GENIUS Act: AML Requirement for Stablecoins

The U.S. Treasury Department, FinCEN, and OFAC have published a joint proposal for payment stablecoin issuers regarding the implementation of the GENIUS Act. This proposal mandates that issuers establish anti-money laundering (AML) and counter-terrorism financing (CFT) programs, maintain sanctions compliance programs, and have the authority to block, freeze, or reject certain stablecoin transactions. Issuers will be considered financial institutions under the Bank Secrecy Act (BSA). The GENIUS Act was enacted in July 2025 and will take effect 18 months later or 120 days after the relevant regulations.

Source: Financial Crimes Enforcement Network

How Does the GENIUS Act Regulate Stablecoin Issuers?

The GENIUS Act places the stablecoin ecosystem under strict supervision. The proposal accelerates the integration of stablecoins with the traditional financial system by requiring issuers to manage reserves transparently and comply with BSA. This directly impacts major players like Tether (USDT) or USDC, promoting global compliance.

Mandatory AML/CFT and Sanctions Compliance Details

Issuers must develop comprehensive AML/CFT programs. These programs include customer identification (KYC), suspicious transaction reporting, and risk assessment. Additionally, transaction filtering systems must be established to comply with OFAC sanctions. These steps aim to prevent stablecoins from being used as tools for criminal financing.

FDIC's Statement on Stablecoin Reserve Protection

The FDIC stated that stablecoin holders are not insured, but issuer reserves will be protected in FDIC-supervised banks. This distinction protects investor confidence while minimizing systemic risks.

CLARITY Act Delay and ALT Market Reaction

Meanwhile, Congress is delaying the CLARITY Act for the digital asset market. The Senate Banking Committee has not yet marked up the bill; discussions on stablecoin yields, tokenized stocks, and ethical issues continue. The White House Council of Economic Advisers argued that banning stablecoin yields does not protect bank loans. Regulatory uncertainty is affecting the altcoin market. Upon examining the ALT detailed analysis, the price is at $0.01 level (-2.26% 24h), RSI 45.84 with downtrend dominant. Supports: S1 $0.0059 (strong, %72), S2 $0.0065. Resistances: R1 $0.0069 (%82 strong). For ALT futures, Supertrend bearish, below EMA20 $0.0066. Investors should follow the ALT spot analysis.