Fed Proposes Stablecoin Issuers Meet Banking Compliance Standards

The Federal Reserve Board has proposed new rules for stablecoin issuers, requiring them to establish and maintain effective customer identification programs.

The proposal, issued jointly with other financial regulatory agencies, would introduce requirements comparable to those already applied to banks and credit unions.

Under the proposed rule, permitted payment stablecoin issuers would need to collect and verify identifying information from customers before opening accounts, including name, date of birth, address, and a government-issued identification number.

The customer identification requirements would apply only to primary market activity, not to secondary market transactions conducted through smart contracts.

The rule would affect an estimated 50 permitted payment stablecoin issuers, with total compliance costs averaging roughly $2.3 million per year across the industry.