On June 18, 2026, the Federal Reserve proposed a rule to establish a Customer Identification Program (CIP) for Payment Stablecoin Issuers (PPSIs). This proposal is a direct result of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), which mandates a comprehensive regulatory framework for stablecoins. The Fed's proposal aims to ensure strong customer identification protocols for PPSIs under its jurisdiction, aligning with existing anti-money laundering (AML) and countering the financing of terrorism (CFT) efforts.
This proposed CIP requirement will mandate PPSIs to establish and maintain procedures for verifying the identity of their customers. The program is designed to be consistent with similar requirements imposed on traditional financial institutions by the Financial Crimes Enforcement Network (FinCEN). The Fed, in conjunction with FinCEN and other primary federal payment stablecoin regulators, is working to harmonize these requirements across the stablecoin ecosystem to prevent illicit financial activities.
The GENIUS Act, enacted on July 18, 2025, requires federal agencies to issue final rules by July 18, 2026. The Fed's proposal is part of this broader effort by multiple agencies, including the FDIC, OCC, FinCEN, and OFAC, to implement a robust federal regulatory framework for stablecoins. The various agencies' proposals have focused on areas such as reserve assets, capital requirements, redemption mechanisms, and illicit finance standards, all aimed at ensuring the stability and integrity of the U.S. stablecoin market.
