US Treasury to mandate illicit transaction monitoring for stablecoin issuers

The U.S. Treasury Department is set to propose a new rule that would require stablecoin issuers to monitor for illicit transactions to prevent money laundering and sanctions violations, CoinDesk reported. The proposal will be jointly issued by the Treasury's Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) to implement the GENIUS Act. The requirements will include the ability for issuers to block, freeze, and reject transactions, as well as the implementation of internal safeguards to comply with the U.S. Bank Secrecy Act.