FDIC Sharpens BSA Oversight as Payment Stablecoins Move Into Focus

• FDIC proposal targets bank-linked payment stablecoin issuers under BSA rules.
• The rule adds AML, sanctions, reporting, and enforcement standards for supervised issuers.
• FDIC says up to 30 supervised institutions may apply to issue payment stablecoins.

The Federal Deposit Insurance Corporation moved payment stablecoins deeper into the banking compliance arena on May 22, approving a proposed rule tied to Bank Secrecy Act oversight. The proposal targets permitted payment stablecoin issuers, known as PPSIs, that operate as subsidiaries of insured state nonmember banks and state savings associations.

Bank-Linked Stablecoin Issuers Face Clearer Controls

The rulemaking forms part of the FDIC’s implementation of the GENIUS Act, which established a federal framework for regulated payment stablecoins. Under the plan, supervised PPSIs would need to follow anti-money laun…

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