Federal Register #Docket No. FINCEN-2026-0100

Proposed Rule: Stablecoin Issuer AML/CFT and Sanctions Compliance Requirements

This proposed rule from the Department of the Treasury, through FinCEN and OFAC, outlines new regulatory requirements for permitted payment stablecoin issuers (PPSIs): - Government Buyer - Department of the Treasury - Financial Crimes Enforcement Network (FinCEN) - Office of Foreign Assets Control (OFAC) - Scope of Regulation - Applies to PPSIs, including subsidiaries of insured depository institutions and other qualified issuers - PPSIs will be treated as financial institutions under the Bank Secrecy Act (BSA) - Key Regulatory Requirements - Establish and maintain anti-money laundering (AML) and countering the financing of terrorism (CFT) programs - Risk assessments, independent testing, designated compliance officer, employee training - Maintain effective sanctions compliance programs - Senior management commitment, internal controls, testing, training - Conduct ongoing customer due diligence, including beneficial ownership information for legal entities - File Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs) - Maintain records and comply with the Travel Rule for funds transfers - Participate in information sharing under BSA sections 314(a) and 314(b) - Apply enhanced due diligence and comply with special measures under the USA PATRIOT Act - Notable Details - Emphasizes risk-based, technology-enabled compliance - About 50 PPSIs estimated to be affected, each with ~1,000 primary market customers - Penalties for non-compliance are specified - OEMs and Vendors - No specific OEMs or vendors are named, as this is a regulatory action, not a procurement - Products/Services Requested - No products or services are being procured; the rule mandates compliance programs and reporting activities - Period of Performance - Rules become effective 12 months after final issuance, with a three-year regulatory impact analysis horizon - Locations - Department of the Treasury (federal office) - Financial Crimes Enforcement Network, Vienna, VA (federal office) - Public Comment - Agencies seek public input on the proposed regulatory framework for stablecoin issuers

Description

The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) have jointly issued a proposed rule to implement provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). This rule treats permitted payment stablecoin issuers (PPSIs) as financial institutions under the Bank Secrecy Act, proposing anti-money laundering obligations and mandating effective sanctions compliance programs for PPSIs. The proposal aims to regulate stablecoin issuers to combat illicit finance risks and ensure compliance with federal laws related to economic sanctions. Comments on the proposed rule are due by June 9, 2026.

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