Us Congress 2025-2026 Regular Session

Us Congress House Bill HB2392 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 2392
5	5	To provide for the regulation of payment stablecoins, and for other purposes.
6	6	IN THE HOUSE OF REPRESENTATIVES
7	7	MARCH26, 2025
8	8	Mr. S
9	9	TEIL(for himself, Mr. HILLof Arkansas, Mr. TORRESof New York,
10	10	Mr. E
11	11	MMER, Mr. HUIZENGA, Mr. MEUSER, Mrs. KIM, Mr. MOOREof
12	12	North Carolina, Mr. D
13	13	OWNING, Mr. HARIDOPOLOS, Mr. GOTTHEIMER,
14	14	and Mr. L
15	15	ICCARDO) introduced the following bill; which was referred to
16	16	the Committee on Financial Services
17	17	A BILL
18	18	To provide for the regulation of payment stablecoins, and
19	19	for other purposes.
20	20	Be it enacted by the Senate and House of Representa-1
21	21	tives of the United States of America in Congress assembled, 2
22	22	SECTION 1. SHORT TITLE. 3
23	23	This Act may be cited as the ‘‘Stablecoin Trans-4
24	24	parency and Accountability for a Better Ledger Economy 5
25	25	Act of 2025’’ or the ‘‘STABLE Act of 2025’’. 6
26	26	SEC. 2. DEFINITIONS. 7
27	27	In this Act: 8
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30	30	•HR 2392 IH
31	31	(1) APPROPRIATE FEDERAL BANKING AGEN -1
32	32	CY.—The term ‘‘appropriate Federal banking agen-2
33	33	cy’’ has the meaning given that term under section 3
34	34	3 of the Federal Deposit Insurance Act (12 U.S.C. 4
35	35	1813). 5
36	36	(2) B
37	37	ANK SECRECY ACT.—The term ‘‘Bank Se-6
38	38	crecy Act’’ means— 7
39	39	(A) section 21 of the Federal Deposit In-8
40	40	surance Act (12 U.S.C. 1829b); 9
41	41	(B) chapter 2 of title I of Public Law 91– 10
42	42	508 (12 U.S.C. 1951 et seq.); and 11
43	43	(C) subchapter II of chapter 53 of title 31, 12
44	44	United States Code. 13
45	45	(3) B
46	46	OARD.—The term ‘‘Board’’ means the 14
47	47	Board of Governors of the Federal Reserve System. 15
48	48	(4) C
49	49	OMPTROLLER.—The term ‘‘Comptroller’’ 16
50	50	means the Comptroller of the Currency. 17
51	51	(5) C
52	52	ORPORATION.—The term ‘‘Corporation’’ 18
53	53	means the Federal Deposit Insurance Corporation. 19
54	54	(6) C
55	55	REDIT UNION TERMS .—The terms ‘‘Fed-20
56	56	eral credit union’’, ‘‘insured credit union’’, and 21
57	57	‘‘State credit union’’ have the meanings given those 22
58	58	terms, respectively, in section 101 of the Federal 23
59	59	Credit Union Act (12 U.S.C. 1752). 24
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62	62	•HR 2392 IH
63	63	(7) DIGITAL ASSET.—The term ‘‘digital asset’’ 1
64	64	means any digital representation of value which is 2
65	65	recorded on a cryptographically-secured distributed 3
66	66	ledger. 4
67	67	(8) D
68	68	ISTRIBUTED LEDGER.—The term ‘‘distrib-5
69	69	uted ledger’’ means technology where data is shared 6
70	70	across a network that creates a public digital ledger 7
71	71	of verified transactions or information among net-8
72	72	work participants and the data is linked using cryp-9
73	73	tography to maintain the integrity of the public dig-10
74	74	ital ledger and execute other functions. 11
75	75	(9) F
76	76	EDERAL QUALIFIED NONBANK PAYMENT 12
77	77	STABLECOIN ISSUER.—The term ‘‘Federal qualified 13
78	78	nonbank payment stablecoin issuer’’ means a sub-14
79	79	sidiary of a nonbank entity approved by the primary 15
80	80	Federal payment stablecoin regulator, pursuant to 16
81	81	section 5, to issue payment stablecoins. 17
82	82	(10) I
83	83	NSTITUTION-AFFILIATED PARTY .—With 18
84	84	respect to a permitted payment stablecoin issuer, the 19
85	85	term ‘‘institution-affiliated party’’ means any direc-20
86	86	tor, officer, employee, or person in control of, or 21
87	87	agent for, the permitted payment stablecoin issuer. 22
88	88	(11) I
89	89	NSURED DEPOSITORY INSTITUTION .—The 23
90	90	term ‘‘insured depository institution’’ means— 24
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93	93	•HR 2392 IH
94	94	(A) an insured depository institution, as 1
95	95	defined in section 3 of the Federal Deposit In-2
96	96	surance Act (12 U.S.C. 1813); and 3
97	97	(B) an insured credit union. 4
98	98	(12) M
99	99	ONETARY VALUE.—The term ‘‘monetary 5
100	100	value’’— 6
101	101	(A) means— 7
102	102	(i) a national currency; 8
103	103	(ii) a deposit (as defined in section 3 9
104	104	of the Federal Deposit Insurance Act (12 10
105	105	U.S.C. 1813)) that is denominated in a na-11
106	106	tional currency; or 12
107	107	(iii) an account (as defined in section 13
108	108	101 of the Federal Credit Union Act (12 14
109	109	U.S.C. 1752)); and 15
110	110	(B) does not include any agricultural or 16
111	111	other physical commodity (as defined in section 17
112	112	1a of the Commodity Exchange Act (7 U.S.C. 18
113	113	1a). 19
114	114	(13) N
115	115	ATIONAL CURRENCY .—The term ‘‘na-20
116	116	tional currency’’ means a Federal Reserve note, (as 21
117	117	the term is used in the first undesignated paragraph 22
118	118	of section 16 of the Federal Reserve Act (12 U.S.C. 23
119	119	411)), money standing to the credit of an account 24
120	120	with a Federal reserve bank, money issued by a cen-25
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123	123	•HR 2392 IH
124	124	tral bank, and money issued by an intergovern-1
125	125	mental organization pursuant to an agreement by 2
126	126	one or more governments. 3
127	127	(14) N
128	128	ONBANK ENTITY.—The term ‘‘nonbank 4
129	129	entity’’ means a person that is not an insured depos-5
130	130	itory institution or subsidiary of an insured deposi-6
131	131	tory institution. 7
132	132	(15) P
133	133	AYMENT STABLECOIN .—The term ‘‘pay-8
134	134	ment stablecoin’’ means a digital asset— 9
135	135	(A) that is or is designed to be used as a 10
136	136	means of payment or settlement; 11
137	137	(B) that is denominated in a national cur-12
138	138	rency; 13
139	139	(C) the issuer of which— 14
140	140	(i) is obligated to convert, redeem, or 15
141	141	repurchase for a fixed amount of monetary 16
142	142	value; or 17
143	143	(ii) represents that the digital asset 18
144	144	will maintain or creates the reasonable ex-19
145	145	pectation that the digital asset will main-20
146	146	tain a stable value relative to the value of 21
147	147	a fixed amount of monetary value; and 22
148	148	(D) that is not— 23
149	149	(i) a national currency; 24
150	150	(ii) a security issued by— 25
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153	153	•HR 2392 IH
154	154	(I) an investment company reg-1
155	155	istered under section 8(a) of the In-2
156	156	vestment Company Act of 1940 (15 3
157	157	U.S.C. 80a–8(a)); or 4
158	158	(II) a person that would be an 5
159	159	investment company under the Invest-6
160	160	ment Company Act of 1940 but for 7
161	161	paragraphs (1) and (7) of section 3(c) 8
162	162	of that Act (15 U.S.C. 80a–3(c)); 9
163	163	(iii) a deposit (as defined under sec-10
164	164	tion 3 of the Federal Deposit Insurance 11
165	165	Act (12 U.S.C. 1813)), regardless of the 12
166	166	technology used to record such deposit; or 13
167	167	(iv) an account (as defined in section 14
168	168	101 of the Federal Credit Union Act (12 15
169	169	U.S.C. 1752)), regardless of the technology 16
170	170	used to record such account. 17
171	171	(16) P
172	172	ERMITTED PAYMENT STABLECOIN 18
173	173	ISSUER.—The term ‘‘permitted payment stablecoin 19
174	174	issuer’’ means— 20
175	175	(A) a subsidiary of an insured depository 21
176	176	institution that has been approved to issue pay-22
177	177	ment stablecoins under section 5; 23
178	178	(B) a Federal qualified nonbank payment 24
179	179	stablecoin issuer; or 25
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182	182	•HR 2392 IH
183	183	(C) a State qualified payment stablecoin 1
184	184	issuer. 2
185	185	(17) P
186	186	ERSON.—The term ‘‘person’’ means an 3
187	187	individual, partnership, company, corporation, asso-4
188	188	ciation (incorporated or unincorporated), trust, es-5
189	189	tate, cooperative organization, or other entity. 6
190	190	(18) P
191	191	RIMARY FEDERAL PAYMENT STABLECOIN 7
192	192	REGULATOR.— 8
193	193	(A) I
194	194	N GENERAL.—The term ‘‘primary 9
195	195	Federal payment stablecoin regulator’’ means— 10
196	196	(i) with respect to an insured deposi-11
197	197	tory institution (other than an insured 12
198	198	credit union) or a subsidiary of an insured 13
199	199	depository institution (other than an in-14
200	200	sured credit union), the appropriate Fed-15
201	201	eral banking agency of such insured depos-16
202	202	itory institution; 17
203	203	(ii) with respect to an insured credit 18
204	204	union or a subsidiary of an insured credit 19
205	205	union, the National Credit Union Adminis-20
206	206	tration; 21
207	207	(iii) with respect to a Federal quali-22
208	208	fied nonbank payment stablecoin issuer 23
209	209	and any nonbank entity that seeks to have 24
210	210	a subsidiary approved as a Federal quali-25
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213	213	•HR 2392 IH
214	214	fied nonbank payment stablecoin issuer, 1
215	215	the Comptroller; and 2
216	216	(iv) with respect to any entity char-3
217	217	tered by the Comptroller, the Comptroller. 4
218	218	(B) P
219	219	RIMARY FEDERAL PAYMENT 5
220	220	STABLECOIN REGULATORS .—The term ‘‘pri-6
221	221	mary Federal payment stablecoin regulators’’ 7
222	222	means the Comptroller, the Board, the Corpora-8
223	223	tion, and the National Credit Union Adminis-9
224	224	tration. 10
225	225	(19) R
226	226	EGISTERED PUBLIC ACCOUNTING 11
227	227	FIRM.—The term ‘‘registered public accounting 12
228	228	firm’’ has the meaning given that term under section 13
229	229	2 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 14
230	230	7201). 15
231	231	(20) S
232	232	TATE.—The term ‘‘State’’ means each of 16
233	233	the several States, the District of Columbia, and 17
234	234	each territory of the United States. 18
235	235	(21) S
236	236	TATE QUALIFIED PAYMENT STABLECOIN 19
237	237	ISSUER.—The term ‘‘State qualified payment 20
238	238	stablecoin issuer’’ means an entity that— 21
239	239	(A) is approved to issue payment 22
240	240	stablecoins by a State payment stablecoin regu-23
241	241	lator; 24
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244	244	•HR 2392 IH
