Stablecoin ID rules should exclude P2P transfers: Blockchain Association
Aug 25, 2026
Blockchain Association asked five U.S. agencies to clarify that customer identification requirements under the GENIUS Act apply to direct issuer relationships, not independent peer-to-peer stablecoin transactions.
Stablecoin identity checks focus on direct customers
The proposed rule would require a permitted payment stablecoin issuer to establish a written, risk-based customer identification program. The program would form part of the issuer’s wider anti-money laundering and counter-terrorist financing controls.
Blockchain Association wants a firm P2P boundary
Blockchain Association agreed that the program should apply when an issuer maintains a direct customer relationship. Examples include issuing, redeeming, converting, repurchasing or providing custody for a payment stablecoin.
Digital identity and duplicate checks remain contested
Blockchain Association also asked regulators to preserve flexibility in how issuers collect and verify information. It specifically supported digital identity tools and interoperable verification technology.
Agencies must now complete the GENIUS Act rules
The public comment period closed Aug. 21. Regulators will now review submissions and may modify the definitions of “account,” “customer” and “digital asset service provider” before issuing a final rule.
The final customer identification rule must still operate alongside separate proposals covering licensing, reserves, anti-money laundering programs, sanctions compliance and lawful orders. The treatment of direct redemptions, digital credentials and reliance on third parties will determine how much additional work issuers face.
