Banks in the United States that issue stablecoins will soon be required to comply with anti-money laundering (AML) regulations equivalent to those imposed on traditional financial institutions. The Federal Deposit Insurance Corporation (FDIC) has approved a new regulatory proposal in this field and is preparing to update the AML rules for stablecoins to meet the demands of the digital age.
Scope of the new regulation
The latest proposal endorsed by the FDIC extends anti-money laundering and sanctions compliance programs, mandated under the Bank Secrecy Act (BSA), to any companies issuing stablecoins as subsidiaries of state banks overseen by the FDIC. From now on, stablecoin issuers affiliated with banks will be required to take on comprehensive responsibilities to prevent financial crimes.
Under the GENIUS Act, the FDIC has been appointed as the primary supervisory and regulatory authority in this area. The law also requires all federal banking regulators to develop similar rules for stablecoin issuers. For example, the Office of the Comptroller of the Currency (OCC) released its own regulatory proposal in 2026, and FDIC Chairman Travis Hill noted that his agency’s strategy was shaped in this direction.
The regulation will not only enforce measures against money laundering and terrorist financing but also mandate reporting and compliance with sanctions programs as outlined by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC).
Mini glossary: A stablecoin is a type of digital currency used on blockchain networks, whose value is pegged to a reserve asset such as the US dollar or euro.
The regulatory process and potential impact
With this proposal, the FDIC gains authority not only to supervise whether stablecoin issuers are adhering to anti-money laundering rules, but also to impose penalties when necessary. This marks the FDIC’s third major regulatory move under the GENIUS Act. Earlier, the agency had introduced detailed requirements for application processes, reserve asset management, and redemption standards for banks aiming to issue stablecoins.
Projections suggest that between 5 and 30 banks may apply for stablecoin issuance licenses in the first years after the law takes effect. The FDIC anticipates the new regulatory era will begin in mid-2027.
Modernizing anti-money laundering compliance
Separately, the FDIC, the OCC, and the National Credit Union Administration are preparing another proposal designed to modernize the anti-money laundering framework. The updated approach would direct regulators to focus oversight resources on customers with higher risk profiles, rather than those with lower risks.
FDIC Chairman Travis Hill emphasized that banks allocate substantial resources to meet BSA requirements, but questioned whether this effort meaningfully supports law enforcement or national security.
Hill pointed out that due to hefty penalties for violating the BSA, banks often opt to close customer accounts or reject new applications.
The FDIC board unanimously approved the stablecoin regulation, passing it with a 3 to 0 vote. Following its release, the public has been granted a 60-day period to submit feedback on the proposal.
