The United States considers the verification of digital IDs in DeFi to address the issue of illegal financing.

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The U.S. Department of the Treasury is consulting the public on the application of digital identification and new technologies to combat illicit finance in the crypto market, according to the GENIUS Act signed in July 2025. A notable proposal is to integrate identity verification directly into DeFi smart contracts, allowing transactions to occur only after users are authenticated, thereby incorporating KYC/AML into the blockchain infrastructure.

According to the Ministry of Finance, digital identification – including government documents, biometrics, or mobile certificates – can reduce compliance costs, enhance data security, and assist in detecting money laundering, terrorist financing, or sanctions evasion. However, the agency acknowledges concerns about privacy and the need to balance innovation with oversight. The deadline for feedback extends until October 17, 2025.

At the same time, American banking associations warn that the "yield gap" could cause stablecoins to siphon up to $6.6 trillion from the banking system.

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