US Treasury advances GENIUS Act stablecoin crackdown

The US Treasury has moved forward with implementing the GENIUS Act by proposing rules requiring stablecoin issuers to adopt strict anti-illicit finance controls.

The framework, issued jointly by the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, would classify payment stablecoin issuers as financial institutions under the Bank Secrecy Act.

This would mandate anti-money laundering and counter-terrorism financing programmes, sanctions compliance systems, and the ability to block, freeze, or reject certain transactions.

“Bringing stablecoin issuers into full BSA/OFAC compliance effectively turns them into bank-like gatekeepers,”

Said Nominis CEO, Snir Levi.

“That means significantly more wallet freezes, transaction blocking and asset seizures at scale,”

He added.

The proposed rule forms part of the broader rollout of the GENIUS Act, signed into law in July 2025, which establishes a regulatory framework for stablecoins and is expected to take effect within 18 months or shortly after supporting regulations are finalised.

The move comes as US regulators and lawmakers continue debating wider crypto legislation, including the stalled CLARITY Act, alongside ongoing disputes over stablecoin yields and the role of tokenised financial assets.