Federal Register #FINCEN-2026-0101

Proposed Rule: Customer Identification Program Requirements for Stablecoin Issuers

This proposed rule from the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), in collaboration with the OCC, Federal Reserve Board, FDIC, and NCUA, introduces new regulatory requirements for stablecoin issuers: - Government Buyer: - Department of the Treasury, Financial Crimes Enforcement Network (FinCEN) - In partnership with: Office of the Comptroller of the Currency (OCC), Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA) - Scope of Rule: - Implements the GENIUS Act to regulate Permitted Payment Stablecoin Issuers (PPSIs) as financial institutions under the Bank Secrecy Act - Applies to approximately 50 PPSIs, including subsidiaries of insured depository institutions and other entities - Key Requirements: - PPSIs must establish and maintain a written Customer Identification Program (CIP) tailored to their size and business - Risk-based procedures for verifying customer identity - Recordkeeping of identification information - Customer notification - Screening against government lists of known or suspected illicit actors - Requirements are comparable to those for banks and other financial institutions - Products/Services: - No physical products or OEMs are involved; the rule mandates compliance programs (CIPs) as a service/obligation - Notable Aspects: - Focuses on preventing illicit finance risks associated with stablecoins - Regulatory action, not a procurement of goods or services

Description

The Financial Crimes Enforcement Network (FinCEN), in collaboration with the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, the FDIC, and the NCUA, has issued a joint proposed rule to implement provisions of the GENIUS Act. This rule aims to treat permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act and mandates the maintenance of an effective customer identification program. The proposal includes requirements for verifying the identity of account holders and maintaining records, with the goal of enhancing financial security and regulating stablecoins. Comments on the proposed rule are due by August 21, 2026.

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