“US Treasury explores digital ID checks in DeFi to curb illicit finance” — confirmed as accurate and up to date. The Treasury has issued an official request for public comment on proposals to integrate digital identity solutions (e.g., government IDs, biometrics, or portable credentials) into decentralized finance (DeFi) systems, including smart contracts. The aim is to strengthen compliance, mitigate risks, and counter illicit activities such as money laundering. This initiative builds on the GENIUS Act and follows a broader DeFi illicit finance risk review, with public feedback open until October 30, 2025.