FDIC has published its May stablecoin update.
The FDIC (Federal Deposit Insurance Company) has announced an update regarding its implementation of the U.S. Genius Act on stablecoins. This means it will look to implement stricter oversight provisions akin to the Bank Secrecy Act where stablecoin issuers are concerned.
Also, according to the press release, there is an intention to build a closer working cooperation between the FDIC, FinCEN (Financial Crimes Enforcement Network) and OFAC (Office of Foreign Assets Control) teams to monitor any potential KYC (Know Your Customer) and AML (Anti-Money Laundering) activities.
The particular focus is on adding additional provisions surrounding extra compliance standards and enforcement options to the general guidance the FDIC had published back in April. There are now an additional 60 days to comment.
Additionally, it is estimated that there could be around net new 30 registered PPSIs (Permitted Payment Stablecoin Issuers), for which the department budget could require an additional $135K per year.
