The U.S. Treasury has recommended bringing DeFi platforms under anti-money laundering and counter-terrorist financing rules in a report submitted to Congress. The same document also outlined a digital asset “hold law” concept that would let institutions freeze suspicious crypto funds during an investigation, without needing an immediate court order.
The report was delivered under the GENIUS Act framework. According to Alex Thorn, Treasury argued that decentralized finance applications should be subject to financial monitoring obligations similar to those applied elsewhere in the financial system. The recommendation would extend AML and counter-terror financing duties directly into DeFi.
A proposed hold law would let transfers be paused during probes
Thorn said the report also described a safe-harbor style “hold law” for digital assets. Under that model, institutions could temporarily stop transfers tied to suspicious activity while authorities examine possible financial crimes. That feature stands out because the proposal would not require a court order at the outset.
Lawmakers are now reviewing the recommendations as part of broader discussions around digital asset oversight. The report also examined criminal activity linked to cryptocurrency transactions, framing the policy case for stronger enforcement tools.
FBI fraud figures were cited in the report
The document referenced data compiled by the Federal Bureau of Investigation. Those figures estimated that crypto-related fraud losses reached about $9 billion in 2024. Treasury used that number while discussing the financial crime risks associated with digital assets.
The report did not stop at AML measures. It also addressed cybersecurity issues connected to digital asset infrastructure, showing that the policy review now spans both illicit finance concerns and the resilience of underlying systems.
Federal cyber strategy now directly mentions crypto and blockchain
The report pointed to the updated U.S. national cybersecurity strategy released on March 6, described as the first federal cyber policy document to directly reference cryptocurrencies and blockchain technologies. The strategy places both within the national cyber defense framework and says federal agencies will support blockchain security while strengthening digital infrastructure and supply chains.
According to Thorn, earlier cybersecurity strategies had not directly named these technologies. He also said the language in the document could support enforcement actions aimed at crypto mixers and privacy tools.
Nic Carter separately highlighted references to post-quantum cryptography and zero-trust security models. The strategy also includes sections on artificial intelligence security and cybersecurity workforce development across federal systems.