On 8 April 2026 the Financial Crimes Enforcement Network and the Office of Foreign Assets Control issued a joint Notice of Proposed Rulemaking. The instrument was published in the Federal Register on 10 April 2026. The Proposed Rule implements the AML, CFT and sanctions provisions of the Guiding and Establishing National Innovation for US Stablecoins Act, signed into law on 18 July 2025. Public comments close on 9 June 2026.
The Proposed Rule treats permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act, 31 U.S.C. § 5312. Issuers must establish and maintain AML and CFT programmes that meet the four pillars set out in 31 CFR Part 1010, including a designated compliance officer, ongoing training, internal controls and independent testing. The Proposed Rule also requires a sanctions compliance programme aligned with OFAC's Framework for OFAC Compliance Commitments. Final rules would take effect twelve months after issuance.
Permitted payment stablecoin issuers chartered under the GENIUS Act, including bank subsidiaries and federally qualified non-bank issuers, must build BSA-grade compliance programmes before the effective date. Custodial wallet providers and crypto exchanges that distribute permitted stablecoins should expect downstream contractual diligence requirements. Banks providing reserve custody to issuers will need to align oversight with the new programme requirements. Sanctions screening obligations apply across issuance, redemption and secondary market activity.
The Proposed Rule does not extend the BSA money services business definition to permitted payment stablecoin issuers. Treasury reserves the right to impose enhanced due diligence on cross-border activity. Issuers operating outside the United States but offering services to US persons remain in scope. Coordination between FinCEN, OFAC and prudential regulators on examination authority remains to be settled in the final rule.
We advise on stablecoin issuer chartering, AML and sanctions programme build-out and federal regulatory engagement, and we maintain a partner network with US-licensed counsel for filings before FinCEN and OFAC. Contact us to map your stablecoin operations to GENIUS Act requirements. Work we undertake includes BSA programme design, sanctions screening policies, OFAC risk assessments, charter applications, regulatory comment drafting, and cross-border distribution structuring.
Source: US Department of the Treasury, press release Treasury Proposes Rule to Implement the GENIUS Act's Requirements to Counter Illicit Finance, 8 April 2026, https://home.treasury.gov/news/press-releases/sb0435. Date confirmed: 8 May 2026.
The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.