market observers see this as part of the larger wave of tech regulation that could indirectly shape policies affecting decentralized systems and blockchain-based AI applications in the coming months.