stable coins

Story: Banking Groups Push for Stablecoin Secondary Market Rules Targeting High-Risk Trades

By Julie Binoche

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Why Secondary Markets Are the Real Problem. Primary issuance of stablecoins is one thing. An issuer mints tokens, goes through some level of…

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A Broader Push to Modernize AML Standards. The banking industry's push isn't happening in a vacuum.

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Banks want new rules. Specifically, they want regulators to rewrite how anti-money laundering frameworks apply to stablecoin secondary markets — and they're not being quiet about…

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A coalition of banking industry groups has formally pushed for updated AML regulations that zero in on higher-risk activities inside stablecoin secondary markets.

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The banking industry's position is that existing AML frameworks are too broad and too blunt to handle the specific risks stablecoin transactions create.

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Primary issuance of stablecoins is one thing. An issuer mints tokens, goes through some level of verification, and the asset enters circulation.

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Once stablecoins are in circulation, they trade freely. Peer-to-peer transfers, decentralized exchanges, cross-border transactions — all of it happens largely outside the…

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The call from industry groups isn't to regulate everything equally. It's to focus regulatory energy where the actual danger is.

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Read also: Onchain Gambling Clears $51 Billion in 2025 Despite Crypto Market Slump

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Unclear yet whether regulators are ready to move that fast.

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The banking industry's push isn't happening in a vacuum. Stablecoin adoption across major financial markets has grown sharply in recent years, and regulators in multiple…

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Trade groups within banking say that's the problem. Fragmented rules across jurisdictions create arbitrage opportunities.

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The groups are also pushing for alignment with international AML standards — the kind of interoperability that makes cross-border enforcement actually workable.

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It's worth noting that banks themselves have a stake in getting this right. As more institutions explore stablecoin integration for payments, settlements, and treasury…

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Related: Netomi CEO Sees $5 Trillion AI Wave Pushing Stablecoin Demand Higher

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