Treasury Calls for Public Feedback on Digital Identity in Crypto Rules

The US Treasury is seeking public feedback on using digital identity and emerging tech to combat illicit crypto activity. Following the GENIUS Act, the agency is exploring tools like AI, APIs, biometric IDs, and blockchain monitoring to enhance KYC/AML. One proposal would embed digital ID checks directly into DeFi smart contracts. While these solutions could cut compliance costs and improve privacy, concerns remain over data protection. Comments are open until Oct. 17, 2025, before the Treasury reports to Congress and considers new rules.

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