In this episode of The Crypto Exchange, hosts Ethan Ostroff and Genna Garver are joined by their colleague Pete Jeydel to explore the implications of the GENIUS Act on sanctions, anti-money laundering (AML), and efforts to combat the financing of terrorism within the stablecoin sector. The discussion focuses on the act’s goal to create a regulated ecosystem for payment stablecoin issuers, known as PPSIs, by transitioning offshore activities to U.S. jurisdiction. This strategic shift is anticipated to strengthen the government’s capacity to enforce AML and sanctions compliance.

Despite the framework established by the GENIUS Act, many regulatory specifics remain to be defined, with FinCEN and the Treasury Department tasked with developing detailed rules over the coming years. The episode also sheds light on ongoing legislative efforts, such as the CLARITY Act, aimed at establishing a comprehensive regulatory framework for digital assets. The group underscores the necessity of proactive compliance strategies for stablecoin issuers, given the dynamic regulatory environment and inherent risks associated with digital assets. As the industry awaits further guidance, the conversation highlights the importance of innovative compliance solutions and the role of technology in addressing challenges related to illicit finance.