On May 22, the FDIC Board of Directors approved an NPRM that would implement BSA/AML and sanctions compliance standards applicable to FDIC-supervised permitted payment stablecoin issuers (PPSIs) as required by the GENIUS Act (previously covered by InfoBytes here). The proposal is the FDIC’s third rulemaking under the GENIUS Act, following a December 2025 proposed rule establishing application procedures (covered by InfoBytes here) and an April 2026 proposed rule establishing a prudential framework for PPSIs (covered here).

This proposed rule would require PPSIs to comply with existing anti-money laundering/countering the financing of terrorism (AML/CFT) and economic sanctions program regulations, including requirements established by FinCEN and the Office of Foreign Assets Control in a separate proposed rule implementing the GENIUS Act (covered here). The proposed rule would further require PPSIs to maintain an effective customer identification program, consistent with separate rulemakings by FinCEN and the primary federal payment stablecoin regulators (covered here). The FDIC said the proposed rule aims to establish principles-based requirements tailored to the business model and risk profile of PPSIs, help combat illicit finance risk, and support the responsible growth and use of digital assets in the banking sector.

The proposed rule would also establish supervision and enforcement provisions for PPSI AML/CFT programs, including a framework providing for consultation between the FDIC and FinCEN which would require the FDIC to provide FinCEN’s director with written notice at least 30 days before initiating an AML/CFT enforcement action or significant supervisory action against a PPSI. The FDIC noted that a PPSI that has established an effective AML/CFT program based on FinCEN program requirements would not be subject to enforcement or “significant supervisory action,” except in cases of significant or systemic failure to implement an effective program. The proposal would also allow PPSIs to share information related to FDIC supervision of the PPSI with FinCEN’s director in connection with enforcement or supervisory actions, including information that would ordinarily be considered non-public under the FDIC’s rules. Comments must be submitted by August 4.