Coinbase has submitted a formal proposal to the U.S. Treasury, initiating a critical discourse on the modernization of the nation’s anti-money laundering (AML) apparatus. The core of the proposal is the systemic integration of contemporary technologies to upgrade a compliance framework originally designed for an analog banking era. This represents a foundational shift from static, process-based reporting to a dynamic, outcome-oriented security posture. The proposed architecture utilizes blockchain analytics and artificial intelligence as primary modules for identifying and neutralizing illicit financial flows with greater precision.
By advocating for regulatory safe harbors, the system encourages innovation, allowing for the controlled deployment of new compliance tools. The immediate consequence is the establishment of a pathway toward a more efficient, secure, and technologically coherent financial ecosystem.
The proposal outlines an architectural evolution of the U.S. AML framework, upgrading its core operating system with blockchain-native tools to enhance threat detection and reduce systemic vulnerabilities.
- Governing Legislation ▴ Bank Secrecy Act (BSA) of 1970
- Primary Actor ▴ Paul Grewal, Coinbase Chief Legal Officer
- Proposed Technologies ▴ AI, Zero-Knowledge Proofs, Decentralized IDs, Blockchain Analytics
Signal Acquired from ▴ CryptoNews
