On Wednesday, the U.S. Treasury Department introduced a rule outlining how stablecoin issuers should develop anti-money laundering and sanctions programs as mandated by the GENIUS Act, advancing the implementation of last year’s federal framework.
The proposal, issued by the Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), specifies obligations for U.S.-regulated stablecoin issuers in terms of required programs, procedures, and technical capabilities. These rules align stablecoin issuers with other entities already governed by FinCEN and OFAC, formally categorizing them as “financial institutions” under laws like the Bank Secrecy Act, which obliges financial bodies to assist in identifying and preventing financial crimes.
As per the proposal, obligations for stablecoin issuers include establishing a robust anti-money laundering program, reporting suspicious activities, and maintaining an effective sanctions compliance program. Moreover, it mandates that stablecoins must have features allowing transactions to be blocked, frozen, or rejected if they breach legal standards and obliges issuers to adhere to lawful directives.
In a blog post, the Treasury described these rules as balancing the protection of Americans with fostering domestic innovation.
“President Trump is reinforcing America’s leadership in digital financial technology,” stated Treasury Secretary Scott Bessent. “This proposal will shield the U.S. financial system from national security threats while not impeding American companies’ progress within the payment stablecoin ecosystem.”
The proposed rule requires stablecoin issuers to designate an individual responsible for setting up systems against money laundering and terrorism financing. It excludes individuals outside the U.S. or those convicted of offenses such as insider trading, cybercrime, or financial fraud.
However, FinCEN has indicated that it “generally would not take enforcement action” against a stablecoin issuer with adequate procedures in place, according to the proposal, which invites comments over the next 60 days.
FinCEN and OFAC are among the latest agencies to propose rules for implementing the GENIUS Act. On Tuesday, the Federal Deposit Insurance Corporation (FDIC) unveiled its proposal, while the Treasury’s Office of the Comptroller of the Currency released a related one in February.
Warren Kornfeld, senior vice president at Moody’s Ratings Financial Institutions Group, noted that FDIC’s proposal extends beyond stablecoins to include tokenized deposits within the banking sector. “While its adoption remains uncertain, if enacted, it could create a layered digital cash ecosystem based on risk and regulatory profiles,” he added.