Federal Reserve proposes new verification rules for stablecoin users, targeting U.S. crypto firms that handle digital assets.
Details of the Proposed Rulemaking
The Treasury Department and the FDIC joined the Federal Reserve on Thursday to release a draft regulation that interprets the $GENIUS Act’s customer‑identification provisions. The $GENIUS Act, enacted last summer, officially sanctioned the issuance of stablecoins that maintain a $1 price peg to the U.S. dollar. The draft mandates that any U.S. entity engaged in exchanging, transferring, or custodial services for crypto must adopt safeguards to prevent money‑laundering.
Governors’ Votes and Leadership Response
All Federal Reserve governors, including former chair Jerome Powell, cast affirmative votes for the rule, signaling strong support for tighter oversight. Current chair Kevin Warsh abstained