Bank Groups Urge U.S. Regulators to Clarify AML Oversight After Stablecoins Leave Issuers

The Bank Policy Institute and The Clearing House urged U.S. regulators to clarify anti-money laundering (AML) oversight once stablecoins move beyond their issuers. According to NS3.AI, the groups said existing requirements do not place sufficient AML obligations on decentralized finance (DeFi) firms, certain digital asset custodians, and exchanges. They argued that regulators should address oversight gaps that arise after stablecoins leave the issuer’s control. Industry observers also said regulators should close these gaps without assigning compliance responsibility to firms that do not have control over the relevant activity.