The draft regulation outlines anti-money laundering and sanctions requirements for digital payment issuers.
The Financial Crimes Enforcement Network (FinCEN)and the Office of Foreign Assets Control (OFAC) recently introduced a proposed rule to implement provisions of the GENIUS Act, which establishes a regulatory framework for payment stablecoins. The proposal would classify permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act—requiring them to adopt anti-money laundering measures and maintain sanctions compliance programs.
“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,” Treasury Secretary Scott Bessent said.
The proposal would also align oversight with broader efforts to modernize financial regulations, and will be open to public comment before any final rules are adopted.
As the Lord Leads, Pray with Us…
- For Treasury Secretary Bessent and regulatory leaders as they evaluate financial risks and they have wise judgment in balancing innovation and security.
- For officials in FinCEN and OFAC as they develop enforcement standards and for their work to promote accountability and stability.
- For U.S. financial officials as they craft policy for emerging financial technologies and consider input from executives in the industry.
Sources: Department of the Treasury
