Regulators aim to enforce AML and CFT standards on stablecoin providers, requiring customer identity verification and record-keeping.
US regulators proposed rules requiring stablecoin issuers to verify user identities, mirroring Bank Secrecy Act standards for financial institutions. The move targets Anti-Money Laundering and Counter-Terrorism Financing compliance under the GENIUS Act, with a 60-day public comment period starting Monday after Federal Register filing.
The proposal follows earlier Treasury and FDIC actions, including April guidance limiting deposit insurance for stablecoin holders. The GENIUS Act, signed last year, mandates implementation within 18 months or 120 days after final regulations. Congress has yet to set a timeline for the related CLARITY Act, which would clarify crypto regulatory roles.
Stablecoin issuers championed the GENIUS Act, but banking groups have requested more time to review the latest rules. The proposal aligns with broader efforts to curb illicit finance in digital asset markets.