US Treasury unveils proposed rules under GENIUS Act, banking concerns over stablecoin yields persist

The US Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), issued a proposed rule on Wednesday targeting stablecoin issuers under the GENIUS Act. The US Treasury proposed strict AML, CFT and sanctions compliance rules for stablecoin issuers under the GENIUS Act.The framework mandates full reserve backing, robust risk… The US Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC), issued a proposed rule on Wednesday targeting stablecoin issuers under the GENIUS Act. The US Treasury proposed strict AML, CFT and sanctions compliance rules for stablecoin issuers under the GENIUS Act.The framework mandates full reserve backing, robust risk controls and introduces a measured supervisory approach ahead of a January 2027 deadline.A White House report downplaying the risk of stablecoin yields reportedly faces pushback, with banks warning of funding instability for smaller institutions.The US Department of the Treasury, through the Financial Crimes Enforcement Network… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.