PANews, June 18 – According to the Federal Reserve’s official website, the Federal Reserve Board has issued a proposal to require certain payment stablecoin issuers to establish and maintain effective Customer Identification Programs (CIP). The proposal would subject relevant stablecoin issuers to regulatory requirements for customer identification comparable to those for banks and credit unions. It is jointly issued by the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury. The regulators are now soliciting public comments, with the comment deadline set at 60 days after the proposal is published in the Federal Register.

The proposed rule requires a “Permitted Payment Stablecoin Issuer” (PPSI) to be treated as a financial institution under the Bank Secrecy Act (BSA) within the framework of the GENIUS Act, and to establish an effective Customer Identification Program (CIP) covering account opening, identity verification, list screening, and recordkeeping. The rule would apply to federally regulated and certain state-regulated stablecoin issuers. Federal Reserve Vice Chair for Supervision Michael Barr issued a statement on the proposed rule, supporting the inclusion of payment stablecoin issuers under the Bank Secrecy Act framework and requiring them to establish a Customer Identification Program (CIP) regime comparable to that of banks.