The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) issued a joint proposed rule to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) requirements for payment stablecoins. The proposal would treat permitted payment stablecoin issuers (PPSIs) as financial institutions for purposes of the Bank Secrecy Act (BSA), subjecting them to BSA anti-money laundering obligations and requiring an effective sanctions compliance program. The proposed obligations are described as “fit for purpose,” intended to assist law enforcement and reduce unnecessary burden, and aligned with FinCEN’s broader efforts to modernize BSA requirements. The sanctions component would implement the GENIUS Act mandate that PPSIs maintain an effective sanctions compliance program. FinCEN and OFAC invited public comments, with publication in the Federal Register expected in the coming days.