The U.S. Treasury Department Calls for Public Comment on Cryptocurrency Illegal Activity

On August 19th, the U.S. Treasury is soliciting public comments in order to understand how financial institutions should combat illegal activities related to cryptocurrency. This comes after last month's landmark stablecoin legislation was enacted into law. On Monday, the U.S. Treasury issued a request for comments on "innovative approaches to detecting illicit activities involving digital assets." The notice stated that this new law, known as the "Guidance and Examination of the United States Stablecoin National Innovation in Use of Strategic Plans Act" (GENIUS), directs the Treasury to inquire about issues such as application programming interfaces (APIs), artificial intelligence, digital identity verification, and the use of blockchain technology. U.S. Treasury Secretary Yellen said on Monday, "Stablecoins will expand global USD channels by tens of billions of dollars, and the demand for U.S. Treasury bonds supporting stablecoins will surge. This is a triple win situation for all participants: stablecoin users, stablecoin issuers, and the U.S. Treasury."