Federal Regulators Want Stablecoins to Keep Working Without ID Checks
Federal agencies have issued a proposed rule requiring payment stablecoin issuers to implement customer identification programs. The proposal aligns these issuers with Bank Secrecy Act standards for financial institutions. While direct customers must be verified, the rule allows peer-to-peer transfers on secondary markets to continue without issuer ID checks.
What changed
Regulators introduced a joint proposal under the GENIUS Act to mandate identity verification for stablecoin issuers.
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U.S. Regulators Propose Bank-Style ID Rules for Stablecoin Issuers
confidence 90%Federal agencies have issued a proposed rule requiring payment stablecoin issuers to implement customer identification programs. The proposal aligns these issuers with Bank Secrecy Act standards for financial institutions. While direct customers must be verified, the rule allows peer-to-peer transfers on secondary markets to continue without issuer ID checks.
What's confirmed:
- The proposal was issued by a group including the Federal Reserve, FinCEN, OCC, FDIC, and the National Credit Union Administration.
- Permitted payment stablecoin issuers would be required to establish Customer Identification Programs similar to those used by banks.
- The proposed rule is intended to implement requirements of the GENIUS Act.
- The proposal is currently open for public comments.
- Issuers must collect a customer's address, name, and date of birth for individuals or formation date for entities.
Still unconfirmed:
- The proposal includes a 60-day public comment window.
- The Federal Reserve is pushing for mandatory ID checks for all stablecoin users.