Coinbase's General Counsel Suggests Using Blockchain to Combat Financial Crimes
Date: 2025-10-21 Author: Gabriel Deangelo Categories: BLOCKCHAIN, BUSINESS
Coinbase General Counsel Paul Grewal sent a letter to the US Treasury Department, noting that criminal schemes are becoming increasingly sophisticated thanks to modern digital technologies. He believes that effectively combating financial abuse requires using the same tools used by criminals, including blockchain.
Grewal emphasized that distributed ledgers can become an important element in detecting illicit financial transactions. He noted that integrating blockchain into government processes will help achieve the goals of the Anti-Money Laundering Act of 2020 and enhance the provisions of the Bank Secrecy Act.
Coinbase Chief Policy Officer Faryar Shirzad supported Grewal's position. He noted that the US government should learn from the experience of cryptocurrency exchanges, which actively combat attempts to launder illicitly obtained funds through their platforms. According to Shirzad, an effective strategy to combat financial crime should include the use of proven digital tools: artificial intelligence, APIs, digital identifiers, and blockchain.
At the same time, Grewal noted that many companies are hesitant to actively implement innovative technologies due to legal uncertainty. He pointed out that the US lacks uniform standards for APIs, as well as clear regulations governing the use of AI and digital identifiers in the financial sector. He believes that lawmakers should develop uniform rules that ensure data privacy and allow businesses to securely integrate digital tools into their systems.
Grewal also proposed that the Treasury Department issue formal guidelines that would allow the use of decentralized identifiers and zero-knowledge proofs of data for customer verification. This, he said, will help companies comply with legal requirements without compromising user privacy.
Gruel has previously advocated for uniform regulation of the crypto industry at the state level across all US states. He noted that differences in laws hinder market development and create obstacles for companies operating in multiple jurisdictions. The lawyer emphasized that a coordinated legal framework will help strengthen trust in digital assets and improve the effectiveness of the fight against crime in the financial sector.
