U.S. Regulators Target Stablecoin Issuers With New ID Mandates

The joint proposal, released by the Federal Reserve, the Financial Crimes Enforcement Network, the FDIC, the OCC, and the NCUA, mandates that issuers collect names, addresses, and birth dates to establish a verified profile for each account holder. Officials argue these risk-based procedures are essential to curbing money laundering and terrorist financing. NCUA Chairman Kyle Hauptman described the move as a necessary integration, noting that the standards mirror existing protocols used by credit unions to safeguard financial systems.

Regulators have explicitly excluded secondary market activity from these requirements, acknowledging that issuers rarely maintain direct relationships with users during peer-to-peer transfers or transactions via intermediaries. The mandate specifically targets direct interactions, such as custody, reserve management, and the issuance or redemption of assets. While the proposal applies to federally supervised entities, it also extends to issuers operating under state regulatory regimes certified by the GENIUS Act. Public comment on the 117-page notice remains open for 60 days following its publication in the Federal Register.