Crypto custodian Anchorage has thrown its support behind the U.S. Treasury's proposed Anti-Money Laundering rules under the GENIUS framework, while pressing regulators to spell out clearer compliance standards for secondary-market sanctions risks tied to stablecoins. In a public comment letter filed this week, the firm argued that without more precise guidance, stablecoin issuers and their service providers could face legal exposure from transactions they don't directly control.
Why the letter matters
The Treasury's GENIUS rules — short for Global Enforcement and National Investigation of Unlawful Sanctions — aim to tighten AML oversight across digital assets. Anchorage, a federally chartered digital bank that holds billions in client crypto, said it backs the overall direction. But stability in the stablecoin market, the letter noted, rests on secondary-market activity that current guidance largely leaves undefined.
“Secondary-market transactions can involve tokens that have passed through entities subject to sanctions, yet the rules do not clearly delineate when an issuer or custodian must freeze or report such assets,” the company wrote. The comment came as part of a broader push by industry participants to shape final regulations expected later this year.
What's at stake for stablecoin issuers
Stablecoin operators currently face a patchwork of state and federal rules. Anchorage's filing zeroes in on the gap between primary issuance — where issuers directly mint and redeem tokens — and the secondary market, where those tokens trade between anonymous wallets. Under the GENIUS proposal, a stablecoin issuer could be held responsible for sanctions violations that occur after a token leaves its direct control. The letter argues that this creates uncertainty, potentially chilling innovation in dollar-pegged tokens.
The company didn't propose a specific fix, but urged the Treasury to adopt a “risk-based framework” that distinguishes between issuers, custodians, and exchanges. It also asked for clearer timelines for reporting suspicious activity and for safe harbors when companies make good-faith efforts to comply.
Industry context
Anchorage is not the only firm asking for clarity. Several banks and crypto companies have filed comments since the Treasury opened the docket in January. But Anchorage's status as a regulated bank gives its request extra weight — it must already comply with Bank Secrecy Act requirements and OFAC screening. The letter suggests that even institutions that follow existing rules worry about the burden of monitoring tokens indefinitely once they leave their platform.
“We aren't asking for less oversight,” the letter states. “We're asking for oversight that matches the technology's reality.” The comment period closed Friday. Final rules are not expected before the fall.
What happens next
The Treasury will now review all submissions before issuing a revised proposal ahead of a final rule. Anchorage's specific requests — around secondary-market liability and safe harbors — are likely to surface in industry roundtables scheduled for next month. No date has been set for the final text, but officials have signaled they want a stablecoin-specific AML standard in place by the end of the year.
