Us Congress House Bill HB2392 Introduced / Bill

                    I 
119THCONGRESS 
1
STSESSION H. R. 2392 
To provide for the regulation of payment stablecoins, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH26, 2025 
Mr. S
TEIL(for himself, Mr. HILLof Arkansas, Mr. TORRESof New York, 
Mr. E
MMER, Mr. HUIZENGA, Mr. MEUSER, Mrs. KIM, Mr. MOOREof 
North Carolina, Mr. D
OWNING, Mr. HARIDOPOLOS, Mr. GOTTHEIMER, 
and Mr. L
ICCARDO) introduced the following bill; which was referred to 
the Committee on Financial Services 
A BILL 
To provide for the regulation of payment stablecoins, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Stablecoin Trans-4
parency and Accountability for a Better Ledger Economy 5
Act of 2025’’ or the ‘‘STABLE Act of 2025’’. 6
SEC. 2. DEFINITIONS. 7
In this Act: 8
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(1) APPROPRIATE FEDERAL BANKING AGEN -1
CY.—The term ‘‘appropriate Federal banking agen-2
cy’’ has the meaning given that term under section 3
3 of the Federal Deposit Insurance Act (12 U.S.C. 4
1813). 5
(2) B
ANK SECRECY ACT.—The term ‘‘Bank Se-6
crecy Act’’ means— 7
(A) section 21 of the Federal Deposit In-8
surance Act (12 U.S.C. 1829b); 9
(B) chapter 2 of title I of Public Law 91– 10
508 (12 U.S.C. 1951 et seq.); and 11
(C) subchapter II of chapter 53 of title 31, 12
United States Code. 13
(3) B
OARD.—The term ‘‘Board’’ means the 14
Board of Governors of the Federal Reserve System. 15
(4) C
OMPTROLLER.—The term ‘‘Comptroller’’ 16
means the Comptroller of the Currency. 17
(5) C
ORPORATION.—The term ‘‘Corporation’’ 18
means the Federal Deposit Insurance Corporation. 19
(6) C
REDIT UNION TERMS .—The terms ‘‘Fed-20
eral credit union’’, ‘‘insured credit union’’, and 21
‘‘State credit union’’ have the meanings given those 22
terms, respectively, in section 101 of the Federal 23
Credit Union Act (12 U.S.C. 1752). 24
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(7) DIGITAL ASSET.—The term ‘‘digital asset’’ 1
means any digital representation of value which is 2
recorded on a cryptographically-secured distributed 3
ledger. 4
(8) D
ISTRIBUTED LEDGER.—The term ‘‘distrib-5
uted ledger’’ means technology where data is shared 6
across a network that creates a public digital ledger 7
of verified transactions or information among net-8
work participants and the data is linked using cryp-9
tography to maintain the integrity of the public dig-10
ital ledger and execute other functions. 11
(9) F
EDERAL QUALIFIED NONBANK PAYMENT 12
STABLECOIN ISSUER.—The term ‘‘Federal qualified 13
nonbank payment stablecoin issuer’’ means a sub-14
sidiary of a nonbank entity approved by the primary 15
Federal payment stablecoin regulator, pursuant to 16
section 5, to issue payment stablecoins. 17
(10) I
NSTITUTION-AFFILIATED PARTY .—With 18
respect to a permitted payment stablecoin issuer, the 19
term ‘‘institution-affiliated party’’ means any direc-20
tor, officer, employee, or person in control of, or 21
agent for, the permitted payment stablecoin issuer. 22
(11) I
NSURED DEPOSITORY INSTITUTION .—The 23
term ‘‘insured depository institution’’ means— 24
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(A) an insured depository institution, as 1
defined in section 3 of the Federal Deposit In-2
surance Act (12 U.S.C. 1813); and 3
(B) an insured credit union. 4
(12) M
ONETARY VALUE.—The term ‘‘monetary 5
value’’— 6
(A) means— 7
(i) a national currency; 8
(ii) a deposit (as defined in section 3 9
of the Federal Deposit Insurance Act (12 10
U.S.C. 1813)) that is denominated in a na-11
tional currency; or 12
(iii) an account (as defined in section 13
101 of the Federal Credit Union Act (12 14
U.S.C. 1752)); and 15
(B) does not include any agricultural or 16
other physical commodity (as defined in section 17
1a of the Commodity Exchange Act (7 U.S.C. 18
1a). 19
(13) N
ATIONAL CURRENCY .—The term ‘‘na-20
tional currency’’ means a Federal Reserve note, (as 21
the term is used in the first undesignated paragraph 22
of section 16 of the Federal Reserve Act (12 U.S.C. 23
411)), money standing to the credit of an account 24
with a Federal reserve bank, money issued by a cen-25
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tral bank, and money issued by an intergovern-1
mental organization pursuant to an agreement by 2
one or more governments. 3
(14) N
ONBANK ENTITY.—The term ‘‘nonbank 4
entity’’ means a person that is not an insured depos-5
itory institution or subsidiary of an insured deposi-6
tory institution. 7
(15) P
AYMENT STABLECOIN .—The term ‘‘pay-8
ment stablecoin’’ means a digital asset— 9
(A) that is or is designed to be used as a 10
means of payment or settlement; 11
(B) that is denominated in a national cur-12
rency; 13
(C) the issuer of which— 14
(i) is obligated to convert, redeem, or 15
repurchase for a fixed amount of monetary 16
value; or 17
(ii) represents that the digital asset 18
will maintain or creates the reasonable ex-19
pectation that the digital asset will main-20
tain a stable value relative to the value of 21
a fixed amount of monetary value; and 22
(D) that is not— 23
(i) a national currency; 24
(ii) a security issued by— 25
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(I) an investment company reg-1
istered under section 8(a) of the In-2
vestment Company Act of 1940 (15 3
U.S.C. 80a–8(a)); or 4
(II) a person that would be an 5
investment company under the Invest-6
ment Company Act of 1940 but for 7
paragraphs (1) and (7) of section 3(c) 8
of that Act (15 U.S.C. 80a–3(c)); 9
(iii) a deposit (as defined under sec-10
tion 3 of the Federal Deposit Insurance 11
Act (12 U.S.C. 1813)), regardless of the 12
technology used to record such deposit; or 13
(iv) an account (as defined in section 14
101 of the Federal Credit Union Act (12 15
U.S.C. 1752)), regardless of the technology 16
used to record such account. 17
(16) P
ERMITTED PAYMENT STABLECOIN 18
ISSUER.—The term ‘‘permitted payment stablecoin 19
issuer’’ means— 20
(A) a subsidiary of an insured depository 21
institution that has been approved to issue pay-22
ment stablecoins under section 5; 23
(B) a Federal qualified nonbank payment 24
stablecoin issuer; or 25
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(C) a State qualified payment stablecoin 1
issuer. 2
(17) P
ERSON.—The term ‘‘person’’ means an 3
individual, partnership, company, corporation, asso-4
ciation (incorporated or unincorporated), trust, es-5
tate, cooperative organization, or other entity. 6
(18) P
RIMARY FEDERAL PAYMENT STABLECOIN 7
REGULATOR.— 8
(A) I
N GENERAL.—The term ‘‘primary 9
Federal payment stablecoin regulator’’ means— 10
(i) with respect to an insured deposi-11
tory institution (other than an insured 12
credit union) or a subsidiary of an insured 13
depository institution (other than an in-14
sured credit union), the appropriate Fed-15
eral banking agency of such insured depos-16
itory institution; 17
(ii) with respect to an insured credit 18
union or a subsidiary of an insured credit 19
union, the National Credit Union Adminis-20
tration; 21
(iii) with respect to a Federal quali-22
fied nonbank payment stablecoin issuer 23
and any nonbank entity that seeks to have 24
a subsidiary approved as a Federal quali-25
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fied nonbank payment stablecoin issuer, 1
the Comptroller; and 2
(iv) with respect to any entity char-3
tered by the Comptroller, the Comptroller. 4
(B) P
RIMARY FEDERAL PAYMENT 5
STABLECOIN REGULATORS .—The term ‘‘pri-6
mary Federal payment stablecoin regulators’’ 7
means the Comptroller, the Board, the Corpora-8
tion, and the National Credit Union Adminis-9
tration. 10
(19) R
EGISTERED PUBLIC ACCOUNTING 11
FIRM.—The term ‘‘registered public accounting 12
firm’’ has the meaning given that term under section 13
2 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 14
7201). 15
(20) S
TATE.—The term ‘‘State’’ means each of 16
the several States, the District of Columbia, and 17
each territory of the United States. 18
(21) S
TATE QUALIFIED PAYMENT STABLECOIN 19
ISSUER.—The term ‘‘State qualified payment 20
stablecoin issuer’’ means an entity that— 21
(A) is approved to issue payment 22
stablecoins by a State payment stablecoin regu-23
lator; 24
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(B) issues a payment stablecoin in compli-1
ance with the laws and regulations of a State 2
regulatory regime certified under section 4(b); 3
and 4
(C) is not— 5
(i) chartered by the Comptroller; 6
(ii) a Federal credit union; or 7
(iii) a subsidiary of a State credit 8
union that— 9
(I) has at least a partial owner-10
ship interest or loan from a Federal 11
credit union; or 12
(II) has at least a partial owner-13
ship interest or loan from a State 14
credit union that is organized in a dif-15
ferent State than such subsidiary. 16
(22) S
TATE PAYMENT STABLECOIN REGU -17
LATOR.—The term ‘‘State payment stablecoin regu-18
lator’’ means— 19
(A) a State agency that has primary regu-20
latory and supervisory authority in such State 21
over entities that issue payment stablecoins; 22
and 23
(B) with respect to a State qualified pay-24
ment stablecoin issuer that is a subsidiary of a 25
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State-chartered depository institution (as de-1
fined in section 3 of the Federal Deposit Insur-2
ance Act (12 U.S.C. 1813)) or a State credit 3
union, the State agency that has primary regu-4
latory and supervisory authority over entities 5
that issue payment stablecoins in the State in 6
which such State-chartered depository institu-7
tion or State credit union is chartered. 8
(23) S
UBSIDIARY OF AN INSURED CREDIT 9
UNION.—With respect to an insured credit union, 10
the term ‘‘subsidiary of an insured credit union’’ 11
means— 12
(A) an organization providing services to 13
the insured credit union that are associated 14
with the routine operations of credit unions, as 15
described under section 107(7)(I) of the Fed-16
eral Credit Union Act (12 U.S.C. 1757(7)(I)); 17
