The ABA wants direct stablecoin redemptions to trigger account opening and identity checks before issuers return dollars.
he 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.
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 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.
Directly issuing or redeeming payment stablecoins are among the activities the proposal says can establish an account. Token ownership alone is not enough, and a third-party transaction that interacts only with an issuer's smart contract would not automatically make every user an issuer customer.
A self-custody holder can acquire stablecoins through an exchange, a payment, or a peer-to-peer transfer without dealing with the issuer. The next step can take two forms: the holder can seek dollars directly from the issuer, or an exchange or other intermediary can aggregate tokens and redeem on its customers' behalf.
The agencies expressly ask whether a direct redemption by a holder with no prior issuer relationship creates an account. They do not answer that question in the proposal, leaving commenters to argue over who should complete the issuer's CIP and when.
Those controls may apply to transactions or wallet activity without defining every token holder as an issuer account customer. In the other direction, completing CIP at redemption establishes the account customer's identity.
The June proposal does seek comment on whether CIP obligations should extend further into secondary-market activity, so future expansion has not been ruled out.
For now, regulators are focused on the redemption boundary. The ABA would place the identity burden at the issuer every time a holder deals with it directly, while the Blockchain Association would keep issuer CIP tied to primary-market accounts and allow one-off or intermediary-routed cash-outs without automatically onboarding every underlying holder.