Coinbase Exchange Pushes U.S. to Use AI Against Crypto Crime

Coinbase Exchange has asked the U.S. government to use blockchain analytics and artificial intelligence (AI) to fight money laundering, reports Cointelegraph. In a public letter to the U.S. Department of the Treasury, Coinbase’s Chief Legal Officer, Paul Grewal, said that financial crimes in crypto are becoming more complex. He urged the government to adopt modern tools to track and stop these activities. 

🇺🇸 NEW: Coinbase urges US government to embrace blockchain analytics and AI to fight increasingly sophisticated money laundering schemes. pic.twitter.com/MLUKPFWzjy

— Cointelegraph (@Cointelegraph) October 21, 2025

Modern Tools Needed for Modern Crimes

According to Coinbase, traditional anti-money laundering methods are not enough anymore. Criminals are using digital assets in more complicated ways. Therefore, blockchain analytics and AI can help detect suspicious transactions faster and more accurately.

Grewal explained that using these technologies would allow regulators and companies to work together. It could also reduce mistakes and make investigations faster. He added that the U.S. Treasury should encourage companies to use these tools safely.

Clear Rules Could Encourage Innovation

Coinbase also called for clearer rules from the government. Grewal suggested creating safe-harbor provisions under the Bank Secrecy Act. This would let companies adopt AI and analytics without fearing penalties.

He said rules should focus on results, not strict rules. This approach would give businesses more freedom to experiment. It could also help prevent delays in catching financial crimes.

Experts Stress Technology and Cooperation

Coinbase’s Chief Policy Officer, Faryar Shirzad, supported this idea. He said that using AI, blockchain analytics, APIs and digital identity tools can make anti-money laundering efforts stronger. He also added that combining technology with cooperation between regulators and companies is essential. Otherwise, criminals may stay one step ahead.

Updating Guidance for the Crypto Space

In addition, Coinbase recommended updating government guidance on digital identities. For example, zero-knowledge proofs could allow users to verify themselves without sharing all personal data.

The company also asked the Treasury to make it easier to share information about suspicious activity. At the same time, it warned that too many recordkeeping rules could be too much for blockchain companies.

Crypto Safety with AI

The push from Coinbase Exchange shows how fast the crypto world is changing. Regulators need to keep up to prevent the misuse of digital assets. By adopting AI and analytics, the government could reduce crime and keep users safe

Furthermore, clear guidance could encourage more innovation. Companies would feel safer to build new tools and services. This balance between safety and innovation is key to the crypto industry’s growth.

What the Treasury Might Do

It is not yet clear how the Treasury will respond. However, Coinbase’s letter has started a public discussion about modernizing anti-money laundering rules.

The outcome could shape the future of crypto regulation. It might also influence how companies use AI and blockchain analytics. In the end, this could make digital finance safer and more efficient for everyone.