Blockchain Association Backs U.S. Stablecoin ID Rules but Seeks Key Changes

Highlights:

• Blockchain Association supports proposed stablecoin ID rules but wants clearer limits on who issuers must verify.
• The group says peer-to-peer stablecoin transfers should stay outside customer checks when issuers are not involved.
• It also wants coordinated compliance deadlines and flexibility for modern digital identity tools under the GENIUS Act.

The Blockchain Association has backed the main approach of proposed U.S. customer identification rules for payment stablecoin issuers but is asking federal regulators to make several changes before the rules become final.

In comments dated August 21, the crypto industry group responded to a joint proposal from the Financial Crimes Enforcement Network (FinCEN), Office of the Comptroller of the Currency (OCC), Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA). The Blockchain Association published the filing on its website on August 24 and discussed it on X on August 25. 

The Blockchain Association said it supports efforts to prevent digital assets from being used for illegal activity. It also supports giving permitted payment stablecoin issuers customer identification requirements similar to those already used by other federally regulated financial institutions. However, the group wants regulators to make several parts of the final rules clearer and avoid creating overlapping compliance requirements.

1/ On Friday, Blockchain Association filed comments on federal agencies’ proposed customer identification requirements for permitted payment stablecoin issuers under the GENIUS Act.

We support the goal of preventing illicit use of digital assets, and support the proposal’s core… pic.twitter.com/ED0CifzEqE

— Blockchain Association (@BlockchainAssn) August 24, 2026

Stablecoin ID Checks Should Focus on Direct Customers

The Blockchain Association wants customer identification program, or CIP, requirements to apply mainly when stablecoin issuers deal directly with customers. This includes issuing, redeeming, or converting stablecoins for users. However, the group said these requirements should not cover secondary-market transactions between independent users. Stablecoins can move between third-party wallets without the issuer approving or processing the transaction.

According to the Association, the GENIUS Act requires issuers to verify their own account holders, not every person who later receives or transfers the stablecoin. The group said in its X post that identification rules should focus on the primary market, where issuers have a “direct relationship with customers.”

It also asked regulators to clearly define what counts as an “account.” For example, someone making a one-time stablecoin redemption should not automatically become an account holder if they do not already have an account with the issuer. Similarly, relationships with vendors, technology providers, and other business partners should remain outside the definition when they do not involve financial or custodial services.

Group Seeks Coordinated GENIUS Act Compliance Timeline

The Blockchain Association also wants regulators to align the customer identification rules with other GENIUS Act requirements covering anti-money laundering, counter-terrorism financing and sanctions compliance.

Under the current proposal, the CIP rules would take effect 12 months after the final rule is issued. However, the Association said related requirements should begin at the same time. The group argued that a coordinated timeline would help stablecoin issuers avoid repeatedly changing their compliance systems as different rules come into force.

Overall, the Association supports the main customer identification framework. However, it wants the final rules to clearly separate direct issuer-customer relationships from normal peer-to-peer stablecoin transfers. It also wants regulators to leave room for newer identity verification technologies.

The customer identification proposal is part of the GENIUS Act, which President Donald Trump signed into law on July 18 last year. Regulators proposed the new stablecoin ID rules on June 18, 2026. The public comment period closed on August 21, but regulators have not yet announced when the final customer identification rules will be issued. The GENIUS Act will take effect no later than January 18, 2027. It could start earlier if regulators finish the required rules sooner, because the law becomes effective 120 days after the final regulations are issued or 18 months after it was signed, whichever comes first.