A lot of you have asked me this week
"Evin, what's the deal with the US Treasury's latest move to embed identity verification into stablecoin and DeFi protocols?"
I have a lot of thoughts. Most of them optimistic.
Let me explain.
"Evin, what's the deal with the US Treasury's latest move to embed identity verification into stablecoin and DeFi protocols?"
I have a lot of thoughts. Most of them optimistic.
Let me explain.
2/ So what's happening?
The Treasury’s announcement lays out a clear intention to modernize identity verification for defi, namely for stablecoins and payments
The RFI signals the Treasury's intent to modernize identity as critical national infrastructure
About damn time
home.treasury.gov/news/press-rel…
The Treasury’s announcement lays out a clear intention to modernize identity verification for defi, namely for stablecoins and payments
The RFI signals the Treasury's intent to modernize identity as critical national infrastructure
About damn time
home.treasury.gov/news/press-rel…
2/ Right now, the US lacks cohesive, privacy-preserving, scalable digital ID infra
Instead we have a state-by-state hot mess
This gap exposes the financial system to fraud, exclusion and risk
Instead we have a state-by-state hot mess
This gap exposes the financial system to fraud, exclusion and risk
3/ Stablecoins are hitting scale
Digital dollars operate outside traditional bank rails, yet Treasury is clear: ID obligations don't disappear in decentralized systems
Expect increased alignment between digital asset regulation and ID verification standards
Digital dollars operate outside traditional bank rails, yet Treasury is clear: ID obligations don't disappear in decentralized systems
Expect increased alignment between digital asset regulation and ID verification standards
4/ So what tech should be included in this review?
Decentralized Identifiers (DIDs)
Verifiable Credentials (W3C standard)
Zero Knowledge Proofs
Verification without central data custody
That's the tweet
Decentralized Identifiers (DIDs)
Verifiable Credentials (W3C standard)
Zero Knowledge Proofs
Verification without central data custody
That's the tweet
5/ Decentralized ID can be a regulatory AND privacy win here
Minimizes data exposure > reduces risk of breaches
User-controlled credentials > supports privacy and portability
Auditable verification logic > supports compliance w/o overreach
Scalable with automation > reduces reliance on manual KYC
Minimizes data exposure > reduces risk of breaches
User-controlled credentials > supports privacy and portability
Auditable verification logic > supports compliance w/o overreach
Scalable with automation > reduces reliance on manual KYC
6/ Key considerations for Treasury here:
Verifiability w/o overreach: Prove what’s needed (e.g. age, jurisdiction) w/o full exposure of underlying data
Inclusion by design
Interop: Avoid more vertical silos. ID should be portable across apps, chains, and jurisdictions.
Revocation & expiry: Verifiable data that supports credential lifecycle management
Verifiability w/o overreach: Prove what’s needed (e.g. age, jurisdiction) w/o full exposure of underlying data
Inclusion by design
Interop: Avoid more vertical silos. ID should be portable across apps, chains, and jurisdictions.
Revocation & expiry: Verifiable data that supports credential lifecycle management
7/ Treasury posed public comment questions. Here’s how I'll probably respond:
Q: What innovations could improve ID verification?
A: Use ZKPs and DIDs to enable selective disclosure + realtime attestations w/o duplicating data
Q: How to balance privacy and security?
A: Prioritize technical architectures that separate authentication from data custody: verifiable claims, not raw PII
Q: Government vs private sector roles?
A: The state can issue root attestations (e.g. passport, SSN), but infra must remain open, composable, governed by public standards (e.g. W3C, DIF)
Q: What innovations could improve ID verification?
A: Use ZKPs and DIDs to enable selective disclosure + realtime attestations w/o duplicating data
Q: How to balance privacy and security?
A: Prioritize technical architectures that separate authentication from data custody: verifiable claims, not raw PII
Q: Government vs private sector roles?
A: The state can issue root attestations (e.g. passport, SSN), but infra must remain open, composable, governed by public standards (e.g. W3C, DIF)
8/ Why it matters
What TCP/IP did for packets, modular, privacy-preserving ID can do for internet capital markets
This RFI is about architecting trust infra for
Open finance
the personalized internet
stablecoins
big system design energy, not just compliance
What TCP/IP did for packets, modular, privacy-preserving ID can do for internet capital markets
This RFI is about architecting trust infra for
Open finance
the personalized internet
stablecoins
big system design energy, not just compliance
9/ @billions_ntwk cares because
we’re building the identity rails that this future requires
reusable, verifiable ID infra
zk attestations
interoperable ID layers for users, agents, and the apps they use
consent-first, custody-light architecture
We believe identity should be portable, provable, and private
we’re building the identity rails that this future requires
reusable, verifiable ID infra
zk attestations
interoperable ID layers for users, agents, and the apps they use
consent-first, custody-light architecture
We believe identity should be portable, provable, and private
11/ Identity is critical national infrastructure.
The US has an opportunity to lead with digital ID infra that is secure, private, pro-business and net positive for the internet as a whole
Bullish Treasury, don't f*ck this up guys
The US has an opportunity to lead with digital ID infra that is secure, private, pro-business and net positive for the internet as a whole
Bullish Treasury, don't f*ck this up guys
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