245	245	(B) issues a payment stablecoin in compli-1
246	246	ance with the laws and regulations of a State 2
247	247	regulatory regime certified under section 4(b); 3
248	248	and 4
249	249	(C) is not— 5
250	250	(i) chartered by the Comptroller; 6
251	251	(ii) a Federal credit union; or 7
252	252	(iii) a subsidiary of a State credit 8
253	253	union that— 9
254	254	(I) has at least a partial owner-10
255	255	ship interest or loan from a Federal 11
256	256	credit union; or 12
257	257	(II) has at least a partial owner-13
258	258	ship interest or loan from a State 14
259	259	credit union that is organized in a dif-15
260	260	ferent State than such subsidiary. 16
261	261	(22) S
262	262	TATE PAYMENT STABLECOIN REGU -17
263	263	LATOR.—The term ‘‘State payment stablecoin regu-18
264	264	lator’’ means— 19
265	265	(A) a State agency that has primary regu-20
266	266	latory and supervisory authority in such State 21
267	267	over entities that issue payment stablecoins; 22
268	268	and 23
269	269	(B) with respect to a State qualified pay-24
270	270	ment stablecoin issuer that is a subsidiary of a 25
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273	273	•HR 2392 IH
274	274	State-chartered depository institution (as de-1
275	275	fined in section 3 of the Federal Deposit Insur-2
276	276	ance Act (12 U.S.C. 1813)) or a State credit 3
277	277	union, the State agency that has primary regu-4
278	278	latory and supervisory authority over entities 5
279	279	that issue payment stablecoins in the State in 6
280	280	which such State-chartered depository institu-7
281	281	tion or State credit union is chartered. 8
282	282	(23) S
283	283	UBSIDIARY OF AN INSURED CREDIT 9
284	284	UNION.—With respect to an insured credit union, 10
285	285	the term ‘‘subsidiary of an insured credit union’’ 11
286	286	means— 12
287	287	(A) an organization providing services to 13
288	288	the insured credit union that are associated 14
289	289	with the routine operations of credit unions, as 15
290	290	described under section 107(7)(I) of the Fed-16
291	291	eral Credit Union Act (12 U.S.C. 1757(7)(I)); 17
292	292	(B) a credit union service organization, as 18
293	293	such term is used under part 712 of title 12, 19
294	294	Code of Federal Regulations, with respect to 20
295	295	which the insured credit union has an owner-21
296	296	ship interest or to which the insured credit 22
297	297	union has extended a loan; and 23
298	298	(C) any subsidiary of an insured credit 24
299	299	union that is a State credit union. 25
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303	303	SEC. 3. LIMITATION ON WHO MAY ISSUE A PAYMENT 1
304	304	STABLECOIN. 2
305	305	(a) L
306	306	IMITATION ONISSUERS.—It shall be unlawful 3
307	307	for any person other than a permitted payment stablecoin 4
308	308	issuer to issue a payment stablecoin in the United States. 5
309	309	(b) L
310	310	IMITATION ONOFFERING ORSELLING.— 6
311	311	(1) I
312	312	N GENERAL.—After the end of the 2-year 7
313	313	period beginning on the date of enactment of this 8
314	314	Act, it shall be unlawful for any custodial inter-9
315	315	mediary to offer or sell a payment stablecoin in the 10
316	316	United States unless the payment stablecoin was 11
317	317	issued by a permitted payment stablecoin issuer. 12
318	318	(2) E
319	319	XCEPTIONS FOR COMPARABLE PAYMENT 13
320	320	STABLECOIN REGIMES.— 14
321	321	(A) I
322	322	N GENERAL.—Paragraph (1) and sub-15
323	323	section (a) shall not apply to the offer or sale 16
324	324	of a payment stablecoin if— 17
325	325	(i) the payment stablecoin was issued 18
326	326	by a foreign payment stablecoin issuer; 19
327	327	(ii) the foreign payment stablecoin 20
328	328	issuer is subject to regulation by a foreign 21
329	329	payment stablecoin regulator of a nation 22
330	330	with a payment stablecoin regulatory re-23
331	331	gime that the Secretary of the Treasury 24
332	332	determines under subparagraph (B) is 25
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335	335	•HR 2392 IH
336	336	comparable to the requirements under this 1
337	337	Act; and 2
338	338	(iii) the foreign payment stablecoin 3
339	339	issuer consents to be subject to reporting 4
340	340	and examination requirements, as deter-5
341	341	mined by— 6
342	342	(I) the Comptroller, if the foreign 7
343	343	payment stablecoin issuer is a 8
344	344	nonbank; or 9
345	345	(II) the Board, if the foreign 10
346	346	payment stablecoin issuer is a banking 11
347	347	institution or subsidiary thereof. 12
348	348	(B) D
349	349	ETERMINATION.—With respect to a 13
350	350	foreign nation, the Secretary of the Treasury 14
351	351	shall determine, upon request of a foreign pay-15
352	352	ment stablecoin issuer, a foreign payment 16
353	353	stablecoin regulator, or on the Secretary’s own 17
354	354	initiative, and in consultation with the Federal 18
355	355	payment stablecoin regulators, whether the pay-19
356	356	ment stablecoin regulatory regime of such na-20
357	357	tion is comparable to the requirements under 21
358	358	this Act. 22
359	359	(C) P
360	360	UBLIC NOTICE.—The Secretary shall 23
361	361	make the list of nations for which a determina-24
362	362	tion has been made under subparagraph (B) 25
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365	365	•HR 2392 IH
366	366	available to the public, and keep such list cur-1
367	367	rent. 2
368	368	(D) R
369	369	ESCINDING DETERMINATIONS .— 3
370	370	(i) S
371	371	ECRETARIAL ACTION.—The Sec-4
372	372	retary may, in consultation with the pri-5
373	373	mary Federal payment stablecoin regu-6
374	374	lators, rescind a determination made under 7
375	375	subparagraph (B) with respect to a foreign 8
376	376	nation, if the Secretary determines that 9
377	377	the regulatory regime of such nation is no 10
378	378	longer comparable to the requirements 11
379	379	under this Act. 12
380	380	(ii) S
381	381	AFEHARBORS.—If the Secretary 13
382	382	rescinds a determination pursuant to 14
383	383	clause (i), a custodial intermediary shall 15
384	384	not be in violation of this subsection by 16
385	385	reason of the offer or sale of a payment 17
386	386	stablecoin issued by such nation’s foreign 18
387	387	payment stablecoin issuer until 90 days 19
388	388	after the determination is rescinded. 20
389	389	(3) P
390	390	ENALTY.—Any person who violates this 21
391	391	subsection shall be subject to a civil penalty of not 22
392	392	more than $100,000 for each day during which such 23
393	393	violation continues. 24
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397	397	(c) RULEMAKING.—Not later than 12 months after 1
398	398	the date of enactment of this Act, the Secretary shall issue 2
399	399	such rules as may be required to carry out this section. 3
400	400	(d) R
401	401	ULE OFCONSTRUCTION.—This section does not 4
402	402	apply to transactions in digital assets for an individual’s 5
403	403	own lawful purposes by means of a software or hardware 6
404	404	wallet that facilitates such individual’s own custody of dig-7
405	405	ital assets. 8
406	406	SEC. 4. REQUIREMENTS FOR ISSUING PAYMENT 9
407	407	STABLECOINS. 10
408	408	(a) S
409	409	TANDARDS FOR THE ISSUANCE OFPAYMENT 11
410	410	S
411	411	TABLECOINS.— 12
412	412	(1) I
413	413	N GENERAL.—Each permitted payment 13
414	414	stablecoin issuer shall— 14
415	415	(A) maintain reserves backing the issuer’s 15
416	416	outstanding payment stablecoins on an at least 16
417	417	1 to 1 basis, with reserves comprising— 17
418	418	(i) United States currency (including 18
419	419	Federal reserve notes) or money standing 19
420	420	to the credit of an account with a Federal 20
421	421	reserve bank; 21
422	422	(ii) funds held as demand deposits (or 22
423	423	other deposits that may be withdrawn 23
424	424	upon request at any time) at insured de-24
425	425	pository institutions (including foreign 25
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428	428	•HR 2392 IH
429	429	branches and agencies of insured deposi-1
430	430	tory institutions) or approved foreign de-2
431	431	pository institutions (as defined in para-3
432	432	graph (5)(v)) or share drafts (or other de-4
433	433	posits that may be withdrawn upon request 5
434	434	at any time) at insured credit unions, sub-6
435	435	ject to limitations established by the Cor-7
436	436	poration and the National Credit Union 8
437	437	Administration, respectively, to address 9
438	438	safety and soundness risks of such insured 10
439	439	depository institutions; 11
440	440	(iii) Treasury bills, notes, or bonds— 12
441	441	(I) with a remaining maturity of 13
442	442	93 days or less; or 14
443	443	(II) issued with a maturity of 93 15
444	444	days or less; 16
445	445	(iv) repurchase agreements, wherein 17
446	446	the permitted payment stablecoin issuer is 18
447	447	acting as a seller of securities, or reverse 19
448	448	repurchase agreements, wherein the per-20
449	449	mitted payment stablecoin issuer is acting 21
450	450	as a purchaser of securities, with an over-22
451	451	night maturity and that are backed by 23
452	452	Treasury bills with a maturity of 93 days 24
453	453	or less that are— 25
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456	456	•HR 2392 IH
457	457	(I) centrally cleared through a 1
458	458	clearing agency registered with the 2
459	459	Securities and Exchange Commission; 3
460	460	or 4
461	461	(II) bilateral, settling either 5
462	462	through delivery versus payment or 6
463	463	through a tri-party control account, 7
464	464	with a counterparty that the issuer 8
465	465	has determined to be adequately cred-9
466	466	it worthy even in the event of severe 10
467	467	market stress; or 11
468	468	(v) securities issued by an investment 12
469	469	company under section 8(a) of the Invest-13
470	470	ment Company Act of 1940 that operates 14
471	471	as a money market fund in compliance 15
472	472	with Rule 2a–7 under the Investment 16
473	473	Company Act of 1940 (or any successor 17
474	474	rule) and that are invested solely in the 18
475	475	underlying assets described in clauses (i) 19
476	476	through (iv) and (vi); 20
477	477	(B) publicly disclose the issuer’s redemp-21
478	478	tion policy; 22
