The CODE Act directs the Treasury Department to establish a public-private partnership program within six months to develop technological solutions for preventing money laundering and other illegal activity in decentralized finance services. The program will bring together government agencies, cryptocurrency companies, and compliance experts to test ways of building anti-money laundering, identity verification, and cybersecurity controls directly into blockchain applications before they launch. The legislation also requires the Treasury Department to publish compliance guidance within 18 months and issue new regulations within 30 months that formally define decentralized finance services and require them to implement anti-money laundering and sanctions compliance programs under existing Bank Secrecy Act rules. The partnership program itself will sunset after 18 months, though the resulting regulations will continue afterward.
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