(B) a credit union service organization, as 18
such term is used under part 712 of title 12, 19
Code of Federal Regulations, with respect to 20
which the insured credit union has an owner-21
ship interest or to which the insured credit 22
union has extended a loan; and 23
(C) any subsidiary of an insured credit 24
union that is a State credit union. 25
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SEC. 3. LIMITATION ON WHO MAY ISSUE A PAYMENT 1
STABLECOIN. 2
(a) L
IMITATION ONISSUERS.—It shall be unlawful 3
for any person other than a permitted payment stablecoin 4
issuer to issue a payment stablecoin in the United States. 5
(b) L
IMITATION ONOFFERING ORSELLING.— 6
(1) I
N GENERAL.—After the end of the 2-year 7
period beginning on the date of enactment of this 8
Act, it shall be unlawful for any custodial inter-9
mediary to offer or sell a payment stablecoin in the 10
United States unless the payment stablecoin was 11
issued by a permitted payment stablecoin issuer. 12
(2) E
XCEPTIONS FOR COMPARABLE PAYMENT 13
STABLECOIN REGIMES.— 14
(A) I
N GENERAL.—Paragraph (1) and sub-15
section (a) shall not apply to the offer or sale 16
of a payment stablecoin if— 17
(i) the payment stablecoin was issued 18
by a foreign payment stablecoin issuer; 19
(ii) the foreign payment stablecoin 20
issuer is subject to regulation by a foreign 21
payment stablecoin regulator of a nation 22
with a payment stablecoin regulatory re-23
gime that the Secretary of the Treasury 24
determines under subparagraph (B) is 25
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comparable to the requirements under this 1
Act; and 2
(iii) the foreign payment stablecoin 3
issuer consents to be subject to reporting 4
and examination requirements, as deter-5
mined by— 6
(I) the Comptroller, if the foreign 7
payment stablecoin issuer is a 8
nonbank; or 9
(II) the Board, if the foreign 10
payment stablecoin issuer is a banking 11
institution or subsidiary thereof. 12
(B) D
ETERMINATION.—With respect to a 13
foreign nation, the Secretary of the Treasury 14
shall determine, upon request of a foreign pay-15
ment stablecoin issuer, a foreign payment 16
stablecoin regulator, or on the Secretary’s own 17
initiative, and in consultation with the Federal 18
payment stablecoin regulators, whether the pay-19
ment stablecoin regulatory regime of such na-20
tion is comparable to the requirements under 21
this Act. 22
(C) P
UBLIC NOTICE.—The Secretary shall 23
make the list of nations for which a determina-24
tion has been made under subparagraph (B) 25
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available to the public, and keep such list cur-1
rent. 2
(D) R
ESCINDING DETERMINATIONS .— 3
(i) S
ECRETARIAL ACTION.—The Sec-4
retary may, in consultation with the pri-5
mary Federal payment stablecoin regu-6
lators, rescind a determination made under 7
subparagraph (B) with respect to a foreign 8
nation, if the Secretary determines that 9
the regulatory regime of such nation is no 10
longer comparable to the requirements 11
under this Act. 12
(ii) S
AFEHARBORS.—If the Secretary 13
rescinds a determination pursuant to 14
clause (i), a custodial intermediary shall 15
not be in violation of this subsection by 16
reason of the offer or sale of a payment 17
stablecoin issued by such nation’s foreign 18
payment stablecoin issuer until 90 days 19
after the determination is rescinded. 20
(3) P
ENALTY.—Any person who violates this 21
subsection shall be subject to a civil penalty of not 22
more than $100,000 for each day during which such 23
violation continues. 24
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(c) RULEMAKING.—Not later than 12 months after 1
the date of enactment of this Act, the Secretary shall issue 2
such rules as may be required to carry out this section. 3
(d) R
ULE OFCONSTRUCTION.—This section does not 4
apply to transactions in digital assets for an individual’s 5
own lawful purposes by means of a software or hardware 6
wallet that facilitates such individual’s own custody of dig-7
ital assets. 8
SEC. 4. REQUIREMENTS FOR ISSUING PAYMENT 9
STABLECOINS. 10
(a) S
TANDARDS FOR THE ISSUANCE OFPAYMENT 11
S
TABLECOINS.— 12
(1) I
N GENERAL.—Each permitted payment 13
stablecoin issuer shall— 14
(A) maintain reserves backing the issuer’s 15
outstanding payment stablecoins on an at least 16
1 to 1 basis, with reserves comprising— 17
(i) United States currency (including 18
Federal reserve notes) or money standing 19
to the credit of an account with a Federal 20
reserve bank; 21
(ii) funds held as demand deposits (or 22
other deposits that may be withdrawn 23
upon request at any time) at insured de-24
pository institutions (including foreign 25
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branches and agencies of insured deposi-1
tory institutions) or approved foreign de-2
pository institutions (as defined in para-3
graph (5)(v)) or share drafts (or other de-4
posits that may be withdrawn upon request 5
at any time) at insured credit unions, sub-6
ject to limitations established by the Cor-7
poration and the National Credit Union 8
Administration, respectively, to address 9
safety and soundness risks of such insured 10
depository institutions; 11
(iii) Treasury bills, notes, or bonds— 12
(I) with a remaining maturity of 13
93 days or less; or 14
(II) issued with a maturity of 93 15
days or less; 16
(iv) repurchase agreements, wherein 17
the permitted payment stablecoin issuer is 18
acting as a seller of securities, or reverse 19
repurchase agreements, wherein the per-20
mitted payment stablecoin issuer is acting 21
as a purchaser of securities, with an over-22
night maturity and that are backed by 23
Treasury bills with a maturity of 93 days 24
or less that are— 25
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(I) centrally cleared through a 1
clearing agency registered with the 2
Securities and Exchange Commission; 3
or 4
(II) bilateral, settling either 5
through delivery versus payment or 6
through a tri-party control account, 7
with a counterparty that the issuer 8
has determined to be adequately cred-9
it worthy even in the event of severe 10
market stress; or 11
(v) securities issued by an investment 12
company under section 8(a) of the Invest-13
ment Company Act of 1940 that operates 14
as a money market fund in compliance 15
with Rule 2a–7 under the Investment 16
Company Act of 1940 (or any successor 17
rule) and that are invested solely in the 18
underlying assets described in clauses (i) 19
through (iv) and (vi); 20
(B) publicly disclose the issuer’s redemp-21
tion policy; 22
(C) establish procedures for timely redemp-23
tion of the issuer’s outstanding payment 24
stablecoins; and 25
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(D) publish a report on the monthly com-1
position of the issuer’s reserves on the website 2
of the issuer, containing— 3
(i) the total number of outstanding 4
payment stablecoins issued by the issuer; 5
and 6
(ii) the amount and composition of 7
the reserves described under subparagraph 8
(A). 9
(2) E
LIGIBILITY.—The requirements to main-10
tain reserves under paragraph (1)(A) may not be 11
construed as expanding or contracting eligibility to 12
qualify as a depository institution under section 13
19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 14
461(b)(1)(A)). 15
(3) P
ROHIBITION ON REHYPOTHECATION .—Re-16
serves described under paragraph (1)(A) may not be 17
pledged, rehypothecated, or reused, except for the 18
purpose of satisfying obligations associated with re-19
serves described under paragraph (1)(A)(iv) if the 20
permitted payment stablecoin issuer receives the 21
prior approval of the primary Federal payment 22
stablecoin regulator or the State payment stablecoin 23
regulator. 24
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(4) MONTHLY CERTIFICATION ; EXAMINATION 1
OF REPORTS BY REGISTERED PUBLIC ACCOUNTING 2
FIRM.— 3
(A) I
N GENERAL.—A permitted payment 4
stablecoin issuer shall, each month, have the in-5
formation disclosed in the previous month-end 6
report required under paragraph (1)(D) exam-7
ined by an independent registered public ac-8
counting firm. 9
(B) C
ERTIFICATION.—Each month, the 10
Chief Executive Officer and Chief Financial Of-11
ficer of a permitted payment stablecoin issuer 12
shall submit to, as applicable, the primary Fed-13
eral payment stablecoin regulator or, in the 14
case of a State qualified payment stablecoin 15
issuer, the State payment stablecoin regulator, 16
a certification that, based on such officers’ 17
knowledge, the previous month-end report re-18
quired under paragraph (1)(D)— 19
(i) does not contain any untrue state-20
ment of material fact or omit to state a 21
material fact necessary in order to make 22
the statements made, in light of the cir-23
cumstances under which such statements 24
were made, not misleading; and 25
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(ii) fairly presented in all material re-1
spects the information required under 2
paragraph (1)(D) for the period presented 3
in such report. 4
(C) C
RIMINAL PENALTIES.—Whoever— 5
(i) submits a certification set forth in 6
subparagraph (B) knowing that the report 7
to which the certification relates does not 8
fairly present, in all material respects, the 9
information required to be contained in 10
such report shall be fined not more than 11
$1,000,000 or imprisoned not more than 12
10 years, or both; or 13
(ii) willfully submits a certification set 14
forth in subparagraph (B) knowing that 15
the report to which the certification relates 16
does not fairly present, in all material re-17
spects, the information required to be con-18
tained in such report shall be fined not 19
more than $5,000,000, or imprisoned not 20
more than 20 years, or both. 21
(5) C
APITAL, LIQUIDITY, RISK MANAGEMENT , 22
AND OTHER REQUIREMENTS .— 23
(A) I
N GENERAL.—The primary Federal 24
payment stablecoin regulators shall, jointly and 25
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in consultation with the State payment 1
