On October 21, 2025, Coinbase urged the U.S. Treasury to overhaul its anti-money laundering (AML) rules for cryptocurrencies, labeling them “broken” and ineffective for the digital asset era, per BitcoinInfoNews.Com and. In a letter to the Financial Crimes Enforcement Network (FinCEN), Coinbase and Strategy Incorporated advocate for AI-driven compliance tools, blockchain analytics, and zero-knowledge proofs to combat crypto crime more efficiently, per. CEO Brian Armstrong emphasized excluding unrealized crypto gains and losses from CAMT (Crypto-Asset Reporting Framework) calculations, citing constitutional issues and innovation risks.
Coinbase highlights how current AML rules, designed for traditional finance, fail to leverage blockchain transparency, leading to outdated compliance burdens, per. The proposal includes:
This push aligns with SEC and FinCEN efforts to adapt rules, per. X posts from @WebWeaversHub and @LiveNewsCrypto echo the call for an “upgrade” to fight crime without stifling growth.
The reforms could ease compliance costs for all Coinbase-supported assets, including BTC and ETH, enhancing enforcement via blockchain’s immutable ledger, per. Mark Cuban supported similar ideas, noting crypto’s traceability surpasses cash, per. However, no immediate changes are expected, with Treasury review ongoing, per. BTC ($113,234) and ETH ($4,070) dipped slightly post-announcement, but long-term clarity could boost adoption, per CoinMarketCap. Risks include delayed implementation amid regulatory turf wars.
Coinbase’s advocacy mirrors calls from SEC Chair Paul Atkins for innovation-friendly rules, per. Crypto industry groups like Chamber of Digital Commerce back tech-forward AML, per. Potential outcomes: $1T in new institutional capital by 2026, per CoinShares. Investors should monitor FinCEN updates at fincen.gov and diversify into USDC or ETH with stop-losses below BTC’s $112,000, per TradingView. Follow @TheBlock__ on X for developments. This could redefine U.S. crypto leadership.
