Blockchain Association seeks P2P exemption in stablecoin ID rules

The proposed rules, introduced in June 2026, would require issuers of permitted payment stablecoins to maintain rigorous, risk-based identification programs. Under the current framework, issuers must collect names, addresses, and identification numbers before establishing an account. Agencies including FinCEN, the Federal Reserve, and the OCC aim to integrate these requirements into broader anti-money laundering and counterterrorist financing controls, with full compliance expected within 12 months of the final rule's publication.

Industry representatives emphasize that roughly 99% of stablecoin activity occurs in secondary markets, where issuers lack the direct interface necessary to verify user identities. The Association argues that transactions involving self-hosted wallets or third-party exchanges should remain distinct from the primary-market issuer obligations. Furthermore, the group is lobbying for greater flexibility in using digital identity tools and verifiable credentials, while demanding protection against redundant compliance burdens when working with already-regulated financial institutions. As the January 18, 2027, deadline for the GENIUS Act's licensing framework approaches, regulators must now determine how to balance these oversight goals against the reality of decentralized digital asset flows.