The White House's Working Group on Digital Asset Markets is calling for the broader adoption of digital identity in the US, framing it as a crucial step toward President Donald Trump's vision of making the country the "crypto capital of the world," reports Biometric Update.
In its report, Strengthening American Leadership in Digital Financial Technology, the group identifies digital identity providers as key infrastructure for cryptocurrency, highlighting their role in security and fraud prevention. The report urges Congress to expand the CFTC's oversight, encourage decentralized finance, and codify the ban on central bank digital currencies, while advocating for dollar-backed stablecoins to modernize payments. On illicit finance, it downplays cryptos risks, citing estimates that less than 1% of 2023's onchain volume was illicit, and calls for private-sector collaboration and tools like the Illicit Virtual Asset Notification system. It also points to mobile driver's licenses and zero-knowledge proofs as building blocks for a future federal digital identity strategy to enhance both privacy and compliance.
In its report, Strengthening American Leadership in Digital Financial Technology, the group identifies digital identity providers as key infrastructure for cryptocurrency, highlighting their role in security and fraud prevention. The report urges Congress to expand the CFTC's oversight, encourage decentralized finance, and codify the ban on central bank digital currencies, while advocating for dollar-backed stablecoins to modernize payments. On illicit finance, it downplays cryptos risks, citing estimates that less than 1% of 2023's onchain volume was illicit, and calls for private-sector collaboration and tools like the Illicit Virtual Asset Notification system. It also points to mobile driver's licenses and zero-knowledge proofs as building blocks for a future federal digital identity strategy to enhance both privacy and compliance.
