PANews reported on October 21st that Coinbase submitted a 30 -page opinion to the US Treasury Department, arguing that the Bank Secrecy Act (BSA) and related regulations are outdated, inefficient, and increase data exposure. The company proposed establishing a "safe harbor" for compliance tools that use AI and API monitoring, recognizing decentralized IDs and zero-knowledge proofs as customer verification methods, and promoting Know Your Transaction (KYT) on-chain analysis over traditional suspicious reporting. Coinbase also proposed strengthening public-private collaboration through a regulatory sandbox, with a results-oriented approach to reducing low-value reporting. This proposal contrasts with a recent Senate Democratic draft bill targeting DeFi , which has been criticized as "effectively banning" DeFi and wallet development.