479	479	(C) establish procedures for timely redemp-23
480	480	tion of the issuer’s outstanding payment 24
481	481	stablecoins; and 25
482	482	VerDate Sep 11 2014 01:41 Mar 28, 2025 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H2392.IH H2392
483	483	ssavage on LAPJG3WLY3PROD with BILLS 17
484	484	•HR 2392 IH
485	485	(D) publish a report on the monthly com-1
486	486	position of the issuer’s reserves on the website 2
487	487	of the issuer, containing— 3
488	488	(i) the total number of outstanding 4
489	489	payment stablecoins issued by the issuer; 5
490	490	and 6
491	491	(ii) the amount and composition of 7
492	492	the reserves described under subparagraph 8
493	493	(A). 9
494	494	(2) E
495	495	LIGIBILITY.—The requirements to main-10
496	496	tain reserves under paragraph (1)(A) may not be 11
497	497	construed as expanding or contracting eligibility to 12
498	498	qualify as a depository institution under section 13
499	499	19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 14
500	500	461(b)(1)(A)). 15
501	501	(3) P
502	502	ROHIBITION ON REHYPOTHECATION .—Re-16
503	503	serves described under paragraph (1)(A) may not be 17
504	504	pledged, rehypothecated, or reused, except for the 18
505	505	purpose of satisfying obligations associated with re-19
506	506	serves described under paragraph (1)(A)(iv) if the 20
507	507	permitted payment stablecoin issuer receives the 21
508	508	prior approval of the primary Federal payment 22
509	509	stablecoin regulator or the State payment stablecoin 23
510	510	regulator. 24
511	511	VerDate Sep 11 2014 01:41 Mar 28, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H2392.IH H2392
512	512	ssavage on LAPJG3WLY3PROD with BILLS 18
513	513	•HR 2392 IH
514	514	(4) MONTHLY CERTIFICATION ; EXAMINATION 1
515	515	OF REPORTS BY REGISTERED PUBLIC ACCOUNTING 2
516	516	FIRM.— 3
517	517	(A) I
518	518	N GENERAL.—A permitted payment 4
519	519	stablecoin issuer shall, each month, have the in-5
520	520	formation disclosed in the previous month-end 6
521	521	report required under paragraph (1)(D) exam-7
522	522	ined by an independent registered public ac-8
523	523	counting firm. 9
524	524	(B) C
525	525	ERTIFICATION.—Each month, the 10
526	526	Chief Executive Officer and Chief Financial Of-11
527	527	ficer of a permitted payment stablecoin issuer 12
528	528	shall submit to, as applicable, the primary Fed-13
529	529	eral payment stablecoin regulator or, in the 14
530	530	case of a State qualified payment stablecoin 15
531	531	issuer, the State payment stablecoin regulator, 16
532	532	a certification that, based on such officers’ 17
533	533	knowledge, the previous month-end report re-18
534	534	quired under paragraph (1)(D)— 19
535	535	(i) does not contain any untrue state-20
536	536	ment of material fact or omit to state a 21
537	537	material fact necessary in order to make 22
538	538	the statements made, in light of the cir-23
539	539	cumstances under which such statements 24
540	540	were made, not misleading; and 25
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542	542	ssavage on LAPJG3WLY3PROD with BILLS 19
543	543	•HR 2392 IH
544	544	(ii) fairly presented in all material re-1
545	545	spects the information required under 2
546	546	paragraph (1)(D) for the period presented 3
547	547	in such report. 4
548	548	(C) C
549	549	RIMINAL PENALTIES.—Whoever— 5
550	550	(i) submits a certification set forth in 6
551	551	subparagraph (B) knowing that the report 7
552	552	to which the certification relates does not 8
553	553	fairly present, in all material respects, the 9
554	554	information required to be contained in 10
555	555	such report shall be fined not more than 11
556	556	$1,000,000 or imprisoned not more than 12
557	557	10 years, or both; or 13
558	558	(ii) willfully submits a certification set 14
559	559	forth in subparagraph (B) knowing that 15
560	560	the report to which the certification relates 16
561	561	does not fairly present, in all material re-17
562	562	spects, the information required to be con-18
563	563	tained in such report shall be fined not 19
564	564	more than $5,000,000, or imprisoned not 20
565	565	more than 20 years, or both. 21
566	566	(5) C
567	567	APITAL, LIQUIDITY, RISK MANAGEMENT , 22
568	568	AND OTHER REQUIREMENTS .— 23
569	569	(A) I
570	570	N GENERAL.—The primary Federal 24
571	571	payment stablecoin regulators shall, jointly and 25
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573	573	ssavage on LAPJG3WLY3PROD with BILLS 20
574	574	•HR 2392 IH
575	575	in consultation with the State payment 1
576	576	stablecoin regulators, issue rules to establish— 2
577	577	(i) capital requirements applicable to 3
578	578	a permitted payment stablecoin issuer 4
579	579	that— 5
580	580	(I) are tailored to the business 6
581	581	model and risk profile of a permitted 7
582	582	payment stablecoin issuer; 8
583	583	(II) do not exceed requirements 9
584	584	which are sufficient to ensure the on-10
585	585	going operations of a permitted pay-11
586	586	ment stablecoin issuer; and 12
587	587	(III) if such regulators determine 13
588	588	that a capital buffer is necessary to 14
589	589	ensure the ongoing operations of a 15
590	590	permitted payment stablecoin issuer, 16
591	591	may include capital buffers that are 17
592	592	tailored to the business model and 18
593	593	risk profile of a permitted payment 19
594	594	stablecoin issuer; 20
595	595	(ii) requirements implementing liquid-21
596	596	ity standards applicable to reserves de-22
597	597	scribed in paragraph (1) for a permitted 23
598	598	payment stablecoin issuer, which may not 24
599	599	exceed an amount that is sufficient to en-25
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601	601	ssavage on LAPJG3WLY3PROD with BILLS 21
602	602	•HR 2392 IH
603	603	sure the financial integrity of a permitted 1
604	604	payment stablecoin issuer and the ability 2
605	605	of the issuer to meet the financial obliga-3
606	606	tions of the issuer, including redemptions; 4
607	607	(iii) reserve asset diversification and 5
608	608	interest rate risk management standards 6
609	609	applicable to a permitted payment 7
610	610	stablecoin issuer that— 8
611	611	(I) are tailored to the business 9
612	612	model and risk profile of a permitted 10
613	613	payment stablecoin issuer; and 11
614	614	(II) do not exceed standards 12
615	615	which are sufficient to ensure the on-13
616	616	going operations of a permitted pay-14
617	617	ment stablecoin issuer; and 15
618	618	(iv) appropriate operational, compli-16
619	619	ance, information technology, and cyberse-17
620	620	curity risk management standards that are 18
621	621	tailored to the business model and risk 19
622	622	profile of a permitted payment stablecoin 20
623	623	issuer; and 21
624	624	(v) requirements regarding the ap-22
625	625	proval of foreign depository institutions 23
626	626	that may hold demand deposits of a per-24
627	627	mitted payment stablecoin issuer. 25
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629	629	ssavage on LAPJG3WLY3PROD with BILLS 22
630	630	•HR 2392 IH
631	631	(B) RULE OF CONSTRUCTION .—Nothing in 1
632	632	this paragraph may be construed to limit— 2
633	633	(i) the authority of the primary Fed-3
634	634	eral payment stablecoin regulators, in pre-4
635	635	scribing standards under this paragraph, 5
636	636	to tailor or differentiate among permitted 6
637	637	payment stablecoin issuers on an individ-7
638	638	ualized basis or by category, taking into 8
639	639	consideration the capital structure, busi-9
640	640	ness model risk profile, complexity, finan-10
641	641	cial activities, size, and any other risk re-11
642	642	lated factors of permitted payment 12
643	643	stablecoin issuers that the primary Federal 13
644	644	payment stablecoin regulators determine 14
645	645	appropriate; or 15
646	646	(ii) the supervisory, regulatory, or en-16
647	647	forcement authority of a Federal banking 17
648	648	agency (as defined in section 3 of the Fed-18
649	649	eral Deposit Insurance Act (12 U.S.C. 19
650	650	1813)) or the National Credit Union Ad-20
651	651	ministration to further the ability of an in-21
652	652	stitution under the supervision of the Fed-22
653	653	eral banking agency or the National Credit 23
654	654	Union Administration to maintain safe and 24
655	655	sound operations or comply with this Act. 25
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657	657	ssavage on LAPJG3WLY3PROD with BILLS 23
658	658	•HR 2392 IH
659	659	(C) APPLICABILITY OF EXISTING CAPITAL 1
660	660	STANDARDS.— 2
661	661	(i) A
662	662	PPLICABILITY OF THE FINANCIAL 3
663	663	STABILITY ACT OF 2010.—Section 171 of 4
664	664	the Financial Stability Act of 2010 (12 5
665	665	U.S.C. 5371) shall not apply to require-6
666	666	ments issued under this paragraph. 7
667	667	(ii) R
668	668	ULES RELATING TO LEVERAGE 8
669	669	CAPITAL REQUIREMENTS OR RISK -BASED 9
670	670	CAPITAL REQUIREMENTS .—Where an in-10
671	671	sured depository institution or depository 11
672	672	institution holding company, as defined 12
673	673	under section 171(a)(3) of the Financial 13
674	674	Stability Act of 2010 (12 U.S.C. 14
675	675	5371(a)(3)), includes, on a consolidated 15
676	676	basis, a permitted payment stablecoin 16
677	677	issuer, any rule issued by an appropriate 17
678	678	Federal banking agency that imposes, on a 18
679	679	consolidated basis, a leverage capital re-19
680	680	quirement or risk-based capital require-20
681	681	ment on such insured depository institu-21
682	682	tion or depository institution holding com-22
683	683	pany, shall not require such insured depos-23
684	684	itory institution or depository institution 24
685	685	holding company to hold, with respect to 25
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687	687	ssavage on LAPJG3WLY3PROD with BILLS 24
688	688	•HR 2392 IH
689	689	the permitted payment stablecoin issuer 1
690	690	and its assets and operations, any amount 2
691	691	of regulatory capital in excess of the cap-3
692	692	ital that such permitted payment 4
693	693	stablecoin issuer must maintain under the 5
694	694	capital requirements promulgated pursuant 6
695	695	to paragraph (5)(A)(i). 7
