US bank lobby wants stablecoin holders to open an account before cashing out

The American Bankers Association is pressing US regulators to require anyone who buys or redeems a payment stablecoin directly with its issuer to open an account and complete customer identification.

For a holder coming from self-custody, that would turn a direct cash-out into an issuer-onboarding event.

The Blockchain Association accepts identity checks for direct primary-market account customers but says an optional one-off redemption or a redemption routed through another regulated intermediary should not automatically make the underlying holder an issuer customer.

The disagreement surfaced in comments on a joint federal proposal for stablecoin issuer customer identification programs, known as CIPs.

The Federal Reserve's public index lists the ABA comment as posted that day and the Blockchain Association comment as posted Aug. 24, alongside other R-1885 responses.

The agencies' eventual choice will determine whether asking an issuer for dollars always opens an account or whether some holders can redeem without establishing that relationship.

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