The Federal Deposit Insurance Corporation (FDIC) advanced stablecoin regulation on May 22, 2026, by approving a proposed rule to extend Bank Secrecy Act (BSA) and economic sanctions compliance standards to Permitted Payment Stablecoin Issuers (PPSIs). The rulemaking, part of the GENIUS Act implementation, targets stablecoin issuers that operate as subsidiaries of insured state nonmember banks and state savings associations.
Key requirements include mandatory anti-money laundering and countering the financing of terrorism (AML/CFT) programs, Office of Foreign Assets Control (OFAC) sanctions screening, and reporting obligations under the Financial Crimes Enforcement Network (FinCEN). PPSIs would be formally classified as financial institutions under the BSA, needing to adopt comprehensive AML programs, customer identification, suspicious activity reporting, and on-chain transaction screening. The FDIC estimates that between 5 and 30 institutions could seek approval in the early years, with most leveraging existing parent-bank compliance infrastructure to keep costs modest.
Enforcement provisions require the FDIC to notify FinCEN 30 days before any formal enforcement action, though institutions with effective AML programs would generally be shielded unless a “significant or systemic failure” occurs. The proposal follows an earlier April 2026 FDIC prudential standards rule for PPSIs on reserves, redemption, capital, and risk management. A public comment period runs through June 9, 2026, with final rules expected later in the year.
