GENIUS Act Stablecoin Rule Targets Illicit Finance Risks
Summary
FinCEN and OFAC issued a joint proposed rule on April 8, 2026, to implement provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The rule targets permitted payment stablecoin issuers (PPSIs) with anti-money laundering program requirements and sanctions compliance obligations. The proposed framework is designed to be fit for purpose, assist law enforcement, and minimize unnecessary burden while encouraging stablecoin innovation.
What changed
FinCEN and OFAC jointly proposed implementing the GENIUS Act's anti-money laundering and sanctions compliance requirements for permitted payment stablecoin issuers (PPSIs). The proposed rule would subject PPSIs to Bank Secrecy Act-based AML requirements and require adoption of effective sanctions compliance programs as specified in the GENIUS Act.
Stablecoin issuers and financial institutions involved in payment stablecoin transactions will face new compliance obligations requiring development of AML programs tailored to stablecoin operations. Firms should review the proposal and submit comments addressing implementation feasibility, compliance burden, and technical requirements.
What to do next
- Submit public comments on the proposed rule
- Review AML program requirements applicable to PPSIs
- Assess sanctions compliance program obligations for stablecoin issuance
Archived snapshot
Apr 9, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Treasury Proposes Rule to Implement the GENIUS Act’s Requirements to Counter Illicit Finance
Immediate Release
April 08, 2026
Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control issued a joint proposed rule to implement provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The proposed rule, which implements the GENIUS Act’s anti-money laundering and sanctions compliance program requirements, encourages innovation in payment stablecoins while providing an appropriately tailored regime to mitigate potential illicit finance risks. The proposed rule would subject permitted payment stablecoin issuers (PPSIs) to requirements applicable to financial institutions relating to prevention of money laundering and impose obligations specified in the GENIUS Act. Consistent with FinCEN’s efforts to modernize Bank Secrecy Act requirements, the proposed obligations are designed to be fit for purpose, assist law enforcement, and minimize unnecessary burden. The proposed rule would require PPSIs to adopt and maintain an effective sanctions compliance program as required by the GENIUS Act.
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Financial Institution Depository Institutions Money Services Businesses Securities and Futures
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