Federal Reserve (FED) · Donald Trump · Bitcoin Magazine
The Federal Reserve proposed Thursday that payment stablecoin issuers maintain written customer identification programs
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The proposal would require so-called permitted payment stablecoin issuers, or PPSIs, to collect from each new customer a legal name, date of birth or formation, physical address, and a government-issued identification number before opening an account.
Key facts
- The Federal Reserve’s action follows a wave of rulemaking set in motion by the Genius Act, formally, the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which President Trump
- Final CIP rules are not expected before 2027, which means the statute could take effect before its customer identification architecture is fully in place
- That landmark legislation created the first federal regulatory system for stablecoins, mandating 100% reserve backing with liquid assets and subjecting issuers to the Bank Secrecy Act for the first
- The Federal Reserve framework mirrors CIP obligations that banks, broker-dealers, mutual funds, and futures commission merchants have operated under for more than two decades
Summary
The Federal Reserve proposed requiring stablecoin issuers to verify customer identities before account opening or direct token redemption, extending bank-style anti-money laundering standards to stablecoins. The Federal Reserve proposed Thursday that payment stablecoin issuers maintain written customer identification programs, a move that signals Washington’s determination to bring digital asset markets under the same anti-money laundering discipline long applied to traditional banks, even as regulators race to finalize rules before a statutory deadline this coming January. The Federal Reserve framework mirrors CIP obligations that banks, broker-dealers, mutual funds, and futures commission merchants have operated under for more than two decades.