As the landscape of cryptocurrency regulation evolves in the United States, the Federal Deposit Insurance Corporation (FDIC) has introduced a notice of proposed rulemaking. This proposal aims to extend the compliance requirements of the Bank Secrecy Act (BSA) and economic sanctions to the newly defined FDIC-supervised Permitted payment stablecoin issuers (PPSIs). This initiative is intended to integrate digital asset issuers into the established compliance framework that governs traditional banking entities.
Key Aspects of the FDIC Proposed Framework
The FDIC’s proposed rule, highlighted in a recent press release, points out that PPSIs will need to adhere to relevant Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) protocols, as well as economic sanctions regulations. This includes compliance with mandates issued by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC).
This regulatory step follows an earlier FDIC proposal from April 2026 that defined prudential standards for PPSIs regarding their liquidity and risk management practices. Under the updated rule, PPSIs will be officially categorized as financial institutions under the BSA. This means they must implement comprehensive AML programs, along with structures to comply with OFAC sanctions. Specific requirements will include:
- Internal controls
- A designated compliance officer
- Staff training
- Independent program testing
- Customer identification procedures
- Reporting of suspicious activities
- On-chain transaction monitoring
For enforcement and oversight, the FDIC plans to inform the FinCEN director at least 30 days before starting any significant supervisory actions or formal enforcement regarding a PPSI’s AML/CFT program. The FDIC has indicated that PPSIs with effective AML/CFT programs may generally avoid enforcement actions, barring significant systemic failures to comply.
It is worth noting that PPSIs comprise organizations approved under the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) to issue payment stablecoins, operating as subsidiaries of state-chartered nonmember banks and state savings associations.
Looking Ahead
The public comment period on this proposed rule is projected to run until June 9, 2026, which is 60 days post-publication in the Federal Register. The final regulations are expected to be released later in 2026, accompanied by specific implementation guidelines and timelines. The FDIC anticipates that between five and thirty FDIC-supervised PPSIs might apply for compliance in the initial years following the rule’s enactment, most likely utilizing existing aml frameworks from their parent institutions to minimize additional compliance costs.
