Credit Unions Urged To Weigh In On Stablecoin ID Rules Before Deadline
By CU Today Staff —
WASHINGTON— Credit unions have just one week to help shape America’s Credit Unions’ response to a federal proposal that would require stablecoin issuers to establish Customer Identification Programs, with the trade group urging institutions to weigh in on how the new anti-money laundering requirements could affect the industry before its Aug. 7 comment deadline.
Federal financial regulators jointly issued the proposal requiring permitted payment stablecoin issuers (PPSIs) to maintain an effective CIP. The CIP requirements under this NPRM are similar to existing CIP requirements for credit unions and other financial institutions under existing FinCEN rules, but with a potential addition of requirements that reflect PPSI stablecoin activities, ACU explained. It does not prescribe a one-size-fits-all approach to CIP but directs a PPSI’s CIP to address the types of accounts it intends to maintain, how it allows those accounts to be opened, and the types of identifying information available, ACU said. The agencies also propose adding a new definition of “account” which resembles how “account” is defined in other CIP rules, but contains unique provisions that reflect the kinds of activities in which PPSIs can engage, such as issuing or redeeming a payment, ACU noted.ACU said comments can be submitted to the trade group by Aug. 7 to help inform the organization’s comment letter. Submit comments to the Financial Crimes Enforcement Network by Aug. 21.
Read the regulatory comment alert.
Originally reported by CU Today.