United States of America: Department of Treasury published report on innovative technologies to counter illicit finance

On 12 March 2026, the Department of the Treasury published a report to Congress on the use of innovative technologies to counter illicit finance involving digital assets, as required by the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The report assesses risks, including ransomware and cyber theft linked to digital assets, and identifies regulatory gaps, including non-compliant digital asset service providers, and the use of mixers and other obfuscation tools. It recommends that financial institutions adopt technologies, including artificial intelligence, digital identity systems, blockchain analytics, and application programming interfaces to strengthen anti-money laundering and countering financing of terrorism (AML/CFT) compliance and detect illicit activity. The report also proposes policy actions, including guidance to encourage the use of these technologies, stronger information-sharing mechanisms, improved supervisory expertise, and the development of technical standards. It further recommends that Congress clarify AML/CFT obligations for decentralised finance actors and consider legislative updates to address illicit finance risks in the digital asset ecosystem.