Coinbase calls on the U.S. Treasury to reform anti-money laundering rules with AI and blockchain innovation

ChainCatcher news, Coinbase urges the U.S. Treasury to update outdated anti-money laundering regulations centered around the 1970 Bank Secrecy Act, advocating for enhanced compliance efficiency through technological innovations such as AI and blockchain analysis. Chief Legal Officer Paul Grewal stated, "Bad actors will innovate, and good actors must innovate as well."

The company suggests establishing a regulatory "safe harbor," recognizing new customer verification methods such as decentralized identity and zero-knowledge proofs, and promoting regulatory sandboxes to test new compliance models. This move contrasts with the recent strict regulatory proposals targeting decentralized finance (DeFi) in the Senate, as Coinbase emphasizes collaborative innovation over strengthened enforcement.