It's a grey area and varies from one state to the next.
USDOT PHMSA's jurisdiction begins when hazardous materials used in commerce are loaded into or onto a vehicle (or vessel or aircraft) and ends when the materials are unloaded. It is the compressed gas, not the cylinder or valve, that is considered a hazardous material. Anything over approximately 40 PSI is considered hazardous.
So, if you have a bunch of cascade cylinders, and you never transport them full, USDOT PHMSA's rules don't apply. Or if you have a cylinder that is never transported in commerce, the rules don't apply. If the transportation is on a commercial vessel (dive boat), or incidental to commerce (teaching), then you have to play by the rules. There's a "materials of trade" exemption to some of the rules, but not the ones that govern packaging of gasses (i.e. cylinders and valves).
Even then, be careful, because many states and localities require pressure vessels to be inspected and certified under state and local rules, and have an exception for DOT cylinders. That's true in Minnesota, and the inspection and insurance requirements are more onerous than USDOT. There's a separate exception for SCBA cylinders, but not for SCUBA cylinders. Whether the SCBA provision applies to SCUBA is the sort of question lawyers make their money on. Whether a DOT cylinder has to be in full compliance with DOT rules to be exempt from state law is another question of the same sort.
Of course, no one will known unless there is an accident related to the blanking plug, and it won't affect you unless you survive it...