Agencies propose CIP requirements for stablecoin issuers

The Financial Crimes Enforcement Network (FinCEN), with NCUA and other federal regulators, issued a proposed rule Thursday that requires permitted payment stablecoin issuers (PPSIs) to maintain an effective customer identification program (CIP). The proposed requirements are comparable to existing CIP requirements for credit unions and other financial institutions subject to FinCEN rules.

Rather than a one-size-fits-all approach, FinCEN and the agencies direct that a PPSI’s CIP should address the types of accounts it intends to maintain, how it allows those accounts to be opened, and the types of identifying information available.

The proposal also includes adding a new definition of “account” that contains unique provisions that reflect the kinds of activities in which PPSIs can engage, including:

• Issuing or redeeming a payment stablecoin;
• Managing related reserves; and 
• Providing custodial or safekeeping services for stablecoins, reserves, or private keys.

Comments are due within 60 days of publication in the Federal Register.