The U.S. Department of the Treasury has issued a notice soliciting public comments to assess the feasibility of introducing digital identity verification in DeFi smart contracts to curb illicit financing activities. This initiative falls under the scope of the GENIUS Act and focuses on researching how compliance technologies such as digital identity, AI, and blockchain monitoring can be applied to enhance KYC/AML mechanisms in DeFi. The comment period is open until October 17, 2025. (Cointelegraph)