The U.S. Treasury Department is exploring whether to include identity checks directly into decentralized finance (DeFi) smart contracts, a move critics warn could rewrite the fundamental foundation of permissionless finance, Internet reports. Mamadou Kwidjim Toure, CEO of Ubuntu Tribe, said the move, which seems to be "installing a camera in every living room", could ultimately hollow out the core of DeFi by turning a neutral, permission-free infrastructure into one that requires government-approved credentials to access. However, supporters believe that establishing Know Your Customer (KYC) and anti-money laundering (AML) checks in blockchain infrastructure can simplify compliance and keep criminals out.