Fed proposes KYC rules for stablecoin issuers
6.6 Regulation US regulators propose stablecoin issuers adopt bank-style KYC and AML checks under the GENIUS Act. The public has 60 days to comment on the new rule.
US financial regulators, including the Federal Reserve, have proposed a new rule requiring payment stablecoin issuers to implement customer identification programs (CIP) similar to those used by banks and credit unions. This initiative is part of the GENIUS Act, enacted in July 2025, and would classify permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act. If adopted, stablecoin issuers would be obligated to conduct know-your-customer (KYC) and anti-money-laundering (AML) checks. The requirements would apply to account creation, issuance, and redemption of stablecoins, aiming to prevent illegal activities and enhance integration with the traditional financial system. The proposal is open for public comment for 60 days. This move reflects a broader regulatory effort to align the crypto sector with established financial compliance standards.
