Coinbase's Chief Legal Officer, Paul Grewal, announced that the company has submitted a response to the U.S. Treasury's request for comments on innovative methods to identify illegal activities involving digital assets. Coinbase proposed four key reforms: establishing a regulatory safe harbor under the Bank Secrecy Act for anti-money laundering (AML) practices using AI, focusing on governance and outcomes rather than a uniform approach; issuing regulatory guidance for API-driven AML technologies, clarifying application scenarios, privacy requirements, and interoperability standards; revising customer identification rules to include decentralized identity and zero-knowledge proofs; and formally recognizing and encouraging the use of transaction screening and on-chain clustering analysis as AML tools.