In brief
- Coinbase says U.S. AML laws are “broken” and wants Treasury to adopt AI, APIs, and zero-knowledge proofs to modernize compliance.
- The exchange proposes safe harbors for AI use and recognition of decentralized IDs to reduce costly, privacy-risky KYC duplication.
- Coin Center warns traditional AML on stablecoins could create a “CBDC-style panopticon” as Treasury reviews responses for new guidance.
Coinbase has urged the U.S. Treasury Department to scrap decades-old anti-money-laundering rules, calling them obsolete, and to adopt AI and zero-knowledge proofs to fight financial crime in digital assets.
The crypto exchange sent a letter to the Treasury on Friday, responding to the agency’s request for comment on innovative…
