Federal agencies continue to advance rules that would require stablecoin issuers to verify customer identities in a manner consistent with long-standing requirements of traditional banks. The joint proposal, published on 18 June 2026, implements the key provisions of the Agreement. Driving and Establishing National Innovation for the US Stablecoins Act (GENIUS Act)Becomes law in July 2025.
The effort includes: Financial Crimes Enforcement Network (FinCEN), Office of the Comptroller of the Currency (OCC)Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC)And National Credit Union Administration (NCUA).
Allowed redirects payment Stablecoin issuers (PPSIs) are required to establish formal customer identification programs (CIPs) as part of their obligations under the Bank Secrecy Act.
Under GENIUS ActIn the United States, only approved PPSIs can issue dollar-pegged stablecoins.
These tokens need to be backed one-to-one by high-quality reserves such as cash or short-term US Treasury bonds.
The legislation creates a federal licensing pathway for both bank and nonbank issuers, while also money launderingsanctions evasion and other illicit financing risks.
Proposed new rule focuses on the customer Diagnostics At the point of opening accounts for issuance and redemption activities.
Issuers need to collect and verify basic information. describing Information including name, date of birth (or date of establishment of legal entities), physical address and identification number before allowing customers to open accounts or transact directly with the issuer.
Verification should occur within a reasonable time frame using documentary or non-documentary methods, and procedures should be risk-based and scaled to the size and activities of the issuer.
Additional elements reflect bank practices: issuers will maintain records of information collected, compare customers to government lists of known or suspected terrorists, notify customers of the verification process, and establish protocols for handling cases where identity cannot be verified (including when to decline or close an account and when to file suspicious activity reports).
Reliance on the verification efforts of another regulated financial institution will be permitted under certain circumstances.
The framework is clearly tailored rather than a one-size-fits-all; It reflects the newer nature of stablecoin operations while also aiming to close loopholes that allow illegal activity in some parts of the world. crypto- ecosystem.
A separate but related rulemaking addresses broader anti-money laundering and counter-terrorism financing program requirements for the same issuers.
In particular, customer identification obligations focus on direct interactions between issuers and their customers.
secondary market trade Exchanges or peer-to-peer transfers are generally excluded from this special offer.
Some editors He expressed concern that this limitation could leave the avenues open for bad actors, prompting calls for public comment on whether expanded coverage would be warranted.
GENIUS Act It represents the first comprehensive federal law dedicated to paying stablecoins.
By making issuers familiar financial crime In line with compliance standards, policymakers should encourage responsible innovation, protect consumers and the broader financial system, and WE The role of the dollar in digital payments.
The proposal includes provisions allowing exemptions in appropriate cases with the approval of the relevant authorities.
Public comments on the customer identification proposal are requested for 60 days following publication in the Federal Register.
Stakeholders in crypto and traditional finance Industries are expected to weigh in on implementation details, costs, privacy implications, and the balance between security and usability. This final step continues making the regulation available GENIUS ActDesigned to provide clarity and guardrails as the use of stablecoins increases paymentsremittances and on-chain finance.
