US Treasury Department has unveiled its National Strategy for Combatting Terrorist and Other Illicit Financing, which could impact virtual assets. The strategy aims to address regulatory gaps in Anti-Money Laundering and Countering the Financing of Terrorism, increase enforcement, and create a more effective supervisory framework. It also plans to harness technology to mitigate illicit finance risks, with a focus on blockchain technology. The strategy recommends increasing inclusivity in the financial system and combating derisking, a practice that encourages the use of crypto-based payment solutions. AI and digital identity are seen as key to the strategy's success.