#Compliance

Federal regulators are exploring a tiered compliance model for stablecoins that moves identity verification from individual transaction points to "gateway" entry levels to balance AML requirements with user privacy and functionality.

The Federal Reserve is proposing mandatory Customer Identification Programs (CIP) for payment stablecoin issuers, requiring bank-level identity verification that may lead to market consolidation and a bifurcated ecosystem between regulated payment rails and niche decentralized assets.