The U.S. Division of the Treasury has launched a report back to Congress analyzing modern applied sciences similar to synthetic intelligence (AI), cryptocurrency community evaluation or blockchain, utility programming interfaces (APIs), and digital identification instruments to detect and mitigate criminality in the usage of digital property.
This report is a results of the strict mandate of the GENIUS Act signed by President Trump on July 18, 2025. To arrange the report, Treasury analyzed greater than 220 testimonies from blockchain intelligence corporations and banking associations following a public session that concluded in October final 12 months.
The first goal is to offer monetary establishments with a extra subtle technique to determine cash laundering and terrorist financing in an more and more advanced digital asset atmosphere.
This research quantifies the risk that has dramatically escalated. Funding fraud, referred to as so-called “pig slaughter,” drained $5.8 billion in 2024, marking a 47% enhance from the earlier 12 months.
On the identical time, U.S. nationwide safety is being compromised by risk actors linked to North Korea, who dedicated $2.8 billion theft between January 2024 and September 2025, together with a significant $1.5 billion assault in February of this 12 months.
These felony networks are utilizing crypto mixers to launder cash, and this tactic can also be being adopted by questionable nations. The Treasury Division cited particular examples of Russia and Iran utilizing stablecoins backed by the ruble or tied to grease gross sales to keep away from being surrounded by worldwide sanctions.
AI instruments may also be used for entity decision utilizing graph evaluation that maps connections between wallets, change platforms, and actors exterior to the blockchain. This evaluation can uncover advanced exercise on multi-jurisdictional networks that will evade detection by conventional rules-based methods that depend on extra stringent heuristics to detect fraud.
US Treasury report
The utility of those applied sciences permits them to course of massive quantities of knowledge in actual time and detect hidden patterns similar to jumps between completely different blockchains or fragmentation of deposits. In response to the Treasury Division, APIs and AI will help within the creation of suspicious exercise reviews (SARs) to resolve the identities behind teams of beforehand nameless digital wallets.
however, Ministry of Finance Additionally determine dangers. It’s because unlawful actors can use generated AI to create deepfakes and superior phishing. In reality, as CriptoNoticias reviews, there may be already proof of AI-powered fraud.
In any case, there are different obstacles to utilizing AI to stop crimes utilizing cryptocurrencies. Implementation challenges embody the truth that small establishments specifically face excessive implementation prices, information high quality points, mannequin bias, opacity, and even a scarcity of regulatory readability.
For now, Ministry of Finance proposes tips for public-private collaboration and accountable use Consider the NIST AI Danger Administration Framework, a voluntary information developed by the Nationwide Institute of Requirements and Expertise, an company of the U.S. Division of Commerce.
In the end, the Treasury Division has indicated that it’s going to take concrete steps beginning in 2026 to assist monetary establishments’ use of modern instruments, applied sciences, and techniques to fight illicit finance associated to Bitcoin and different digital property.
We conclude that these improvements are important to sustaining U.S. monetary management and enabling the legit progress of the digital asset sector whereas successfully deterring organized crime.
