Coinbase calls on the U.S. Treasury Department to restructure anti-money laundering rules with technological innovation and promote "safe harbors" for AI and blockchain analysis.

The 30-page opinion claims the Bank Secrecy Act (BSA) and related regulations are outdated, inefficient, and increase data exposure. The company recommends establishing a "safe harbor" for compliance tools that use AI and API monitoring, recognizing decentralized IDs and zero-knowledge proofs as customer verification methods, and promoting "know your transaction" (KYT) on-chain analysis over traditional suspicious reporting. Coinbase also proposed strengthening public-private collaboration through a regulatory sandbox and reducing low-value reporting through a results-oriented approach.