Stablecoin Rules Propose Bank-Level KYC Under GENIUS Act

The Federal Reserve and U.S. Treasury, alongside other agencies, released proposed rules under the GENIUS Act that would require stablecoin issuers to adopt bank-level customer due diligence. The draft, reported by PANews, forces issuers to comply with the Bank Secrecy Act. Requirements include customer identity verification and checks against terrorism and sanctions lists. The proposal enters a 60-day public comment period before a final framework and compliance timeline.

Federal Reserve Vice Chair for Supervision Michael Barr said existing rules do not adequately address illicit finance risks tied to secondary-market stablecoin trading. His comment signals regulators are looking beyond issuance to how stablecoins circulate on exchanges and payment networks.

Lawmakers are preparing a separate push for broader crypto rulemaking. A Punchbowl report said U.S. senators plan to meet next week to finish a "Bitcoin clarity" bill before Congress breaks for its August recess. The bill aims to reduce the regulatory uncertainty that has weighed on U.S.-based crypto products and institutional participation, according to market participants cited in the report.

U.S.-listed altcoin spot ETFs recorded modest inflows on Wednesday. SoSoValue data cited by Odaily showed spot Solana (SOL) ETFs posted $2.99 million in net inflows on June 18 ET. All of that came from the Bitwise Solana Staking ETF (BSOL), which now has cumulative net inflows of $892 million. Total net assets across U.S. SOL spot ETFs were estimated at $794 million. SOL exposure represents 1.96% of the category. Cumulative net inflows across all SOL products reached $1.13 billion.

Spot XRP (XRP) ETFs saw $2.55 million in net inflows on the same day, again driven by a Bitwise product. The Bitwise XRP ETF's cumulative net inflows were $476 million. Total net assets across XRP spot ETFs reached $995 million. The XRP net-asset ratio stands at 1.39%, with category-wide cumulative net inflows of $1.45 billion.

Broader crypto markets showed stress. Ethereum (ETH) slid below $1,700. OKX pricing cited by PANews showed ETH at $1,698.51 on June 18 ET, down 4.21%. Leveraged positions were flushed. Watcher.Guru reported roughly $180 million in long liquidations across the crypto market in the most recent 60-minute window.

Ethereum's ecosystem funding faces a fresh risk. Former Ethereum Foundation contributor Trent Van Epps, cited by U.Today, warned that core development could face a funding crunch within three to nine months. He attributed the risk to reduced foundation spending and the end of the Client Incentive Program (CIP). Van Epps estimated that sustaining the core development ecosystem requires roughly $30 million annually. He argued that the Ethereum Foundation was never designed as a permanent steward and that new institutions and funding mechanisms may be needed.

Mining economics continue to pressure Bitcoin (BTC) supply. JPMorgan, cited by Wu Blockchain, said Bitcoin mining profitability deteriorated in 2026. BTC has traded below the bank's estimated all-in production cost–around $78,000–for five consecutive months. JPMorgan estimated roughly 20% of miners are operating unprofitably. Publicly listed miners sold more than 32,000 BTC in the first quarter of 2026 to raise operating capital, exceeding their total BTC sales for all of 2025. The bank warned that a prolonged period below production cost could lead to greater volatility in hashrate and mining difficulty, with more frequent adjustments as weaker operators cut capacity.

In South Korea, major exchanges expanded token offerings. Upbit listed nine tokens on its BTC and USDT markets, including Peaq and Lido DAO, with trading set to begin at 06:00 UTC on June 19. Bithumb separately announced plans to list the RE token on its Korean won market, with trading starting at the same time.

The 60-day comment period on the GENIUS Act rules closes in August. The Senate Bitcoin clarity bill faces the same August recess deadline.