Source: CoinTelegraph
“The US Department of the Treasury is seeking public feedback on how digital identity tools and other emerging technologies could be used to fight illicit finance in crypto markets, with one option being embedding identity checks into decentralized finance (DeFi) smart contracts. The consultation, published this week, stems from the newly enacted Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), signed into law in July. … One of the ideas in the request for comment is the potential for DeFi protocols to integrate digital identity credentials directly into their code. Under this model, a smart contract could automatically verify a user’s credential before executing a transaction, effectively building Know Your Customer (KYC) and Anti-Money Laundering (AML) safeguards into blockchain infrastructure.” (08/17/25)
https://cointelegraph.com/news/us-treasury-digital-id-defi-illicit-finance