U.S. Regulators Release GENIUS Act Draft Rules, Requiring Stablecoin Issuers to Implement Customer Identification Procedures

According to CoinDesk, the U.S. Federal Reserve, Treasury Department, and other financial regulators jointly released a draft implementation rule for the GENIUS Act on June 19, requiring stablecoin issuers to comply with the Bank Secrecy Act. The requirements include implementing customer identification procedures (CIP) to verify user identities, maintain records of names and addresses, and screen against terrorist organizations and sanctions lists, similar to obligations for traditional banks and brokers.

The draft rule has entered a 60-day public comment period before final implementation. Federal Reserve Governor Michael Barr expressed concerns that the framework insufficiently addresses illicit financing risks in secondary market trading, asking whether CIP requirements should extend beyond primary issuance.