Stablecoin rules force issuers to run like banks

The Treasury Department, through FinCEN and OFAC, published a joint proposed rule in April 2026 that would treat permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act and require a sanctions‑compliance program for a category of U.S. persons.

The Federal Deposit Insurance Corporation issued a parallel proposal on May 22 aimed at issuers that operate as subsidiaries of state nonmember banks and state savings associations. The Office of the Comptroller of the Currency released draft reporting forms in June for issuers under its jurisdiction.

Under the proposals, permitted payment stablecoin issuers would need customer identification systems, transaction monitoring and screening of wallets and counterparties against sanctions lists. Issuers would be required to report suspicious activity to regulators and disclose reserve holdings.

The OCC’s draft reporting forms would require weekly confidential reports listing issuance, redemptions, trading volume and reserve assets, plus a quarterly financial filing similar to bank call reports. Issuers with more than $50 billion outstanding would prepare audited annual financial statements. The OCC would examine each issuer at least once every 12 months.

The rules build on the GENIUS Act, the federal law for payment stablecoins that was signed in July 2025 and limits issuance to companies that become “permitted payment stablecoin issuers.” Treasury opened rulemaking to implement the statute in late 2025; the proposals issued in 2026 lay out the compliance regime for issuance. Agencies wrote that frequent reporting would give regulators early insight into reserve shortfalls and redemption stress.

The GENIUS Act bars permitted issuers from paying holders interest or yield on the token. The OCC’s draft would extend scrutiny to affiliate arrangements intended to provide equivalent returns. The regulatory requirements emphasize liquidity, integration with payments systems and access for institutional users as primary competitive factors for regulated stablecoins.

Compliance obligations would require investment in legal teams, transaction‑monitoring vendors, reporting platforms and sustained banking relationships. The FDIC estimated that five to 30 of the institutions it supervises could win approval to issue through subsidiaries in the framework’s first few years. A state‑chartered nonbank issuer that reaches $10 billion in circulation would generally have to obtain federal licensing.

The U.S. dollar‑pegged stablecoin market is about $320 billion. Agencies expect the framework to take full effect in 2027. Major issuers that have developed compliant U.S. products or regulatory relationships have adjusted their offerings in line with the proposals. Other firms will need to build the required systems or seek partnerships with regulated entities to continue issuing under the federal regime.