In brief – The Bank Policy Institute and The Clearing House said stablecoin AML rules should cover activity after tokens leave issuers. – They urged regulators to move away from “check-the-box compliance” and focus on higher-risk activity. – Regulators need to close stablecoin…
L gaps without assigning responsibility to firms that lack control, industry observers told Decrypt. Banking trade groups are pressing U.S. regulators to clarify who oversees stablecoin transactions after issuance, opening a new front in a policy fight after crypto firms warned earlier this week that broad anti-money laundering rules could push regulated dollar tokens out of the decentralized finance sector
In a pair of joint comment letters made public Wednesday, the Bank Policy Institute and The Clearing House said current requirements fail to impose sufficient obligations on DeFi firms, certain digital asset custodians, and exchanges. Most illicit activity occurs after issuance, making secondary market oversight critical as regulators weigh how to implement stablecoin AML rules, the trade groups argued. RELEASE: A More Effective AML Regime Puts Flexibility First Read the letter from BPI and The Clearing House: https:// — Bank Policy Institute (@bankpolicy) June 10, 2026 Across two letters, the bank groups said regulators should put “flexibility first,” letting banks focus resources on “the most urgent threats” while moving away from “check-the-box compliance” and addressing gaps in stablecoin secondary markets.
In the stablecoin letter, the trade groups said the Financial Crimes Enforcement Network and the Office of Foreign Assets Control “correctly recognize” that “the majority of illicit finance involving payment stablecoins occurs on the secondary market,” and that permitted payment stablecoin issuers “may have less information on secondary market transactions than on primary market transactions.” Stablecoins are crypto tokens designed to track the value of another asset, usually a…