Since its inception a little over a decade ago, cryptocurrency has been linked to illicit activity. Early on it was the currency of choice for criminals on the Dark Web. Nowadays, as cryptocurrency adoption has grown at an exceedingly rapid pace, illicit activity is no longer the raison d'être for this kind of currency. However, illicit actors abusing the decentralized nature of cryptocurrency remains one of the biggest threats to the ecosystem. This white paper provides an overview of current illicit activity in the digital asset space, and how different players within the U.S. industry are detecting, deterring, and preventing such use of cryptocurrencies. Businesses, law enforcement, and regulators all have a part to play in securitizing the digital asset ecosystem against illicit activity, thus understanding each of their current roles and activities in the space is essential for ensuring the potential for further profitability and innovation. Based on 60 interviews with individuals working in different areas of the digital asset industry—corroborated by extensive literature reviews—the team analyzed the challenges the industry is facing, and how the relevant stakeholders are responding to those challenges. Finally, the report presents multiple recommendations for all the stakeholders involved.