The US Treasury Department plans to embed digital authentication in DeFi The US Treasury Department has launched a public consultation on plans to integrate digital identity verification tools into DeFi smart contracts to combat illegal financial activities. The proposal includes automating KYC/AML checks through API interfaces and adopting biometric technology to reduce compliance costs. The public consultation will continue until October 17, 2025, after which the Ministry of Finance will submit a report to Congress and may introduce relevant new regulations.