> This report recognizes, however, that illicit activity is a subset of overall activity within the DeFi space and, at present, the DeFi space remains a minor p

> This report recognizes, however, that illicit activity is a subset of overall activity within the DeFi space and, at present, the DeFi space remains a minor portion of the overall virtual asset ecosystem. Moreover, money laundering, proliferation financing, and terrorist financing most commonly occur using fiat currency or other traditional assets as opposed to virtual assets. > Treasury has identified the following areas for further work to address these risks. > Strengthen U.S. AML/CFT Supervision of Virtual Asset Activities ... > Assess Possible Enhancements to the U.S. AML/CFT Regulatory Regime as Applied to DeFi Services ... > Continue Research, Private Sector Engagement to Support Understanding of Developments in DeFi Ecosystem ... > Continue to Engage with Foreign Partners ... > Advocate for Cyber Resilience in Virtual Asset Firms, Testing of Code, and Robust Threat Information Sharing ... > Promote Responsible Innovation of Mitigation Measures ...