AI image generation tools face mounting regulatory scrutiny. Grok has tightened its content policies, restricting modifications that sexualize real people's photos—whether through swimwear overlays or similar alterations. The move comes as UK authorities escalate pressure on the platform, signaling broader concerns about deepfakes and synthetic media governance. This reflects a larger trend: as AI capabilities expand, regulators worldwide are drawing clearer boundaries around consent, authenticity, and digital safety. For crypto and Web3 communities building AI-powered applications, the takeaway is clear—compliance frameworks are hardening. Platforms operating in multiple jurisdictions can't ignore these evolving standards.