U.S. Treasury Seeks Feedback on Integrating DeFi Digital IDs

The U.S. Treasury is seeking public input on integrating digital identities into decentralized finance (DeFi) to enhance Know-Your-Customer/Anti-Money Laundering (KYC/AML) compliance. This initiative, focused on automatically implementing KYC/AML requirements in smart contracts, could significantly alter DeFi market dynamics and user privacy. Launched by Secretary Janet Yellen’s team with the support of FinCEN, the consultation closes October 17, 2025.