According to the source, Coinbase told the U.S. Treasury that legacy AML rules are broken and advocated technology-based solutions to combat crypto crime (source: Coinbase communication to the U.S. Treasury as reported by the source). The policy push focuses on modernizing compliance with tools like blockchain analytics and on-chain identity, which directly affect exchange screening, liquidity flows, and compliance workflows relevant to traders (source: Coinbase position as reported by the source). The U.S. Treasury, through FinCEN, administers AML obligations under the Bank Secrecy Act, so any guidance or rulemaking response can alter U.S. exchange onboarding and token monitoring practices that markets track (source: U.S. Treasury and FinCEN mandate). Traders should monitor the Treasury rulemaking calendar and any request-for-comment milestones as potential catalysts for COIN and major crypto pairs such as BTC and ETH (source: U.S. Treasury rulemaking process and the source).

According to @ki_young_ju, Zcash investors are positioning for a shift of illicit and gray-area funds from BTC and stablecoins into privacy coins as AML rules tighten (source: Ki Young Ju on X, Oct 5, 2025). For traders, this suggests monitoring ZEC/BTC performance, privacy coin spot volumes, and market reaction to AML enforcement headlines for potential relative strength in ZEC versus BTC and stablecoins (source: Ki Young Ju on X, Oct 5, 2025). The source frames this as an investor bet rather than confirmed flows, underscoring the need for cautious position sizing amid regulatory sensitivity around privacy assets (source: Ki Young Ju on X, Oct 5, 2025).