In a renewed call for innovation in financial regulation, Coinbase has urged the U.S. government to integrate artificial intelligence and blockchain technologies more systematically in efforts to combat cryptocurrency-related crime. The recommendation was outlined in the company’s recent policy proposal, detailed in an article titled “Coinbase Urges US to Use AI and Blockchain to Fight Crypto Crime,” published by Startup News FYI on October 21, 2025.
Coinbase, one of the largest cryptocurrency exchanges in the United States, argues that both AI and blockchain offer the analytical power and transparency necessary to deter illicit activities without stifling innovation in the crypto sector. The proposal comes amid growing scrutiny of the digital asset space and increased concerns over money laundering, fraud, and terrorist financing occurring via decentralized platforms.
According to the Startup News FYI report, Coinbase emphasizes that while regulators have taken steps to address crypto crime, outdated legacy systems and inconsistent oversight across agencies hinder effective enforcement. The company believes that AI can augment law enforcement capabilities by analyzing large volumes of blockchain transaction data with greater speed and accuracy. Simultaneously, blockchain itself—often misunderstood as opaque—could enhance accountability due to its immutable public ledger.
Coinbase’s proposal outlines several recommendations, including the development of cross-agency data-sharing standards, the implementation of AI-powered transaction monitoring tools, and the creation of a federally supported blockchain analytics platform accessible to both regulators and authorized private stakeholders. The company asserts that such a coordinated approach would improve detection of illicit networks and strengthen the broader financial ecosystem.
The appeal also touches on the importance of maintaining the United States’ leadership in fintech innovation. Company representatives warn that without forward-looking regulation and public-private cooperation, the U.S. risks falling behind jurisdictions that are both technologically agile and regulatory-savvy.
This policy initiative follows increased political attention to the risks and potential of digital currencies. In recent months, lawmakers have introduced bipartisan legislation aimed at regulating stablecoins and establishing clearer jurisdiction for federal agencies including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Coinbase contends that bolstering these efforts with modern technologies is necessary to stay ahead of increasingly sophisticated criminal tactics.
As the crypto landscape continues to evolve, Coinbase’s call underscores a broader tension faced by regulators worldwide: how to strike a balance between fostering innovation and mitigating systemic risk. The company’s recommendations may serve as a blueprint for policy frameworks aimed at aligning the interests of regulators, consumers, and the fast-growing digital finance industry.
