Coinbase Warns US AML Framework Is “Broken,” Calls for Tech-Driven Overhaul

Coinbase is urging the U.S. Treasury to modernize antiquated anti-money-laundering rules. Arguing that current regulations are outdated and ineffective in the digital age.

The exchange calls for the adoption of advanced tools such as artificial intelligence, blockchain analytics, APIs, and zero-knowledge proofs to better detect illicit activity in crypto.

In a formal response to the Treasury’s request for input, Coinbase outlined how existing systems are based on paper-book processes designed for a slower, analog financial world. It highlighted the high costs and entry barriers posed by these rules. Especially for fintechs—and proposed regulatory safe harbors for firms deploying tech-based compliance measures. The company also emphasized that over 25 million suspicious activity reports are submitted annually with minimal follow-up. Underscoring the need for smarter, more efficient mechanisms.

Clever Robot News Desk 22^th October 2025