Circle Internet Financial is actively contributing to the development of Web3 compliance and policy, with a focus on combating illicit financial activities through advanced blockchain technologies. Their efforts are detailed in the "State of the USDC Economy" report, which highlights the importance of robust compliance tools, such as improved identity verification standards, to enhance Know Your Customer (KYC), Know Your Business (KYB), and Anti-Money Laundering (AML) processes. Circle has developed the Travel Rule Universal Solution Technology (TRUST), which aids in tracing funds across borders without storing customer data centrally, thus minimizing the risk of misuse by bad actors. Additionally, Circle is involved in Verite, a set of open standards for verifying digital identities, which aims to streamline compliance processes and improve financial inclusion. These initiatives reflect Circle's commitment to making emerging financial technologies more secure and compliant, while also addressing challenges like OFAC sanctions on protocols such as Tornado Cash.