696	696	(iii) R
697	697	ULEMAKING.—Not later than 8
698	698	the date the primary Federal payment 9
699	699	stablecoin regulators issue regulations to 10
700	700	carry out this section, each Federal bank-11
701	701	ing agency, as defined in section 3 of the 12
702	702	Federal Deposit Insurance Act (12 U.S.C. 13
703	703	1813), shall amend or otherwise modify 14
704	704	any regulation described in clause (ii) so 15
705	705	that it complies with such clause (ii). 16
706	706	(6) T
707	707	REATMENT UNDER THE BANK SECRECY 17
708	708	ACT.—A permitted payment stablecoin issuer shall 18
709	709	be treated as a financial institution for purposes of 19
710	710	the Bank Secrecy Act. 20
711	711	(7) L
712	712	IMITATION ON PAYMENT STABLECOIN AC -21
713	713	TIVITIES.—A permitted payment stablecoin issuer 22
714	714	may only— 23
715	715	(A) issue payment stablecoins; 24
716	716	(B) redeem payment stablecoins; 25
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718	718	ssavage on LAPJG3WLY3PROD with BILLS 25
719	719	•HR 2392 IH
720	720	(C) manage related reserves (including 1
721	721	purchasing, selling, and holding reserve assets); 2
722	722	(D) provide custodial or safekeeping serv-3
723	723	ices for payment stablecoins and private keys of 4
724	724	payment stablecoins; 5
725	725	(E) provide custodial or safekeeping serv-6
726	726	ices for reserves, consistent with this Act; 7
727	727	(F) undertake other functions that directly 8
728	728	support activities described in subparagraphs 9
729	729	(A) through (E); and 10
730	730	(G) undertake such non-payment 11
731	731	stablecoin activities that are allowed by the pri-12
732	732	mary Federal payment stablecoin regulator. 13
733	733	(8) P
734	734	ROHIBITION ON YIELD.—A permitted pay-14
735	735	ment stablecoin issuer may not pay interest or yield 15
736	736	to holders of its payment stablecoins. 16
737	737	(9) R
738	738	EGULATION OF FEDERAL QUALIFIED 17
739	739	NONBANK PAYMENT STABLECOIN ISSUERS BY THE 18
740	740	COMPTROLLER.—A Federal qualified nonbank pay-19
741	741	ment stablecoin issuer shall be regulated and super-20
742	742	vised exclusively by the Comptroller. 21
743	743	(b) S
744	744	TATE-LEVELREGULATORYREGIMES.— 22
745	745	(1) I
746	746	N GENERAL.—A State qualified payment 23
747	747	stablecoin issuer may only issue payment stablecoins 24
748	748	pursuant to the regulation of a State payment 25
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750	750	ssavage on LAPJG3WLY3PROD with BILLS 26
751	751	•HR 2392 IH
752	752	stablecoin regulator of a State with a regulatory re-1
753	753	gime for issuing payment stablecoins that is certified 2
754	754	under this subsection as meeting or exceeding the 3
755	755	standards and requirements described in subsection 4
756	756	(a). 5
757	757	(2) C
758	758	ERTIFICATION.— 6
759	759	(A) I
760	760	N GENERAL.—Beginning on the date 7
761	761	that is 1 year after the date of enactment of 8
762	762	this Act or 60 days after the rulemaking de-9
763	763	scribed in subsection (d) is completed, which-10
764	764	ever is earlier, a State payment stablecoin regu-11
765	765	lator may submit to the Secretary of the Treas-12
766	766	ury a certification that the regulatory regime of 13
767	767	the State for issuing payment stablecoins meets 14
768	768	or exceeds the standards and requirements de-15
769	769	scribed in subsection (a). 16
770	770	(B) V
771	771	ALIDITY OF CERTIFICATION .—A cer-17
772	772	tification under subparagraph (A) shall be valid 18
773	773	upon submission and remain valid unless the 19
774	774	Secretary of the Treasury rejects the certifi-20
775	775	cation under paragraph (6). 21
776	776	(3) F
777	777	ORM OF CERTIFICATION .—A certification 22
778	778	described under paragraph (2)— 23
779	779	(A) shall contain an attestation that the 24
780	780	regulatory regime of the State for issuing pay-25
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782	782	ssavage on LAPJG3WLY3PROD with BILLS 27
783	783	•HR 2392 IH
784	784	ment stablecoins meets or exceeds the stand-1
785	785	ards and requirements described in subsection 2
786	786	(a); and 3
787	787	(B) may include supporting information, 4
788	788	such as a copy of any State law or regulation 5
789	789	implementing such standards and requirements. 6
790	790	(4) R
791	791	EPORT AND ATTESTATION .— 7
792	792	(A) I
793	793	N GENERAL.—A State payment 8
794	794	stablecoin regulator with a valid certification 9
795	795	under this subsection that has made subsequent 10
796	796	material changes to its State regulatory regime 11
797	797	and wishes to maintain a valid certification 12
798	798	shall submit to the Secretary of the Treasury 13
799	799	an explanation of all such material changes. 14
800	800	(B) F
801	801	ORM OF MATERIAL CHANGES EXPLA -15
802	802	NATION.—With respect to a State payment 16
803	803	stablecoin regulator that submits an expla-17
804	804	nation of material changes to the State regu-18
805	805	latory regime under subparagraph (A), the pay-19
806	806	ment stablecoin regulator shall make such ex-20
807	807	planation in the same manner, and containing 21
808	808	the same attestation, as described under para-22
809	809	graph (3) for a certification. 23
810	810	(5) A
811	811	DVISORY OPINIONS ON PROPOSED LAWS 24
812	812	OR REGULATIONS.—Upon request of any State pay-25
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814	814	ssavage on LAPJG3WLY3PROD with BILLS 28
815	815	•HR 2392 IH
816	816	ment stablecoin regulator, the Secretary of the 1
817	817	Treasury shall— 2
818	818	(A) review any proposed law or regulation 3
819	819	of the State provided by the State payment 4
820	820	stablecoin regulator; and 5
821	821	(B) not later than 30 days after being pro-6
822	822	vided the proposed law or regulation, either— 7
823	823	(i) inform the State payment 8
824	824	stablecoin regulator that the proposed law 9
825	825	or regulation is consistent with a State 10
826	826	regulatory regime for issuing payment 11
827	827	stablecoins that meets or exceeds the 12
828	828	standards and requirements described in 13
829	829	subsection (a); or 14
830	830	(ii) provide the State payment 15
831	831	stablecoin regulator with a detailed expla-16
832	832	nation of why the proposed law or regula-17
833	833	tion is not consistent with a State regu-18
834	834	latory regime for issuing payment 19
835	835	stablecoins that meets or exceeds the 20
836	836	standards and requirements described in 21
837	837	subsection (a). 22
838	838	(6) R
839	839	EGIMES THAT ARE NOT SUBSTANTIALLY 23
840	840	SIMILAR.— 24
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842	842	ssavage on LAPJG3WLY3PROD with BILLS 29
843	843	•HR 2392 IH
844	844	(A) IN GENERAL.—The Secretary of the 1
845	845	Treasury may reject a certification under para-2
846	846	graph (3) or a certification with respect to 3
847	847	which a State payment stablecoin regulator has 4
848	848	submitted an explanation of material changes 5
849	849	under paragraph (4), if the Secretary, not later 6
850	850	than 30 days after the date on which the initial 7
851	851	certification or explanation of material changes 8
852	852	is submitted— 9
853	853	(i) determines that the State regu-10
854	854	latory regime does not meet or exceed the 11
855	855	standards and requirements described in 12
856	856	subsection (a); and 13
857	857	(ii) provides the State payment 14
858	858	stablecoin regulator with a written expla-15
859	859	nation for the rejection, describing the rea-16
860	860	soned basis for the rejection with sufficient 17
861	861	detail such that the State can bring the 18
862	862	State regulatory regime into compliance 19
863	863	based on the explanation. 20
864	864	(B) O
865	865	PPORTUNITY TO CURE.— 21
866	866	(i) I
867	867	N GENERAL.—With respect to a 22
868	868	rejection described under subparagraph 23
869	869	(A), the Secretary of the Treasury shall 24
870	870	provide the State payment stablecoin regu-25
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872	872	ssavage on LAPJG3WLY3PROD with BILLS 30
873	873	•HR 2392 IH
874	874	lator with not less than a 180-day period 1
875	875	from the date on which the State payment 2
876	876	stablecoin regulator is notified of such re-3
877	877	jection to— 4
878	878	(I) make such changes as may be 5
879	879	necessary to ensure the regulatory re-6
880	880	gime of the State for issuing payment 7
881	881	stablecoins meets or exceeds the 8
882	882	standards and requirements described 9
883	883	in subsection (a); and 10
884	884	(II) resubmit the certification or 11
885	885	explanation of material changes. 12
886	886	(ii) R
887	887	EJECTION.—If, after a State 13
888	888	payment stablecoin regulator makes 14
889	889	changes described under clause (i) during 15
890	890	the period described in clause (i), the Sec-16
891	891	retary of the Treasury determines that the 17
892	892	certification should be rejected, the Sec-18
893	893	retary of the Treasury shall, not later than 19
894	894	30 days after such determination, provide 20
895	895	the State payment stablecoin regulator 21
896	896	with a written explanation for the deter-22
897	897	mination, describing the reasoned basis for 23
898	898	the determination with sufficient detail 24
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900	900	ssavage on LAPJG3WLY3PROD with BILLS 31
901	901	•HR 2392 IH
902	902	such that the State can bring its regime 1
903	903	into compliance based on the explanation. 2
904	904	(C) A
905	905	PPEAL OF REJECTION.— 3
906	906	(i) I
907	907	N GENERAL.—A State payment 4
908	908	stablecoin regulator that has had a certifi-5
909	909	cation rejected under this paragraph may, 6
910	910	after the cure period described under sub-7
911	911	paragraph (B)(i), appeal such rejection to 8
912	912	the United States Court of Appeals for the 9
913	913	District of Columbia Circuit, which shall, 10
914	914	upon a determination that the regulatory 11
915	915	regime of the State for issuing payment 12
916	916	stablecoins meets or exceeds the standards 13
917	917	and requirements described in subsection 14
918	918	(a), reverse such rejection. 15
919	919	(ii) R
920	920	EVIEW BY THE SUPREME 16
