The US Treasury Department is considering requiring stablecoin issuers to adhere to strict compliance standards, including having the ability to freeze transactions

BlockBeats News, April 8th, the U.S. Treasury Department is set to release a proposed rule requiring stablecoin issuers to establish strict compliance controls to combat money laundering, terrorist financing, and violations of U.S. sanctions. The regulatory measures will be jointly developed by FinCEN (Financial Crimes Enforcement Network) and OFAC (Office of Foreign Assets Control) under the Treasury Department.

The specific requirements for stablecoin companies include:

Must have the ability to block, freeze, and reject suspicious or illegal transactions;

Implement risk-based internal control procedures, focusing on monitoring high-risk customers and activities;

When a specific entity is flagged by U.S. authorities, issuers must actively search their records and cooperate with actions;

Anti-money laundering and sanctions compliance measures must be implemented in both primary and secondary markets;

Stablecoin issuers will be treated as traditional financial institutions overall, bearing the responsibility of safeguarding the U.S. financial system from illegal use.

U.S. Treasury Secretary Scott Bessent stated that regulators aim for stablecoins to become a more reliable, secure payment tool while addressing the ongoing illicit financial risks in the crypto space.