U.S. Treasury proposes demands that stablecoin firms be set to police bad transactions

What Happened

The U.S. Treasury Department's Financial Crimes Enforcement Network and Office of Foreign Assets Control proposed new regulations requiring stablecoin issuers to monitor transactions, block suspicious activity, and comply with anti-money laundering requirements. Companies must identify high-risk customers and report findings to authorities. The rules implement the GENIUS Act, granting firms flexibility in identifying risks while threatening enforcement for significant compliance failures. Public comment period follows.

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