stablecoin regulators, issue rules to establish— 2
(i) capital requirements applicable to 3
a permitted payment stablecoin issuer 4
that— 5
(I) are tailored to the business 6
model and risk profile of a permitted 7
payment stablecoin issuer; 8
(II) do not exceed requirements 9
which are sufficient to ensure the on-10
going operations of a permitted pay-11
ment stablecoin issuer; and 12
(III) if such regulators determine 13
that a capital buffer is necessary to 14
ensure the ongoing operations of a 15
permitted payment stablecoin issuer, 16
may include capital buffers that are 17
tailored to the business model and 18
risk profile of a permitted payment 19
stablecoin issuer; 20
(ii) requirements implementing liquid-21
ity standards applicable to reserves de-22
scribed in paragraph (1) for a permitted 23
payment stablecoin issuer, which may not 24
exceed an amount that is sufficient to en-25
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sure the financial integrity of a permitted 1
payment stablecoin issuer and the ability 2
of the issuer to meet the financial obliga-3
tions of the issuer, including redemptions; 4
(iii) reserve asset diversification and 5
interest rate risk management standards 6
applicable to a permitted payment 7
stablecoin issuer that— 8
(I) are tailored to the business 9
model and risk profile of a permitted 10
payment stablecoin issuer; and 11
(II) do not exceed standards 12
which are sufficient to ensure the on-13
going operations of a permitted pay-14
ment stablecoin issuer; and 15
(iv) appropriate operational, compli-16
ance, information technology, and cyberse-17
curity risk management standards that are 18
tailored to the business model and risk 19
profile of a permitted payment stablecoin 20
issuer; and 21
(v) requirements regarding the ap-22
proval of foreign depository institutions 23
that may hold demand deposits of a per-24
mitted payment stablecoin issuer. 25
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(B) RULE OF CONSTRUCTION .—Nothing in 1
this paragraph may be construed to limit— 2
(i) the authority of the primary Fed-3
eral payment stablecoin regulators, in pre-4
scribing standards under this paragraph, 5
to tailor or differentiate among permitted 6
payment stablecoin issuers on an individ-7
ualized basis or by category, taking into 8
consideration the capital structure, busi-9
ness model risk profile, complexity, finan-10
cial activities, size, and any other risk re-11
lated factors of permitted payment 12
stablecoin issuers that the primary Federal 13
payment stablecoin regulators determine 14
appropriate; or 15
(ii) the supervisory, regulatory, or en-16
forcement authority of a Federal banking 17
agency (as defined in section 3 of the Fed-18
eral Deposit Insurance Act (12 U.S.C. 19
1813)) or the National Credit Union Ad-20
ministration to further the ability of an in-21
stitution under the supervision of the Fed-22
eral banking agency or the National Credit 23
Union Administration to maintain safe and 24
sound operations or comply with this Act. 25
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•HR 2392 IH
(C) APPLICABILITY OF EXISTING CAPITAL 1
STANDARDS.— 2
(i) A
PPLICABILITY OF THE FINANCIAL 3
STABILITY ACT OF 2010.—Section 171 of 4
the Financial Stability Act of 2010 (12 5
U.S.C. 5371) shall not apply to require-6
ments issued under this paragraph. 7
(ii) R
ULES RELATING TO LEVERAGE 8
CAPITAL REQUIREMENTS OR RISK -BASED 9
CAPITAL REQUIREMENTS .—Where an in-10
sured depository institution or depository 11
institution holding company, as defined 12
under section 171(a)(3) of the Financial 13
Stability Act of 2010 (12 U.S.C. 14
5371(a)(3)), includes, on a consolidated 15
basis, a permitted payment stablecoin 16
issuer, any rule issued by an appropriate 17
Federal banking agency that imposes, on a 18
consolidated basis, a leverage capital re-19
quirement or risk-based capital require-20
ment on such insured depository institu-21
tion or depository institution holding com-22
pany, shall not require such insured depos-23
itory institution or depository institution 24
holding company to hold, with respect to 25
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•HR 2392 IH
the permitted payment stablecoin issuer 1
and its assets and operations, any amount 2
of regulatory capital in excess of the cap-3
ital that such permitted payment 4
stablecoin issuer must maintain under the 5
capital requirements promulgated pursuant 6
to paragraph (5)(A)(i). 7
(iii) R
ULEMAKING.—Not later than 8
the date the primary Federal payment 9
stablecoin regulators issue regulations to 10
carry out this section, each Federal bank-11
ing agency, as defined in section 3 of the 12
Federal Deposit Insurance Act (12 U.S.C. 13
1813), shall amend or otherwise modify 14
any regulation described in clause (ii) so 15
that it complies with such clause (ii). 16
(6) T
REATMENT UNDER THE BANK SECRECY 17
ACT.—A permitted payment stablecoin issuer shall 18
be treated as a financial institution for purposes of 19
the Bank Secrecy Act. 20
(7) L
IMITATION ON PAYMENT STABLECOIN AC -21
TIVITIES.—A permitted payment stablecoin issuer 22
may only— 23
(A) issue payment stablecoins; 24
(B) redeem payment stablecoins; 25
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•HR 2392 IH
(C) manage related reserves (including 1
purchasing, selling, and holding reserve assets); 2
(D) provide custodial or safekeeping serv-3
ices for payment stablecoins and private keys of 4
payment stablecoins; 5
(E) provide custodial or safekeeping serv-6
ices for reserves, consistent with this Act; 7
(F) undertake other functions that directly 8
support activities described in subparagraphs 9
(A) through (E); and 10
(G) undertake such non-payment 11
stablecoin activities that are allowed by the pri-12
mary Federal payment stablecoin regulator. 13
(8) P
ROHIBITION ON YIELD.—A permitted pay-14
ment stablecoin issuer may not pay interest or yield 15
to holders of its payment stablecoins. 16
(9) R
EGULATION OF FEDERAL QUALIFIED 17
NONBANK PAYMENT STABLECOIN ISSUERS BY THE 18
COMPTROLLER.—A Federal qualified nonbank pay-19
ment stablecoin issuer shall be regulated and super-20
vised exclusively by the Comptroller. 21
(b) S
TATE-LEVELREGULATORYREGIMES.— 22
(1) I
N GENERAL.—A State qualified payment 23
stablecoin issuer may only issue payment stablecoins 24
pursuant to the regulation of a State payment 25
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•HR 2392 IH
stablecoin regulator of a State with a regulatory re-1
gime for issuing payment stablecoins that is certified 2
under this subsection as meeting or exceeding the 3
standards and requirements described in subsection 4
(a). 5
(2) C
ERTIFICATION.— 6
(A) I
N GENERAL.—Beginning on the date 7
that is 1 year after the date of enactment of 8
this Act or 60 days after the rulemaking de-9
scribed in subsection (d) is completed, which-10
ever is earlier, a State payment stablecoin regu-11
lator may submit to the Secretary of the Treas-12
ury a certification that the regulatory regime of 13
the State for issuing payment stablecoins meets 14
or exceeds the standards and requirements de-15
scribed in subsection (a). 16
(B) V
ALIDITY OF CERTIFICATION .—A cer-17
tification under subparagraph (A) shall be valid 18
upon submission and remain valid unless the 19
Secretary of the Treasury rejects the certifi-20
cation under paragraph (6). 21
(3) F
ORM OF CERTIFICATION .—A certification 22
described under paragraph (2)— 23
(A) shall contain an attestation that the 24
regulatory regime of the State for issuing pay-25
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•HR 2392 IH
ment stablecoins meets or exceeds the stand-1
ards and requirements described in subsection 2
(a); and 3
(B) may include supporting information, 4
such as a copy of any State law or regulation 5
implementing such standards and requirements. 6
(4) R
EPORT AND ATTESTATION .— 7
(A) I
N GENERAL.—A State payment 8
stablecoin regulator with a valid certification 9
under this subsection that has made subsequent 10
material changes to its State regulatory regime 11
and wishes to maintain a valid certification 12
shall submit to the Secretary of the Treasury 13
an explanation of all such material changes. 14
(B) F
ORM OF MATERIAL CHANGES EXPLA -15
NATION.—With respect to a State payment 16
stablecoin regulator that submits an expla-17
nation of material changes to the State regu-18
latory regime under subparagraph (A), the pay-19
ment stablecoin regulator shall make such ex-20
planation in the same manner, and containing 21
the same attestation, as described under para-22
graph (3) for a certification. 23
(5) A
DVISORY OPINIONS ON PROPOSED LAWS 24
OR REGULATIONS.—Upon request of any State pay-25
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•HR 2392 IH
ment stablecoin regulator, the Secretary of the 1
Treasury shall— 2
(A) review any proposed law or regulation 3
of the State provided by the State payment 4
stablecoin regulator; and 5
(B) not later than 30 days after being pro-6
vided the proposed law or regulation, either— 7
(i) inform the State payment 8
stablecoin regulator that the proposed law 9
or regulation is consistent with a State 10
regulatory regime for issuing payment 11
stablecoins that meets or exceeds the 12
standards and requirements described in 13
subsection (a); or 14
(ii) provide the State payment 15
stablecoin regulator with a detailed expla-16
nation of why the proposed law or regula-17
tion is not consistent with a State regu-18
latory regime for issuing payment 19
stablecoins that meets or exceeds the 20
standards and requirements described in 21
subsection (a). 22
(6) R
EGIMES THAT ARE NOT SUBSTANTIALLY 23
SIMILAR.— 24
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•HR 2392 IH
(A) IN GENERAL.—The Secretary of the 1
Treasury may reject a certification under para-2
graph (3) or a certification with respect to 3
which a State payment stablecoin regulator has 4
submitted an explanation of material changes 5
