Key Takeaways
Regulators moved to set compliance standards for FDIC-supervised payment stablecoin issuers.Proposed requirements include AML/CFT programs, sanctions controls, reporting, and enforcement procedures.The proposal would establish a federal enforcement framework for stablecoin issuers tied to anti-money laundering and sanctions compliance.
FDIC Advances Stablecoin Compliance Rule Under GENIUS Act
The Federal Deposit Insurance Corporation (FDIC) announced on May 22 that its board approved a notice of proposed rulemaking for Bank Secrecy Act (BSA) and sanctions compliance standards covering FDIC-supervised permitted payment stablecoin issuers (PPSIs). The proposal would implement requirements under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).
A PPSI is an issuer approved to issue payment stablecoins under federal oversight. Under the GENIUS Act, the FDIC serves as the primary federal regulator for PPSIs that are subsidiaries of insured state nonmember banks and state savings associations approved by the agency. The proposal would require these issuers to follow anti-money laundering and counter-terrorist financing programs, economic sanctions programs, and reporting requirements. The FDIC wrote:
“The proposed rule aims to establish appropriate principles-based BSA and sanctions compliance requirements and standards.”
The proposal would amend 12 CFR Part 350, the FDIC’s payment stablecoin regulation. The change would add BSA and sanctions compliance standards for FDIC-supervised PPSIs and create a new subpart covering AML/CFT supervision and enforcement. Those requirements would work alongside rules from the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC).
Proposal Would Amend FDIC Payment Stablecoin Rules
The FDIC’s enforcement framework would define AML/CFT enforcement actions to include cease-and-desist orders, written agreements, consent orders, memoranda of understanding, and civil money penalties. It also would cover significant supervisory actions tied to alleged deficiencies, weaknesses, violations of law, or unsafe practices involving AML/CFT requirements. Comments would be accepted for 60 days after publication in the Federal Register.
Before taking certain enforcement or supervisory actions, the FDIC would give FinCEN’s director at least 30 days to review the planned action, unless faster action is needed. The FDIC would share relevant AML/CFT materials, including draft examination findings, draft enforcement materials, workpapers, and issuer submissions, while protecting privileged information. The FDIC wrote:
“Overall, the proposed rule is expected to enhance the effectiveness, consistency, and supervisory clarity of BSA and sanctions compliance.”
The proposal is part of a broader 2026 push to implement the GENIUS Act’s payment stablecoin framework. In April, the FDIC approved a separate proposal covering reserves, redemption, capital, risk management, custody, and deposit insurance treatment for FDIC-supervised stablecoin activities. The agency estimates that five to 30 FDIC-supervised institutions could receive approval to issue payment stablecoins through subsidiaries within the first few years after the act takes effect.
