Fed Wants Stablecoin Issuers to Run Bank-Style ID Checks

The Federal Reserve is moving to put stablecoin issuers under the same customer-identification rules that apply to your local bank. The central bank opened a public comment period on a proposed rule requiring permitted payment stablecoin issuers, or PPSIs, to maintain effective Customer Identification Programs, commonly called CIP.

The proposal is a joint effort with FinCEN, the Treasury Department's financial crimes enforcement arm. Together, they want anyone issuing payment stablecoins to verify who their customers actually are, the same way a bank does when someone opens a checking account.

The legal foundation is the GENIUS Act, enacted in July 2025. That legislation formally categorized PPSIs as financial institutions subject to federal Anti-Money Laundering law. The proposed rulemaking translates that mandate into specific, enforceable obligations.

If the rule takes effect, stablecoin issuers would need to verify account-holder identities, monitor high-value transactions, and conduct enhanced due diligence where warranted. These would be legally binding obligations under federal AML law, not suggestions.

This is not happening in isolation. FinCEN and OFAC published a complementary notice of proposed rulemaking on April 10, 2026, addressing broader AML, counter-terrorist financing, and sanctions requirements for the same class of issuers. The OCC put out its own proposal in March 2026, complete with over 211 targeted questions for public comment. The FDIC flagged preliminary CIP-related proposals in June 2026.