The U.S. Department of the Treasury is tightening the rules around stablecoins, making it clear that crypto firms will now be treated much more like traditional financial institutions.
Under new proposals linked to the GENIUS Act, stablecoin issuers will have to follow strict anti-money laundering and sanctions rules.
Agencies like Financial Crimes Enforcement Network and Office of Foreign Assets Control are leading the effort to turn the law into real, enforceable requirements.
Here’s what’s changing in simple terms:
- Stablecoin companies must follow the same rules as banks under the Bank Secrecy Act
- They need systems that can detect suspicious activity
- They must be able to block, freeze, or reject transactions if needed
- Each company has to appoint a U.S.-based compliance officer
The goal is to stop illegal activity like money laundering and terrorism financing while still allowing the industry to grow.
Officials say this move is about protecting the financial system without slowing innovation. Treasury Secretary Scott Bessent emphasized that the rules are meant to balance security and progress in digital finance.
Other regulators are also getting involved. The Federal Deposit Insurance Corporation has already clarified that while stablecoins themselves won’t be insured, the reserves backing them will be protected.
For now, the proposal is open for public feedback for 60 days. After that, these rules could become a major turning point—bringing stablecoins firmly into the regulated financial system.
