The US Treasury has unveiled a joint proposed rule from FinCEN and OFAC to implement the GENIUS Act, setting clear anti-money laundering (AML) and sanctions-compliance standards for stablecoin issuers. The draft rule mandates that permitted payment stablecoin issuers (PPSIs) be treated as financial institutions under the Bank Secrecy Act, subjecting them to the same rigorous requirements as traditional US financial firms.
Stablecoin issuers will now be required to establish comprehensive AML and counter-terrorism financing (CFT) programs, tailored to their operational scale. The proposal aims to mitigate illicit-finance risks while safeguarding national security interests, ensuring issuers can detect, report, and block unlawful activities without compromising compliance with lawful orders.
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