U.S. Regulators Release Draft Implementation Rules for GENIUS Act, Requiring Stablecoin Issuers to Enforce Customer Identification Rules

CoinFeed June 19 news, according to CoinDesk, the U.S. Federal Reserve, Treasury Department, and other financial regulators jointly released draft implementation rules for the GENIUS Act, requiring stablecoin issuers to comply with the Bank Secrecy Act like traditional banks and broker-dealers, implementing Customer Identification Programs (CIP), which include verifying user identities, maintaining records of identity information such as names and addresses, and screening against terrorist organizations and sanctions lists. The rules have now entered a 60-day public comment period and will be formally implemented after the final rules are issued. Fed Governor Michael Barr expressed reservations, believing the current framework inadequately addresses illicit finance risks in secondary market transactions, and the proposal specifically asks whether CIP requirements should be extended to the secondary market.