Federal regulators are reviewing a proposed customer identification program (CIP) for permitted payment stablecoin issuers under the GENIUS Act, with debate centering on which parties in the stablecoin transaction chain must verify who they are dealing with.
A stablecoin may pass through several wallets and intermediaries before someone attempts to redeem it for dollars. This raises the question of which of those relationships requires identity verification, and at what point in the chain.
The comment period on the joint proposal closed Aug. 21. The rule was put forward jointly by the Financial Crimes Enforcement Network (FinCEN), the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC) and the National Credit Union Administration (NCUA).
What the proposal requires
Under the proposal, permitted payment stablecoin issuers would need to:
