The U.S. Department of the Treasury’s Financial Crimes Enforcement Network and the Office of Foreign Assets Control announced on Apr. 8 a joint proposed rule to implement provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, also known as the GENIUS Act.
The proposal aims to address illicit finance risks while supporting innovation in payment stablecoins. The agencies said that by implementing anti-money laundering and sanctions compliance program requirements, they seek to protect the financial system without hindering American companies’ ability to advance in digital financial technology.
"President Trump is strengthening American leadership in digital financial technology," said Secretary of the Treasury Scott Bessent. "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."
Under the GENIUS Act, permitted payment stablecoin issuers would be treated as financial institutions under the Bank Secrecy Act and required to maintain anti-money laundering programs. The law also mandates that these issuers have effective sanctions compliance programs, with Treasury responsible for issuing regulations that put these obligations into effect.
According to Treasury officials, consistent with efforts by FinCEN to modernize Bank Secrecy Act requirements, these new obligations are designed both to assist law enforcement and minimize unnecessary burdens on industry participants.
FinCEN and OFAC are inviting public comments on this proposed rule before it is published in the Federal Register.
