The Office of Foreign Assets Control (OFAC) of the US Treasury Department and the Financial Crimes Investigation Network (FinCEN) announced a joint rule proposal to prevent financial crimes against companies issuing stablecoins. Treasury Minister Bessent stated that with this regulation, the country will both be protected and financial innovation will not be hindered.
New standards are being introduced within the framework of the GENIUS law
The proposal prepared by OFAC and FinCEN was brought to the agenda within the scope of the National US Stablecoin Innovation Guidance and Establishment Act (GENIUS), which has newly entered into force in the USA. This regulation mainly emphasizes the fight against terrorist financing and money laundering.
Under the law, companies issuing stablecoins will need to be fully backed by US Dollars or highly liquid assets. In addition, annual audit obligations and various financial standards for designated issuers were also implemented. Federal agencies require compliance with all requirements by January 2027.
Recently, the Federal Deposit Insurance Corporation proposed a separate regulation regarding stablecoin reserves, emphasizing that these digital assets would be outside the scope of federal deposit insurance.
Audit and compliance obligations are getting heavier
According to the new proposals, only affiliates of insured depository institutions or stablecoin issuers with permission from federal or state authorities will be able to continue their activities.
These organizations will need to establish strong anti-money laundering and anti-terrorist financing programs that include measures for risk detection and mitigation. FinCEN also announced that it would be more cautious in its oversight approach and would intervene only if significant or systemic deficiencies were detected.
Treasury Secretary Bessent pointed out that with the proposed regulation, the US financial system will be protected against national security threats, but innovation in the payment-based stablecoin sector will not be disrupted.
It was reported that within the scope of the proposal, FinCEN will assume a central role in monitoring money laundering and terrorist financing, and consultation processes will be established with relevant regulatory bodies.
The OFAC front announced that an effective sanctions policy oversight program will be required for stablecoin issuers, that it will require the establishment of risk-based internal control systems and regular audits and tests.
