The Financial Crimes Enforcement Network has proposed new rules requiring stablecoin issuers to adopt risk-based anti-money laundering programmes, marking a major shift in US crypto compliance.
The proposal applies to stablecoin firms classified as financial institutions under the GENIUS Act, requiring them to focus on detecting and preventing illicit activity rather than meeting prescriptive reporting requirements.
“Our proposal restores common sense with a focus on keeping bad actors out of the financial system, not burying America’s banks in more red tape,”
Said Scott Bessent.
Under the framework, issuers must implement four pillars: internal controls and risk assessments, a US-based compliance officer, tailored employee training, and independent programme testing.
The rules align stablecoin oversight with traditional banking standards, requiring firms to demonstrate effectiveness in identifying financial crime risks tied to their users, products, and jurisdictions.
Enforcement would focus on “significant or systemic failures,” signalling a more flexible regulatory approach aimed at reducing penalties for minor technical breaches.
The proposal forms part of a broader regulatory push alongside agencies including the Federal Deposit Insurance Corporation, with final rules expected ahead of a July 2026 compliance deadline.