US Treasury’s DeFi ID Plan Draws Privacy Backlash

August 24, 2025

, By Cointelegraph

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The US Treasury is exploring whether identity checks should be built directly into decentralized finance (DeFi) smart contracts, a move critics warn could rewrite the very foundations of permissionless finance.

Last week, the agency opened a consultation under the data-ct-non-breakable=”null” href=”https://cointelegraph.com/explained/what-does-the-us-genius-act-mean-for-stablecoins” title=”null”>Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), which was signed into law in July. The Act directs the Treasury to evaluate new compliance tools to fight illicit finance in crypto markets.

One idea was embedding data-ct-non-breakable=”null” href=”https://cointelegraph.com/news/us-treasury-digital-id-defi-illicit-finance” title=”null”>identity credentials directly into smart…

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US Treasury’s DeFi ID Plan Draws Privacy Backlash

August 24, 2025

, Published By Cointelegraph

The US Treasury is exploring whether identity checks should be built directly into decentralized finance (DeFi) smart contracts, a move critics warn could rewrite the very foundations of permissionless finance.

Last week, the agency opened a consultation under the data-ct-non-breakable=”null” href=”https://cointelegraph.com/explained/what-does-the-us-genius-act-mean-for-stablecoins” title=”null”>Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), which was signed into law in July. The Act directs the Treasury to evaluate new compliance tools to fight illicit finance in crypto markets.

One idea was embedding data-ct-non-breakable=”null” href=”https://cointelegraph.com/news/us-treasury-digital-id-defi-illicit-finance” title=”null”>identity credentials directly into smart…

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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