The U.S. is tightening its oversight of decentralized finance (DeFi) and non-fungible tokens (NFTs), focusing on anti-money laundering (AML) and combating the financing of terrorism (CFT). Proposed measures, like mandatory KYC and transaction monitoring, aim to curb illicit activities. However, strict regulations may stifle innovation, pushing startups to crypto-friendly regions like Singapore or Switzerland. Striking a balance between security and flexibility is crucial for maintaining U.S. com