under paragraph (4), if the Secretary, not later 6
than 30 days after the date on which the initial 7
certification or explanation of material changes 8
is submitted— 9
(i) determines that the State regu-10
latory regime does not meet or exceed the 11
standards and requirements described in 12
subsection (a); and 13
(ii) provides the State payment 14
stablecoin regulator with a written expla-15
nation for the rejection, describing the rea-16
soned basis for the rejection with sufficient 17
detail such that the State can bring the 18
State regulatory regime into compliance 19
based on the explanation. 20
(B) O
PPORTUNITY TO CURE.— 21
(i) I
N GENERAL.—With respect to a 22
rejection described under subparagraph 23
(A), the Secretary of the Treasury shall 24
provide the State payment stablecoin regu-25
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•HR 2392 IH
lator with not less than a 180-day period 1
from the date on which the State payment 2
stablecoin regulator is notified of such re-3
jection to— 4
(I) make such changes as may be 5
necessary to ensure the regulatory re-6
gime of the State for issuing payment 7
stablecoins meets or exceeds the 8
standards and requirements described 9
in subsection (a); and 10
(II) resubmit the certification or 11
explanation of material changes. 12
(ii) R
EJECTION.—If, after a State 13
payment stablecoin regulator makes 14
changes described under clause (i) during 15
the period described in clause (i), the Sec-16
retary of the Treasury determines that the 17
certification should be rejected, the Sec-18
retary of the Treasury shall, not later than 19
30 days after such determination, provide 20
the State payment stablecoin regulator 21
with a written explanation for the deter-22
mination, describing the reasoned basis for 23
the determination with sufficient detail 24
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•HR 2392 IH
such that the State can bring its regime 1
into compliance based on the explanation. 2
(C) A
PPEAL OF REJECTION.— 3
(i) I
N GENERAL.—A State payment 4
stablecoin regulator that has had a certifi-5
cation rejected under this paragraph may, 6
after the cure period described under sub-7
paragraph (B)(i), appeal such rejection to 8
the United States Court of Appeals for the 9
District of Columbia Circuit, which shall, 10
upon a determination that the regulatory 11
regime of the State for issuing payment 12
stablecoins meets or exceeds the standards 13
and requirements described in subsection 14
(a), reverse such rejection. 15
(ii) R
EVIEW BY THE SUPREME 16
COURT.—The judgment and decree of the 17
Court of Appeals shall be final, except that 18
the same shall be subject to review by the 19
Supreme Court upon certiorari, as pro-20
vided in section 1254 of title 28. 21
(D) R
IGHT TO RESUBMIT .—A State pay-22
ment stablecoin regulator that has had a certifi-23
cation rejected under this paragraph may re-24
submit a new certification under paragraph (2). 25
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•HR 2392 IH
(7) APPROPRIATE EXEMPTIVE RELIEF .—The 1
Secretary of the Treasury shall issue such rules and 2
orders as are necessary to provide appropriate ex-3
emptive relief and safe harbors for State qualified 4
payment stablecoin issuers to continue operations 5
during such periods in which any rules promulgated 6
pursuant to subsection (a) materially affect a pre-7
viously certified State regulatory regime’s ability to 8
meet or exceed the standards and requirements de-9
scribed in subsection (a). 10
(c) N
OTINSURED BY THE FEDERALGOVERNMENT; 11
M
ISREPRESENTATION OF INSUREDSTATUS.— 12
(1) I
N GENERAL.—Payment stablecoins are not 13
backed by the full faith and credit of the United 14
States, guaranteed by the United States Govern-15
ment, subject to deposit insurance by the Corpora-16
tion, or subject to share insurance by the National 17
Credit Union Administration. 18
(2) M
ISREPRESENTATION OF INSURED STA -19
TUS.—It shall be unlawful to represent that a pay-20
ment stablecoin is backed by the full faith and credit 21
of the United States, guaranteed by the United 22
States Government, or subject to Federal deposit in-23
surance or Federal share insurance. 24
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•HR 2392 IH
(3) D ISCLOSURE.—Permitted payment 1
stablecoin issuers shall clearly and prominently dis-2
close on their website that payment stablecoins 3
issued by such permitted payment stablecoin issuer 4
are not guaranteed by the United States Govern-5
ment, covered by deposit insurance by the Federal 6
Deposit Insurance Corporation, or by share insur-7
ance of the National Credit Union Administration. 8
(4) P
ENALTIES.—Any person who violates this 9
subsection may be prosecuted to the fullest extent of 10
the law, including, as applicable, under— 11
(A) section 18(a)(4) of the Federal Deposit 12
Insurance Act (relating to the prohibition on 13
false advertising in connection with deposit in-14
surance, the misuse of FDIC names, and mis-15
representations of insured status); 16
(B) section 709 of title 18, United States 17
Code (relating to false advertising or misuse of 18
names to indicate a Federal agency); 19
(C) criminal penalties under title 18, 20
United States Code, related to fraud; and 21
(D) other remedies available under the law. 22
(d) O
FFICERS ANDDIRECTORSCONVICTED OFCER-23
TAINFELONIES.—No individual who has been convicted 24
of a felony offense involving insider trading, embezzle-25
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•HR 2392 IH
ment, cybercrime, money laundering, financing of ter-1
rorism, or financial fraud may serve as— 2
(1) an officer of a payment stablecoin issuer; or 3
(2) a director of a payment stablecoin issuer. 4
(e) R
ULEMAKING.— 5
(1) I
N GENERAL.—The primary Federal pay-6
ment stablecoin regulators may issue such orders 7
and regulations as may be necessary to administer 8
and carry out the requirements of this section, in-9
cluding to establish conditions, and to prevent eva-10
sions thereof. 11
(2) J
OINT ISSUANCE OF REGULATION .—All reg-12
ulations issued to carry out this section by the pri-13
mary Federal payment stablecoin regulators shall be 14
issued jointly, after consultation with State payment 15
stablecoin regulators. 16
(3) R
ULEMAKING DEADLINE .—Not later than 17
the end of the 180-day period beginning on the date 18
of enactment of this Act, the Federal payment 19
stablecoin regulators shall issue regulations to carry 20
out this section. 21
SEC. 5. APPROVAL OF SUBSIDIARIES OF INSURED DEPOSI-22
TORY INSTITUTIONS AND SUBSIDIARIES OF 23
NONBANK ENTITIES. 24
(a) I
NGENERAL.— 25
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•HR 2392 IH
(1) APPLICATION.— 1
(A) I
N GENERAL.—The primary Federal 2
payment stablecoin regulator shall receive, re-3
view, and consider for approval applications 4
from any insured depository institution that 5
seeks to issue payment stablecoins through a 6
subsidiary and any nonbank entity that seeks to 7
issue payment stablecoins through a subsidiary. 8
(B) S
HARING OF INFORMATION .—With re-9
spect to applications submitted by State-char-10
tered insured depository institutions, the pri-11
mary Federal payment stablecoin regulator 12
shall share such applications with the relevant 13
State bank or State credit union supervisor. 14
(C) C
OMPLETION OF APPLICATION .— 15
(i) I
N GENERAL.—The primary Fed-16
eral payment stablecoin regulator shall 17
consider an application complete if such 18
application contains sufficient information 19
for the primary Federal payment 20
stablecoin regulator to render a decision on 21
whether the application meets the require-22
ments set forth in section 4. 23
(ii) M
ATERIAL CHANGE IN CIR -24
CUMSTANCES.—An application described 25
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•HR 2392 IH
under clause (i) that is considered com-1
plete shall remain complete unless the pri-2
mary Federal payment stablecoin regulator 3
determines that a material change in cir-4
cumstances requires otherwise. 5
(2) E
VALUATION OF APPLICATIONS .—A com-6
plete application received under paragraph (1) shall 7
be evaluated by the primary Federal payment 8
stablecoin regulator based on the ability of the sub-9
sidiary of the applicant to meet the requirements set 10
forth in section 4. 11
(3) T
IMING FOR DECISION; GROUNDS FOR DE -12
NIAL.— 13
(A) T
IMING.—The primary Federal pay-14
ment stablecoin regulator shall— 15
(i) not later than 30 days after receiv-16
ing the application— 17
(I) inform the applicant whether 18
the applicant has submitted a com-19
plete application; and 20
(II) if the application is not com-21
plete, inform the applicant of the ad-22
ditional information the applicant 23
must provide in order for the applica-24
tion to be considered complete; and 25
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•HR 2392 IH
(ii) not later than 120 days after in-1
forming the applicant that the application 2
is complete, render a decision on an appli-3
cation. 4
(B) D
ENIAL OF APPLICATION.— 5
(i) G
ROUNDS FOR DENIAL.— 6
(I) I
N GENERAL.—The primary 7
Federal payment stablecoin regulator 8
may only deny a complete application 9
received under paragraph (1) if the 10
regulator determines that the activi-11
ties of the applicant would be unsafe 12
or unsound based on the ability of the 13
subsidiary of the applicant to meet 14
the requirements set forth in section 15
4. 16
(II) T
REATMENT OF CERTAIN 17
ISSUANCES.—The issuance of a pay-18
ment stablecoin on an open, public, 19
and decentralized network shall not be 20
a valid ground for denial of an appli-21
cation received under paragraph (1). 22
(ii) E
XPLANATION REQUIRED .—If the 23
primary Federal payment stablecoin regu-24
lator denies a complete application received 25
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•HR 2392 IH
under paragraph (1), the regulator shall, 1
not later than 30 days after the date of 2
such denial, provide the applicant with— 3
(I) written notice explaining the 4
