Overview
- The exchange filed a detailed response urging safe-harbors for responsible AI use under the Bank Secrecy Act, emphasizing governance, human oversight and measurable outcomes.
- Coinbase asked for explicit guidance on API-driven compliance, including recognition of know-your-transaction screening and blockchain analytics clustering as effective monitoring methods.
- The company urged updates to customer-identification rules to accept decentralized identifiers and zero-knowledge proofs as valid verification mechanisms.
- The filing called for regulatory sandboxes and an outcome-based approach so firms can test advanced tools before formal rule changes.
- Privacy advocates flagged surveillance risks, with Coin Center warning that applying traditional controls to public-chain stablecoins could create a “CBDC-style panopticon,” and Treasury has not announced any policy changes.