On August 18, 2025, the US Department of the Treasury published a Request for Comment (RFC) seeking public comment on innovative methods to detect and deter illicit activity involving digital assets. The RFC, which implements a mandate from the recently enactedGENIUS Act, reflects Treasury's growing emphasis on harnessing new technologies to strengthen anti–money laundering (AML) and countering the financing of terrorism (CFT) safeguards in the digital economy.
The issuance of this RFC follows closely on the heels of the President's Working Group on Digital Asset Marketsreport earlier this summer, which underscored the Trump administration's view that, while digital assets can be used by bad actors,blockchain-based technology also allows for use of a number of novel and innovative illicit finance compliance measures.
While the RFC was mandated under the GENIUS Act, a legislation focused on payment stablecoins, the RFC addresses the digital asset industry generally and is likely to have implications for a wide range of digital asset companies.
Scope of the RFC
Treasury is particularly interested in hearing from stakeholders about four categories of compliance tools: (1) application program interfaces (APIs), (2) artificial intelligence (AI), (3) digital identity verification technologies, and (4) blockchain monitoring solutions. However, Treasury is open to hearing about other innovative compliance tools as well, including cryptographic protocols, privacy-enhancing tools, cloud-based solutions, oracles, and smart contract verification mechanisms, among others.
For each of these areas, Treasury seeks comments on a common set of questions. These include how a given method can improve the detection of illicit activity, the costs of adoption, the volume and sensitivity of data collected, the privacy risks that might arise, operational or efficiency challenges, and potential cybersecurity vulnerabilities.
The RFC May Set the Table for Subsequent Rulemakings
The stakes of the RFC are potentially significant. The GENIUS Act instructs Treasury to create a new category of Bank Secrecy Act (BSA) regulated financial institution for permitted payment stablecoin issuers. Separate market structure legislation, which continues to work its way through Congress, may similarly create new categories of BSA-regulated financial institutions. The Presidential Working Group made a similar recommendation in its recent report with the goal of having the BSA obligations imposed on digital asset companies right-sized for the nature of such companies and the illicit finance risks presented by their business models. Therefore, it is likely that comments received in response to the RFC will form the basis of a number of future rulemakings that may inform the AML/CFT and related requirements imposed on a wide range of digital asset companies going forward.
Timing and Next Steps
Treasury has set an October 17, 2025 deadline for the submission of comments. Given the breadth of issues raised and the potential for comments to influence future regulatory guidance or rulemakings, companies operating in the digital asset sector – whether issuers, exchangers, custodians, or technology providers – should consider contributing comments.
Conclusion
For additional information regarding this RFC or for assistance in preparing a comment letter, please contact a member of our Blockchain & Cryptocurrency Practice or Anti-Money Laundering Practice.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
