US regulatory agencies have jointly proposed rules that would require stablecoin issuers to follow customer identification programs similar to those imposed on banks and other regulated financial institutions. This marks a significant step in integrating stablecoin providers under the federal anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks governed by the Bank Secrecy Act.
The proposal, issued by the Federal Deposit Insurance Corporation (FDIC), Federal Reserve, Office of the Comptroller of the Currency (OCC), National Credit Union Administration, and the Treasury’s Financial Crimes Enforcement Network (FinCEN), aims to enhance user identity verification for stablecoin accounts. It would require issuers to verify the identity of customers opening accounts, maintain detailed records, and screen for terrorist affiliations—standards currently mandatory for regulated banks.
These measures come as part of implementing the GENIUS Act, a stablecoin-focused law passed last year designed to establish a regulatory framework for stablecoins in the US. The proposal will be open for a 60-day public comment period following its official publication in the US Federal Register. The GENIUS Act requires stablecoin providers to adhere to minimum AML and CFT protections, reflecting growing regulatory scrutiny amid concerns over financial crime risks in digital assets.
Alongside identity verification, the FDIC has indicated that deposit insurance protections for stablecoin corporate accounts will not extend to individual holders. This distinguishes stablecoin accounts from traditional bank deposits and curtails government-backed guarantees for retail investors holding such assets.
While stablecoin issuers widely supported the GENIUS Act’s passage, ongoing discussions continue around the Digital Asset Market Clarity (CLARITY) Act, which seeks to clarify regulatory authority over cryptocurrency markets. Passage of CLARITY remains uncertain as lawmakers debate conflicts of interest and jurisdictional questions, potentially delaying comprehensive crypto regulation.