The US Treasury Department is moving forward with the GENIUS Act, mandating that payment stablecoin issuers implement stringent measures against illicit finance. Under the proposed framework, these issuers will be required to establish comprehensive anti-money laundering (AML) and countering the financing of terrorism (CFT) programs. They must also maintain a sanctions compliance program and possess the capability to "block, freeze and reject" specific stablecoin transactions.
This directive effectively treats stablecoin issuers as financial institutions under the Bank Secrecy Act (BSA). Experts note this will lead to increased wallet freezes, transaction blocks, and asset seizures at scale. The Treasury's move is part of the broader implementation of the GENIUS Act, signed into law in July 2025, which aims to provide a regulatory framework for stablecoins and is anticipated to benefit crypto markets.