The U.S. Federal Reserve and four other federal agencies have proposed requiring payment stablecoin issuers to meet the same customer identification standards that banks follow. The Fed's Board of Governors published the proposal on June 18, 2026, aiming to tighten financial crime safeguards in the fast-growing stablecoin market.
What the proposal demands
Under the plan, companies that issue payment stablecoins — digital tokens pegged to fiat currency like the dollar — would have to verify the identity of each customer, just as banks do when opening accounts. That means collecting names, addresses, and government-issued IDs, and keeping records of transactions. The rule would apply to any firm that issues stablecoins used for payments, not just those backed by the Fed's own digital currency.
The proposal comes from the Fed along with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Financial Crimes Enforcement Network. Together they aim to close gaps that have allowed anonymous stablecoin transactions to move illicit funds.
A top governor's warning on legislative gaps
A senior Fed governor, speaking after the proposal's release, cautioned that even these new rules may not be enough. The governor said the broader legislative framework governing stablecoins still lacks provisions needed to fully stop financial crime. While the proposal forces issuers to follow bank-grade know-your-customer rules, it does not address other vulnerabilities, such as how the stablecoins are backed or who can create them.
The governor's remarks highlight a tension between the Fed's regulatory push and Congress's slow-moving efforts to pass comprehensive stablecoin legislation. The governor argued that without stronger statutory authority — for instance, explicit limits on non-bank issuance — enforcement will remain piecemeal.
The proposal is now open for public comment, with a deadline set for later this summer. The Fed and its partner agencies will review feedback before issuing a final rule. But even after that, the governor's warning suggests the fight over how to police stablecoins is far from over. Whether Congress will tighten the broader framework — and how quickly — remains the central unresolved question.
