The US Treasury Department launches a consultation on DeFi identification, exploring new on-chain KYC/AML solutions.

[Coin World] The U.S. Treasury Department has launched a public consultation under the GENIUS Act, intending to explore the integration of digital identification verification tools in DeFi smart contracts to combat illegal financial activities. The proposal includes the automatic execution of KYC/AML checks on-chain through API interfaces, while also employing technologies such as biometrics to drop compliance costs. Banking groups warn that if there are regulatory loopholes in stablecoin interest payments, it could lead to the outflow of $6.6 trillion in 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.

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GateUser-0717ab66vip
· 13h ago
KYC Compliance Don't let it go.
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PebbleHandervip
· 08-17 08:48
You still want to regulate DeFi, right?
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NftPhilanthropistvip
· 08-17 08:47
actually *adjusts glasses* defi without kyc was never gonna last... time to pivot to impact-verified smart contracts tbh
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ruggedNotShruggedvip
· 08-17 08:25
One-click to withdraw from the network
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GasWranglervip
· 08-17 08:24
technically sub-optimal implementation. zkproofs would be mathematically superior to api checks
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