U.S. Treasury to propose demands that stablecoin firms be set to police bad transactions

The U.S. is pitching new rules for stablecoin issuers to treat them like every other financial firm that must maintain armor against illicit uses, CoinDesk has learned. What to know : The U.S. Department of the Treasury is about to issue proposed rules that would set standards for stablecoin issuers to battle money laundering and sanctions violations. According to a summary of the proposals reviewed by CoinDesk, the Treasury's FinCEN and OFAC arms will pursue a joint rulemaking that sets out how issuers would have to comply with last year's GENIUS Act, including setting up controls to prevent illicit transactions and to be able to freeze and reject suspicious activity. The effort would defer to the issuers' understanding of their own businesses and suggests that any issuer maintaining a robust system of controls shouldn't have to worry about future enforcement actions.(Coindesk)