921	921	COURT.—The judgment and decree of the 17
922	922	Court of Appeals shall be final, except that 18
923	923	the same shall be subject to review by the 19
924	924	Supreme Court upon certiorari, as pro-20
925	925	vided in section 1254 of title 28. 21
926	926	(D) R
927	927	IGHT TO RESUBMIT .—A State pay-22
928	928	ment stablecoin regulator that has had a certifi-23
929	929	cation rejected under this paragraph may re-24
930	930	submit a new certification under paragraph (2). 25
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933	933	•HR 2392 IH
934	934	(7) APPROPRIATE EXEMPTIVE RELIEF .—The 1
935	935	Secretary of the Treasury shall issue such rules and 2
936	936	orders as are necessary to provide appropriate ex-3
937	937	emptive relief and safe harbors for State qualified 4
938	938	payment stablecoin issuers to continue operations 5
939	939	during such periods in which any rules promulgated 6
940	940	pursuant to subsection (a) materially affect a pre-7
941	941	viously certified State regulatory regime’s ability to 8
942	942	meet or exceed the standards and requirements de-9
943	943	scribed in subsection (a). 10
944	944	(c) N
945	945	OTINSURED BY THE FEDERALGOVERNMENT; 11
946	946	M
947	947	ISREPRESENTATION OF INSUREDSTATUS.— 12
948	948	(1) I
949	949	N GENERAL.—Payment stablecoins are not 13
950	950	backed by the full faith and credit of the United 14
951	951	States, guaranteed by the United States Govern-15
952	952	ment, subject to deposit insurance by the Corpora-16
953	953	tion, or subject to share insurance by the National 17
954	954	Credit Union Administration. 18
955	955	(2) M
956	956	ISREPRESENTATION OF INSURED STA -19
957	957	TUS.—It shall be unlawful to represent that a pay-20
958	958	ment stablecoin is backed by the full faith and credit 21
959	959	of the United States, guaranteed by the United 22
960	960	States Government, or subject to Federal deposit in-23
961	961	surance or Federal share insurance. 24
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964	964	•HR 2392 IH
965	965	(3) D ISCLOSURE.—Permitted payment 1
966	966	stablecoin issuers shall clearly and prominently dis-2
967	967	close on their website that payment stablecoins 3
968	968	issued by such permitted payment stablecoin issuer 4
969	969	are not guaranteed by the United States Govern-5
970	970	ment, covered by deposit insurance by the Federal 6
971	971	Deposit Insurance Corporation, or by share insur-7
972	972	ance of the National Credit Union Administration. 8
973	973	(4) P
974	974	ENALTIES.—Any person who violates this 9
975	975	subsection may be prosecuted to the fullest extent of 10
976	976	the law, including, as applicable, under— 11
977	977	(A) section 18(a)(4) of the Federal Deposit 12
978	978	Insurance Act (relating to the prohibition on 13
979	979	false advertising in connection with deposit in-14
980	980	surance, the misuse of FDIC names, and mis-15
981	981	representations of insured status); 16
982	982	(B) section 709 of title 18, United States 17
983	983	Code (relating to false advertising or misuse of 18
984	984	names to indicate a Federal agency); 19
985	985	(C) criminal penalties under title 18, 20
986	986	United States Code, related to fraud; and 21
987	987	(D) other remedies available under the law. 22
988	988	(d) O
989	989	FFICERS ANDDIRECTORSCONVICTED OFCER-23
990	990	TAINFELONIES.—No individual who has been convicted 24
991	991	of a felony offense involving insider trading, embezzle-25
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994	994	•HR 2392 IH
995	995	ment, cybercrime, money laundering, financing of ter-1
996	996	rorism, or financial fraud may serve as— 2
997	997	(1) an officer of a payment stablecoin issuer; or 3
998	998	(2) a director of a payment stablecoin issuer. 4
999	999	(e) R
1000	1000	ULEMAKING.— 5
1001	1001	(1) I
1002	1002	N GENERAL.—The primary Federal pay-6
1003	1003	ment stablecoin regulators may issue such orders 7
1004	1004	and regulations as may be necessary to administer 8
1005	1005	and carry out the requirements of this section, in-9
1006	1006	cluding to establish conditions, and to prevent eva-10
1007	1007	sions thereof. 11
1008	1008	(2) J
1009	1009	OINT ISSUANCE OF REGULATION .—All reg-12
1010	1010	ulations issued to carry out this section by the pri-13
1011	1011	mary Federal payment stablecoin regulators shall be 14
1012	1012	issued jointly, after consultation with State payment 15
1013	1013	stablecoin regulators. 16
1014	1014	(3) R
1015	1015	ULEMAKING DEADLINE .—Not later than 17
1016	1016	the end of the 180-day period beginning on the date 18
1017	1017	of enactment of this Act, the Federal payment 19
1018	1018	stablecoin regulators shall issue regulations to carry 20
1019	1019	out this section. 21
1020	1020	SEC. 5. APPROVAL OF SUBSIDIARIES OF INSURED DEPOSI-22
1021	1021	TORY INSTITUTIONS AND SUBSIDIARIES OF 23
1022	1022	NONBANK ENTITIES. 24
1023	1023	(a) I
1024	1024	NGENERAL.— 25
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1027	1027	•HR 2392 IH
1028	1028	(1) APPLICATION.— 1
1029	1029	(A) I
1030	1030	N GENERAL.—The primary Federal 2
1031	1031	payment stablecoin regulator shall receive, re-3
1032	1032	view, and consider for approval applications 4
1033	1033	from any insured depository institution that 5
1034	1034	seeks to issue payment stablecoins through a 6
1035	1035	subsidiary and any nonbank entity that seeks to 7
1036	1036	issue payment stablecoins through a subsidiary. 8
1037	1037	(B) S
1038	1038	HARING OF INFORMATION .—With re-9
1039	1039	spect to applications submitted by State-char-10
1040	1040	tered insured depository institutions, the pri-11
1041	1041	mary Federal payment stablecoin regulator 12
1042	1042	shall share such applications with the relevant 13
1043	1043	State bank or State credit union supervisor. 14
1044	1044	(C) C
1045	1045	OMPLETION OF APPLICATION .— 15
1046	1046	(i) I
1047	1047	N GENERAL.—The primary Fed-16
1048	1048	eral payment stablecoin regulator shall 17
1049	1049	consider an application complete if such 18
1050	1050	application contains sufficient information 19
1051	1051	for the primary Federal payment 20
1052	1052	stablecoin regulator to render a decision on 21
1053	1053	whether the application meets the require-22
1054	1054	ments set forth in section 4. 23
1055	1055	(ii) M
1056	1056	ATERIAL CHANGE IN CIR -24
1057	1057	CUMSTANCES.—An application described 25
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1060	1060	•HR 2392 IH
1061	1061	under clause (i) that is considered com-1
1062	1062	plete shall remain complete unless the pri-2
1063	1063	mary Federal payment stablecoin regulator 3
1064	1064	determines that a material change in cir-4
1065	1065	cumstances requires otherwise. 5
1066	1066	(2) E
1067	1067	VALUATION OF APPLICATIONS .—A com-6
1068	1068	plete application received under paragraph (1) shall 7
1069	1069	be evaluated by the primary Federal payment 8
1070	1070	stablecoin regulator based on the ability of the sub-9
1071	1071	sidiary of the applicant to meet the requirements set 10
1072	1072	forth in section 4. 11
1073	1073	(3) T
1074	1074	IMING FOR DECISION; GROUNDS FOR DE -12
1075	1075	NIAL.— 13
1076	1076	(A) T
1077	1077	IMING.—The primary Federal pay-14
1078	1078	ment stablecoin regulator shall— 15
1079	1079	(i) not later than 30 days after receiv-16
1080	1080	ing the application— 17
1081	1081	(I) inform the applicant whether 18
1082	1082	the applicant has submitted a com-19
1083	1083	plete application; and 20
1084	1084	(II) if the application is not com-21
1085	1085	plete, inform the applicant of the ad-22
1086	1086	ditional information the applicant 23
1087	1087	must provide in order for the applica-24
1088	1088	tion to be considered complete; and 25
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1091	1091	•HR 2392 IH
1092	1092	(ii) not later than 120 days after in-1
1093	1093	forming the applicant that the application 2
1094	1094	is complete, render a decision on an appli-3
1095	1095	cation. 4
1096	1096	(B) D
1097	1097	ENIAL OF APPLICATION.— 5
1098	1098	(i) G
1099	1099	ROUNDS FOR DENIAL.— 6
1100	1100	(I) I
1101	1101	N GENERAL.—The primary 7
1102	1102	Federal payment stablecoin regulator 8
1103	1103	may only deny a complete application 9
1104	1104	received under paragraph (1) if the 10
1105	1105	regulator determines that the activi-11
1106	1106	ties of the applicant would be unsafe 12
1107	1107	or unsound based on the ability of the 13
1108	1108	subsidiary of the applicant to meet 14
1109	1109	the requirements set forth in section 15
1110	1110	4. 16
1111	1111	(II) T
1112	1112	REATMENT OF CERTAIN 17
1113	1113	ISSUANCES.—The issuance of a pay-18
1114	1114	ment stablecoin on an open, public, 19
1115	1115	and decentralized network shall not be 20
1116	1116	a valid ground for denial of an appli-21
1117	1117	cation received under paragraph (1). 22
1118	1118	(ii) E
1119	1119	XPLANATION REQUIRED .—If the 23
1120	1120	primary Federal payment stablecoin regu-24
1121	1121	lator denies a complete application received 25
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1124	1124	•HR 2392 IH
1125	1125	under paragraph (1), the regulator shall, 1
1126	1126	not later than 30 days after the date of 2
1127	1127	such denial, provide the applicant with— 3
1128	1128	(I) written notice explaining the 4
1129	1129	denial with specificity, including all 5
1130	1130	findings made by the regulator with 6
1131	1131	respect to all identified material short-7
1132	1132	comings in the application; and 8
1133	1133	(II) actionable recommendations 9
1134	1134	on how the applicant could address 10
1135	1135	the identified material shortcomings. 11
1136	1136	(iii) O
1137	1137	PPORTUNITY FOR HEARING ; 12
1138	1138	FINAL DETERMINATION .— 13
1139	1139	(I) I
1140	1140	N GENERAL.—Not later than 14
1141	1141	30 days after the date of receipt of 15
1142	1142	any notice of the denial of an applica-16
1143	1143	tion under this subsection, the appli-17
1144	1144	cant may request, in writing, an op-18
1145	1145	portunity for a written or oral hearing 19
1146	1146	before the primary Federal payment 20
1147	1147	stablecoin regulator to appeal the de-21
1148	1148	nial. 22
1149	1149	(II) T
