TechFlow, October 21 — According to Cointelegraph, cryptocurrency exchange Coinbase recently submitted a comment letter to the U.S. Department of the Treasury, urging the government to adopt blockchain analytics, artificial intelligence, and other modern technologies to combat financial crime in the crypto space. In a letter dated October 17, Chief Legal Officer Paul Grewal emphasized that as money laundering schemes grow increasingly sophisticated, law enforcement agencies require corresponding technological tools to respond effectively.
Coinbase recommended that the government grant regulatory exemptions under the Bank Secrecy Act for companies using AI and API monitoring tools, and issue guidance recognizing decentralized identity and zero-knowledge proofs as valid forms of customer verification. Meanwhile, Jim Harper, a senior fellow at the American Enterprise Institute think tank, proposed establishing a communication system enabling law enforcement agencies to directly query crypto firms for investigative information, aiming to reduce reliance on the current broad and costly financial surveillance infrastructure.
