The US Treasury on April 8, 2026 proposed a new rule that would, for the first time, place permitted payment stablecoin issuers under a formal federal anti-money laundering and sanctions compliance framework. Issued jointly by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC), the proposal implements key provisions of the GENIUS Act, which became law on July 18, 2025 and created a broad federal framework for payment stablecoins in the United States.
Stablecoin issuers would be treated as covered financial institutions
Under the proposal, permitted payment stablecoin issuers, or PPSIs, would be classified as financial institutions subject to the Bank Secrecy Act. That would require them to maintain a board-approved written AML/CFT program covering risk assessment, internal controls, independent testing, ongoing employee training, and a US-based compliance officer. Individuals with relevant criminal convictions tied to financial crimes would be barred from serving in that role.
Issuers would also need to file suspicious activity reports for transactions that may indicate legal violations. In addition, they would have to comply with recordkeeping requirements for transfers of $3,000 or more and transmit required information to other financial institutions under the travel rule.
Blocking and seizure capabilities would extend across markets
One of the proposal’s most consequential elements is the requirement for issuers to maintain technical capabilities to block, seize, or reject transactions that violate federal or state law, or are subject to lawful orders from regulators or law enforcement. These controls would apply not only in the primary market but also in secondary stablecoin transactions.
On sanctions compliance, OFAC said issuers must adopt an effective sanctions program built around five core elements: senior management commitment, risk assessment, internal controls, testing, and training. They would also need risk-based safeguards designed to identify and stop transactions that could breach US sanctions rules.
Regulatory pressure is building as comment period nears
FinCEN said it generally would not pursue enforcement against issuers whose programs meet the rule’s standards, unless there are significant or systemic failures. The proposal also fits into a broader regulatory push. In March 2026, the Office of the Comptroller of the Currency proposed prudential standards tied to reserve asset requirements. Earlier in April, Treasury issued another proposal setting principles for state-level supervisory regimes and allowing issuers with less than $10 billion in outstanding stablecoins to opt for approved state oversight.
Major issuers such as Circle and Tether, along with newer entrants, will now have to assess how the proposed rules affect their current compliance structures. Treasury Secretary Scott Bessent said the measure is intended to protect the US financial system from national security threats without undermining the ability of American companies to lead in the payment stablecoin market. Once published in the Federal Register, the proposal is expected to enter a 60-day public comment period.