Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Compliance:
Stablecoin issuers are classified as financial institutions under the Bank Secrecy Act (BSA), requiring compliance with AML and KYC regulations to prevent illicit activities like money laundering or terrorist financing.
Enhanced provisions in the latest draft strengthen AML/KYC requirements, addressing concerns raised by Democrats about potential misuse.