the Federal Deposit Insurance Corporation (FDIC) Board has taken another step in implementing The law of genius By approving the proposed rule to be implemented Bank secrecy law (BSA) and sanctions compliance standards for FDIC-permitted payment stablecoin issuers (PPSIs).
The proposed rule would require that these PPSIs comply with applicable regulations regarding anti-money laundering/countering the financing of terrorism (AML/CFT) and economic sanctions programs, and comply with reporting requirements, including those established by Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets ControlThe Federal Deposit Insurance Corporation (FDIC) said on Friday (May 22) press release.
It will also develop and align supervision and enforcement provisions for AML/CFT programs with FinCEN requirements, according to the statement.
The proposed rule is detailed in Notice of Proposed Rulemaking (NPRM) that has been approved by the FDIC Board, and the FDIC will accept comments on it for 60 days after the NPRM is published in the Federal Register, according to the release.
The Board approved the NPRM by A vote From 3-0, according to the FDIC website.
“Under the GENIUS Act, the FDIC is the primary federal regulator for PPSIs, which are subsidiaries of government-insured nonmember banks and state savings associations authorized by the FDIC to issue stablecoins for payment,” the regulator said in the statement.
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The GENIUS Act became the first ever piece in the country Cryptocurrency legislation In July when President Donald Trump signed it into law. PYMNTS reported at the time that the GENIUS Act provides a long-awaited policy framework that could signal a whole new era for cryptocurrencies in the US, or at least for stablecoins, which it was written to regulate.
The FDIC took its first action to implement the GENIUS Act in December when it approved an NPRM to establish procedures under which insured depository institutions supervised by the regulator can seek to issue Stablecoin payments.
In February, the Federal Deposit Insurance Corporation (FDIC) extended the period Comment period on the NPRM from February 17 to May 18, saying it wanted to provide additional time for the public to prepare comments.
The FDIC Board approved another NPRM related to the GENIUS Act in April. This proposed rule would create a prudential framework to allow for FDIC oversight. Stablecoin issuers. This framework will include reserve asset requirements, recovery criteria, capital and risk management.
