Key Highlights
- FinCEN and OFAC, in joint efforts, proposed rules to enforce AML and sanction compliance for stablecoin issuers under the GENIUS Act.
- The target of the proposal is to balance innovation and security, permitting industry feedback before finalization.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) jointly issued a proposed rule to implement key provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) to curb illicit finance.
As per the official release dated April 8, the new regulatory rule treats permitted payment stablecoin issuers (PPSIs) as financial institutions under the Bank Secrecy Act (BSA). It introduces tailored anti-money laundering (AML) obligations and mandates effective sanctions compliance programs for these issuers.
Treasury Secretary Scott Bessent commented on the development, stating, “This proposal will protect the U.S. financial system from national security threats without hindering American companies’ ability to forge ahead in the payment stablecoin ecosystem.”
Framework for responsible innovation
Enacted in July 2025, the GENIUS Act established the first comprehensive federal framework for regulating payment stablecoins in the United States. The law directs the Treasury to impose BSA-compliant AML requirements on PPSIs and ensure they maintain strong sanctions compliance programs.
The proposed joint rule outlines responsibilities, including preventing money laundering, reporting suspicious activity, and the authority to refuse, block, or freeze transactions linked to illicit actors. The agencies said the obligations are tailored and “fit for purpose,” taking into account the size and complexity of each issuer while avoiding excessive regulation where possible.
This aligns with FinCEN’s general objective of updating the rules under the BSA through practical steps that benefit law enforcement while not hindering the development of the stablecoins industry.
Key requirements for permitted issuers
Under the proposed framework, PPSIs would be required to:
- Adopt comprehensive anti-money laundering programs suited to their operations.
- Have sanctions compliance programs, as expressly stated in the GENIUS Act.
- Use controls for identifying and mitigating risks of money laundering, terrorist financing, and sanctions evasion.
What it means
The proposed rule is expected to be published in the Federal Register in the coming days, opening a public comment period for stakeholders, including stablecoin issuers, industry groups, and consumer advocates.
This development marks a step forward toward implementing the GENIUS Act and reflects the Trump administration’s desire to establish the U.S. as a world leader in digital assets and to ensure that its national security interests are safeguarded.
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