denial with specificity, including all 5
findings made by the regulator with 6
respect to all identified material short-7
comings in the application; and 8
(II) actionable recommendations 9
on how the applicant could address 10
the identified material shortcomings. 11
(iii) O
PPORTUNITY FOR HEARING ; 12
FINAL DETERMINATION .— 13
(I) I
N GENERAL.—Not later than 14
30 days after the date of receipt of 15
any notice of the denial of an applica-16
tion under this subsection, the appli-17
cant may request, in writing, an op-18
portunity for a written or oral hearing 19
before the primary Federal payment 20
stablecoin regulator to appeal the de-21
nial. 22
(II) T
IMING.—Upon receipt of a 23
timely request, the primary Federal 24
payment stablecoin regulator shall no-25
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•HR 2392 IH
tice a time (not later than 30 days 1
after the date of receipt of the re-2
quest) and place at which the appli-3
cant may appear, personally or 4
through counsel, to appeal the denial, 5
to submit written materials, or to pro-6
vide oral testimony and oral argu-7
ment. 8
(III) F
INAL DETERMINATION .— 9
Not later than 60 days after the date 10
of a hearing under this clause, the 11
primary Federal payment stablecoin 12
regulator shall notify the applicant of 13
the final determination of the primary 14
Federal payment stablecoin regulator 15
with respect to the appeal, which shall 16
contain a statement of the basis for 17
such determination, with specific find-18
ings. 19
(IV) N
OTICE IF NO HEARING.—If 20
an applicant does not make a timely 21
request for a hearing under this 22
clause, the primary Federal payment 23
stablecoin regulator shall notify the 24
applicant, not later than 10 days after 25
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•HR 2392 IH
the date by which the applicant may 1
request a hearing under this clause, in 2
writing, that the denial of the applica-3
tion is a final determination of the 4
primary Federal payment stablecoin 5
regulator. 6
(C) F
AILURE TO RENDER A DECISION .—If 7
the primary Federal payment stablecoin regu-8
lator fails to render a decision on a complete 9
application within the time period specified in 10
subparagraph (A), the application shall be 11
deemed approved. 12
(D) R
IGHT TO REAPPLY .—The denial of 13
an application under this subsection shall not 14
prohibit the applicant from filing a subsequent 15
application. 16
(4) R
EPORT ON PENDING APPLICATIONS .— 17
Each of the primary Federal payment stablecoin 18
regulators shall annually report to Congress on— 19
(A) the number of calendar days each ap-20
plicant waited for either an approval or denial 21
of an application under this subsection; 22
(B) the number of calendar days each ap-23
plicant with an outstanding application has 24
waited for a decision; and 25
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•HR 2392 IH
(C) the number of applications that have 1
been pending for 6 months or longer since the 2
date of the initial application filed under para-3
graph (1) where the applicant has been in-4
formed that the application remains incomplete, 5
including providing documentation on the sta-6
tus of the application and why the application 7
has not yet been approved. 8
(5) R
ULEMAKING.— 9
(A) I
N GENERAL.—Not later than 180 10
days after the date of enactment of this Act, 11
the primary Federal payment stablecoin regu-12
lators shall, jointly, issue rules to carry out this 13
section, which may only relate to the application 14
process under this subsection and may not im-15
plement the requirements set forth in section 4. 16
(B) T
AILORING OF RULES .—The joint 17
rulemaking required under subparagraph (A) 18
shall be tailored so as to minimize any incre-19
mental burden placed on well capitalized and 20
highly-rated insured depository institutions. 21
(b) E
FFECTIVEDATE.— 22
(1) I
N GENERAL.—This section shall take effect 23
on the earlier of— 24
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•HR 2392 IH
(A) 12 months after the date of enactment 1
of this Act; or 2
(B) the date that is 120 days after the 3
date on which the primary Federal payment 4
stablecoin regulators issue final regulations im-5
plementing this section. 6
(2) N
OTICE TO CONGRESS .—Each of the pri-7
mary Federal payment stablecoin regulators shall 8
notify Congress upon receiving their first applica-9
tion. 10
(c) E
FFECT ON STATELAW FOR PAYMENT 11
S
TABLECOINISSUERSAPPROVED BYFEDERALPAYMENT 12
S
TABLECOINREGULATORSUNDERTHISSECTION.—The 13
provisions of this section preempt any conflicting State 14
law and supersede any State licensing requirement for any 15
nonbank entity or subsidiary of an insured depository in-16
stitution or credit union that is approved under this sec-17
tion to be a permitted payment stablecoin issuer. 18
SEC. 6. SUPERVISION AND ENFORCEMENT WITH RESPECT 19
TO SUBSIDIARIES OF INSURED DEPOSITORY 20
INSTITUTIONS AND FEDERAL QUALIFIED 21
NONBANK PAYMENT STABLECOIN ISSUERS. 22
(a) S
UPERVISION.— 23
(1) S
UBSIDIARY OF AN INSURED DEPOSITORY 24
INSTITUTION.— 25
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•HR 2392 IH
(A) IN GENERAL.—Each permitted pay-1
ment stablecoin issuer that is a subsidiary of an 2
insured depository institution shall be subject to 3
supervision by the primary Federal payment 4
stablecoin regulator in the same manner as 5
such insured depository institution. 6
(B) G
RAMM-LEACH-BLILEY ACT.—For 7
purposes of title V of the Gramm-Leach-Bliley 8
Act (15 U.S.C. 6801 et seq.) each permitted 9
payment stablecoin issuer that is a subsidiary 10
of an insured depository institution shall be 11
deemed a financial institution. 12
(2) F
EDERAL QUALIFIED NONBANK PAYMENT 13
STABLECOIN ISSUER.— 14
(A) S
UBMISSION OF REPORTS .—Each Fed-15
eral qualified nonbank payment stablecoin 16
issuer shall, upon request, submit reports to the 17
Comptroller as to— 18
(i) the financial condition of the Fed-19
eral qualified nonbank payment stablecoin 20
issuer; 21
(ii) the systems of the Federal quali-22
fied nonbank payment stablecoin issuer for 23
monitoring and controlling financial and 24
operating risks; and 25
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(iii) compliance with this Act and reg-1
ulations issued pursuant to this Act by the 2
Federal qualified nonbank payment 3
stablecoin issuer. 4
(B) E
XAMINATIONS.—The Comptroller 5
may examine a Federal qualified nonbank pay-6
ment stablecoin issuer in order to inform the 7
Comptroller of— 8
(i) the nature of the operations and fi-9
nancial condition of the Federal qualified 10
nonbank payment stablecoin issuer; 11
(ii) the financial, operational, and 12
other risks within the Federal qualified 13
nonbank payment stablecoin issuer that 14
may pose a threat to— 15
(I) the safety and soundness of 16
the Federal qualified nonbank pay-17
ment stablecoin issuer; or 18
(II) the stability of the financial 19
system of the United States; 20
(iii) the systems of the Federal quali-21
fied nonbank payment stablecoin issuer for 22
monitoring and controlling the risks de-23
scribed in clause (ii); 24
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(iv) the compliance of the Federal 1
qualified nonbank payment stablecoin 2
issuer with this Act and regulations issued 3
pursuant to this Act; and 4
(v) the compliance of the Federal 5
qualified nonbank payment stablecoin 6
issuer with the requirements of the Bank 7
Secrecy Act and laws authorizing the im-8
position of sanctions and implemented by 9
the Secretary of the Treasury. 10
(C) R
EQUIREMENTS FOR EFFICIENCY .—In 11
supervising and examining a Federal qualified 12
nonbank payment stablecoin issuer, the Comp-13
troller shall, to the fullest extent possible, use 14
existing reports and other supervisory informa-15
tion. 16
(D) A
VOIDANCE OF DUPLICATION .—The 17
Comptroller shall, to the fullest extent possible, 18
avoid duplication of examination activities, re-19
porting requirements, and requests for informa-20
tion in carrying out this Act with respect to a 21
Federal qualified nonbank payment stablecoin 22
issuer. 23
(E) G
RAMM-LEACH-BLILEY ACT.—For 24
purposes of title V of the Gramm-Leach-Bliley 25
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Act (15 U.S.C. 6801 et seq.) each Federal 1
qualified nonbank payment stablecoin issuer 2
shall be deemed a financial institution. 3
(b) E
NFORCEMENT.— 4
(1) S
USPENSION OR REVOCATION OF REGISTRA -5
TION.—The primary Federal payment stablecoin 6
regulator may prohibit a permitted payment 7
stablecoin issuer from issuing payment stablecoins, if 8
the primary Federal payment stablecoin regulator 9
determines that such permitted payment stablecoin 10
issuer, or an institution-affiliated party of the per-11
mitted payment stablecoin issuer, is— 12
(A) materially violating or has materially 13
violated this Act or any regulation or order 14
issued under this Act, including the issuer’s ob-15
ligations under the section 4(a)(6); or 16
(B) materially violating or has materially 17
violated any condition imposed in writing by the 18
primary Federal payment stablecoin regulator 19
in connection with a written agreement entered 20
into between the permitted payment stablecoin 21
issuer and the primary Federal payment 22
stablecoin regulator. 23
(2) C
EASE-AND-DESIST PROCEEDINGS .—If the 24
primary Federal payment stablecoin regulator has 25
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reasonable cause to believe that a permitted payment 1
stablecoin issuer or any institution-affiliated party of 2
a permitted payment stablecoin issuer is violating, 3
has violated, or is attempting to violate this Act, any 4
regulation or order issued under this Act, or any 5
written agreement entered into with the primary 6
Federal payment stablecoin regulator or condition 7
imposed in writing by the primary Federal payment 8
stablecoin regulator in connection with any applica-9
tion or other request, the primary Federal payment 10
stablecoin regulator may order the permitted pay-11
