The Bank Policy Institute, which represents several large U.S. banks including JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup, has proposed that FinCEN broaden customer identification requirements to stablecoin secondary markets. The plan would cover exchanges and other platforms that maintain direct account relationships with retail users.

BPI argues these venues handle a substantial portion of trading activity in the payment-stablecoin ecosystem, and that most illicit activity related to stablecoins occurs in these markets.

If adopted, the platforms would be required under the Bank Secrecy Act to collect customer information, and decentralized exchanges could also come under regulation.

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

BPI has also joined other banking groups in opposing the current version of the Digital Asset Market Clarity Act.