Blockchain Association Seeks Revisions to Stablecoin KYC Rules

The U.S. cryptocurrency industry group, The Blockchain Association, has called for revisions to Know Your Customer (KYC) rules for stablecoin issuers in a recent comment letter submitted to FinCEN and other regulators.

The proposed rule, published on June 22 as the 'Customer Identification Program (CIP) Proposed Rule', limits KYC obligations to the primary market where permitted payment stablecoin issuers transact directly with customers. The Blockchain Association supports this design in principle but identified areas requiring clarification, including the definition of 'account' and methods of information collection.

The association urged regulators to exclude four categories from the definition of 'account', as stablecoins circulate freely between wallets and exchanges after issuance. They argued that applying existing KYC rules designed for depository financial institutions does not match the reality of how these tokens function.