⚖️💡 The U.S. Department of the Treasury Moves Towards Regulating DeFi with Digital Identity! 💡⚖️
According to Foresight News, the U.S. Department of the Treasury has announced the launch of a public consultation under the GENIUS Act to study the integration of digital identity tools within smart contracts in the decentralized finance (DeFi) space.
🔹 Main Objective:
Combating Money Laundering (AML) 🛑
Implementing Know Your Customer (KYC) ✅
Reducing Illicit Financial Activities 💸
📌 How will this be achieved?
Through Application Programming Interfaces (APIs) directly on the blockchain 🔗
Utilizing biometric technologies to lower compliance costs 👁️🗨️
🗓️ The public consultation is open until October 17, 2025, after which the department will submit a report to Congress and may issue new regulations that could change the face of the DeFi sector globally 🌍.
🚨 This step could signify the beginning of a new regulatory phase in the crypto world, balancing innovation and oversight.
#DeFi #Crypto #Blockchain #Fintech #USA #Regulation