WASHINGTON D.C. — The U.S. Treasury Department, in conjunction with its Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), has unveiled a comprehensive proposed rule mandating that permitted payment stablecoin issuers (PPSIs) adhere to stringent anti-money laundering (AML) and sanctions compliance obligations. The joint proposal, issued on Wednesday, April 8, marks a significant step in regulating the burgeoning stablecoin ecosystem, directly implementing provisions of the GENIUS Act.
According to a press release issued Wednesday, the proposed framework will treat PPSIs as financial institutions under the Bank Secrecy Act (BSA), requiring them to establish and maintain robust AML and sanctions compliance programs. This move is a direct consequence of the GENIUS Act, which was signed into law by President Donald Trump in July 2025, marking the nation’s first-ever piece of crypto legislation.
Mandatory Compliance and National Security
Treasury Secretary Scott Bessent emphasized the dual objectives of the new proposal. In the release, Bessent stated, “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.” This statement underscores the administration’s intent to balance innovation with critical financial security measures.
A fact sheet released concurrently with the proposed rule details the specific obligations for PPSIs. These include:
- Establishing and maintaining an anti-money laundering and countering the financing of terrorism (AML/CFT) program.
- Reporting suspicious activity to relevant authorities.
- Possessing the technical capabilities to effectively block transactions that violate U.S. laws or regulations.
- Having the technical infrastructure to comply with lawful orders from regulatory bodies.
- Maintaining effective sanctions compliance regimes to prevent illicit financial flows.
FinCEN and OFAC have invited public comments on the proposed rule, which will be accepted for 60 days following its publication in the Federal Register.
Broader Regulatory Landscape for Stablecoins
This latest announcement follows closely on the heels of another significant regulatory development. Just a week prior, on April 1, the Treasury Department issued a separate notice of proposed rulemaking. That earlier proposal aimed to establish principles for determining whether a state-level regulatory regime for stablecoin issuers is “substantially similar” to the federal framework established under the GENIUS Act.
The GENIUS Act itself mandates the establishment of such principles, allowing payment stablecoin issuers with a consolidated total outstanding issuance of not more than $10 billion to opt for regulation under a state-level regime, provided that regime meets the federal equivalency standard. This two-pronged approach by the Treasury Department highlights a comprehensive strategy to integrate stablecoins into the existing financial regulatory structure, addressing both federal oversight and potential state-level participation.
The consistent issuance of these proposed rules demonstrates a clear commitment from the Treasury Department to establish a robust and secure regulatory environment for stablecoins. With the GENIUS Act serving as the foundational legal framework, these detailed regulations are poised to significantly shape the operational landscape for stablecoin issuers, ensuring compliance with critical financial safeguards while aiming to foster responsible innovation within the digital asset space.
