Coinbase has urged the U.S. Treasury Department to upgrade its anti-money laundering (AML) systems by incorporating cutting-edge technologies like blockchain analytics, artificial intelligence, and API-driven solutions. The cryptocurrency exchange believes traditional systems are inadequate for combating sophisticated financial crimes in the crypto space. Paul Grewal, Coinbase’s chief legal officer, suggests that law enforcement agencies need to embrace advanced digital tools such as blockchain analytics and decentralized verification systems to effectively identify and prevent illegal activities. He also calls for regulatory clarity on AI and API use in AML monitoring, proposing a safe-harbor provision for firms deploying such technologies while ensuring proper governance standards. Coinbase emphasizes the importance of consistent regulations to facilitate interoperable data sharing across different platforms. Meanwhile, other industry experts like Faryar Shirzad, Coinbase’s policy chief, advocate for a similar technological approach in government oversight systems and encourage the adoption of advanced tools by financial institutions. Jim Harper from the American Enterprise Institute suggests a new communication system allowing law enforcement to directly query crypto companies, replacing traditional methods with enhanced targeting capabilities.