According to @provenauthority, the U.S. Treasury has posed public comment questions on identity verification and the privacy–security balance, and the author recommends using zero-knowledge proofs (ZKPs) and decentralized identifiers (DIDs) to enable selective disclosure and real-time attestations without duplicating data (source: @provenauthority on X, Aug 22, 2025). For traders, this highlights regulatory attention to privacy-preserving KYC and compliance tooling that directly affects exchange onboarding, DeFi access controls, and wallet verification flows (source: @provenauthority on X, Aug 22, 2025). Monitoring policy discussions around ZKPs and DIDs can inform positioning in identity infrastructure and on-chain attestation segments used by crypto market participants (source: @provenauthority on X, Aug 22, 2025).