1150	1150	IMING.—Upon receipt of a 23
1151	1151	timely request, the primary Federal 24
1152	1152	payment stablecoin regulator shall no-25
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1154	1154	ssavage on LAPJG3WLY3PROD with BILLS 39
1155	1155	•HR 2392 IH
1156	1156	tice a time (not later than 30 days 1
1157	1157	after the date of receipt of the re-2
1158	1158	quest) and place at which the appli-3
1159	1159	cant may appear, personally or 4
1160	1160	through counsel, to appeal the denial, 5
1161	1161	to submit written materials, or to pro-6
1162	1162	vide oral testimony and oral argu-7
1163	1163	ment. 8
1164	1164	(III) F
1165	1165	INAL DETERMINATION .— 9
1166	1166	Not later than 60 days after the date 10
1167	1167	of a hearing under this clause, the 11
1168	1168	primary Federal payment stablecoin 12
1169	1169	regulator shall notify the applicant of 13
1170	1170	the final determination of the primary 14
1171	1171	Federal payment stablecoin regulator 15
1172	1172	with respect to the appeal, which shall 16
1173	1173	contain a statement of the basis for 17
1174	1174	such determination, with specific find-18
1175	1175	ings. 19
1176	1176	(IV) N
1177	1177	OTICE IF NO HEARING.—If 20
1178	1178	an applicant does not make a timely 21
1179	1179	request for a hearing under this 22
1180	1180	clause, the primary Federal payment 23
1181	1181	stablecoin regulator shall notify the 24
1182	1182	applicant, not later than 10 days after 25
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1185	1185	•HR 2392 IH
1186	1186	the date by which the applicant may 1
1187	1187	request a hearing under this clause, in 2
1188	1188	writing, that the denial of the applica-3
1189	1189	tion is a final determination of the 4
1190	1190	primary Federal payment stablecoin 5
1191	1191	regulator. 6
1192	1192	(C) F
1193	1193	AILURE TO RENDER A DECISION .—If 7
1194	1194	the primary Federal payment stablecoin regu-8
1195	1195	lator fails to render a decision on a complete 9
1196	1196	application within the time period specified in 10
1197	1197	subparagraph (A), the application shall be 11
1198	1198	deemed approved. 12
1199	1199	(D) R
1200	1200	IGHT TO REAPPLY .—The denial of 13
1201	1201	an application under this subsection shall not 14
1202	1202	prohibit the applicant from filing a subsequent 15
1203	1203	application. 16
1204	1204	(4) R
1205	1205	EPORT ON PENDING APPLICATIONS .— 17
1206	1206	Each of the primary Federal payment stablecoin 18
1207	1207	regulators shall annually report to Congress on— 19
1208	1208	(A) the number of calendar days each ap-20
1209	1209	plicant waited for either an approval or denial 21
1210	1210	of an application under this subsection; 22
1211	1211	(B) the number of calendar days each ap-23
1212	1212	plicant with an outstanding application has 24
1213	1213	waited for a decision; and 25
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1216	1216	•HR 2392 IH
1217	1217	(C) the number of applications that have 1
1218	1218	been pending for 6 months or longer since the 2
1219	1219	date of the initial application filed under para-3
1220	1220	graph (1) where the applicant has been in-4
1221	1221	formed that the application remains incomplete, 5
1222	1222	including providing documentation on the sta-6
1223	1223	tus of the application and why the application 7
1224	1224	has not yet been approved. 8
1225	1225	(5) R
1226	1226	ULEMAKING.— 9
1227	1227	(A) I
1228	1228	N GENERAL.—Not later than 180 10
1229	1229	days after the date of enactment of this Act, 11
1230	1230	the primary Federal payment stablecoin regu-12
1231	1231	lators shall, jointly, issue rules to carry out this 13
1232	1232	section, which may only relate to the application 14
1233	1233	process under this subsection and may not im-15
1234	1234	plement the requirements set forth in section 4. 16
1235	1235	(B) T
1236	1236	AILORING OF RULES .—The joint 17
1237	1237	rulemaking required under subparagraph (A) 18
1238	1238	shall be tailored so as to minimize any incre-19
1239	1239	mental burden placed on well capitalized and 20
1240	1240	highly-rated insured depository institutions. 21
1241	1241	(b) E
1242	1242	FFECTIVEDATE.— 22
1243	1243	(1) I
1244	1244	N GENERAL.—This section shall take effect 23
1245	1245	on the earlier of— 24
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1248	1248	•HR 2392 IH
1249	1249	(A) 12 months after the date of enactment 1
1250	1250	of this Act; or 2
1251	1251	(B) the date that is 120 days after the 3
1252	1252	date on which the primary Federal payment 4
1253	1253	stablecoin regulators issue final regulations im-5
1254	1254	plementing this section. 6
1255	1255	(2) N
1256	1256	OTICE TO CONGRESS .—Each of the pri-7
1257	1257	mary Federal payment stablecoin regulators shall 8
1258	1258	notify Congress upon receiving their first applica-9
1259	1259	tion. 10
1260	1260	(c) E
1261	1261	FFECT ON STATELAW FOR PAYMENT 11
1262	1262	S
1263	1263	TABLECOINISSUERSAPPROVED BYFEDERALPAYMENT 12
1264	1264	S
1265	1265	TABLECOINREGULATORSUNDERTHISSECTION.—The 13
1266	1266	provisions of this section preempt any conflicting State 14
1267	1267	law and supersede any State licensing requirement for any 15
1268	1268	nonbank entity or subsidiary of an insured depository in-16
1269	1269	stitution or credit union that is approved under this sec-17
1270	1270	tion to be a permitted payment stablecoin issuer. 18
1271	1271	SEC. 6. SUPERVISION AND ENFORCEMENT WITH RESPECT 19
1272	1272	TO SUBSIDIARIES OF INSURED DEPOSITORY 20
1273	1273	INSTITUTIONS AND FEDERAL QUALIFIED 21
1274	1274	NONBANK PAYMENT STABLECOIN ISSUERS. 22
1275	1275	(a) S
1276	1276	UPERVISION.— 23
1277	1277	(1) S
1278	1278	UBSIDIARY OF AN INSURED DEPOSITORY 24
1279	1279	INSTITUTION.— 25
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1282	1282	•HR 2392 IH
1283	1283	(A) IN GENERAL.—Each permitted pay-1
1284	1284	ment stablecoin issuer that is a subsidiary of an 2
1285	1285	insured depository institution shall be subject to 3
1286	1286	supervision by the primary Federal payment 4
1287	1287	stablecoin regulator in the same manner as 5
1288	1288	such insured depository institution. 6
1289	1289	(B) G
1290	1290	RAMM-LEACH-BLILEY ACT.—For 7
1291	1291	purposes of title V of the Gramm-Leach-Bliley 8
1292	1292	Act (15 U.S.C. 6801 et seq.) each permitted 9
1293	1293	payment stablecoin issuer that is a subsidiary 10
1294	1294	of an insured depository institution shall be 11
1295	1295	deemed a financial institution. 12
1296	1296	(2) F
1297	1297	EDERAL QUALIFIED NONBANK PAYMENT 13
1298	1298	STABLECOIN ISSUER.— 14
1299	1299	(A) S
1300	1300	UBMISSION OF REPORTS .—Each Fed-15
1301	1301	eral qualified nonbank payment stablecoin 16
1302	1302	issuer shall, upon request, submit reports to the 17
1303	1303	Comptroller as to— 18
1304	1304	(i) the financial condition of the Fed-19
1305	1305	eral qualified nonbank payment stablecoin 20
1306	1306	issuer; 21
1307	1307	(ii) the systems of the Federal quali-22
1308	1308	fied nonbank payment stablecoin issuer for 23
1309	1309	monitoring and controlling financial and 24
1310	1310	operating risks; and 25
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1313	1313	•HR 2392 IH
1314	1314	(iii) compliance with this Act and reg-1
1315	1315	ulations issued pursuant to this Act by the 2
1316	1316	Federal qualified nonbank payment 3
1317	1317	stablecoin issuer. 4
1318	1318	(B) E
1319	1319	XAMINATIONS.—The Comptroller 5
1320	1320	may examine a Federal qualified nonbank pay-6
1321	1321	ment stablecoin issuer in order to inform the 7
1322	1322	Comptroller of— 8
1323	1323	(i) the nature of the operations and fi-9
1324	1324	nancial condition of the Federal qualified 10
1325	1325	nonbank payment stablecoin issuer; 11
1326	1326	(ii) the financial, operational, and 12
1327	1327	other risks within the Federal qualified 13
1328	1328	nonbank payment stablecoin issuer that 14
1329	1329	may pose a threat to— 15
1330	1330	(I) the safety and soundness of 16
1331	1331	the Federal qualified nonbank pay-17
1332	1332	ment stablecoin issuer; or 18
1333	1333	(II) the stability of the financial 19
1334	1334	system of the United States; 20
1335	1335	(iii) the systems of the Federal quali-21
1336	1336	fied nonbank payment stablecoin issuer for 22
1337	1337	monitoring and controlling the risks de-23
1338	1338	scribed in clause (ii); 24
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1341	1341	•HR 2392 IH
1342	1342	(iv) the compliance of the Federal 1
1343	1343	qualified nonbank payment stablecoin 2
1344	1344	issuer with this Act and regulations issued 3
1345	1345	pursuant to this Act; and 4
1346	1346	(v) the compliance of the Federal 5
1347	1347	qualified nonbank payment stablecoin 6
1348	1348	issuer with the requirements of the Bank 7
1349	1349	Secrecy Act and laws authorizing the im-8
1350	1350	position of sanctions and implemented by 9
1351	1351	the Secretary of the Treasury. 10
1352	1352	(C) R
1353	1353	EQUIREMENTS FOR EFFICIENCY .—In 11
1354	1354	supervising and examining a Federal qualified 12
1355	1355	nonbank payment stablecoin issuer, the Comp-13
1356	1356	troller shall, to the fullest extent possible, use 14
1357	1357	existing reports and other supervisory informa-15
1358	1358	tion. 16
1359	1359	(D) A
1360	1360	VOIDANCE OF DUPLICATION .—The 17
1361	1361	Comptroller shall, to the fullest extent possible, 18
1362	1362	avoid duplication of examination activities, re-19
1363	1363	porting requirements, and requests for informa-20
1364	1364	tion in carrying out this Act with respect to a 21
1365	1365	Federal qualified nonbank payment stablecoin 22
1366	1366	issuer. 23
1367	1367	(E) G
1368	1368	RAMM-LEACH-BLILEY ACT.—For 24
1369	1369	purposes of title V of the Gramm-Leach-Bliley 25
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1372	1372	•HR 2392 IH
1373	1373	Act (15 U.S.C. 6801 et seq.) each Federal 1
1374	1374	qualified nonbank payment stablecoin issuer 2
1375	1375	shall be deemed a financial institution. 3
1376	1376	(b) E
1377	1377	NFORCEMENT.— 4
1378	1378	(1) S
1379	1379	USPENSION OR REVOCATION OF REGISTRA -5
1380	1380	TION.—The primary Federal payment stablecoin 6
1381	1381	regulator may prohibit a permitted payment 7
