The FDIC issued a proposed rule on May 22 codifying that stablecoin issuers under its supervision must comply with Bank Secrecy Act, AML, and OFAC sanctions requirements. It also establishes a 30-day advance notice requirement for the FDIC to consult with FinCEN before initiating enforcement action over AML or sanctions compliance against an issuer.
The proposal is the FDIC’s third major stablecoin rulemaking under the Genius Act, layering AML/sanctions obligations on top of its earlier application process and substantive prudential standards proposals. It mirrors the joint FinCEN/OFAC proposed rule from April, requiring risk-based AML/CFT programs, SAR filing (for primary market transactions), recordkeeping, and the ability to block impermissible transactions in both primary and secondary markets. The public comment period is 60 days.
Outlook for banks: If your institution is considering sponsoring or partnering with a stablecoin issuer subsidiary, the combined effect of the FDIC’s three proposed rulemakings is coming into clearer focus: a formal application, prudential standards (capital, reserves, redemption protocols), and now AML/sanctions compliance programs. The state regulator inclusion issue matters for state-chartered banks. Ensure your state regulator is looped in early if you pursue this path, regardless of what the final federal rule requires.