As cryptocurrency regulations continue to take shape in the United States, the Federal Deposit Insurance Corporation (FDIC) has issued a Notice of Proposed Rulemaking to expand the Bank Secrecy Act (BSA) and economic sanctions compliance standards to include permitted payment stablecoin issuers (PPSIs) subject to FDIC oversight. The move aims to bring digital asset issuers further within the compliance structure that has long governed traditional banking.
Key points of the FDIC’s proposed new framework.
According to A press release On Friday, the FDIC’s proposed rule essentially requires PPSIs to comply with anti-money laundering and counter-terrorism financing (AML/CFT) program requirements, economic sanctions programs, and reporting obligations, including those issued by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC).
This latest rulemaking follows a previous FDIC proposal from April 2026, which established prudential standards for PPSIs covering reserve assets, redemption, capital, and risk management. Under FinCEN-OFAC’s proposed new parallel rule, PPSIs would be formally classified as financial institutions under the BSA, requiring them to adopt full anti-money laundering programs and OFAC-compliant sanctions compliance structures, including internal controls, a designated compliance officer, employee training, independent testing, customer identification, suspicious activity reporting, and cross-chain transaction screening capabilities.
With respect to supervision and enforcement, the proposed rule would require the FDIC to notify the Director of the Financial Crimes Enforcement Network (FinCEN) at least 30 days before initiating any formal enforcement action or significant supervisory decision related to PPSI’s AML/CFT program. However, the FDIC notes that PPSIs with effective AML/CFT programs will be protected from enforcement actions in most circumstances, except where there is a “significant or systematic failure” to implement the required programs.
For context, PPSI refers to all entities authorized under the U.S. Stablecoin National Innovation Guidance and Establishment Act (GENIUS Act) to issue stablecoins for payment as affiliates of insured non-member state banks and government savings associations.
Looking forward
The public comment period on this proposed rule is expected to last until June 9, 2026, 60 days after its publication in the Federal Register. The final rule will be announced later in 2026, along with implementation details and deadlines. The FDIC estimates that between five and 30 FDIC-supervised PPSIs could seek approval in the first few years after passage of the law, and that most of them would leverage existing anti-money laundering infrastructure from their parent institutions, keeping additional compliance costs modest.
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