Federal regulators released a proposed rule Thursday requiring stablecoin issuers to verify customer identities in line with bank standards. The measure implements last year's GENIUS Act and opens a 60-day public comment period.
The Federal Reserve, Treasury Department, Office of the Comptroller of the Currency, Federal Deposit Insurance Corp. and National Credit Union Administration issued the joint proposal. It directs issuers to follow Bank Secrecy Act requirements for identity verification, record-keeping and screening against terrorist lists.
The 130-page document poses questions about extending rules to secondary market activity. Fed Governor Michael Barr voiced concern that the framework does not yet fully address illicit finance risks in those markets.
The GENIUS Act, enacted last year, treats stablecoin issuers like traditional financial firms. Earlier preliminary comments totaled 450 responses received by the Treasury.