ment stablecoin issuer or institution-affiliated party 12
of the permitted payment stablecoin issuer to— 13
(A) cease and desist from such violation or 14
practice; or 15
(B) take affirmative action to correct the 16
conditions resulting from any such violation or 17
practice. 18
(3) R
EMOVAL AND PROHIBITION AUTHORITY .— 19
The primary Federal payment stablecoin regulator 20
may remove an institution-affiliated party of a per-21
mitted payment stablecoin issuer from their position 22
or office or prohibit further participation in the af-23
fairs of the permitted payment stablecoin issuer or 24
all permitted payment stablecoin issuers by such in-25
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stitution-affiliated party, if the primary Federal pay-1
ment stablecoin regulator determines that— 2
(A) the institution-affiliated party has, di-3
rectly or indirectly, committed a violation or at-4
tempted violation of this Act or any regulation 5
or order issued under this Act; or 6
(B) the institution-affiliated party has 7
committed a violation of any provision of sub-8
chapter II of chapter 53 of title 31, United 9
States Code. 10
(4) P
ROCEDURES.— 11
(A) I
N GENERAL.—If the primary Federal 12
payment stablecoin regulator identifies a viola-13
tion or attempted violation of this Act or makes 14
a determination under paragraph (1), (2), or 15
(3), the primary Federal payment stablecoin 16
regulator shall comply with the procedures set 17
forth, as applicable, in— 18
(i) subsections (b) and (e) of sections 19
8 of the Federal Deposit Insurance Act 20
(12 U.S.C. 1818); or 21
(ii) subsections (e) and (g) of section 22
206 of the Federal Credit Union Act (12 23
U.S.C. 1786). 24
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(B) JUDICIAL REVIEW.—A person ag-1
grieved by a final action under this subsection 2
may obtain judicial review of such action exclu-3
sively as provided, as applicable, in— 4
(i) section 8(h) of the Federal Deposit 5
Insurance Act (12 U.S.C. 1818(h)); or 6
(ii) section 206(j) of the Federal 7
Credit Union Act (12 U.S.C. 1786(j)). 8
(C) I
NJUNCTION.—The primary Federal 9
payment stablecoin regulator may, in the dis-10
cretion of the regulator, follow the procedures 11
for judicial enforcement of any effective and 12
outstanding notice or order issued under this 13
subsection provided, as applicable, in— 14
(i) section 8(i)(1) of the Federal De-15
posit Insurance Act (12 U.S.C. 16
1818(i)(1)); or 17
(ii) section 206(k)(1) of the Federal 18
Credit Union Act (12 U.S.C. 1786(k)(1)). 19
(D) T
EMPORARY CEASE-AND-DESIST PRO-20
CEEDINGS.—If the primary Federal payment 21
stablecoin regulator determines that a violation 22
or attempted violation of this Act or an action 23
with respect to which a determination was made 24
under paragraph (1), (2), or (3), or the con-25
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tinuation thereof, is likely to cause insolvency or 1
significant dissipation of assets or earnings of a 2
permitted payment stablecoin issuer, or is likely 3
to weaken the condition of the permitted pay-4
ment stablecoin issuer or otherwise prejudice 5
the interests of the customers of the permitted 6
payment stablecoin issuer prior to the comple-7
tion of the proceedings conducted under this 8
paragraph, the primary Federal payment 9
stablecoin regulator may follow the procedures 10
provided, as applicable, in— 11
(i) section 8(c) of the Federal Deposit 12
Insurance Act (12 U.S.C. 1818(c)) to issue 13
a temporary cease-and-desist order; or 14
(ii) section 206(f) of the Federal 15
Credit Union Act (12 U.S.C. 1786(f)) to 16
issue a temporary cease-and-desist order. 17
(5) C
IVIL MONEY PENALTIES.— 18
(A) F
AILURE TO BE APPROVED .—Any per-19
son who issues a payment stablecoin and who is 20
not a permitted payment stablecoin issuer, and 21
any institution-affiliated party of such a person 22
who knowingly participates in issuing such a 23
payment stablecoin, shall be liable for a civil 24
penalty of not more than $100,000 for each day 25
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during which such payment stablecoins are out-1
standing. 2
(B) F
IRST TIER.—Except as provided in 3
subparagraph (A), a permitted payment 4
stablecoin issuer or institution-affiliated party 5
of such permitted payment stablecoin issuer 6
that materially violates this Act or any regula-7
tion or order issued under this Act, or that ma-8
terially violates any condition imposed in writ-9
ing by the primary Federal payment stablecoin 10
regulator in connection with a written agree-11
ment entered into between the permitted pay-12
ment stablecoin issuer and the primary Federal 13
payment stablecoin regulator, shall be liable for 14
a civil penalty of up to $100,000 for each day 15
during which the violation continues. 16
(C) S
ECOND TIER.—Except as provided in 17
subparagraph (A), and in addition to the pen-18
alties described under subparagraph (B), a per-19
mitted payment stablecoin issuer or institution- 20
affiliated party of such permitted payment 21
stablecoin issuer who knowingly participates in 22
a violation of any provision of this Act, or any 23
regulation or order issued thereunder, is liable 24
for a civil penalty of up to an additional 25
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$100,000 for each day during which the viola-1
tion continues. 2
(D) P
ROCEDURE.—Any penalty imposed 3
under this paragraph may be assessed and col-4
lected by the primary Federal payment 5
stablecoin regulator pursuant to the procedures 6
set forth, as applicable, in— 7
(i) section 8(i)(2) of the Federal De-8
posit Insurance Act (12 U.S.C. 9
1818(i)(2)); or 10
(ii) section 206(k)(2) of the Federal 11
Credit Union Act (12 U.S.C. 1786(k)(2)). 12
(E) N
OTICE AND ORDERS AFTER SEPARA -13
TION FROM SERVICE.—The resignation, termi-14
nation of employment or participation, or sepa-15
ration of an institution-affiliated party (includ-16
ing a separation caused by the closing of a per-17
mitted payment stablecoin issuer) shall not af-18
fect the jurisdiction and authority of the pri-19
mary Federal payment stablecoin regulator to 20
issue any notice or order and proceed under 21
this subsection against any such party, if such 22
notice or order is served before the end of the 23
6-year period beginning on the date such party 24
ceased to be an institution-affiliated party with 25
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respect to such permitted payment stablecoin 1
issuer. 2
(6) N
ON-APPLICABILITY TO A STATE QUALI -3
FIED PAYMENT STABLECOIN ISSUER .—This sub-4
section shall not apply to a State qualified payment 5
stablecoin issuer, except as described in section 7(e). 6
(c) S
HARING OFINFORMATION.—A State payment 7
stablecoin regulator and the primary Federal payment 8
stablecoin regulator shall share information on an ongoing 9
basis with respect to a permitted payment stablecoin 10
issuer that is a subsidiary of a State-chartered insured de-11
pository institution. 12
SEC. 7. STATE QUALIFIED PAYMENT STABLECOIN ISSUERS. 13
(a) I
NGENERAL.—With respect to a State, a State 14
payment stablecoin regulator shall have supervisory, ex-15
amination, and enforcement authority over a State quali-16
fied payment stablecoin issuer of such State. 17
(b) A
UTHORITYTOENTERINTOAGREEMENTS.— 18
(1) I
N GENERAL.—A State payment stablecoin 19
regulator may enter into a memorandum of under-20
standing with the primary Federal banking agency 21
and Comptroller setting out the manner in which the 22
primary Federal banking agency and Comptroller 23
may participate in the supervision, examination, and 24
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enforcement authority with respect to the State 1
qualified payment stablecoin issuers of such State. 2
(2) R
ULE OF CONSTRUCTION .—Nothing in this 3
subsection or a memorandum entered into under this 4
subsection may be construed to limit the authority 5
of the primary Federal banking agency or Comp-6
troller under subsection (e) or any other provision of 7
law. 8
(c) S
HARING OFINFORMATION.— 9
(1) I
N GENERAL.—A State payment stablecoin 10
regulator and, as applicable, the Comptroller, the 11
Board, the Corporation, or the National Credit 12
Union Administration shall share information on an 13
ongoing basis with respect to each State qualified 14
payment stablecoin issuer of such State, including a 15
copy of all initial applications and any accompanying 16
documents. 17
(2) P
RIVILEGES NOT AFFECTED BY SHARING 18
OF INFORMATION .—The sharing of information 19
under paragraph (1) shall not be construed as 20
waiving, destroying, or otherwise affecting any privi-21
lege applicable to such information under Federal or 22
State law as to any person or entity other than the 23
State payment stablecoin regulator, the Comptroller, 24
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the Board, the Corporation, and the National Credit 1
Union Administration. 2
(d) R
ULEMAKING.—A State payment stablecoin regu-3
lator may, to the same extent as the primary Federal pay-4
ment stablecoin regulators issue orders and rules under 5
section 4 applicable to a permitted payment stablecoin 6
issuer that is not a State qualified payment stablecoin 7
issuer, issue orders and rules related to the requirements 8
under section 4 applicable to State qualified payment 9
stablecoin issuers. 10
(e) B
ACK-UPENFORCEMENTAUTHORITY.— 11
(1) B
Y THE PRIMARY FEDERAL BANKING AGEN -12
CY.— 13
(A) I
N GENERAL.—Subject to subpara-14
graph (C), the primary Federal banking agency 15
may, after not less than 48 hours prior written 16
notice to any applicable State payment 17
stablecoin regulator, take an enforcement action 18
against a State qualified payment stablecoin 19
issuer that is a subsidiary of an insured deposi-20
tory institution or an institution-affiliated party 21
thereof for violations of this Act if— 22
(i) the applicable State payment 23
stablecoin regulator has not commenced an 24
