FDIC-supervised Permitted Payment Stablecoin Issuers (PPSIs)
On May 22, 2026, the FDIC released proposed rules establishing Bank Secrecy Act and sanctions compliance standards for FDIC-supervised permitted payment stablecoin issuers (PPSIs) required under the GENIUS Act. The rules would require PPSIs to comply with AML/CFT regulations and economic sanctions programs, including those administered by FinCEN and the Office of Foreign Assets Control. The proposal would also align FDIC supervision and enforcement provisions for PPSI AML/CFT programs with FinCEN requirements.
It creates a consultation mechanism requiring the FDIC to consult FinCEN before initiating enforcement actions under specified circumstances. The FDIC said compliance with the GENIUS Act's AML and sanctions provisions would reduce harm caused by sanctioned and criminal actors operating through digital assets. Comments are due 60 days after publication in the Federal Register.
- Creates a bank-like AML/sanctions enforcement framework for stablecoin issuers supervised by the FDIC
- FDIC-FinCEN coordinated enforcement model could expand to other fintech verticals
- BaaS banks supporting stablecoin programs will face heightened compliance expectations
- Establishes blueprint for future consent orders and civil money penalties against stablecoin issuers