U.S. prosecutors are intensifying regulatory pressure on the crypto sector, citing massive proceeds flowing through unlicensed digital asset operations. According to recent statements, approximately $51 billion in illicit transactions—sourced from firearms trafficking, narcotics, fraud schemes, and terrorism financing—are being laundered through unregulated cryptocurrency channels. The push is now toward comprehensive legislative action, with proposals to mandate licensing requirements for all crypto service providers. Key enforcement measures include mandatory Know Your Customer (KYC) protocols and strict criminal liability for operators of unlicensed kiosks and ATM services in the space. This regulatory shift reflects growing concerns about how crypto infrastructure has become a conduit for financial crimes. The proposed framework aims to close loopholes that currently allow bad actors to operate outside traditional anti-money laundering oversight. For the industry, stricter compliance demands could reshape business models, particularly affecting retail-facing services and non-custodial platforms operating in jurisdictions where licensing frameworks remain undefined.