1382	1382	stablecoin issuer from issuing payment stablecoins, if 8
1383	1383	the primary Federal payment stablecoin regulator 9
1384	1384	determines that such permitted payment stablecoin 10
1385	1385	issuer, or an institution-affiliated party of the per-11
1386	1386	mitted payment stablecoin issuer, is— 12
1387	1387	(A) materially violating or has materially 13
1388	1388	violated this Act or any regulation or order 14
1389	1389	issued under this Act, including the issuer’s ob-15
1390	1390	ligations under the section 4(a)(6); or 16
1391	1391	(B) materially violating or has materially 17
1392	1392	violated any condition imposed in writing by the 18
1393	1393	primary Federal payment stablecoin regulator 19
1394	1394	in connection with a written agreement entered 20
1395	1395	into between the permitted payment stablecoin 21
1396	1396	issuer and the primary Federal payment 22
1397	1397	stablecoin regulator. 23
1398	1398	(2) C
1399	1399	EASE-AND-DESIST PROCEEDINGS .—If the 24
1400	1400	primary Federal payment stablecoin regulator has 25
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1403	1403	•HR 2392 IH
1404	1404	reasonable cause to believe that a permitted payment 1
1405	1405	stablecoin issuer or any institution-affiliated party of 2
1406	1406	a permitted payment stablecoin issuer is violating, 3
1407	1407	has violated, or is attempting to violate this Act, any 4
1408	1408	regulation or order issued under this Act, or any 5
1409	1409	written agreement entered into with the primary 6
1410	1410	Federal payment stablecoin regulator or condition 7
1411	1411	imposed in writing by the primary Federal payment 8
1412	1412	stablecoin regulator in connection with any applica-9
1413	1413	tion or other request, the primary Federal payment 10
1414	1414	stablecoin regulator may order the permitted pay-11
1415	1415	ment stablecoin issuer or institution-affiliated party 12
1416	1416	of the permitted payment stablecoin issuer to— 13
1417	1417	(A) cease and desist from such violation or 14
1418	1418	practice; or 15
1419	1419	(B) take affirmative action to correct the 16
1420	1420	conditions resulting from any such violation or 17
1421	1421	practice. 18
1422	1422	(3) R
1423	1423	EMOVAL AND PROHIBITION AUTHORITY .— 19
1424	1424	The primary Federal payment stablecoin regulator 20
1425	1425	may remove an institution-affiliated party of a per-21
1426	1426	mitted payment stablecoin issuer from their position 22
1427	1427	or office or prohibit further participation in the af-23
1428	1428	fairs of the permitted payment stablecoin issuer or 24
1429	1429	all permitted payment stablecoin issuers by such in-25
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1431	1431	ssavage on LAPJG3WLY3PROD with BILLS 48
1432	1432	•HR 2392 IH
1433	1433	stitution-affiliated party, if the primary Federal pay-1
1434	1434	ment stablecoin regulator determines that— 2
1435	1435	(A) the institution-affiliated party has, di-3
1436	1436	rectly or indirectly, committed a violation or at-4
1437	1437	tempted violation of this Act or any regulation 5
1438	1438	or order issued under this Act; or 6
1439	1439	(B) the institution-affiliated party has 7
1440	1440	committed a violation of any provision of sub-8
1441	1441	chapter II of chapter 53 of title 31, United 9
1442	1442	States Code. 10
1443	1443	(4) P
1444	1444	ROCEDURES.— 11
1445	1445	(A) I
1446	1446	N GENERAL.—If the primary Federal 12
1447	1447	payment stablecoin regulator identifies a viola-13
1448	1448	tion or attempted violation of this Act or makes 14
1449	1449	a determination under paragraph (1), (2), or 15
1450	1450	(3), the primary Federal payment stablecoin 16
1451	1451	regulator shall comply with the procedures set 17
1452	1452	forth, as applicable, in— 18
1453	1453	(i) subsections (b) and (e) of sections 19
1454	1454	8 of the Federal Deposit Insurance Act 20
1455	1455	(12 U.S.C. 1818); or 21
1456	1456	(ii) subsections (e) and (g) of section 22
1457	1457	206 of the Federal Credit Union Act (12 23
1458	1458	U.S.C. 1786). 24
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1461	1461	•HR 2392 IH
1462	1462	(B) JUDICIAL REVIEW.—A person ag-1
1463	1463	grieved by a final action under this subsection 2
1464	1464	may obtain judicial review of such action exclu-3
1465	1465	sively as provided, as applicable, in— 4
1466	1466	(i) section 8(h) of the Federal Deposit 5
1467	1467	Insurance Act (12 U.S.C. 1818(h)); or 6
1468	1468	(ii) section 206(j) of the Federal 7
1469	1469	Credit Union Act (12 U.S.C. 1786(j)). 8
1470	1470	(C) I
1471	1471	NJUNCTION.—The primary Federal 9
1472	1472	payment stablecoin regulator may, in the dis-10
1473	1473	cretion of the regulator, follow the procedures 11
1474	1474	for judicial enforcement of any effective and 12
1475	1475	outstanding notice or order issued under this 13
1476	1476	subsection provided, as applicable, in— 14
1477	1477	(i) section 8(i)(1) of the Federal De-15
1478	1478	posit Insurance Act (12 U.S.C. 16
1479	1479	1818(i)(1)); or 17
1480	1480	(ii) section 206(k)(1) of the Federal 18
1481	1481	Credit Union Act (12 U.S.C. 1786(k)(1)). 19
1482	1482	(D) T
1483	1483	EMPORARY CEASE-AND-DESIST PRO-20
1484	1484	CEEDINGS.—If the primary Federal payment 21
1485	1485	stablecoin regulator determines that a violation 22
1486	1486	or attempted violation of this Act or an action 23
1487	1487	with respect to which a determination was made 24
1488	1488	under paragraph (1), (2), or (3), or the con-25
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1490	1490	ssavage on LAPJG3WLY3PROD with BILLS 50
1491	1491	•HR 2392 IH
1492	1492	tinuation thereof, is likely to cause insolvency or 1
1493	1493	significant dissipation of assets or earnings of a 2
1494	1494	permitted payment stablecoin issuer, or is likely 3
1495	1495	to weaken the condition of the permitted pay-4
1496	1496	ment stablecoin issuer or otherwise prejudice 5
1497	1497	the interests of the customers of the permitted 6
1498	1498	payment stablecoin issuer prior to the comple-7
1499	1499	tion of the proceedings conducted under this 8
1500	1500	paragraph, the primary Federal payment 9
1501	1501	stablecoin regulator may follow the procedures 10
1502	1502	provided, as applicable, in— 11
1503	1503	(i) section 8(c) of the Federal Deposit 12
1504	1504	Insurance Act (12 U.S.C. 1818(c)) to issue 13
1505	1505	a temporary cease-and-desist order; or 14
1506	1506	(ii) section 206(f) of the Federal 15
1507	1507	Credit Union Act (12 U.S.C. 1786(f)) to 16
1508	1508	issue a temporary cease-and-desist order. 17
1509	1509	(5) C
1510	1510	IVIL MONEY PENALTIES.— 18
1511	1511	(A) F
1512	1512	AILURE TO BE APPROVED .—Any per-19
1513	1513	son who issues a payment stablecoin and who is 20
1514	1514	not a permitted payment stablecoin issuer, and 21
1515	1515	any institution-affiliated party of such a person 22
1516	1516	who knowingly participates in issuing such a 23
1517	1517	payment stablecoin, shall be liable for a civil 24
1518	1518	penalty of not more than $100,000 for each day 25
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1521	1521	•HR 2392 IH
1522	1522	during which such payment stablecoins are out-1
1523	1523	standing. 2
1524	1524	(B) F
1525	1525	IRST TIER.—Except as provided in 3
1526	1526	subparagraph (A), a permitted payment 4
1527	1527	stablecoin issuer or institution-affiliated party 5
1528	1528	of such permitted payment stablecoin issuer 6
1529	1529	that materially violates this Act or any regula-7
1530	1530	tion or order issued under this Act, or that ma-8
1531	1531	terially violates any condition imposed in writ-9
1532	1532	ing by the primary Federal payment stablecoin 10
1533	1533	regulator in connection with a written agree-11
1534	1534	ment entered into between the permitted pay-12
1535	1535	ment stablecoin issuer and the primary Federal 13
1536	1536	payment stablecoin regulator, shall be liable for 14
1537	1537	a civil penalty of up to $100,000 for each day 15
1538	1538	during which the violation continues. 16
1539	1539	(C) S
1540	1540	ECOND TIER.—Except as provided in 17
1541	1541	subparagraph (A), and in addition to the pen-18
1542	1542	alties described under subparagraph (B), a per-19
1543	1543	mitted payment stablecoin issuer or institution- 20
1544	1544	affiliated party of such permitted payment 21
1545	1545	stablecoin issuer who knowingly participates in 22
1546	1546	a violation of any provision of this Act, or any 23
1547	1547	regulation or order issued thereunder, is liable 24
1548	1548	for a civil penalty of up to an additional 25
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1550	1550	ssavage on LAPJG3WLY3PROD with BILLS 52
1551	1551	•HR 2392 IH
1552	1552	$100,000 for each day during which the viola-1
1553	1553	tion continues. 2
1554	1554	(D) P
1555	1555	ROCEDURE.—Any penalty imposed 3
1556	1556	under this paragraph may be assessed and col-4
1557	1557	lected by the primary Federal payment 5
1558	1558	stablecoin regulator pursuant to the procedures 6
1559	1559	set forth, as applicable, in— 7
1560	1560	(i) section 8(i)(2) of the Federal De-8
1561	1561	posit Insurance Act (12 U.S.C. 9
1562	1562	1818(i)(2)); or 10
1563	1563	(ii) section 206(k)(2) of the Federal 11
1564	1564	Credit Union Act (12 U.S.C. 1786(k)(2)). 12
1565	1565	(E) N
1566	1566	OTICE AND ORDERS AFTER SEPARA -13
1567	1567	TION FROM SERVICE.—The resignation, termi-14
1568	1568	nation of employment or participation, or sepa-15
1569	1569	ration of an institution-affiliated party (includ-16
1570	1570	ing a separation caused by the closing of a per-17
1571	1571	mitted payment stablecoin issuer) shall not af-18
1572	1572	fect the jurisdiction and authority of the pri-19
1573	1573	mary Federal payment stablecoin regulator to 20
1574	1574	issue any notice or order and proceed under 21
1575	1575	this subsection against any such party, if such 22
1576	1576	notice or order is served before the end of the 23
1577	1577	6-year period beginning on the date such party 24
1578	1578	ceased to be an institution-affiliated party with 25
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1580	1580	ssavage on LAPJG3WLY3PROD with BILLS 53
1581	1581	•HR 2392 IH
1582	1582	respect to such permitted payment stablecoin 1
