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

The Blockchain Association is seeking to exclude certain stablecoin cash-outs from a proposed account requirement, according to CryptoSlate. Its position would cover one-off redemptions and transactions routed through intermediaries, while leaving regulators to determine when holders using self-custody wallets should be treated as customers of a stablecoin issuer. The debate centers on whether users should need to open an account with an issuer before converting stablecoins into cash. The association’s proposal does not settle that question for self-custody holders; instead, it would defer the definition of an issuer-customer relationship to regulators. CryptoSlate reported the development on Aug. 26, 2026. The issue is relevant to stablecoin market participants because the eventual treatment of direct, one-time and intermediary-assisted cash-outs could affect how redemption arrangements are structured.