The U.S. Federal Reserve has proposed a requirement for issuers of “payment stablecoins” to maintain an effective customer identification program. The proposal is intended to help limit illicit activity by improving how issuers verify and monitor customers. Under the initiative, stablecoin issuers would be expected to implement safeguards consistent with customer identification standards, supporting compliance efforts tied to anti–money laundering and related risks.
The move is presented as another step by U.S. regulators toward bringing digital-asset payment systems under more defined oversight. By focusing on issuer-level processes for identifying customers, the proposal aims to strengthen transparency and accountability across stablecoin payment arrangements.
The Federal Reserve’s proposal follows the broader direction of regulatory engagement with digital assets, reflecting an emphasis on controls that can be applied to token issuers as payment products continue to develop. If finalized, the rule would affect how payment stablecoin businesses structure compliance programs and customer onboarding practices.
