Anchorage backs Treasury’s GENIUS AML rules, seeks secondary-market sanctions clarity

Anchorage Digital Bank submitted a public comment letter to the U.S. Treasury on March 18, 2024, supporting the Treasury's proposed guidance on anti-money laundering (AML) and combating the financing of terrorism (CFT) for digital asset service providers. The bank specifically requested greater clarity on sanctions compliance obligations for stablecoin issuers engaging in secondary market activities. Anchorage argued that current regulations create ambiguity regarding the scope of sanctions risk, particularly when stablecoins are traded on secondary markets by entities not directly interacting with the issuer. This lack of clarity, the letter stated, could inadvertently expose regulated stablecoin issuers to sanctions risks. The submission emphasized the need for precise compliance standards to ensure the safety and soundness of the digital asset ecosystem and to prevent unintended consequences for compliant firms. Anchorage's feedback aligns with broader industry calls for more defined regulatory frameworks in the rapidly evolving digital asset space, aiming to foster innovation while mitigating illicit finance risks.