Coinbase has submitted a 30-page proposal to the U.S. Department of the Treasury, calling for a significant overhaul of anti-money laundering (AML) rules. The company argues that current regulations, like the Bank Secrecy Act, are outdated and ill-suited for digital assets, leading to inefficiencies and increased data exposure. Key proposals include establishing a "safe harbor" for compliance tools that utilize AI and on-chain analytics, as well as recognizing decentralized IDs and zero-knowledge proofs for customer verification. Coinbase also advocated for strengthening public-private collaboration through a regulatory sandbox to reduce low-value, burdensome reporting. This initiative represents a major push by the exchange to shape a more favorable and technologically adept regulatory environment in the United States.