US Treasury Examines Digital ID Verification for DeFi to Combat Illicit Finance

The US Department of the Treasury is actively seeking public feedback on how digital identity tools and emerging technologies can be used to combat illicit finance in crypto markets. One proposed approach involves integrating identity checks into decentralized finance (DeFi) smart contracts. The initiative is spurred by the newly enacted Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), signed into law this past July.