FDIC Proposes AML and Sanctions Standards for Supervised Stablecoin Issuers

The Federal Deposit Insurance Corporation (U.S. bank deposit insurer) said supervised stablecoin issuers would need to meet Bank Secrecy Act compliance, sanctions screening, and related reporting obligations.

Summary

The Federal Deposit Insurance Corporation (U.S. bank deposit insurer) has proposed compliance standards for supervised stablecoin issuers, focusing on anti-money laundering and sanctions controls. Under the proposal, issuers would be required to comply with Bank Secrecy Act requirements, AML/CFT (anti-money laundering and countering the financing of terrorism) obligations, Financial Crimes Enforcement Network (U.S. financial intelligence agency) rules, Office of Foreign Assets Control (U.S. sanctions enforcement agency) requirements, and reporting standards. The agency said public comments will be accepted for 60 days after the proposal is published in the Federal Register (official U.S. government journal), marking the next step in a formal rulemaking process for stablecoin oversight.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value, typically by being linked to a fiat currency such as the U.S. dollar.
  • AML/CFT: Anti-money laundering and countering the financing of terrorism rules intended to prevent illicit funds from moving through financial systems.
  • Bank Secrecy Act: A U.S. law that requires financial institutions to keep records, monitor transactions, and report suspicious activity to help detect financial crime.