The US Treasury Department has proposed new anti-money laundering requirements for payment stablecoin issuers, aligning their obligations with those of traditional financial institutions and advancing implementation of landmark legislation.
US Treasury Tightens AML Rules on Payment Stablecoins
9 April 2026 - 09:30 CEST
Issued jointly by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC), the rule requires Permitted Payment Stablecoin Issuers (PPSIs) to maintain an effective sanctions compliance program. It represents a key step in implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, enacted on 18 Jul 2025.
The GENIUS Act directed federal agencies to finalize supporting regulations within one year. It mandates full reserve backing for stablecoins and prohibits issuers from paying yield directly to holders.
Payment stablecoins serve as a key tool for onchain payments and settlements. Unlike yield-bearing versions, they pay no interest and remain backed by highly liquid, low-risk assets such as US Treasury bills.
White House report backs stablecoin sector
The Treasury announcement arrived on the same day a White House Council of Economic Advisers report sided with the stablecoin industry against banking sector calls for tighter yield restrictions. The analysis found that eliminating stablecoin yield would boost total bank lending by just $2.1bn – roughly 0.02% – while imposing an annual welfare loss of about $800mn on holders deprived of competitive returns.
Market grows under Trump support
Encouraged by the crypto-friendly Trump administration, stablecoins have expanded into a major component of the financial system. Total circulation surpassed $315bn as of early April 2026. Tether’s USDT accounts for roughly $184bn, while Circle’s USDC stands at about $78bn.
Tether and Circle are the two largest stablecoin issuers. USDT and USDC function as the dominant dollar-pegged tokens, widely used for trading, payments and bridging traditional finance with crypto markets.
Industry reactions remain pending as the proposal enters a public comment period, with potential implications for compliance costs, particularly among smaller issuers.
