US Treasury plans sweeping AML leash for dollar stablecoin issuers

Well there goes your yield chaps. The amount of staff and resources needed for monitoring, analytics, interventions, reporting is going to costa plenty. Sounding more and more like a CBDC every day....

in case the tldr bot doesn't kick in:

applies to all permitted payment stablecoin issuers (PPSIs), including state-regulated entities with market caps under $10 billion and federally regulated issuers

require issuers operating in the US to build technical kill switches into their tokens and run full Bank Secrecy Act–style programs, from customer due diligence to suspicious activity reporting.

Under the draft, stablecoin issuers would need systems able to “block, freeze and reject” transactions and halt specifically flagged flows.