Article Summary

**Coinbase CLO Urges Treasury to Leverage AI and Blockchain for Enhanced AML Compliance** Coinbase Chief Legal Officer Paul Grewal publicly called on the U.S. Treasury Department to modernize anti-money laundering (AML) frameworks by embracing artificial intelligence and blockchain technology. In an October 20, 2025 post on X (formerly Twitter), Grewal advocated for utilizing blockchain's inherent transparency to combat cryptocurrency-related financial crimes more effectively. The Coinbase executive's recommendation highlights the growing intersection between traditional financial regulation and innovative crypto technologies. Grewal emphasized that blockchain's immutable ledger system provides unprecedented transaction visibility, making it a powerful tool for detecting suspicious activities across Bitcoin, Ethereum, and other digital assets. This development comes as regulatory agencies worldwide grapple with balancing cryptocurrency innovation and financial security. The proposal could significantly impact the DeFi ecosystem, potentially streamlining compliance processes while maintaining robust anti-money laundering protections. As institutional adoption of digital assets accelerates, integrating AI-powered blockchain analysis tools could revolutionize how financial institutions monitor cryptocurrency transactions, potentially reducing regulatory friction while enhancing security measures across the broader crypto market landscape.