US Regulators Push Stricter Identity Checks for Stablecoin Issuers

US financial regulators are moving to tighten oversight of stablecoin issuers by introducing customer identity verification requirements similar to those followed by banks and other regulated financial institutions.

The proposed rule was issued jointly by the Federal Reserve, FDIC, Office of the Comptroller of the Currency, National Credit Union Administration and the Treasury Department’s Financial Crimes Enforcement Network. The plan is part of the implementation of the GENIUS Act, the stablecoin legislation signed into law in 2025.

Under the proposal, stablecoin issuers would need to verify customer identities, maintain records and check whether users appear on terrorism or sanctions-related watchlists under Bank Secrecy Act standards.

Crypto Regulation Debate Continues in Washington

Regulators said the goal is to strengthen anti-money laundering and counter-terror financing protections in the growing stablecoin market. The proposal will remain open for public comment for 60 days after publication in the Federal Register.

Meanwhile, lawmakers are still debating the CLARITY Act, which would define how US agencies oversee the wider cryptocurrency industry.