Fed Proposes Payment Stablecoin Issuer Identification Program

The Federal Reserve proposed requiring payment stablecoin issuers to maintain an effective customer identification program designed to curb illicit activities, the latest step from US regulators embracing digital assets.

The plan would introduce requirements for some stablecoin issuers that are comparable to customer identification program requirements for banks and credit unions, the Fed said in a statement on Thursday.

Banking agencies have recently moved to welcome crypto into the traditional banking space after a landmark stablecoin framework known as the Genius Act was signed into law last year. Fed Governor Michael Barr said he remains concerned that framework does not ...