U.S. Targets DeFi with Groundbreaking Regulatory Changes

The U.S. Treasury is set for a radical overhaul of decentralized finance (DeFi), aiming to integrate digital identity verification directly into smart contracts. This initiative, driven by the GENIUS Act and public consultation until October 17, 2025, raises concerns about sacrificing DeFi’s core principles of anonymity for greater financial transparency. The goal is to counter money laundering and terrorist financing while implementing strict compliance measures. The proposed change would require users to prove their identity before each transaction. This could significantly impact the decentralized nature of DeFi platforms.