Stablecoins will also require KYC, and after the implementation of the GENIUS Act, compliance costs will rise again, putting immense pressure on small issuers.

Wu Shuo learns that the U.S. Financial Crimes Enforcement Network (FinCEN), in conjunction with the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the National Credit Union Administration (NCUA), is seeking public comments on customer identification (CIP) rules for stablecoin issuers. According to the GENIUS Act, licensed payment stablecoin issuers will be considered financial institutions under the Bank Secrecy Act (BSA) and are required to establish and maintain a customer identification program (KYC). The comment period will last for 60 days after the publication in the Federal Register.