According to Odaily Planet Daily, Coinbase is urging the US Treasury to update outdated anti-money laundering regulations centered around the 1970 Bank Secrecy Act, advocating for improved compliance efficiency through technological innovations such as AI and blockchain analysis. Chief Legal Officer Paul Grewal stated, "Bad actors innovate, and good actors must innovate too." The company recommends establishing regulatory "safe harbors," recognizing new customer verification methods such as decentralized identity and zero-knowledge proofs, and promoting a regulatory sandbox to test new compliance models. This move contrasts with the Senate's recent proposal for stricter regulation of decentralized finance (DeFi), as Coinbase emphasizes innovation and collaboration over increased enforcement.