US financial regulators have proposed identity-verification rules for stablecoin issuers under the GENIUS Act's AML and CFT framework.
The proposal marks a significant step in implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was signed into law in July 2025.
The proposal was issued jointly by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the National Credit Union Administration, and the US Treasury's Financial Crimes Enforcement Network (FinCEN). Under the proposed rules, stablecoin issuers would be required to operate customer identification programmes that verify the identity of individuals seeking to open an account, maintain related records, and screen users against lists of individuals with suspected terrorist ties.
The standards draw directly from the Bank Secrecy Act framework, which currently governs Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) obligations for regulated financial institutions. Through the process of applying these same requirements to stablecoin issuers, regulators are signalling that user onboarding and verification processes for digital asset providers should increasingly resemble those of the traditional financial sector, at least from a compliance standpoint.
Implementation timeline and comment period
The proposal is open to public comment for 60 days following its filing in the Federal Register. The comment period will allow stakeholders to raise concerns about the scope of the identity-verification requirements, the operational burden placed on issuers, and the proposed compliance timeline.
The broader GENIUS Act is expected to come into effect 18 months after it was signed, or within 120 days after federal authorities finalise implementing regulations, whichever occurs first. This dual timeline means that issuers may need to begin planning compliance upgrades before final rules are confirmed.
The announcement follows earlier steps in GENIUS implementation, including Treasury's separate proposals on illicit finance and FDIC guidance clarifying that deposit insurance for stablecoin issuers would not extend to stablecoin holders. Together, these actions reflect a deliberate approach by regulators to address stablecoin oversight through distinct, targeted policy measures rather than a unified framework.
CLARITY Act progress remains uncertain
While GENIUS-linked rulemaking continues to advance, the Digital Asset Market Clarity (CLARITY) Act, which would reshape how financial agencies define and enforce broader crypto market rules, remains unresolved in Congress. Earlier reporting suggested a target of the August recess for progress, though political disagreements have introduced uncertainty around that timeline.
The contrast between the two regulatory tracks is notable: stablecoin oversight is moving forward through concrete agency action under an enacted statute, while broader crypto market regulation continues to depend on further congressional negotiation.
