Secret Trump Crypto Plan Exposed: DeFi ID Proposal Sparks Freedom Debate

The U.S. Treasury is exploring mandatory identity verification for DeFi protocols under the GENIUS Act, raising concerns about the future of permissionless finance. Proposed rules WOULD embed KYC/AML checks directly into smart contracts, requiring government IDs or biometrics for transactions.

"Real-time monitoring can help platforms mitigate risk and prevent illicit activity," said Fraser Mitchell of SmartSearch. Critics counter that the plan would fundamentally alter DeFi's open-access nature. Ubuntu Tribe CEO Mamadou Kwidjim Toure warns it creates "government-approved gatekeeping" for blockchain infrastructure.

The controversial proposal comes amid growing regulatory scrutiny of cryptocurrencies, though no specific coins or exchanges are directly implicated in the current framework. Market observers note such regulations could impact privacy-focused assets if implemented.