The Bank Policy Institute, which represents major banks including JPMorgan, Bank of America, Wells Fargo, and Citi, is asking the U.S. Treasury’s FinCEN to expand the scope of its customer identification program requirements to stablecoin secondary markets.

The proposal targets exchanges and other platforms that maintain direct account relationships with retail users, BPI said, noting that these venues handle a large portion of buying and selling activity in the payment stablecoin ecosystem and are where most illicit activity tied to stablecoins occurs.

Under the plan, these platforms would be required to collect customer information under the Bank Secrecy Act, and decentralized exchanges could also come under oversight if the rules are adopted.

FinCEN’s draft rule notes that stablecoin secondary-market transactions on blockchains typically involve anonymous or pseudonymous identities and lack a centralized node to gather identity data, limiting issuers’ ability to collect customer information from secondary-market users.

BPI has also opposed the current version of the Digital Asset Market Clarity Act alongside other banking groups.