US Bank Group Proposes KYC for Stablecoin Secondary Markets

The proposal matters because it targets the venue layer rather than the issuer layer, potentially pushing identity checks into the trading of stablecoins that are already marketed as cash-like. That would raise compliance costs for secondary platforms and could narrow the liquidity venues available to stablecoin holders. Whether the banking group's framing gains traction with regulators, or remains a lobbying position, is the open question.