The U.S. Treasury is exploring the possibility of adding digital identity verification to decentralized finance (Digital ID for DeFi) to combat  illegal financial activities like money laundering. This is part of the public consultation under the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), signed into law in July 2025 by the Trump Administration. Accordingly, the public will give input on how technologies like digital IDs, artificial intelligence, and blockchain monitoring can improve safety in cryptocurrency markets. One of the key proposals is to embed identity checks into DeFi smart contracts, which are self-executing programs on blockchains. This includes confirming…