Summary
FinCEN, the OCC, Federal Reserve, FDIC, and NCUA jointly proposed rules requiring permitted payment stablecoin issuers (PPSIs) to establish and maintain customer identification programs (CIP) modeled on bank requirements. The proposal implements the GENIUS Act's directive that PPSIs be treated as financial institutions under the Bank Secrecy Act. PPSIs must collect name, date of birth or formation, physical address, and identification number before opening an account. The definition of "account" is tailored to stablecoin activity: issuing and redeeming stablecoins, reserve management, and custodial safekeeping, while excluding purely secondary market activity through smart contracts. Comments due August 21, 2026.
Key Facts
- Joint rulemaking: FinCEN, OCC, Fed, FDIC, NCUA
- PPSIs treated as financial institutions under Bank Secrecy Act
- Required CIP elements: name, DOB/formation date, address, ID number
- "Account" defined to include issuance, redemption, reserve management, custody
- Secondary market activity via smart contracts explicitly excluded
- Verification: documentary and non-documentary methods permitted
- Records retained 5 years after account closure
- Comments due August 21, 2026
Why It Matters
This rulemaking completes the regulatory architecture for US stablecoin issuers under the GENIUS Act. By applying bank-like CIP requirements to stablecoin issuers, regulators are signaling that PPSIs will be held to the same anti-money laundering standards as traditional banks. The exclusion of secondary market activity (smart contract interactions) is a pragmatic recognition that not every stablecoin holder needs a formal relationship with the issuer. The joint-agency approach marks a notable shift from previous siloed crypto regulation.