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US Treasury Explores Digital ID Integration for DeFi Compliance
US Treasury Explores Digital ID Integration for DeFi Compliance
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BTCCSquare news:
The US Treasury is advancing plans to embed digital identity verification into decentralized finance protocols. This initiative, mandated by the recently passed GENIUS Act, aims to automate KYC and AML checks directly within smart contracts. By leveraging APIs and AI, regulators seek to curb illicit finance while reducing compliance burdens for crypto firms.
Market participants have until October 2025 to comment on the proposal. The MOVE signals growing institutional recognition of DeFi's potential, albeit with regulatory guardrails. Treasury officials emphasize the need to balance innovation with anti-money laundering safeguards in blockchain ecosystems.
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