The Blockchain Association has filed comments supporting federal stablecoin identity checks while opposing their extension to peer-to-peer transactions. According to reports from CoinDesk, the industry group filed its comments by the August 21 deadline and summarized its position on August 24. The organization supports primary-market identity checks but opposes extending them to peer-to-peer stablecoin transfers downstream.
Five federal agencies jointly proposed customer identification standards for permitted payment stablecoin issuers in June 2026. As reported by CoinDesk, the FinCEN, Office of the Comptroller of the Currency, Federal Reserve, Federal Deposit Insurance Corporation and National Credit Union Administration collaborated on the program. The proposed rule would require issuers to establish written, risk-based customer identification programs as part of their anti-money laundering and counterterrorist financing controls.
The Blockchain Association agrees that identity requirements should apply when issuers maintain direct customer relationships, including issuing, redeeming, converting, repurchasing or providing custody for payment stablecoins. According to CoinDesk reports, the organization argues that rules should not reach transactions between users when issuers do not intermediate, facilitate or approve them. The agencies' proposal estimates that approximately 99% of stablecoin transaction activity occurs in secondary markets, acknowledging issuers have limited ability to obtain identities for people using tokens without direct interaction.
The proposed rule would give issuers 12 months after final rule publication to comply, with no specific date announced yet. As reported by CoinDesk, the GENIUS Act generally begins restricting unlicensed U.S. payment stablecoin issuance on January 18, 2027. The Blockchain Association has requested protection against duplicative compliance obligations, noting that stablecoin issuers frequently interact with banks and exchanges that already conduct customer checks.
Regulators will now review public comments and may modify definitions before issuing final rules. According to CoinDesk reports, the proposal requires issuers to collect customer names, addresses, dates of birth or formation, and identification numbers before account opening. Records containing identification information would generally remain on file for five years after account closure, while verification records would be available for five years after creation.
