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

Odaily Planet Daily reported that the U.S. Federal Reserve, the Treasury Department, and other financial regulatory agencies have jointly released the draft implementation rules for 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 need to verify user identities, maintain records of identity information such as names and addresses, and screen against terrorist organization and sanctions lists. The relevant rules are now entering a 60-day public comment period and will be formally implemented after the final rules are issued.

Additionally, Federal Reserve Board Governor Michael Barr has reservations about the framework, believing it insufficiently addresses the risks of illicit finance in secondary market transactions. The proposal specifically seeks comments on whether the customer identification requirements should be further extended to secondary market trading. (CoinDesk)