Banks issuing stablecoins must first pass AML/CFT checks, with a 60-day consultation period, and the industry is about to argue fiercely.

FDIC announces plans to establish "Bank Secrecy Act" and sanctions compliance standards for regulated stablecoin issuers, in response to the GENIUS Act requirements, to create a regulatory framework for stablecoin issuers. Previously, a process was proposed for bank subsidiaries to apply to become stablecoin issuers, along with capital, liquidity, and risk management requirements. The latest proposal also requires issuers to comply with AML/CFT, economic sanctions, and related reporting obligations, and plans to establish supervision and enforcement mechanisms for AML/CFT. The proposal will be open for 60 days of public comment after publication in the Federal Register.