US Advances Toward Reusable KYC Frameworks

The United States is moving toward a reusable Know Your Customer (KYC) system, allowing identity verification performed at one institution to be accepted by others. Following FinCEN guidance issued on September 8, companies like Proof and SOLO are developing distinct architectures for this infrastructure. Proof utilizes IAL2-standard portable credentials stored on user hardware, employing SD-JWT for selective disclosure to protect privacy. The shift focuses on determining where identity trust resides and who controls the reuse of verified credentials, moving away from redundant verification processes.