U.S. Treasury Proposes AML Rules for Stablecoins

The U.S. Treasury Department has proposed new rules requiring payment stablecoin issuers to implement robust anti-money laundering and sanctions compliance measures, treating them similarly to traditional banks under the Bank Secrecy Act. The joint proposal from the Financial Crimes Enforcement Network and the Office of Foreign Assets Control, issued this week, aims to curb money laundering, terrorist financing, and sanctions evasion in the rapidly growing stablecoin sector.

The rules stem from the GENIUS Act, signed into law by President Donald Trump in July 2025, which establishes the first nationwide framework for stablecoins—digital assets pegged to the U.S. dollar and used for payments, trading, and liquidity. Stablecoins like Tether and USD Coin dominate the market, facilitating transactions on blockchain platforms and exchanges. Prior to the act, oversight was fragmented between state regulators and federal agencies, leaving gaps in addressing illicit risks.

Under the proposal, permitted payment stablecoin issuers must develop anti-money laundering and counter-terrorism financing programs, including customer due diligence, suspicious activity reporting, and...