US Treasury Proposes Digital Identity Verification for DeFi

The US Treasury is taking a proactive step to enhance cybersecurity and combat illicit finance in the decentralized finance (DeFi) space. Janet Yellen, Secretary of the Treasury, has proposed integrating digital identity verification into DeFi smart contracts under the GENIUS Act. This initiative seeks to automate Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, aiming to minimize fraud and money laundering in cryptocurrency transactions.