FDIC Proposes AML Rules for Bank-Affiliated Stablecoin Issuers

The Federal Deposit Insurance Corporation (FDIC) has approved a proposed rule requiring bank-affiliated stablecoin issuers to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. This move aligns stablecoin issuers with the same standards governing traditional financial institutions under the Bank Secrecy Act (BSA).

The rule applies to permitted payment stablecoin issuers (PPSIs) operating as subsidiaries of FDIC-supervised banks. It mandates adherence to Treasury Department sanctions and reporting obligations enforced by FinCEN and OFAC. The FDIC gains supervisory authority over these AML/CFT programs, marking its third regulatory action under the GENIUS Act.

This development signals growing institutional oversight of crypto assets, particularly stablecoins pegged to fiat currencies. Market participants should monitor how these requirements impact issuers' operational frameworks and compliance costs.