Chainlink Labs Responds to U.S. Treasury's Call for Innovative Methods to Detect Illegal Digital Asset Activities

According to Foresight News, Chainlink Labs has responded to a request for comments from the U.S. Treasury regarding innovative methods to detect illegal financial activities involving digital assets. This request is part of the implementation of the GENIUS Act. Chainlink Labs proposed four main concepts to enhance the detection of illegal financial activities while minimizing privacy and operational risks. These concepts include portable digital identities, distinguishing management control from customer relationships, rule-based on-chain compliance, and cryptographically assured reserve transparency. Chainlink Labs expressed its willingness to provide further information to support the Treasury's research and any subsequent guidance or regulatory development.