What You Need to Know
- On Monday, June 22, 2026, the Office of Comptroller of the Currency (OCC) proposed changes to its earlier stablecoin proposal that would require permitted payment stablecoin issuers (PPSIs) to follow Bank Secrecy Act (BSA) and sanctions compliance expectations. OCC will accept public comments until July 24, 2026.
- Under the proposal, PPSIs must maintain anti-money laundering (AML)/counter financing terrorist (CFT) and sanctions programs to meet reporting obligations consistent with those set forth by the Financial Crime Enforcement Network (FinCEN) and The Office of Foreign Assets Control’s (OFAC) joint proposed rule to treat PPSIs as Financial Institutions under the BSA.[1]
- OCC’s approach is intended to align with the federal stablecoin compliance framework, to “codify” that OCC-regulated PPSIs need to comply with the regulations issued by FinCEN and OFAC. Further, OCC will consult with FinCEN before taking AML/CFT enforcement actions or significant supervisory actions against a covered issuer, subject to limited exceptions. Additionally, PPSIs would be authorized to share certain nonpublic information with the FinCEN Director when it relates to potential or pending AML/CFT enforcement or significant supervisory actions.
- Notable safe-harbor provision: PPSIs that have properly established an effective AML/CFT program, generally, would not face an AML/CFT enforcement action or significant AML/CFT supervisory action, absent a significant or systemic failure to implement the program.
The Genius Act & OCC Proposals
The Genius Act, enacted July 18, 2025, gave OCC primary federal responsibility for regulating PPSIs and expanded its authority to license, supervise, and enforce requirements for bank-related entities, nonbanks, and certain foreign issuers. Since then, the OCC has issued multiple proposed rules to implement these responsibilities. OCC has indicated that its stablecoin framework would apply to a range of issuers under its oversight, including certain bank-related entities, nonbank issuers approved under the federal framework, foreign issuers within scope, and state-qualified issuers where the OCC has regulatory or enforcement authority.
On April 10, 2026, FinCEN and OFAC issued a joint proposed rule to treat PPSIs as financial institutions pursuant to the BSA AML/CFT programs and sanctions protection[2], which OCC subsequently adopted into its March 2, 2026, rulemaking.
On June 5, 2026, Federal Deposit Insurance Corporation (FDIC) issued a notice of proposed rulemaking to implement appropriate BSA and sanctions compliance standards applicable to FDIC-supervised permitted payment stablecoin issuers. [3]
On June 9, 2026, in response to proposed rule, the American Bankers Association (ABA) wrote a letter to the agencies stating certain concerns about the FinCEN/OFAC framework. Namely, while the ABA supported involvement of PPSIs into “markets on terms that are safe, sound, and compliant with U.S. law, to ensure the integrity of the U.S. financial system,” they raised concerns involving “secondary market” payment stablecoin activities. In their letter, the ABA requested that any rulemaking concerning AML/CFT issues and sanctions also cover secondary market payment stablecoin activities, such as individuals purchasing payment stablecoins from an intermediary. [4]
OCC’s June 22nd proposed changes follow on the heels of the June 18, 2026 collective proposal by FinCEN, OCC, FDIC, Board of Governors of the Federal Reserve (FRB), and National Credit Union Administration (NCUA), seeking to require PPSIs to implement customer identification (CID) measures, as part of its AML/CFT programs. These procedures are commensurate with requirements for a financial institution pursuant to the BSA. [5]
OCC's BSA/AML/CFT and Sanctions Framework for PPSIs:[6]
1. Enforcement and Supervisory Definitions – The proposal creates a new regulatory subpart defining two key terms:
- "AML/CFT enforcement action": Includes all formal and informal OCC actions (cease-and-desist orders, written agreements, consent orders, memoranda of understanding, and civil money penalties).
- "Significant AML/CFT supervisory action": A formal written determination identifying material compliance failures that require substantial corrective action.
2. OCC Required to Engage in Interagency Consultation – Before taking an AML/CFT enforcement or significant supervisory action OCC must consult with FinCEN.
3. PPSI Information Sharing – OCC confidential information can be shared by PPSIs with FinCEN's Director when it relates to an existing or potential AML/CFT enforcement or supervisory matter.
4. Safe Harbor for Effective Compliance Programs – PPSIs that establish and maintain an effective AML/CFT program meeting FinCEN requirements would generally be protected against enforcement actions, unless there is a major or systemic breakdown in implementing the program.