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enforcement action to correct such viola-1
tion; and 2
(ii) failure to take such action would 3
create a material risk of loss to holders of 4
such issuer’s stablecoins or create a mate-5
rial threat to U.S. financial stability. 6
(B) R
ULEMAKING.—Not later than the end 7
of the 180-day period beginning on the date of 8
enactment of this Act, the primary Federal 9
banking agencies shall issue rules to set forth 10
the standards that would be used by the pri-11
mary Federal bank agencies to exercise the 12
back-up authority under this paragraph. 13
(C) B
ACK-UP AUTHORITY UNDER SECTION 14
6(b).—Solely for purposes of carrying out this 15
paragraph, section 6(b) shall apply to a State 16
qualified payment stablecoin issuer that is a 17
subsidiary of an insured depository institution 18
as if the primary Federal banking agency were 19
the primary Federal payment stablecoin regu-20
lator with respect to the State qualified pay-21
ment stablecoin issuer. 22
(D) P
RIMARY FEDERAL BANKING AGENCY 23
DEFINED.—In this section— 24
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(i) the term ‘‘primary Federal bank-1
ing agency’’ means— 2
(I) the appropriate Federal bank-3
ing agency; and 4
(II) the National Credit Union 5
Administration, in the case of an in-6
sured credit union; and 7
(ii) the term ‘‘primary Federal bank-8
ing agencies’’ means the Board, the Comp-9
troller, the Corporation, and the National 10
Credit Union Administration. 11
(2) B
Y THE COMPTROLLER .— 12
(A) I
N GENERAL.—Subject to subpara-13
graph (C), the Comptroller may, after not less 14
than 48 hours prior written notice to any appli-15
cable State payment stablecoin regulator, take 16
an enforcement action against a State qualified 17
payment stablecoin issuer that is a nonbank en-18
tity or an institution-affiliated party thereof for 19
violations of this Act if— 20
(i) the applicable State payment 21
stablecoin regulator has not commenced an 22
enforcement action to correct such viola-23
tion; and 24
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(ii) failure to take such action would 1
create a material risk of loss to holders of 2
such issuer’s stablecoins or create a mate-3
rial threat to U.S. financial stability. 4
(B) R
ULEMAKING.—Not later than the end 5
of the 180-day period beginning on the date of 6
enactment of this Act, the Comptroller shall 7
issue rules to set forth the standards that would 8
be used by the Comptroller to exercise the back- 9
up authority under this paragraph. 10
(C) B
ACK-UP AUTHORITY UNDER SECTION 11
6(b).—Solely for purposes of carrying out this 12
paragraph, section 6(b) shall apply to a State 13
qualified payment stablecoin issuer that is a 14
nonbank entity as if the Comptroller were the 15
primary Federal payment stablecoin regulator 16
with respect to the State qualified payment 17
stablecoin issuer. 18
(f) G
RAMM-LEACH-BLILEYACT.—For purposes of 19
title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 20
et seq.) a State qualified payment stablecoin issuer is 21
deemed a financial institution. 22
(g) I
NTERSTATEPAYMENTSTABLECOINMARKET.— 23
(1) D
EFINITIONS.—For the purposes of this 24
subsection— 25
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(A) the term ‘‘home State’’ means the 1
State of a State qualified payment stablecoin 2
issuer’s State payment stablecoin regulator; and 3
(B) the term ‘‘host State’’ means a State 4
other than that of the State qualified payment 5
stablecoin issuer’s State payment stablecoin 6
regulator. 7
(2) A
UTHORITY TO ISSUE PAYMENT 8
STABLECOINS IN HOST STATES .—Subject to the re-9
quirements of paragraph (3), a State qualified pay-10
ment stablecoin issuer may issue payment 11
stablecoins in a host State without a charter or li-12
cense to issue payment stablecoins from such host 13
State. 14
(3) S
TATE OBLIGATIONS.—Where a State quali-15
fied payment stablecoin issuer issues a payment 16
stablecoin in a host State pursuant to paragraph 17
(2)— 18
(A) such State qualified payment 19
stablecoin issuer shall notify any State payment 20
stablecoin regulator in such host State of the 21
issuer’s intention to do business in the host 22
State no less than 30 days before such issuer 23
commences business in the host State and in a 24
manner prescribed by the host State’s State 25
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payment stablecoin regulator or State banking 1
regulator if such State does not have a regime 2
certified under section 4(b), provided that such 3
notice does not impose a de facto licensure or 4
chartering requirement on such State qualified 5
payment stablecoin issuer; 6
(B) such State qualified payment 7
stablecoin issuer shall comply with all require-8
ments of the issuer’s home State regulatory re-9
gime when conducting business in the host 10
State, and where the host State maintains a 11
payment stablecoin regulatory regime that is 12
certified under section 4(b), such issuer shall 13
comply with any obligations of the host State’s 14
payment stablecoin regulatory regime that ex-15
ceed those of such issuer’s home State regu-16
latory regime; 17
(C) where the host State does not maintain 18
a payment stablecoin regulatory regime that is 19
certified under section 4(b), such State quali-20
fied payment stablecoin issuer shall remain sub-21
ject to all applicable consumer protection laws 22
of such host State; and 23
(D) where the host State maintains a pay-24
ment stablecoin regulatory regime that is cer-25
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tified under section 4(b), such State qualified 1
payment stablecoin issuer shall remain subject 2
to applicable consumer protection laws of such 3
host State, but only to the same extent as State 4
qualified payment stablecoin issuers chartered 5
or licensed in that host State. 6
SEC. 8. CUSTOMER PROTECTION. 7
(a) I
NGENERAL.—A person may only engage in the 8
business of providing custodial or safekeeping services for 9
permitted payment stablecoins, reserves described in sec-10
tion 4(a)(1)(A), or private keys of permitted payment 11
stablecoins, if the person— 12
(1) is subject to— 13
(A) supervision or regulation by a primary 14
Federal payment stablecoin regulator or a pri-15
mary financial regulatory agency described 16
under subparagraph (B) or (C) of section 2(12) 17
of the Dodd-Frank Wall Street Reform and 18
Consumer Protection Act (12 U.S.C. 19
5301(12)); or 20
(B) supervision by a State bank super-21
visor, as defined in section 3 of the Federal De-22
posit Insurance Act (12 U.S.C. 1813) or a 23
State credit union supervisor, as defined in sec-24
tion 6003 of the Anti-Money Laundering Act of 25
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2020 (31 U.S.C. 5311 note), and such State 1
bank supervisor or State credit union supervisor 2
makes available to the Board such information 3
as the Board determines necessary and relevant 4
to the categories of information under sub-5
section (d); and 6
(2) complies with the segregation requirements 7
under subsections (b), (c), and (d), unless such per-8
son complies with similar requirements as required 9
by the Board, the Comptroller, the Corporation, the 10
Securities and Exchange Commission, or the Com-11
modity Futures Trading Commission, as applicable. 12
(b) C
USTOMERPROPERTYREQUIREMENTS.—A per-13
son described in subsection (a) shall— 14
(1) treat and deal with the payment stablecoins, 15
private keys, cash, and other property of another 16
person for whom or on whose behalf the person re-17
ceives, acquires, or holds payment stablecoins, pri-18
vate keys, cash, and other property (hereinafter in 19
this section referred to as the ‘‘customer’’) as be-20
longing to such customer and not as the property of 21
such person; and 22
(2) take such steps as are appropriate to pro-23
tect the payment stablecoins, private keys, cash, and 24
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other property of a customer from the claims of 1
creditors of the person. 2
(c) C
OMMINGLINGPROHIBITED.— 3
(1) I
N GENERAL.—Payment stablecoins, cash, 4
and other property of a customer shall be separately 5
accounted for by a person described in subsection 6
(a) and shall not be commingled with the funds of 7
the person. 8
(2) C
USTOMER PRIORITY.—The claims of a cus-9
tomer with respect to property of the customer shall 10
have priority over the claims of a payment stablecoin 11
issuer or any creditor of a payment stablecoin issuer 12
unless the customer expressly consents otherwise. 13
(3) E
XCEPTION.—Notwithstanding paragraph 14
(1)— 15
(A) the payment stablecoins, cash, and 16
other property of a customer may be commin-17
gled and deposited in an omnibus account hold-18
ing the payment stablecoins, cash, and other 19
property of more than 1 customer at an insured 20
depository institution or trust company; 21
(B) such share of the payment stablecoins, 22
cash, and other property of the customer that 23
shall be necessary to transfer, adjust, or settle 24
a transaction or transfer of assets may be with-25
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drawn and applied to such purposes, including 1
the payment of commissions, taxes, storage, 2
and other charges lawfully accruing in connec-3
tion with the provision of services by a person 4
described in subsection (a); and 5
(C) in accordance with such terms and 6
conditions as the Board may prescribe by rule, 7
regulation, or order, any customer payment 8
stablecoin, cash, and other property described 9
in this subsection may be commingled and de-10
posited in customer accounts with payment 11
stablecoins, cash, and other property received 12
by the person and required by the Board to be 13
separately accounted for, treated, and dealt 14
with as belonging to customers. 15
(d) R
EGULATORY INFORMATION.—A person de-16
scribed under subsection (a) shall submit to the primary 17
Federal payment stablecoin regulator (or, if the person 18
does not have a primary Federal payment stablecoin regu-19
