Federal Agencies Propose More GENIUS AML/CFT Rules: Customer Identification Program and OCC Conforming Updates
As the AML compliance framework for payment stablecoin issuers continues to take shape under the GENIUS Act, federal regulators proposed another set of rules that will have important implications for compliance program design and implementation. The latest FinCEN, banking agency, and OCC proposals clarify customer identification program (CIP) expectations, reinforce a bank-like approach to AML/CFT compliance, and provide additional insight into the OCC’s supervisory and enforcement posture.
Our latest blog breaks down the proposals, highlights the practical compliance takeaways for stablecoin issuers, and explains what these developments mean for firms preparing for the new federal AML/CFT regime.
CFTC Division of Enforcement Issues New Cooperation Policy
The CFTC’s Division of Enforcement has issued a significant new policy on cooperation that reshapes how self-reporting, cooperation, and remediation will affect enforcement outcomes. The May 19, 2026 Staff Advisory replaces prior guidance and, for the first time, creates a defined framework for when the Division may decline to recommend an enforcement action altogether.
The policy establishes detailed criteria for declinations, including prompt voluntary self-reporting, full cooperation, timely remediation, and restitution or disgorgement, while also introducing structured penalty reduction tiers of up to 75% for parties that cooperate even if they do not qualify for a declination. At the same time, the guidance raises the stakes on timing, requiring parties to report misconduct “at the earliest possible opportunity.”
The new internal guidance provides important insight into how the Division intends to exercise prosecutorial discretion and will have significant implications for firms evaluating potential misconduct, internal investigations, and disclosure decisions. Read the full Sidley post for a detailed analysis of the policy’s requirements, cooperation credit framework, and practical considerations for market participants. The CFTC press release can be found here.
FinCEN, Office of Foreign Assets Control Propose Anti-Money-Laundering Program and Sanctions Requirements for Stablecoin Issuers
The U.S. Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) (collectively Treasury) issued a joint notice of proposed rulemaking on April 8, 2026, to implement the anti-money-laundering (AML) and sanctions compliance provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), establishing a regulatory framework for permitted payment stablecoin issuers (PPSIs), hereinafter collectively “the proposed rule.”[1] The proposed rule does not address the GENIUS Act’s customer identification program (CIP) requirements, which are expected to be the subject of a separate rulemaking.
