the CODE Act of 2025

HR 4394, the CODE Act of 2025, establishes a 18-month public-private partnership program to help decentralized finance (DeFi) services comply with existing anti-money laundering and cybersecurity requirements under the Bank Secrecy Act. The program, to be created within six months of enactment, requires DeFi platforms (like crypto trading or lending services) to integrate anti-money laundering checks, identity verification, and security controls into their smart contract code before deployment. It also mandates FinCEN to publish a compliance advisory within 18 months and requires the Treasury to issue rules defining DeFi services and requiring risk-based compliance programs within 30 months. The bill directly affects digital asset platforms operating on public blockchains, aiming to standardize security practices without creating new regulatory standards.