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 AML 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.
