The U.S. Treasury has proposed due diligence requirements for payment stablecoin issuers as part of a licensing framework tied to the GENIUS Act, tightening oversight of counterparties in the sector.
Under the plan, permitted payment stablecoin issuers would have to examine their counterparties and follow existing banking rules for due diligence. The framework would include federal and state licensing and treat third-party counterparties as licensed entities.
The proposed checks are described as similar to the scrutiny applied to U.S. correspondent banks. The requirements aim to strengthen accountability, security and financial stability in stablecoin operations while bringing digital-asset firms closer to established banking standards.
The requirements would apply to payment stablecoin issuers. Their effective date would be determined after the proposal is finalized, tying the compliance timeline to that process. The proposal also reflects increased scrutiny of financial institutions involved in digital assets, particularly over sanctions and security concerns.
Issuers may need to reassess existing operations as they adapt to the proposed compliance requirements. The measure centers on licensing and counterparty review, with its scope set around permitted payment stablecoin issuers. Those checks would be mandatory for issuers.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to [email protected].
