Fed Proposes Customer ID Rules for Stablecoin Issuers Under GENIUS Act

The proposal arrives as Congress and the Trump administration push the CLARITY Act, which Senator Cynthia Lummis said would allocate $150 million to track crypto scammers. Law enforcement groups have raised concerns that the Blockchain Regulatory Certainty Act provision within the crypto bill could weaken their ability to crack down on illicit finance. Acting Attorney General Todd Blanche plans to meet with those groups to address the issue, according to Crypto In America.

The CLARITY Act could become the second major crypto bill passed by Congress after the GENIUS Act. A Senate floor vote is expected in July.

For stablecoin issuers, the proposed CIP rules mean compliance costs will rise. Issuers will need to collect and verify customer names, addresses, and other identifying information, similar to the requirements already facing banks. The rule would apply to any firm that issues payment stablecoins under the GENIUS Act framework, which passed last year.

Market participants have watched the regulatory process closely. The joint agency proposal signals that U.S. regulators intend to treat stablecoin issuers as equivalent to traditional financial institutions for anti-money laundering purposes. The comment period will give issuers and industry groups a chance to shape the final rule.