The US Treasury has proposed a new framework for regulating digital assets, including stablecoins, in response to growing illicit activity in the cryptocurrency sector. The GENIUS Act report highlights the risks linked to digital assets, including the misuse of mixers, distributed ledgers, and DeFi. To combat these risks, the Treasury proposes AI-powered monitoring tools and real-time blockchain analytics to track transactions involving unhosted wallets and decentralized platforms.
The report also warns of rising cybercrime and state-backed threats, particularly from North Korea, which has stolen an estimated $2.8 billion in crypto over two years using advanced hacking and social engineering tactics. Online scams are expanding rapidly, with sanctioned entities moving around $104 billion through cryptocurrency in 2025, representing a massive 694% increase.
The proposed CLARITY Act aims to create clearer regulatory rules for digital assets rather than forcing crypto into traditional banking frameworks. Tighter oversight of stablecoin issuers and transaction flows is prioritized, as they account for about 84% of illicit crypto transaction volume in 2025.
To address these concerns, the Treasury’s proposal includes stronger monitoring tools, real-time blockchain analytics, and stricter compliance requirements for major stablecoin issuers, treating them like regulated financial institutions. The need for tighter oversight is emphasized by the growing scale of cybercrime and state-backed activity in the crypto sector.
Source: https://ambcrypto.com/north-korea-steals-2-8b-in-2-years-heres-what-u-s-treasury-wants-to-do