The US Treasury Department is set to prioritize addressing the risks associated with cryptocurrencies and other emerging technologies through extensive regulatory measures in the coming months. The Treasury has identified digital assets as a critical area of focus in its 2024 National Strategy for Combating Terrorist and Other Illicit Financing report. The strategy aims to prevent the misuse of these technologies by illicit actors while promoting transparency and security in the financial system.

The report highlights the evolving threat landscape, noting the increasing use of cryptocurrencies and digital assets by criminal organizations for illicit activities such as money laundering, terrorist financing, and cybercrime. To address these challenges, the Treasury plans to introduce comprehensive regulations for digital assets and virtual asset service providers (VASPs), mandate anti-money laundering and countering the financing of terrorism (AML/CFT) programs for investment advisers, and increase transparency in non-financed real estate transactions.

The Treasury will also monitor and adjust regulations concerning emerging technologies like DeFi to prevent misuse by criminals. The strategy emphasizes improving the operational capabilities of law enforcement and government agencies through enhanced training and the adoption of advanced technologies such as AI and blockchain analytics. Public-private partnerships will be fostered to facilitate the sharing of crucial information on illicit activities.

International collaboration is highlighted as crucial in combating illicit finance, with the Treasury committed to working closely with global partners to strengthen AML/CFT standards and intelligence sharing to disrupt transnational criminal networks. The Treasury aims to support responsible technological advancements, advocating for secure digital identity solutions and encouraging innovation in AML/CFT compliance technologies within the private sector.

By tackling the risks associated with digital assets and fostering global cooperation, the Treasury aims to create a resilient environment that deters illicit activities while supporting legitimate financial innovation. The 2024 Strategy reaffirms the US government's commitment to maintaining a secure and transparent financial system.