The U.S. Treasury Department has initiated a 60-day public consultation on new technologies to combat crypto money laundering, in response to the increasing speed and sophistication of digital criminals.
The consultation, a key part of the new GENIUS Act, will explore tools such as AI, blockchain monitoring, and digital identity verification. The urgency for this initiative is underscored by data showing that criminals stole $3 billion in the first half of 2025, with funds being laundered in as little as two minutes and recovery rates at a dismal 4.2%.
The law mandates that stablecoin issuers fully back their tokens with U.S. dollars or liquid assets and sets guidelines for annual audits. While Treasury Secretary Scott Bessent praised the legislation as a way to expand the global reach of the U.S. dollar, some major banking groups and analysts have raised concerns that a loophole could allow stablecoins to become investment products, potentially posing a risk to the financial system. The public comment period will remain open until October 17.
New innovative solutions are being developed to combat this, including AI models that can detect laundering patterns and automated defense systems that can compress response times from hours to mere seconds, shifting the focus from recovery to prevention.
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