Federal Reserve seeks feedback on stablecoin issuer identification proposal

The Federal Reserve proposed new customer identification requirements for permitted payment stablecoin issuers under the GENIUS Act, extending to the sector a compliance framework long used by banks and other financial firms. The proposal would require issuers to collect each new customer's legal name, date of birth or formation, physical address and government-issued identification number before opening an account, with public comments due within 60 days. The measure is part of a broader U.S. stablecoin rulemaking push following the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which President Trump signed into law in July 2025. That law created a federal regulatory regime for stablecoins, requires 100% reserve backing with liquid assets and subjects issuers to the Bank Secrecy Act. It takes effect on the earlier of January 18, 2027, or 120 days after primary federal regulators finalize implementing rules. A key feature of the proposal is its treatment of direct redemptions by token holders who acquired stablecoins on the secondary market. In those cases, the redemption interaction itself would be treated as an account relationship that triggers customer identification obligations, while purely secondary-market transfers in which the issuer is not a direct counterparty, including smart-contract transfers, would fall outside the proposed definition. Federal Reserve Governor Michael Barr supported the proposal while reiterating concerns that stablecoin markets still pose risks tied to reserve quality, regulatory arbitrage, anti-money laundering gaps and financial stability.