U.S. regulators propose ID checks for stablecoin issuers’ direct customers while exempting secondary-market users

Five U.S. federal regulators jointly released a proposed stablecoin framework that would require issuers to run Customer Identification Program (CIP) checks on direct customers while explicitly not mandating KYC for people transacting in secondary markets. The proposal is open for public comment and is intended to implement the GENIUS Act by treating permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act. The article also notes a recent public clash between executives at Coinbase and JPMorgan over stablecoin compliance expectations.

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