A coalition of major asset managers has asked the US Treasury and the Financial Crimes Enforcement Network (FinCEN) to modernize know your customer (KYC) rules for tokenized funds. Franklin Templeton, Janus Henderson, JP Morgan Asset Management and WisdomTree want similar treatment to stablecoins, where the GENIUS Act permits KYC to be conducted during on and off boarding but doesn’t require it for each transaction. They have formed the Coalition for Tokenized Markets (CTM).
“Registered funds should have the same opportunity to compete on a level playing field. That competition is good for investors and good for U.S. capital markets,” states a July letter to Treasury Secretary Scott Bessent and FinCEN Director Andrea Gacki.
They have a point. If the equivalent rules were imposed on stablecoins, every user of a stablecoin would have to go through KYC directly with the stablecoin issuer. If you dealt with coins issued by three issuers, that would mean three sets of KYC.
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