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The Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) – two agencies within the U.S. Department of the Treasury responsible for policing the financial system – have published a joint proposed rule to guide the implementation of the GENIUS Act.
What's the Scoop?
- Joint Framework: Newly proposed joint rules by FinCEN and OFAC provides a framework for the federal regulation of payment stablecoins under the GENIUS Act. It would treat "permitted payment stablecoin issuers" (PPSI) as financial institutions under the Bank Secrecy Act, and details requirements for PPSIs must meet to combat money laundering and terror financing.
- Important Step: In a press release about the proposed rulemaking, Treasury Secretary Scott Bessent said, "President Trump is strengthening American leadership in digital financial technology. "This proposal will protect the U.S. financial system from national security threats without hindering American companies’ ability to forge ahead in the payment stablecoin ecosystem."
- Multi-Agency Effort: Yesterday, the FDIC published its own proposed GENIUS Act ruling, which seeks to implement a "prudential framework" for FDIC-supervised permitted payment stablecoins issuers under the GENIUS Act. In February, the OCC issued its own rulemaking proposal, which details how the regulator will prohibit interest or yield payments on regulated stablecoins.
