By PAUL O’DONOGHUE, Senior Correspondent
THE U.S. Treasury has proposed a new rule to bring payment stablecoin issuers under AML and sanctions requirements, implementing parts of the GENIUS Act.
The law creates a regulatory framework for dollar-backed payment stablecoin issuers.
The proposed rule would subject PPSIs (payment stablecoin issuers) to similar AML requirements which currently apply to banks.
“The law directs Treasury to issue regulations that would treat PPSIs as financial institutions for purposes of the Bank Secrecy Act (BSA) and impose anti-money laundering obligations on PPSIs,” the Treasury said.
“The GENIUS Act also mandates that PPSIs maintain an effective sanctions compliance program and directs Treasury to issue appropriate regulations implementing such obligations.”
FinCEN (Financial Crimes Enforcement Network) and OFAC (Office of Foreign Assets Control) issued the joint proposed rule.
It aims to support innovation in payment stablecoins while addressing illicit finance risks, the Treasury said.
“President Trump is strengthening American leadership in digital financial technology,” Treasury Secretary Scott Bessent said. “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.”
The proposal also reflects FinCEN’s broader push to modernise the BSA framework. The Treasury said it takes a more tailored, risk-based approach to compliance, the Treasury said.
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