The Federal Reserve, Treasury, and other regulators have proposed a new rule aimed at establishing identification standards, now open for public feedback.
By Jesse Hamilton|Edited by Nikhilesh De Jun 18, 2026, 5:17 p.m. 3 min readMake preferred on Share this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on U.S. financial regulators, including the Federal Reserve, have put forth a proposed rule regarding stablecoin customer identification. (Jesse Hamilton/CoinDesk)SummaryShow- A coalition of U.S. agencies, including the Federal Reserve, Treasury, OCC, and FDIC, is advancing a significant implementation of the GENIUS Act to enhance user identification for stablecoins.
- The GENIUS Act requires stablecoin issuers to comply with standards similar to traditional financial institutions, including the Bank Secrecy Act and customer identification protocols.
The Federal Reserve, Treasury Department, and other regulatory bodies in the U.S. are advocating for a new rule concerning stablecoins that aligns their user identification processes with those of other regulated financial institutions, as detailed in a draft released on Thursday.
This initiative represents a key milestone in the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which marks a pivotal moment for cryptocurrency regulation in the U.S. Under the proposed rule, stablecoin issuers will be required to adhere to the Bank Secrecy Act, necessitating a robust system for verifying the identities of customers to mitigate risks such as money laundering and the financing of terrorism.
The proposed standards stipulate that issuers must implement reasonable procedures to: (1) verify the identity of individuals opening accounts when feasible; (2) maintain records of the verification process, including names, addresses, and other identifying data; and (3) check against government-provided lists of known or suspected terrorists.
Alongside this proposal, the Fed and other agencies, including the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., have initiated a 60-day period for public comments.
In a prior step last September, regulators released an initial document soliciting feedback to guide their implementation of the GENIUS Act, gathering 450 responses. The current phase is termed a "notice of proposed rulemaking," featuring another opportunity for public input before final regulations can be established and enforced.
The Treasury's Financial Crimes Enforcement Network (FinCEN) is also working on related regulations to enforce anti-money laundering measures on stablecoin issuers as per the GENIUS Act.
While crypto-native companies like Tether (known for USDT) and Circle (behind USDC) have been significant players in the stablecoin market, traditional financial institutions are increasingly entering this space, leading to substantial growth and innovation. As regulated stablecoin issuers, referred to as "permitted payment stablecoin issuers" or PPSIs, await the completion of regulatory processes, competition within the industry remains intense.
Despite progress on these proposals, concerns have been voiced by a member of the Fed board regarding the adequacy of the GENIUS Act framework in addressing illicit financial activities linked to secondary market transactions involving payment stablecoins. Fed Governor Michael Barr expressed his apprehension, noting, "I remain concerned, however, that the GENIUS Act regulatory framework does not do enough so far to address the risks of illicit finance conducted through secondary market transactions in payment stablecoins." He emphasized that while some digital asset service providers are subject to anti-money laundering regulations, the ease with which bad actors can evade detection in digital asset transactions poses significant challenges.
Barr's statement highlights his focus on the proposal's consideration of extending identification requirements to secondary market activities, raising questions such as: "Should any CIP requirement be extended to secondary market activity? If yes, in what circumstances? What would be the benefits and drawbacks of doing so?"
Read More: Banks seek to slow down implementation of crypto's GENIUS Act on stablecoin oversight
Federal ReserveStablecoinsRegulationLatest Crypto News- 1Ethereum Foundation loses another key leader as co-executive director Hsiao-Wei Wang resigns2 hours ago
- 2Crypto for Advisors: Trading the bitcoin cycle3 hours ago
- 3Algorand unveils roadmap to achieve quantum resistance by 20284 hours ago
- 4CoinDesk 20 performance update: Stellar (XLM) jumps 10% while index declines4 hours ago
- 5Alchemy's AI-driven identity and payment service gains access to Visa network5 hours ago
- 6Hive shares jumps 10% on $220m Canada sovereign AI infrastructure deal6 hours ago
- 7The great rotation: Investors desert the Magnificent 7, crypto for AI bottlenecks6 hours ago
- 8Bitcoin's nemesis, the Dollar Index, is on the verge of a major breakout6 hours ago
- 9Aster popped over 10% on radical 'buyback and burn' upgrade. But gains were short-lived6 hours ago
- 10Crypto market positioning is 'defensive and thin' after Fed, Marex analysts say7 hours ago
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
View Full ReportMore From Policy