A coalition of five major US financial regulatory bodies has formally proposed a rule requiring stablecoin issuers to adhere to identity verification protocols identical to those mandated for federally regulated banks. The Federal Deposit Insurance Corporation, Federal Reserve, Office of the Comptroller of the Currency, National Credit Union Administration, and the Financial Crimes Enforcement Network jointly advanced this measure on Thursday. This regulatory push serves as a critical implementation step for the Guiding and Establishing National Innovation for US Stablecoins Act, which was signed into law in July 2025. The proposal aims to integrate stablecoin providers directly into the existing Anti-Money Laundering and Countering the Financing of Terrorism framework, effectively treating them as regulated financial institutions regarding customer due diligence.

The proposed regulation will enter a 60-day public comment period following its official filing in the Federal Register on Monday. Under the minimum standards of the Bank Secrecy Act, which this rule seeks to extend to the stablecoin sector, issuers must verify the identity of any person seeking to open an account, maintain comprehensive records of such information, and screen individuals against terrorist watchlists. Data compiled by Woofun AI indicates that these requirements represent a significant operational shift for issuers who previously operated with varying degrees of anonymity, now forcing alignment with traditional banking compliance infrastructures. The agencies emphasize that these measures are essential to close loopholes in illicit finance channels that stablecoins could otherwise exploit.

This regulatory action marks the latest phase in the GENIUS Act implementation, a legislative framework largely championed by US-based stablecoin issuers seeking legal certainty. The law is scheduled to take effect 18 months after its signing or 120 days after federal authorities finalize the necessary implementing regulations, whichever occurs later. The Treasury Department has already moved ahead with separate proposals targeting AML and CFT requirements specifically designed to combat illicit finance under the GENIUS umbrella.

Concurrently, the FDIC clarified in April that deposit insurance rules for corporate accounts held by stablecoin issuers would not extend to the individual holders of those stablecoins, drawing a sharp line between institutional and retail protections.

Despite the progress on the GENIUS Act, the broader regulatory landscape remains fragmented regarding the Digital Asset Market Clarity Act. Congress has yet to establish a defined timeline for this bill, which aims to redefine the roles and enforcement powers of financial agencies in the crypto sector. While expectations within the White House and Congress suggest the CLARITY Act could pass by the August recess, political headwinds persist. Woofun AI notes that concerns voiced by Democrats regarding potential conflicts of interest among lawmakers and elected officials holding crypto assets could significantly slow the legislative momentum. These internal political frictions threaten to delay the comprehensive regulatory clarity that market participants have been awaiting since the initial passage of the GENIUS Act last year.