Regulators want bank-style ID checks for stablecoin issuers

Five federal agencies proposed rules that would require stablecoin issuers to follow Bank Secrecy Act customer identification standards used by banks and other regulated financial institutions. The agencies involved are the FDIC, Federal Reserve, Office of the Comptroller of the Currency, National Credit Union Administration and the Financial Crimes Enforcement Network.

The joint proposal is part of implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was signed into law in July 2025. The proposal will be filed in the Federal Register and will be open for public comment for 60 days after publication.

Under the proposal, stablecoin issuers would need to verify the identity of anyone seeking to open an account, keep records of that identifying information and screen individuals against lists for suspected terrorists or terrorist organizations. Regulators describe those steps as the baseline customer identification and recordkeeping duties that apply to banks under the Bank Secrecy Act.

The GENIUS Act takes effect either 18 months after it was signed or 120 days after federal authorities finalize implementing regulations. Treasury has already issued draft anti-money laundering and countering the financing of terrorism requirements under GENIUS.

In April, the FDIC suggested that any deposit insurance arrangements for corporate deposits held by stablecoin issuers should not extend to individual holders. Congress has not yet passed related legislation to further clarify agency authority. The Digital Asset Market Clarity (CLARITY) Act remains pending, and some lawmakers have raised concerns about potential conflicts of interest that could affect the bill’s timing.

If finalized, the proposed rule would require stablecoin issuers to build or expand customer identification and recordkeeping systems similar to traditional bank know-your-customer programs. The public comment period will allow industry participants, consumer groups and other stakeholders to submit feedback before regulators consider revisions and move toward a final rule.