The U.S. Federal Reserve has issued a draft rule that would require payment stablecoin issuers to conduct customer identification checks. The proposal would require issuers to collect legal name, date of birth or formation, physical address and a government ID number before opening a new customer account. The Fed will take public comments for 60 days. The move follows the Genius Act signed in July 2025 and aligns with other U.S. agencies\' stablecoin-related rulemaking.

U.S. banking groups have urged regulators to clearly extend anti-money laundering rules for stablecoins beyond issuance to secondary market trading. The crypto industry has pushed back, warning that imposing responsibility for transactions issuers cannot control could shrink the DeFi ecosystem. The debate centres on who should monitor transfers after issuance, including movements between exchanges, DeFi protocols and private wallets, and how far regulatory responsibility should reach.