Treasury Proposes Rule to Implement the GENIUS Act's Requirements to Counter Illicit Finance

Today, the U.S. Department of the Treasury's Financial Crimes Enforcement Network and the Office of Foreign Assets Control issued a joint proposed rule to implement provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The proposed rule, which implements the GENIUS Act's anti-money laundering and sanctions compliance program requirements, encourages innovation in payment stablecoins while providing an appropriately tailored regime to mitigate potential illicit finance risks. The proposed rule would require permitted payment stablecoin issuers to adopt and maintain an effective sanctions compliance program as required by the GENIUS Act.

For additional information, please refer to the below:

• Treasury Press Release
• Fact Sheet: Proposed Rule to Implement the GENIUS Act’s Anti-Money Laundering Obligations and Sanctions Compliance Program Requirements
• Notice of Proposed Rulemaking (as submitted to the Federal Register): Permitted Payment Stablecoin Issuer Anti-Money Laundering/Countering the Financing of Terrorism Program and Sanctions Compliance Program Requirements