Government seeks public opinions on identifying unlawful activities in digital currencies.
The U.S. Department of the Treasury has launched a public comment period, aiming to gather insights on innovative methods, techniques, or strategies that regulated financial institutions use or could use to detect illicit activity involving digital assets. This initiative is part of the GENIUS Act and Executive Order 14178, which aim to bolster U.S. leadership in digital assets and enhance U.S. national security.
Under the GENIUS Act, the Treasury is required to consider public input when researching the effectiveness, costs, privacy features, and cybersecurity risks of these tools. The key focus areas for public input include Application Programming Interfaces (APIs), Artificial Intelligence (AI), Digital Identity Verification, and Blockchain Technology and Monitoring.
The Treasury's request for public comments will help shape future policies, particularly for stablecoin regulatory frameworks. The input will support responsible growth, transparency, and crime prevention in digital finance, ensuring a secure and transparent digital economy.
The public comment period is open until October 17, 2025, and contributions from financial institutions, technology firms, and the general public are encouraged. This collaborative approach will help inform ongoing regulatory approaches aligned with Executive Order 14178 and the GENIUS Act’s objectives.
Meanwhile, in Hong Kong, the Securities and Futures Commission (SFC) has reported a rise in fraud risks in the cryptocurrency sector after the implementation of stablecoin law. As the digital asset landscape continues to evolve, it is crucial for regulatory bodies to stay vigilant and adapt to emerging threats.
In the meantime, platforms like Chainalysis and TRM Labs are playing critical roles in the cryptocurrency and blockchain security and analytics ecosystem. These firms provide tools to detect and alert on potential threats and risks, contributing significantly to the overall security of the digital asset market.
[1] https://home.treasury.gov/news/press-releases/jy0797 [2] https://www.congress.gov/bill/117th-congress/house-bill/3617 [3] https://www.whitehouse.gov/briefing-room/presidential-actions/2025/01/23/executive-order-on-strengthening-american-leadership-in-digital-financial-technology/ [4] https://www.whitehouse.gov/wp-content/uploads/2025/01/Executive-Order-on-Strengthening-American-Leadership-in-Digital-Financial-Technology_20250123.pdf [5] https://www.cnbc.com/2025/02/01/treasury-department-asks-for-public-feedback-on-digital-assets.html
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