U.S. Treasury’s GENIUS Act Sets Stage for Privacy-First Crypto Regulation, Says a16z
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The post U.S. Treasury’s GENIUS Act Sets Stage for Privacy-First Crypto Regulation, Says a16z appeared first on Coinpedia Fintech News As the U.S. Treasury begins implementing the GENIUS Act, a landmark bill shaping the future of stablecoin and cryptocurrency regulation, Michele Korver, Head of Regulatory at a16z Crypto, has issued a powerful call for privacy-preserving innovation. In a detailed submission to the Treasury, Korver outlined how decentralized digital identity (DID) and zero-knowledge proofs (ZKPs) can revolutionize compliance, making the crypto ecosystem safer, more transparent, and less intrusive. Building a Privacy-First Framework for Crypto Compliance Korver emphasized that decentralized digital identity, supported by privacy-preserving cryptography, can achieve two critical goals simultaneously: strengthening national security and protecting civil liberties. She argued that current AML/KYC rules are outdated, restricting financial institutions from adopting blockchain-based identity tools. a16z urged FinCEN to use its exceptive relief authority to modernize these frameworks, allowing both crypto firms and traditional financial institutions to verify users through digital wallets instead of centralized databases. According to Korver, this approach would empower individuals to control their personal data while still giving regulators the visibility needed to prevent illicit activity. Technologies such as zero-knowledge proofs (ZKPs) and multi-party computation (MPC) enable verification without exposing private information, reducing risks of surveillance, hacking, and large-scale data breaches common in centralized systems. @a16zcrypto recently submitted responses to the U.S. Department of the Treasury’s first post-GENIUS requests designed to iimplement the bipartisan and ground-breaking stablecoin legislation. Here are the key points: On FinCEN’s request for innovative approaches to combat… — Michele Korver (@MicheleKorver) November 12, 2025 Smarter Crypto Compliance, Not Stricter Surveillance In its submission, a16z Crypto explained that decentralized identifiers (DIDs) and verifiable digital credentials (VDCs) can help meet obligations under the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws. However, these innovations are…
Filed under: News - @ November 12, 2025 9:27 am