The U.S. Department of the Treasury has launched a public comment period to explore innovative strategies for financial institutions to detect and mitigate illicit finance risks related to digital assets, as mandated by the GENIUS Act. This initiative aims to enhance the nation’s anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks by leveraging advanced technologies, including application program interfaces (APIs), artificial intelligence (AI), digital identity verification, and blockchain monitoring. Stakeholders are encouraged to provide insights on emerging tools like cloud solutions and privacy-enhancing technologies. The Treasury’s call for feedback aligns with ongoing regulatory efforts to cultivate responsible innovation in digital finance, while emphasizing the importance of balancing operational efficiency with compliance. This initiative also aims to establish a globally recognized compliance framework for digital assets, further promoting U.S. leadership in digital financial technology. As the deadline approaches, industry participants are expected to outline both the opportunities and challenges these technologies present.
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