The American Bankers Association is pressing US regulators to require anyone buying or redeeming a payment stablecoin directly with its issuer to open an account and complete a Customer Identification Program. The Blockchain Association opposes this, arguing that one-off redemptions or those routed through a regulated intermediary should not automatically make the underlying holder an issuer customer. Circle and Paxos already apply account-based, identity-checked redemption policies for eligible US customers, without establishing a universal industry practice. The regulators’ eventual choice will determine whether requesting dollars from an issuer always opens an account or allows some redemptions without establishing that contractual relationship. Until a final rule is adopted, both positions remain advocacy rather than binding law.
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