【U.S. Treasury Considers Embedding Digital Identity Verification Mechanisms in DeFi Protocols】Golden Finance reports that the U.S. Treasury has initiated public consultations under the GENIUS Act, aiming to explore the integration of digital identity verification tools in DeFi smart contracts to combat illegal financial activities. The proposal includes the automated execution of KYC/AML checks on-chain via API interfaces, while utilizing technologies such as biometrics to reduce compliance costs. Banking groups have warned that regulatory loopholes in stablecoin interest payments could lead to a $6.6 trillion outflow of bank deposits. The public consultation will continue until October 17, 2025, after which the Treasury will submit a report to Congress and may introduce new regulations.