US Treasury Proposes Stricter Regulations on Stablecoin Issuers Under GENIUS Act

The US Treasury Department has announced a new set of regulations for stablecoin issuers, requiring them to adhere to anti-money laundering (AML) and counter-terrorism financing (CTF) standards.

The proposal, part of the GENIUS Act implementation, aims to ensure the security of the national financial system by tightening oversight of the crypto ecosystem. Stablecoin issuers would be required to comply with AML and CTF frameworks under the Bank Secrecy Act, similar to traditional financial institutions.

Issuers must also appoint a dedicated compliance lead based in the US, who will be responsible for coordinating with local authorities and ensuring direct accountability. The individual appointed to this position must have no record of financial offenses, such as fraud or insider trading.