The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) have jointly proposed a new rule treating permitted payment stablecoin issuers similar to banks under the Bank Secrecy Act. This action, part of the GENIUS Act signed by President Donald Trump in July 2025, aims to combat money laundering, terrorist financing, and sanction evasion in the stablecoin ecosystem. Treasury Secretary Scott Bessent stated the move strengthens American leadership in digital finance while protecting national security.
U.S. regulators have proposed treating permitted payment stablecoin issuers (PPSIs) as financial institutions under the Bank Secrecy Act. The joint proposal from FinCEN and OFAC addresses risks of money laundering, terrorist financing, and sanction evasion.
This rule is part of the GENIUS Act, which President Donald Trump signed into law in July 2025. Regulators believe stablecoin issuers can evolve the payment system, but illicit actors jeopardize U.S. national security.
The rule would impose anti-money laundering obligations that were previously reserved for banks. It is designed to assist law enforcement while minimizing unnecessary burdens on issuers.
Treasury Secretary Scott Bessent applauded the changes made under the Trump administration. “President Trump is strengthening American leadership in digital financial technology,” he stated.
He further added that the proposal protects the financial system from national security threats. “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,” Bessent noted.
Stablecoins have been a target for illicit activities for years. Authorities seized $225.3 million worth of USDT linked to scams in June 2025.
In July 2025, the DOJ unsealed approximately $2 million in digital assets linked to a Palestine-based money exchange. Another $5.5 million in stablecoins was seized from a drug trafficking operation in November 2024.
A recent report from Chainalysis highlighted the scale of these activities. Stablecoins accounted for 84% of all illicit transaction volume in 2025.
