Fed Proposes Customer ID Rules for Stablecoin Issuers Under GENIUS Act Framework

The U.S. Federal Reserve has proposed that certain stablecoin issuers maintain a customer identification program to curb illicit finance risks. This will come under the GENIUS Act framework, with the Fed already calling for comments on this proposal.

Fed Calls For Comments On Stablecoin Proposal

In a press release, the Fed Board requested comment on the proposal to require payment stablecoin issuers to maintain an effective customer identification program. “The proposal would introduce requirements for these stablecoin issuers that are comparable to customer identification program requirements for banks and credit unions,” the U.S. central bank said.

The regulator further noted that it has issued this proposal jointly with four other agencies and that comments on the proposal are due 60 days after publication in the Federal Register. The other agencies are the FinCEN, FDIC, OCC, and NCUA.

Like the Fed, the NCUA also issued a statement inviting public comment on the proposal for stablecoin issuers to establish and maintain an effective customer identification program (CIP) under the GENIUS Act. Notably, this move comes as U.S. agencies move to finalize the stablecoin rules.

Commenting on this move, the NCUA’s Chairman, Kyle Hauptman, noted that this is the next step to ensure that permitted payment stablecoin issuers are fully integrated into Bank Secrecy Act regulations.

“It sets clear standards for identifying and verifying account holders and safeguards the interests of credit unions and their members. By establishing robust customer identification requirements, we are reinforcing our commitment to preventing money laundering and terrorist financing in our financial system,” he added.

A Move To Address Illicit Finance Concerns

The proposal by the Fed and these agencies also comes as Congress and the Trump administration move to address illicit finance concerns regarding the CLARITY Act. As CoinGape reported, Senator Cynthia Lummis said that the CLARITY Act will allocate $150 million to track crypto scammers.

It is worth noting that law enforcement groups have raised concerns over the Blockchain Regulatory Certainty Act provision in the crypto bill. They argue that it will make it harder for them to crack down on illicit finance in the crypto industry.

This has become one of the outstanding issues as Republican senators seek bipartisan support for the CLARITY Act ahead of a floor vote. According to Crypto In America, Acting Attorney General Todd Blanche will meet with these enforcement groups to address their concerns as the Trump administration moves to get the crypto bill across the finish line. The CLARITY Act could become the second crypto bill that Congress passes after the GENIUS Act, which it passed last year.