Anchorage Backs GENIUS Act AML Rules, Seeks Clarity on Secondary-Market Sanctions

The U.S. GENIUS Act, signed into law on July 18, 2025, established the first federal framework for payment stablecoins. It requires approved issuers to maintain 1:1 reserves and comply with anti-money laundering and sanctions obligations under the Bank Secrecy Act. How the rules apply to subsequent onchain transfers will directly affect whether compliant stablecoins can continue to be used in DeFi.

The U.S. Treasury Department’s FinCEN and OFAC proposed rules on April 8, 2026, requiring issuers to be able to block, freeze or reject illicit transactions. In a joint letter dated June 9, the Hyperliquid Policy Center and Paradigm argued that the obligations should focus on primary-market activities such as issuance, redemption and custody, while limiting liability in secondary markets. They warned that otherwise, compliant stablecoins handling billions of dollars in daily transactions could withdraw from DeFi.