Confidential Trump Crypto Strategy Unveiled: Could DeFi ID’s Signal the Demise of Liberty in the U.S.?
The concealed crypto strategy of Trump is at last being revealed. Did you think Teflon Don was merely a kind-hearted advocate for digital currencies? What a joke.
Washington is venturing into a new realm of digital currency compliance. As part of the GENIUS Act, which was passed in July, the Treasury is examining whether DeFi protocols ought to incorporate identity verification mechanisms at the self-executing contract level. This tactic is promoted as a defense against illegal finance but criticized by opponents as an attack on the principles of permissionless code.
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Within this structure, Decentralized finance protocols may be mandated to confirm a user’s government-issued ID, biometric data, or digital wallet certificate before processing transactions. This would essentially encode Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations directly into DeFi.
“Real-time surveillance for suspicious transactions can facilitate platforms in minimizing risk, identifying, and ultimately stopping money launderers from exploiting their systems,” stated Fraser Mitchell, Chief Product Officer at AML service provider SmartSearch.
Opponents express concern about the contrary result: “In theory, it seems like a neat crypto law shortcut. However, it converts a neutral, permissionless infrastructure into one where access is gated by government-sanctioned identity documentation,” remarked Mamadou Kwidjim Toure, CEO of Ubuntu Tribe.
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Are Trump’s Crypto ID Initiatives Aimed at Privacy or Compliance?
Currently, advocates argue that this could legitimize DeFi and encourage greater institutional participation. Detractors counter that embedding IDs directly in wallets could eliminate pseudonymity, enable government surveillance, and even set the stage for automated tax collection. Two words: Not good.
Another apprehension is about those who might be excluded. Approximately one billion individuals worldwide still lack formal identification. Migrants, refugees, and the unbanked are particularly vulnerable.
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What Lies Ahead for ID Checks in US Crypto?
As per recent Decentralized finance Llama statistics, the total value locked (TVL) in DeFi is around $95 billion, with lending protocols such as Aave and MakerDAO still dominating the flows.
Introducing identity checks could fundamentally change these flows. Compliance-driven protocols may witness a rise in institutional deposits, while “pure” permissionless platforms could experience liquidity wrecked if users reject surveillance.
For now, the discourse emphasizes a broader question: is Decentralized finance intended to be a regulated extension of traditional finance, or an independent system grounded in privacy and autonomy?
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Key Takeaways
- The concealed crypto strategy of Trump is at last being revealed. Did you think Teflon Don was merely a kind-hearted advocate for digital currencies? What a joke.
- As per recent Decentralized finance Llama statistics, the total value locked (TVL) in DeFi is around $95 billion.
The post Secret Trump Crypto Plan Exposed: Are DeFi ID’s the End of Freedom in America appeared first on 99Bitcoins.
