Proposed rules for stablecoin issuer customer identification programs

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN), along with four other federal banking regulators, has proposed a new rule requiring permitted payment stablecoin issuers to implement customer identification programs. This action implements provisions of the GENIUS Act, which classifies these issuers as financial institutions under the Bank Secrecy Act.

Why it matters: This change standardizes how stablecoin companies verify who their customers are, aiming to prevent money laundering and terrorist financing. For consumers, it means providing more personal information when setting up an account with a stablecoin issuer. For issuers, it adds compliance costs and operational steps similar to those faced by banks.

Who it affects

• Permitted payment stablecoin issuers regulated by the OCC, Federal Reserve, FDIC, or NCUA

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This is a proposed rule from FinCEN and other federal agencies; check the original Federal Register document at 91 FR 37236 for full details before relying on this summary.

Agency: Treasury Department, Financial Crimes Enforcement Network
Source: Federal Register — read the official document