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Federal financial regulators have unveiled another piece of the regulatory framework governing payment stablecoins, proposing customer identification requirements for entities authorized to issue the digital assets under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
The proposal, released jointly by the Financial Crimes Enforcement Network (FinCEN), NCUA, Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency, would require permitted payment stablecoin issuers to establish and maintain customer identification programs similar to those already used by banks and credit unions under the Bank Secrecy Act.
For credit unions, the proposal is particularly significant because the GENIUS Act gives the NCUA authority to license, regulate and supervise permitted payment stablecoin issuers that operate as subsidiaries of federally insured credit unions. The proposal would require issuers to identify and verify customers opening accounts, maintain records used for identity verification and screen customers against government-provided terrorism and sanctions lists.
"This is the next step to ensure that permitted payment stablecoin issuers are fully integrated into Bank Secrecy Act regulations," NCUA Chairman Kyle Hauptman said. He noted the proposal largely mirrors existing customer identification program requirements already familiar to credit unions.
The proposed rule followed earlier NCUA actions, including a February proposal establishing an application framework for stablecoin issuers and a May proposal outlining operational and risk-management standards for licensed issuers.
Regulators said the rule is intended to strengthen anti-money laundering and counter-terrorism financing safeguards while providing a consistent compliance framework for stablecoin issuers operating within the U.S. financial system. Comments will be accepted for 60 days following publication in the Federal Register.
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