Blockchain Association urged five U.S. agencies to limit stablecoin customer checks to direct relationships with issuers. The group asked regulators to exclude independent peer-to-peer transf
The Blockchain Association asked five U.S. agencies to limit stablecoin customer checks to direct issuer relationships. The group filed comments by the Aug. 21 deadline and summarized its position Aug. 24. It supports the proposal but wants clearer definitions, fewer duplicate checks and flexibility for digital identity technology.
https://twitter.com/BlockchainAssn/status/2091986580701397138?s=20FinCEN, the OCC, Federal Reserve, FDIC and NCUA proposed the customer identification program in June. The proposal would require permitted payment stablecoin issuers to establish written, risk-based customer identification programs.
Issuers would collect names, addresses, birth dates or formation dates, and identification numbers. They would then use documentary or non-documentary methods to verify identities. Records would generally remain for five years after account closure.
However, Blockchain Association said requirements should apply when issuers directly issue, redeem, convert, repurchase or custody stablecoins.
The association asked regulators not to extend identification requirements to independent peer-to-peer transfers. It said issuers should not face those requirements without intermediating, facilitating or approving transactions.
The proposal generally excludes secondary-market activity from the customer definition. Transfers from self-hosted wallets, exchange trades and vendor payments fall within those examples.
Notably, agencies estimated that about 99% of stablecoin transaction activity occurs in secondary markets. Blockchain Association requested clearer definitions for accounts, customers and digital asset service providers. It also asked regulators to avoid overlapping compliance duties.
The association wants issuers to use digital identity tools and interoperable technology. The proposal already permits documentary and non-documentary verification methods. Regulators also asked whether final rules should recognize digital identities and verifiable credentials.
Meanwhile, issuers could rely on certain checks from federally regulated financial institutions. That reliance requires a contract, annual certification and reasonable procedures. However, the issuer remains responsible for compliance.
The comment period closed Aug. 21, and regulators will review submissions before finalizing the rule. Issuers would receive 12 months after publication to comply. The broader GENIUS Act framework is expected to restrict unlicensed payment stablecoin issuance in the U.S. beginning Jan. 18, 2027.
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