The U.S. Department of the Treasury’s Financial Crimes Enforcement Network and the Office of Foreign Assets Control announced on Apr. 8 a joint proposed rule aimed at implementing provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The proposal seeks to establish anti-money laundering and sanctions compliance requirements for payment stablecoin issuers.
The new regulation is intended to promote American leadership in digital financial technology while addressing potential risks from illicit finance. By setting out clear compliance obligations, officials say they hope to balance innovation with national security concerns in the rapidly growing payment stablecoin sector.
Secretary of the Treasury Scott Bessent said, “President Trump is strengthening American leadership in digital financial technology. 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.”
Under the GENIUS Act, permitted payment stablecoin issuers would be treated as financial institutions under the Bank Secrecy Act and required to maintain effective anti-money laundering programs. The law also mandates that these issuers have a robust sanctions compliance program, with Treasury directed to issue regulations enforcing these standards.
The proposed rule aligns with ongoing efforts by FinCEN to modernize regulatory requirements under the Bank Secrecy Act. It aims both to assist law enforcement agencies and minimize unnecessary burdens on businesses operating within this space.
FinCEN and OFAC are inviting public comments on their proposal, which will soon be published in the Federal Register.
