Stablecoin issuers will now be treated as financial institutions under new US rules

Stablecoin issuers will now be treated as financial institutions, subject to the same anti-money laundering and sanctions compliance obligations as banks. Under a new proposed rule from the US Treasury, issued jointly by FinCEN and OFAC, permitted payment stablecoin issuers (PPSIs) will fall under the Bank Secrecy Act (BSA)—a shift that ends their status as entities operating in regulatory gray zones. These firms must now implement AML and counter-terrorism financing programs, establish sanctions compliance systems, monitor and report suspicious activity, and maintain internal controls aligned with federal standards. The rule is designed to curb illicit finance while preserving space for innovation in digital payments. By classifying PPSIs as financial institutions, regulators are mandating that they act as compliance gatekeepers—equipped to respond to flagged transactions and cooperate with law enforcement. The framework, rooted in the 2025 GENIUS Act, reflects a broader recognition that stablecoins are integral to the financial system, not peripheral tech experiments. The proposal is not final; once published in the Federal Register, a public comment period will allow industry participants, banks, and crypto firms to shape its implementation. The outcome will define how stablecoins operate in the US for years to come—and may set a global benchmark for crypto regulation.