Stablecoin Issuers Would Face Bank-Style ID Checks Under New US Rule

Five US regulators propose customer ID rules for stablecoin issuers

Five United States financial regulators proposed a rule on June 18 that would require stablecoin issuers to verify customer identities, much like banks. A stablecoin is a digital token pegged to a stable asset, usually the US dollar. The Federal Reserve, the Financial Crimes Enforcement Network (FinCEN), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA) issued the joint notice. It implements the GENIUS Act, the federal law that governs payment stablecoins in the United States. Comments are due within 60 days of the rule's publication in the Federal Register.

Issuers must collect names, addresses, and ID numbers

The proposal targets permitted payment stablecoin issuers, called PPSIs. Each would run a Customer Identification Program, known as a CIP, and collect a customer's name, address, date of birth or formation, and identification number. Beyond basic data, each program must use risk-based procedures to verify identity, keep records of the information gathered, and screen customers against government lists of suspected terrorists. Issuers must also notify customers that they collect the data to confirm identity. The data-collection duties mirror the checks that banks already perform when opening accounts.

Rules apply only to direct customer relationships

The rules apply when a customer forms a direct relationship through issuance, redemption, custody, or reserve management. Secondary market transactions are excluded, because issuers lack a direct relationship with those participants. The rules also do not apply when a user's only contact with the issuer runs through a smart contract controlled by third parties. One issuer may rely on another federally regulated institution that has already completed these checks.

State issuers under $10 billion fall under federal rules

The requirements cover federally supervised issuers and firms operating under approved state frameworks. The GENIUS Act lets state-regulated issuers with up to $10 billion in outstanding stablecoins work under certified state rules. Those issuers still must meet the federal customer identification requirements. The proposal treats covered issuers as financial institutions under the Bank Secrecy Act, the main US anti-money-laundering (AML) law. That status brings the know-your-customer (KYC) duties that already apply to banks and credit unions. The GENIUS Act created a two-track system, with federal oversight for the largest issuers and certified state regimes for smaller ones.

Tether's size shows the scale under supervision

The largest issuers far exceed the $10 billion state threshold. Tether's USDT, the biggest stablecoin, held a market value near $186 billion and traded close to $1.00 at the time of publication (NewsFlash, 19 June 2026). USDC, the second-largest dollar stablecoin, carried a market value near $75 billion on the same day (NewsFlash, 19 June 2026). Tether also reported about $44 billion in 24-hour trading volume. Issuers of that size fall under federal supervision rather than certified state frameworks.

NCUA chairman links the rules to money-laundering controls

NCUA Chairman Kyle Hauptman said the proposal brings stablecoin issuers fully into Bank Secrecy Act regulations. He said the rules guard against money laundering and terrorist financing, and protect credit unions and their members. The proposal marks the next phase of GENIUS Act implementation.

"It sets clear standards for identifying and verifying account holders and safeguards the interests of credit unions and their members.", 18 June 2026. — Kyle Hauptman, Chairman, National Credit Union Administration

The agencies will review public feedback before issuing a final rule.

Primary source: Source ↗