Impacted Financial Institutions
OCC’s rulemaking applies to different types of financial institutions, and can affect community banks, whether they are typically OCC-regulated entities or not. OCC’s 2026-3 Bulletin of February 25 2026 Genius Act Regulations: Notice of Proposed Rulemaking provides a “Note for Community Banks” that the rule applies to: “national banks and their subsidiaries, Federal savings associations and their subsidiaries, Federal branches and their subsidiaries, foreign payment stablecoin issuers, nonbank entities that seek to be or are approved as Federal qualified payment stablecoin issuers, and State qualified payment stablecoin issuers for whom the OCC has regulatory or enforcement authority pursuant to the Genius Act.”
In the OCC’s 2026-28 Bulletin GENIUS Act: Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) and Sanctions Compliance: Notice of Proposed Rulemaking on June 22, 2026, the OCC provided a “Note for Community Banks” that the rule applied: “to federal qualified payment stablecoin issuers and to state qualified payment stablecoin issuers for which the OCC has regulatory or enforcement authority pursuant to the GENIUS Act.”
Key Takeaways from This Proposal
OCC’s alignment goals and inter-agency consultation demonstrate a coordinated supervisory posture across agencies. It is fair to presume that OCC and other regulators will expect stablecoin-related activity to be governed and tested within a financial institution’s existing AML/CFT and sanctions framework.
For institutions looking to enter this market, early investment in governance, controls, and defensible documentation will likely be the difference between a manageable supervisory path and a difficult one. Even where a bank is indirectly involved, such as providing deposit services or payment rails to a stablecoin-adjacent business, regulators may expect the bank to articulate how it assessed the AML/CFT and sanctions risks and how it will monitor those risks over time.
For community banks and/or non-OCC supervised entities, there should still be an expectation that they will be affected. First, community banks that issue, partner with, or provide services to stablecoin issuers must understand these obligations because they will be subject to enhanced AML/CFT, sanctions, reporting, and supervisory frameworks. Second, the inter-agency harmonization practices suggest that non-OCC primary regulators will adopt coordinated practices as evidenced through: (1) the Genius Act’s language (2) the joint rule making request of from OCC, FinCEN, FDIC, FRB, and NCUA seeking to impose CID requirements, and (3) the OCC’s specific request for comment in connection with its June 22, 2026 proposed rulemaking, whether its rules should align more closely with the FDIC’s parallel stablecoin proposal.
Financial institutions may wish to consider participating in the public comment process. OCC specifically asks for feedback on ten areas of inquiry including how OCC rules should align with the FDIC’s parallel stablecoin proposal, reserve-asset protections, as well as the scope of FinCEN consultation and privilege concerns tied to information sharing.
For questions concerning OCC’s proposed AML/CFT and sanctions rules, or assistance in designing a compliance program, please contact Megan B. Kilzy of Riker Danzig’s White Collar Criminal Defense, Commercial Litigation, and Digital Assets and Blockchain Technology Groups.
[1] Permitted Payment Stablecoin Issuer Anti-Money Laundering/Countering the Financing of Terrorism and Sanctions Compliance Risk Management https://www.govinfo.gov/content/pkg/FR-2026-06-24/pdf/2026-12692.pdf
[2] FinCEN/OFAC PPSI Anti-Money Laundering/Countering the Financing of Terrorism Program and Sanctions Compliance Program Requirements (April 10, 2026)
https://www.federalregister.gov/documents/2026/04/10/2026-06963/permitted-payment-stablecoin-issuer-anti-money-launderingcountering-the-financing-of-terrorism
[3] FDIC, Bank Secrecy Act and Sanctions Compliance Standards for FDIC-Supervised Permitted Payment Stablecoin Issuers (June 5, 2026) https://www.federalregister.gov/documents/2026/06/05/2026-11342/bank-secrecy-act-and-sanctions-compliance-standards-for-fdic-supervised-permitted-payment-stablecoin
[4] American Bankers Association Letter to FinCEN and OFAC Directors Re Notice of Proposed Rulemaking on Permitted Payment Stablecoin Issuer Anti-Money Laundering/Countering the Financing of Terrorism Program and Sanctions Compliance Program Requirements, 91 Fed. Reg. 18582 (June 9, 2026)
https://www.aba.com/-/media/documents/comment-letter/clgeniusactnprmtrew20260609.pdf?rev=54d916b6da1d4b3296fbcff0655d98a2
[5] FinCEN, Agencies Propose Rule to Implement Genius Act CID Requirement (June 18, 2026) https://www.fincen.gov/news/news-releases/fincen-agencies-propose-rule-implement-genius-act-customer-identification.
[6] Permitted Payment Stablecoin Issuer Anti-Money Laundering/Countering the Financing of Terrorism and Sanctions Compliance Risk Management https://www.govinfo.gov/content/pkg/FR-2026-06-24/pdf/2026-12692.pdf
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