DCUC Supports Proposed Stablecoin CIP Framework, Urges Regulatory Clarity or Credit Unions
By CU Today Staff —
WASHINGTON—The Defense Credit Union Council Tuesday submitted comments on a proposed federal rule implementing customer-identification requirements for permitted payment stablecoin issuers under the GENIUS Act.
The proposal was issued jointly by the Financial Crimes Enforcement Network, Office of the Comptroller of the Currency, Federal Reserve, Federal Deposit Insurance Corp. and National Credit Union Administration.
“DCUC supports the agencies’ proposed framework for establishing CIP requirements applicable to PPSIs,” the letter states. “The GENIUS Act appropriately requires PPSIs to be treated as financial institutions for purposes of BSA and to maintain effective CIP procedures. Robust and appropriately tailored requirements are important to protecting the financial system from money laundering, terrorist financing, fraud, and other illicit financial activity. At the same time, DCUC urges the agencies to ensure that the final rule remains risk-based, operationally workable, and appropriately tailored to avoid unnecessary duplication for financial institutions that are already subject to comprehensive federal or state regulatory and BSA and anti-money laundering (AML) requirements.”
Within its comments, DCUC recommended the agencies:
“DCUC appreciates the agencies’ efforts to establish a strong and appropriately tailored CIP framework for PPSIs and looks forward to continued engagement as the regulatory framework develops further,” wrote Jason Stverak, DCUC chief advocacy officer.
Originally reported by CU Today.