[Coinbase Suggests U.S. Treasury Optimize Anti-Money Laundering Rules Through Technological Innovation] Coinbase has submitted a 30-page opinion letter to the U.S. Treasury, highlighting outdated and inefficient issues within the Bank Secrecy Act (BSA) and related regulations, which also increase the risk of data breaches. The company recommends establishing a 'safe harbor' for AI- and API-based compliance monitoring tools, while recognizing decentralized IDs and zero-knowledge proofs as innovative methods for customer verification. Additionally, it advocates for promoting on-chain analysis methods like 'Know Your Transaction' (KYT) to replace traditional suspicious activity reports. Coinbase also proposes strengthening public-private sector collaboration through regulatory sandbox mechanisms, focusing on practical outcomes, and reducing the submission of low-value reports. This proposal stands in stark contrast to the recent DeFi regulatory draft introduced by Senate Democrats, which has been criticized for potentially 'effectively banning' DeFi and wallet development.