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FDIC Proposes BSA/AML Compliance Rules for Stablecoin Issuers Under the GENIUS Act, 2026

The FDIC Board approved two notices of proposed rulemaking in April 2026 implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. One proposed rule imposes Bank Secrecy Act and sanctions compliance requirements on FDIC-supervised permitted payment stablecoin issuers. Comments on both proposals close 9 June 2026.

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The FDIC Board of Directors approved two notices of proposed rulemaking on 7 April 2026 to implement the GENIUS Act. The first proposed rule establishes Bank Secrecy Act and sanctions compliance program requirements for FDIC-supervised permitted payment stablecoin issuers (PPSIs). The second sets out GENIUS Act operational and supervisory standards for PPSIs and insured depository institutions engaging in stablecoin-related activities. Both rules are at the proposed stage and comment periods close 9 June 2026.

The GENIUS Act provides statutory authorization for regulated stablecoin issuance in the United States and obliges PPSIs to maintain AML/CFT and economic sanctions programs equivalent to those required of other FDIC-supervised institutions under the Bank Secrecy Act, 31 U.S.C. sections 5311 through 5336. The proposed BSA/AML rule requires PPSIs to adopt written customer identification programs, beneficial ownership procedures, and suspicious activity reporting protocols under 31 C.F.R. Part 1010.

Any FDIC-supervised bank subsidiary or state nonmember bank seeking to issue payment stablecoins must comply with the proposed standards. Stablecoin issuers already operating will need to demonstrate existing AML/CFT program adequacy or remediate gaps before final rules take effect. Fintech firms and tokenized-deposit platforms supervised by the FDIC should review both proposals now, as the comment deadline of 9 June 2026 is imminent and the final rules will shape permissible stablecoin issuance architecture.

The FDIC is separately consulting on approval procedures for stablecoin issuance by insured bank subsidiaries. The two rulemakings do not yet address state-chartered stablecoin issuers supervised by the OCC or Federal Reserve, whose parallel rulemakings are expected to align with the FDIC proposals. Open questions remain on whether DeFi protocols that issue synthetic stablecoins fall within the PPSI definition under the GENIUS Act.

Licentium advises on the regulatory requirements arising from the GENIUS Act and its implementing rules for digital asset businesses. We assist stablecoin issuers, fintech platforms, and banks on BSA/AML compliance program design, prudential applications, and engagement with FDIC supervisors. Work we undertake includes stablecoin regulatory mapping, AML program review, GENIUS Act licensing strategy, and digital asset regulatory risk assessment.

Source: FDIC Board Approves Proposal to Address Bank Secrecy Act and Sanctions Compliance Standards for FDIC-Supervised Permitted Payment Stablecoin Issuers, FDIC, 7 April 2026

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