lator, to the Board) information concerning the person’s 20
business operations and processes to protect customer 21
payment stablecoins, cash, and other property, in such 22
form and manner as the primary Federal payment 23
stablecoin regulator (or, if the person does not have a pri-24
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mary Federal payment stablecoin regulator, the Board) 1
shall determine. 2
(e) E
XCLUSION.—The requirements of this section 3
shall not apply to any person solely on the basis that such 4
person engages in the business of providing hardware or 5
software to facilitate a customer’s own custody or safe-6
keeping of the customer’s payment stablecoins or private 7
keys. 8
SEC. 9. RULE OF CONSTRUCTION. 9
A digital asset shall not be construed to be a payment 10
stablecoin, if it is— 11
(1) redeemable by the issuer exclusively for 12
other digital assets, provided that such digital assets 13
for which it is redeemable are not primarily— 14
(A) payment stablecoins; or 15
(B) representations of permissible reserves 16
described under section 4(a)(1)(A) or similar 17
such assets; or 18
(2) primarily used within a system controlled by 19
such digital asset’s issuer as a means of accessing 20
products, services, or loyalty rewards. 21
SEC. 10. INTEROPERABILITY STANDARDS. 22
(a) I
NGENERAL.—The primary Federal payment 23
stablecoin regulators, in consultation with the National In-24
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stitute of Standards and Technology, other relevant stand-1
ard setting organizations, and State governments— 2
(1) shall assess compatibility and interoper-3
ability standards for permitted payment stablecoin 4
issuers; and 5
(2) if necessary, may, pursuant to section 553 6
of title 5 and in a manner consistent with the Na-7
tional Technology Transfer and Advancement Act of 8
1995 (Public Law 104–113), prescribe standards for 9
payment stablecoin issuers to promote compatibility 10
and interoperability. 11
(b) A
GREEMENTSWITHFOREIGNREGULATORS.— 12
The Secretary of the Treasury shall seek to enter into 13
agreements with foreign jurisdictions with comparable 14
payment stablecoin regulatory regimes to facilitate inter-15
national transactions and interoperability with any United 16
States dollar-denominated payment stablecoins issued 17
overseas. 18
SEC. 11. MORATORIUM ON ENDOGENOUSLY 19
COLLATERALIZED STABLECOINS. 20
(a) M
ORATORIUM.—During the 2-year period begin-21
ning on the date of enactment of this Act, it shall be un-22
lawful to issue an endogenously collateralized stablecoin 23
not in existence on the date of enactment of this Act. 24
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(b) ENDOGENOUSLY COLLATERALIZED STABLECOIN 1
D
EFINED.—In this section, the term ‘‘endogenously 2
collateralized stablecoin’’ means any digital asset— 3
(1) in which its issuer has represented will be 4
converted, redeemed, or repurchased for a fixed 5
amount of monetary value; and 6
(2) that relies solely on the value of another 7
digital asset created or maintained by the same 8
originator to maintain the fixed price. 9
SEC. 12. STUDIES AND REPORTS. 10
(a) S
TUDY BYTREASURY.—The Secretary of the 11
Treasury, in consultation with the Board, the Comptroller, 12
the Corporation, the National Credit Union Administra-13
tion, and the Securities and Exchange Commission, shall 14
carry out a study of non-payment stablecoins, including 15
decentralized stablecoins. 16
(b) R
EPORT.—Not later than 365 days after the date 17
of the enactment of this Act, the Secretary shall provide 18
to the Committee on Financial Services of the House of 19
Representatives and the Committee on Banking, Housing, 20
and Urban Affairs of the Senate a report that contains 21
all findings made in carrying out the study under sub-22
section (a), including an analysis of— 23
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(1) the categories of non-payment stablecoins, 1
including the benefits and risks of technological de-2
sign features; 3
(2) the participants in non-payment stablecoin 4
arrangements; 5
(3) utilization and potential utilization of non- 6
payment stablecoins; 7
(4) nature of reserve compositions; 8
(5) governance structure, including aspects of 9
decentralization; 10
(6) nature of public promotion and advertising; 11
and 12
(7) clarity and availability of consumer notices 13
disclosures. 14
SEC. 13. REPORT ON RULEMAKING STATUS. 15
Not later than 6 months after the date of enactment 16
of this Act, the primary Federal payment stablecoin regu-17
lators shall provide a status update on the development 18
of the rulemaking under this Act to the Committee on Fi-19
nancial Services of the House of Representatives and the 20
Committee on Banking, Housing, and Urban Affairs of 21
the Senate. 22
SEC. 14. AUTHORITY OF BANKING INSTITUTIONS. 23
(a) R
ULE OFCONSTRUCTION.—Nothing in this Act 24
may be construed to limit the authority of a depository 25
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institution, Federal credit union, State credit union, or 1
trust company to engage in activities permissible pursuant 2
to applicable State and Federal law, including— 3
(1) accepting or receiving deposits and issuing 4
digital assets that represent deposits; 5
(2) utilizing a distributed ledger for the books 6
and records of the entity and to affect intrabank 7
transfers; and 8
(3) providing custodial services for payment 9
stablecoins, private keys of payment stablecoins, or 10
reserves backing payment stablecoins. 11
(b) R
EGULATORYREVIEW.—The primary Federal 12
payment stablecoin regulators shall review all existing reg-13
ulations and guidance and, if necessary, amend such regu-14
lations or guidance or issue new regulations or guidance 15
to clarify that regulated entities can engage in the pay-16
ment stablecoin activities contemplated in, and in accord-17
ance with, this Act. 18
(c) T
REATMENT OFCUSTODYACTIVITIES.—The ap-19
propriate Federal banking agency, the National Credit 20
Union Administration (in the case of a credit union), and 21
the Securities and Exchange Commission may not require 22
a depository institution, national bank, Federal credit 23
union, State credit union, or trust company, or any affil-24
iate thereof (the ‘‘entity’’)— 25
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(1) to include assets held in custody that are 1
not owned by the entity as a liability on the financial 2
statement or balance sheet of the entity, including 3
payment stablecoin custody or safekeeping activities; 4
(2) to hold additional regulatory capital against 5
assets in custody or safekeeping, except as necessary 6
to mitigate against operational risks inherent with 7
the custody or safekeeping services, as determined 8
by— 9
(A) the appropriate Federal banking agen-10
cy; 11
(B) the National Credit Union Administra-12
tion (in the case of a credit union); 13
(C) a State bank supervisor (as defined in 14
section 3 of the Federal Deposit Insurance Act 15
(12 U.S.C. 1813)); or 16
(D) a State credit union supervisor (as de-17
fined in section 6003 of the Anti-Money Laun-18
dering Act of 2020 (31 U.S.C. 5311 note)); 19
(3) to recognize a liability for any obligations 20
related to activities or services performed for digital 21
assets that the entity does not own if that liability 22
would exceed the expense recognized in the income 23
statement as a result of the corresponding obliga-24
tion. 25
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(d) DEPOSITORYINSTITUTIONDEFINED.—In this 1
section, the term ‘‘depository institution’’ has the meaning 2
given that term in section 3 of the Federal Deposit Insur-3
ance Act (12 U.S.C. 1813). 4
SEC. 15. AMENDMENTS TO CLARIFY THAT PAYMENT 5
STABLECOINS ARE NOT SECURITIES. 6
(a) I
NVESTMENTADVISERSACT OF1940.—Section 7
202(a)(18) of the Investment Advisers Act of 1940 (15 8
U.S.C. 80b–2(a)(18)) is amended by adding at the end 9
the following: ‘‘The term ‘security’ does not include a pay-10
ment stablecoin issued by a permitted payment stablecoin 11
issuer, as such terms are defined, respectively, in section 12
2 of the STABLE Act of 2025.’’. 13
(b) I
NVESTMENTCOMPANYACT OF1940.—The In-14
vestment Company Act of 1940 is amended— 15
(1) in section 2(a)(36) (15 U.S.C. 80a– 16
2(a)(36)), by adding at the end the following: ‘‘The 17
term ‘security’ does not include a payment stablecoin 18
issued by a permitted payment stablecoin issuer, as 19
such terms are defined, respectively, in section 2 of 20
the STABLE Act of 2025.’’; and 21
(2) in section 3(c) (15 U.S.C. 80a–3(c)), by 22
adding at the end the following: 23
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‘‘(15) Any permitted payment stablecoin issuer, 1
as such term is defined in section 2 of the STABLE 2
Act of 2025.’’. 3
(c) S
ECURITIESACT OF1933.—Section 2(a)(1) of 4
the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is 5
amended by adding at the end the following: ‘‘The term 6
‘security’ does not include a payment stablecoin issued by 7
a permitted payment stablecoin issuer, as such terms are 8
defined, respectively, in section 2 of the STABLE Act of 9
2025.’’. 10
(d) S
ECURITIESEXCHANGEACT OF1934.—Section 11
3(a)(10) of the Securities Exchange Act of 1934 (15 12
U.S.C. 78c(a)(10)) is amended by adding at the end the 13
following: ‘‘The term ‘security’ does not include a payment 14
stablecoin issued by a permitted payment stablecoin 15
issuer, as such terms are defined, respectively, in section 16
2 of the STABLE Act of 2025.’’. 17
(e) S
ECURITIESINVESTORPROTECTIONACT OF 18
1970.—Section 16(14) of the Securities Investor Protec-19
tion Act of 1970 (15 U.S.C. 78lll(14)) is amended by add-20
ing at the end the following: ‘‘The term ‘security’ does 21
not include a payment stablecoin issued by a permitted 22
payment stablecoin issuer, as such terms are defined, re-23
spectively, in section 2 of the STABLE Act of 2025.’’. 24
Æ 
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