The U.S. Treasury Department recommends establishing a "frozen safe harbor" mechanism for digital assets, allowing institutions to temporarily freeze suspicious funds

According to Alex Thorn, head of research at Galaxy Research, the U.S. Treasury submitted a report to Congress under the GENIUS Act, recommending that DeFi should explicitly bear anti-money laundering and counter-terrorism financing (AML/CFT) obligations, and consider establishing a "hold law" safe harbor mechanism for digital assets, allowing institutions to temporarily freeze assets during investigations of suspicious transactions without a court order.

The report also revealed that the scale of crypto crime continues to grow, with losses from crypto scams recorded by the FBI reaching $9 billion in 2024.