U.S. regulators release implementation draft of the "GENIUS Act," requiring stablecoin issuers to enforce customer identification rules

Odaily reported that the U.S. Federal Reserve, the Treasury Department, and other financial regulatory agencies have jointly released the implementation draft of the "GENIUS Act," requiring stablecoin issuers to comply with the Bank Secrecy Act (BSA) and implement Customer Identification Programs (CIP).

According to the draft requirements, stablecoin issuers must verify user identities, maintain records of identity information such as names and addresses, and screen against terrorist organization and sanctions lists. The relevant rules have now entered a 60-day public comment period, and will be formally implemented after the final rule is issued.

Additionally, Federal Reserve Governor Michael Barr expressed reservations about this framework, believing it inadequately addresses the risks of illegal financing in secondary market transactions. The proposal specifically solicits comments on whether customer identification requirements should be further extended to secondary market transactions. (CoinDesk)