US Regulators Propose KYC Rules for Stablecoin Issuers

Five US federal agencies, FinCEN, the OCC, the Federal Reserve, the FDIC and the NCUA, jointly issued a proposed rule on June 18 that would impose customer identification program (CIP) requirements on stablecoin issuers, according to a client memo from law firm Sullivan & Cromwell. The rulemaking implements part of the GENIUS Act, the stablecoin law enacted in July 2025.

Since stablecoins carry the majority of crypto casino deposits and withdrawals, USDT above all, any KYC rule touching them is worth reading closely. The details of this one matter more than the headline.

What the proposal actually covers

The requirements apply to "permitted payment stablecoin issuers", the entities that mint and redeem regulated US stablecoins. Covered issuers would have to collect and verify customer information: name, date of birth (or formation date for entities), a physical address, and a taxpayer identification number, or passport or other government ID for non-US persons.

The scope is limited to primary-market activity, meaning direct interactions with the issuer. Secondary-market and peer-to-peer transfers are explicitly excluded. The agencies acknowledged the practical reason: treating every stablecoin transfer as a customer relationship would be "nearly impossible to implement."

What it means for players

The exclusion is the important part. Sending USDC or a compliant US stablecoin from your own wallet to a casino, or receiving a withdrawal, is a secondary-market transfer, and this rule does not attach identification requirements to it. The KYC obligation lands when you mint or redeem directly with the issuer, for example converting bank dollars into a stablecoin through the issuer itself.

That said, this is one piece of a larger regime arriving on a schedule. The GENIUS Act's own provisions take effect in stages, and this proposed rule would become effective 12 months after a final version is issued. Offshore casinos' heavy reliance on USDT, issued outside this US framework, also means the immediate practical impact on most crypto gambling flows is limited.

What happens next

The proposal is not final. Comments are open until August 21, 2026, and the agencies can change the scope before adopting a final rule. We'll cover the final version when it lands, along with any move that brings gambling-relevant transfers into scope.