The proposal was included in a joint proposed rule issued Wednesday (April 8) by Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), according to a Wednesday press release.
It implements provisions of the GENIUS Act that require Treasury to issue regulations that treat PPSIs as financial institutions when it comes to the Bank Secrecy Act (BSA) and that require AML and sanctions compliance programs, per the release.
“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 in the release.
The proposed rule details PPSIs’ obligations around establishing and maintaining an anti-money laundering and countering the financing of terrorism (AML/CFT) program, reporting suspicious activity, having technical capabilities to block transactions that violate laws or regulations, having technical capabilities to comply with lawful orders, and maintaining and effective sanctions compliance regimes, according to a fact sheet released Wednesday.
FinCEN and OFAC welcome public comments on the proposed rule and will accept them for 60 days after the proposal is published in the Federal Register, per the fact sheet.
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The GENIUS Act was signed into law by President Donald Trump in July 2025, making it the country’s first-ever piece of crypto legislation. PYMNTS reported at the time that the long-awaited policy framework could signal a new era for stablecoins.
Wednesday’s announcement came a week after Treasury proposed its first regulation to implement the GENIUS Act. On April 1, the department issued a notice of proposed rulemaking that would establish principles for determining whether a state-level regulatory regime is substantially similar to the federal framework established under the GENIUS Act.
The establishment of such principles is required by the GENIUS Act, which says that payment stablecoin issuers with a consolidated total outstanding issuance of not more than $10 billion can opt to be regulated under a state-level regulatory regime, if that regime is substantially similar to the federal regulatory framework.
