The U.S. Treasury Department has moved forward with new rules under the GENIUS Act aimed at tightening controls on illicit finance in the stablecoin sector as regulators deepen oversight of digital assets.
The proposed rule, issued jointly by
The Treasury’s Financial Crimes Enforcement Network (FinCEN) and
The Office of Foreign Assets Control (OFAC)
would require payment stablecoin issuers to implement compliance frameworks designed to detect and prevent illegal financial activity.
[WATCH] The FinCEN Files Reveal How the World’s Biggest Banks Allow Criminals to Move Dirty Money Around the World: https://t.co/kD8eWDYpNB #FinCENFiles
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The initiative forms part of the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a landmark law passed in 2025 that created the first comprehensive federal framework for regulating stablecoins.
Treasury said the proposal also seeks public comment marking the first formal rulemaking step to operationalize the law’s provisions.
REGULATION | U.S Treasury Seeking Public Input on the GENIUS Act
Under the framework, regulators are expected to assess whether stablecoin issuers, particularly foreign firms, pose risks related to illicit finance and financial stability alongside requirements for transparency, reserves, and reporting.
The move underscores Washington’s broader effort to balance innovation in digital payments with safeguards against money laundering, sanctions evasion and other financial crimes as stablecoins become increasingly embedded in global finance.
REGULATIONS | The FDIC Proposes Rules for Issuing Payment Stablecoins for Banks
Stay tuned to BitKE for updates into the global stablecoins regulatory space.
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