U.S. Treasury Calls for Public Input on Digital Identity in DeFi

The U.S. Treasury is seeking public feedback as it embarks on a consultation under the GENIUS Act to explore incorporating digital identity verification tools into smart contracts within decentralized finance (DeFi). This initiative aims to combat illegal financial activities by integrating Know Your Customer (KYC) and Anti-Money Laundering (AML) checks into DeFi’s blockchain infrastructure using API interfaces. The proposal also suggests leveraging biometric technologies to streamline compliance efforts and reduce costs.