Fed Joins 4 Agencies to Demand ID Programs From Payment Stablecoin Operators

The proposal mirrors existing requirements applied to banks and credit unions supervised by the Fed. The rule was issued jointly with four other agencies, signaling broad regulatory coordination across the U.S. financial system.

Public comments are due 60 days after the proposal appears in the Federal Register.

Barr noted that while some digital asset service providers face anti-money laundering and counter-terrorism financing requirements in their home jurisdictions, those rules are easy to sidestep in practice.

“It is far too easy for bad actors to evade these restrictions and operate without detection when transacting in digital assets,” he said.

Barr said he will review public comments on whether any part of the new CIP rule should extend to secondary market activity, and that he plans to assess whether the full GENIUS Act framework provides adequate protection against stablecoin-related illicit finance.

The 60-day comment window opens the floor to issuers, financial institutions, consumer groups, and legal experts to weigh in before any rule is finalized.

Barr’s explicit signal that he is weighing secondary market rules suggests this proposal may be the first of several regulatory steps, not the last.