The US Department of the Treasury is preparing to release proposed regulations that would establish compliance standards for stablecoin issuers, targeting money laundering and sanctions violations. The forthcoming rules represent a significant step toward bringing the stablecoin sector under formal federal oversight. The move follows the passage of last year’s GENIUS Act, which laid the legislative groundwork for such requirements.
According to a summary of the proposals reviewed by CoinDesk, the Treasury’s FinCEN and OFAC divisions plan to pursue a joint rulemaking process. The joint effort would define how stablecoin issuers are expected to meet their obligations under the GENIUS Act. This includes establishing internal controls designed to prevent illicit transactions from occurring on their platforms.
Under the proposed framework, issuers would also be required to have mechanisms in place to freeze funds and reject transactions flagged as suspicious. These capabilities are intended to give authorities and issuers the tools needed to respond quickly to potential violations. The rules aim to bring stablecoin operations in line with broader financial sector anti-money laundering standards.
The proposed approach is notably deferential to issuers, recognizing that individual companies have the deepest understanding of their own business operations and risk profiles. Regulators appear to be signaling a degree of flexibility, suggesting that issuers who maintain strong compliance systems would be less likely to face future enforcement actions. This framing may be intended to encourage proactive adoption of robust internal controls across the industry.
The joint rulemaking by FinCEN and OFAC marks a coordinated regulatory push that spans both financial crime enforcement and sanctions compliance. Stablecoin issuers operating in the United States will need to assess how their existing systems align with the forthcoming requirements. The release of the formal proposed rules is expected to open a period of public comment before any final standards are adopted.
Originally reported by CoinDesk.
