[Coinbase Suggests U.S. Treasury Optimize Anti-Money Laundering Rules Through Technological Innovation] Coinbase has submitted a 30-page opinion letter to the U.S. Treasury, highlighting outdated and inefficient issues within the Bank Secrecy Act (BSA) and related regulations, which also increase the risk of data breaches. The company recommends establishing a 'safe harbor' for AI- and API-based compliance monitoring tools, while recognizing decentralized IDs and zero-knowledge proofs as innovative methods for customer verification. Additionally, it advocates for promoting on-chain analysis methods like 'Know Your Transaction' (KYT) to replace traditional suspicious activity reports. Coinbase also proposes strengthening public-private sector collaboration through regulatory sandbox mechanisms, focusing on practical outcomes, and reducing the submission of low-value reports. This proposal stands in stark contrast to the recent DeFi regulatory draft introduced by Senate Democrats, which has been criticized for potentially 'effectively banning' DeFi and wallet development.

[11th U.S. Senate Appropriations Bill Vote Fails, Government Shutdown Continues] On October 20, the U.S. Senate held its 11th vote on the government appropriations bill, failing to reach the 60-vote threshold required for passage, with the result being 50 votes in favor and 43 against. The U.S. government shutdown, which began on October 1, continues, and the bill was originally intended to extend government funding until November 21.

[Probability of the Federal Reserve Cutting Rates by 25 Basis Points in October Reaches 99.4%] CME data shows that the probability of the Federal Reserve cutting rates by 25 basis points in October is 99.4%, while the probability of maintaining rates unchanged is 0.6%. Additionally, the probability of a cumulative rate cut of 50 basis points by December is 98.6%, and the probability of a cumulative rate cut of 75 basis points is 0.9%.

[Coinbase Proposes Using AI and Blockchain to Reform Anti-Money Laundering Rules for the U.S. Treasury] Coinbase has called on the U.S. Treasury to update anti-money laundering regulations based on the 1970 Bank Secrecy Act, proposing the use of AI and blockchain technology to enhance compliance efficiency. Chief Legal Officer Paul Grewal stated that innovation is a necessary tool to combat crime. The company suggests introducing regulatory 'safe harbors,' recognizing decentralized identity and zero-knowledge proof verification methods, and promoting regulatory sandboxes to test new compliance models. This proposal stands in stark contrast to the Senate's recent strict regulatory proposals for DeFi.

[U.S. Bank Reserve Ratio Drops Below Critical Level of 13%] The reserve ratio of U.S. banks as a percentage of bank assets has dropped below 13%. New York Fed President Williams previously regarded this level as the critical point for reserves being 'adequate.' This change is related to the U.S. Treasury rebuilding its cash balance.