U.S. Treasury issues proposed regulation to enforce the GENIUS Act compliance program
The US Treasury released a joint draft rule from FinCEN and OFAC to give effect to the GENIUS Act, which creates a regulatory regime for stablecoins. The rule translates statutory language into concrete AML and sanctions duties for permitted payment stablecoin issuers (PPSIs). It moves the industry closer to clear U.S. standards. PPSIs will be treated as BSA financial institutions, required to maintain AML/CFT programs aligned with OFAC expectations. They must keep records, file reports, and provide certifications confirming robust sanctions controls. The rule also demands technical capabilities to detect, block, and report transactions that violate federal or state law or court orders. Treasury stresses a proportionate, size‑based approach, letting the Secretary tailor requirements to each issuer’s complexity. The draft focuses on outcomes and capabilities rather than a one‑size checklist. If adopted, it would integrate payment stablecoins fully into the U.S. financial regulatory regime while protecting national security.
