U.S. financial regulators revealed on June 18 that they will propose a rule obligating stablecoin issuers to verify customer identities, a requirement that mirrors the due‑diligence banks perform for account opening.
Regulatory Framework and Authority
The Federal Reserve, FinCEN, the FDIC, the OCC, and the NCUA jointly issued the notice, invoking the GENIUS Act—the federal statute that governs payment stablecoins in the United States. The agencies plan to publish the rule in the Federal Register, and they will accept public comments for 60 days after publication. Their coordinated effort signals a unified stance toward tighter oversight of the crypto‑related stablecoin market.
Compliance Obligations for PPSIs
Permitted payment stablecoin issuers (PPSIs) must establish a Customer Identification Program (CIP) that gathers each user’s name, residential address, date of birth or formation date, and a government‑issued identification number. They must also apply risk‑based verification techniques, retain the collected data, and screen customers against official terrorist watch lists. Additionally, issuers are required to inform users that their personal information is being collected for identity confirmation purposes.
Industry Timeline and Next Steps
After the rule appears in the Federal Register, stakeholders—including investors, blockchain firms, and stablecoin platforms—will have a 60‑day window to submit feedback. The agencies will evaluate the comments before finalizing the regulation, which could reshape compliance costs for crypto entities. Market participants should prepare for the anticipated KYC standards to avoid disruption once the rule takes effect.