1583	1583	issuer. 2
1584	1584	(6) N
1585	1585	ON-APPLICABILITY TO A STATE QUALI -3
1586	1586	FIED PAYMENT STABLECOIN ISSUER .—This sub-4
1587	1587	section shall not apply to a State qualified payment 5
1588	1588	stablecoin issuer, except as described in section 7(e). 6
1589	1589	(c) S
1590	1590	HARING OFINFORMATION.—A State payment 7
1591	1591	stablecoin regulator and the primary Federal payment 8
1592	1592	stablecoin regulator shall share information on an ongoing 9
1593	1593	basis with respect to a permitted payment stablecoin 10
1594	1594	issuer that is a subsidiary of a State-chartered insured de-11
1595	1595	pository institution. 12
1596	1596	SEC. 7. STATE QUALIFIED PAYMENT STABLECOIN ISSUERS. 13
1597	1597	(a) I
1598	1598	NGENERAL.—With respect to a State, a State 14
1599	1599	payment stablecoin regulator shall have supervisory, ex-15
1600	1600	amination, and enforcement authority over a State quali-16
1601	1601	fied payment stablecoin issuer of such State. 17
1602	1602	(b) A
1603	1603	UTHORITYTOENTERINTOAGREEMENTS.— 18
1604	1604	(1) I
1605	1605	N GENERAL.—A State payment stablecoin 19
1606	1606	regulator may enter into a memorandum of under-20
1607	1607	standing with the primary Federal banking agency 21
1608	1608	and Comptroller setting out the manner in which the 22
1609	1609	primary Federal banking agency and Comptroller 23
1610	1610	may participate in the supervision, examination, and 24
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1613	1613	•HR 2392 IH
1614	1614	enforcement authority with respect to the State 1
1615	1615	qualified payment stablecoin issuers of such State. 2
1616	1616	(2) R
1617	1617	ULE OF CONSTRUCTION .—Nothing in this 3
1618	1618	subsection or a memorandum entered into under this 4
1619	1619	subsection may be construed to limit the authority 5
1620	1620	of the primary Federal banking agency or Comp-6
1621	1621	troller under subsection (e) or any other provision of 7
1622	1622	law. 8
1623	1623	(c) S
1624	1624	HARING OFINFORMATION.— 9
1625	1625	(1) I
1626	1626	N GENERAL.—A State payment stablecoin 10
1627	1627	regulator and, as applicable, the Comptroller, the 11
1628	1628	Board, the Corporation, or the National Credit 12
1629	1629	Union Administration shall share information on an 13
1630	1630	ongoing basis with respect to each State qualified 14
1631	1631	payment stablecoin issuer of such State, including a 15
1632	1632	copy of all initial applications and any accompanying 16
1633	1633	documents. 17
1634	1634	(2) P
1635	1635	RIVILEGES NOT AFFECTED BY SHARING 18
1636	1636	OF INFORMATION .—The sharing of information 19
1637	1637	under paragraph (1) shall not be construed as 20
1638	1638	waiving, destroying, or otherwise affecting any privi-21
1639	1639	lege applicable to such information under Federal or 22
1640	1640	State law as to any person or entity other than the 23
1641	1641	State payment stablecoin regulator, the Comptroller, 24
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1644	1644	•HR 2392 IH
1645	1645	the Board, the Corporation, and the National Credit 1
1646	1646	Union Administration. 2
1647	1647	(d) R
1648	1648	ULEMAKING.—A State payment stablecoin regu-3
1649	1649	lator may, to the same extent as the primary Federal pay-4
1650	1650	ment stablecoin regulators issue orders and rules under 5
1651	1651	section 4 applicable to a permitted payment stablecoin 6
1652	1652	issuer that is not a State qualified payment stablecoin 7
1653	1653	issuer, issue orders and rules related to the requirements 8
1654	1654	under section 4 applicable to State qualified payment 9
1655	1655	stablecoin issuers. 10
1656	1656	(e) B
1657	1657	ACK-UPENFORCEMENTAUTHORITY.— 11
1658	1658	(1) B
1659	1659	Y THE PRIMARY FEDERAL BANKING AGEN -12
1660	1660	CY.— 13
1661	1661	(A) I
1662	1662	N GENERAL.—Subject to subpara-14
1663	1663	graph (C), the primary Federal banking agency 15
1664	1664	may, after not less than 48 hours prior written 16
1665	1665	notice to any applicable State payment 17
1666	1666	stablecoin regulator, take an enforcement action 18
1667	1667	against a State qualified payment stablecoin 19
1668	1668	issuer that is a subsidiary of an insured deposi-20
1669	1669	tory institution or an institution-affiliated party 21
1670	1670	thereof for violations of this Act if— 22
1671	1671	(i) the applicable State payment 23
1672	1672	stablecoin regulator has not commenced an 24
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1675	1675	•HR 2392 IH
1676	1676	enforcement action to correct such viola-1
1677	1677	tion; and 2
1678	1678	(ii) failure to take such action would 3
1679	1679	create a material risk of loss to holders of 4
1680	1680	such issuer’s stablecoins or create a mate-5
1681	1681	rial threat to U.S. financial stability. 6
1682	1682	(B) R
1683	1683	ULEMAKING.—Not later than the end 7
1684	1684	of the 180-day period beginning on the date of 8
1685	1685	enactment of this Act, the primary Federal 9
1686	1686	banking agencies shall issue rules to set forth 10
1687	1687	the standards that would be used by the pri-11
1688	1688	mary Federal bank agencies to exercise the 12
1689	1689	back-up authority under this paragraph. 13
1690	1690	(C) B
1691	1691	ACK-UP AUTHORITY UNDER SECTION 14
1692	1692	6(b).—Solely for purposes of carrying out this 15
1693	1693	paragraph, section 6(b) shall apply to a State 16
1694	1694	qualified payment stablecoin issuer that is a 17
1695	1695	subsidiary of an insured depository institution 18
1696	1696	as if the primary Federal banking agency were 19
1697	1697	the primary Federal payment stablecoin regu-20
1698	1698	lator with respect to the State qualified pay-21
1699	1699	ment stablecoin issuer. 22
1700	1700	(D) P
1701	1701	RIMARY FEDERAL BANKING AGENCY 23
1702	1702	DEFINED.—In this section— 24
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1704	1704	ssavage on LAPJG3WLY3PROD with BILLS 57
1705	1705	•HR 2392 IH
1706	1706	(i) the term ‘‘primary Federal bank-1
1707	1707	ing agency’’ means— 2
1708	1708	(I) the appropriate Federal bank-3
1709	1709	ing agency; and 4
1710	1710	(II) the National Credit Union 5
1711	1711	Administration, in the case of an in-6
1712	1712	sured credit union; and 7
1713	1713	(ii) the term ‘‘primary Federal bank-8
1714	1714	ing agencies’’ means the Board, the Comp-9
1715	1715	troller, the Corporation, and the National 10
1716	1716	Credit Union Administration. 11
1717	1717	(2) B
1718	1718	Y THE COMPTROLLER .— 12
1719	1719	(A) I
1720	1720	N GENERAL.—Subject to subpara-13
1721	1721	graph (C), the Comptroller may, after not less 14
1722	1722	than 48 hours prior written notice to any appli-15
1723	1723	cable State payment stablecoin regulator, take 16
1724	1724	an enforcement action against a State qualified 17
1725	1725	payment stablecoin issuer that is a nonbank en-18
1726	1726	tity or an institution-affiliated party thereof for 19
1727	1727	violations of this Act if— 20
1728	1728	(i) the applicable State payment 21
1729	1729	stablecoin regulator has not commenced an 22
1730	1730	enforcement action to correct such viola-23
1731	1731	tion; and 24
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1734	1734	•HR 2392 IH
1735	1735	(ii) failure to take such action would 1
1736	1736	create a material risk of loss to holders of 2
1737	1737	such issuer’s stablecoins or create a mate-3
1738	1738	rial threat to U.S. financial stability. 4
1739	1739	(B) R
1740	1740	ULEMAKING.—Not later than the end 5
1741	1741	of the 180-day period beginning on the date of 6
1742	1742	enactment of this Act, the Comptroller shall 7
1743	1743	issue rules to set forth the standards that would 8
1744	1744	be used by the Comptroller to exercise the back- 9
1745	1745	up authority under this paragraph. 10
1746	1746	(C) B
1747	1747	ACK-UP AUTHORITY UNDER SECTION 11
1748	1748	6(b).—Solely for purposes of carrying out this 12
1749	1749	paragraph, section 6(b) shall apply to a State 13
1750	1750	qualified payment stablecoin issuer that is a 14
1751	1751	nonbank entity as if the Comptroller were the 15
1752	1752	primary Federal payment stablecoin regulator 16
1753	1753	with respect to the State qualified payment 17
1754	1754	stablecoin issuer. 18
1755	1755	(f) G
1756	1756	RAMM-LEACH-BLILEYACT.—For purposes of 19
1757	1757	title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 20
1758	1758	et seq.) a State qualified payment stablecoin issuer is 21
1759	1759	deemed a financial institution. 22
1760	1760	(g) I
1761	1761	NTERSTATEPAYMENTSTABLECOINMARKET.— 23
1762	1762	(1) D
1763	1763	EFINITIONS.—For the purposes of this 24
1764	1764	subsection— 25
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1767	1767	•HR 2392 IH
1768	1768	(A) the term ‘‘home State’’ means the 1
1769	1769	State of a State qualified payment stablecoin 2
1770	1770	issuer’s State payment stablecoin regulator; and 3
1771	1771	(B) the term ‘‘host State’’ means a State 4
1772	1772	other than that of the State qualified payment 5
1773	1773	stablecoin issuer’s State payment stablecoin 6
1774	1774	regulator. 7
1775	1775	(2) A
1776	1776	UTHORITY TO ISSUE PAYMENT 8
1777	1777	STABLECOINS IN HOST STATES .—Subject to the re-9
1778	1778	quirements of paragraph (3), a State qualified pay-10
1779	1779	ment stablecoin issuer may issue payment 11
1780	1780	stablecoins in a host State without a charter or li-12
1781	1781	cense to issue payment stablecoins from such host 13
1782	1782	State. 14
1783	1783	(3) S
1784	1784	TATE OBLIGATIONS.—Where a State quali-15
1785	1785	fied payment stablecoin issuer issues a payment 16
1786	1786	stablecoin in a host State pursuant to paragraph 17
1787	1787	(2)— 18
1788	1788	(A) such State qualified payment 19
1789	1789	stablecoin issuer shall notify any State payment 20
1790	1790	stablecoin regulator in such host State of the 21
1791	1791	issuer’s intention to do business in the host 22
1792	1792	State no less than 30 days before such issuer 23
1793	1793	commences business in the host State and in a 24
1794	1794	manner prescribed by the host State’s State 25
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1797	1797	•HR 2392 IH
1798	1798	payment stablecoin regulator or State banking 1
1799	1799	regulator if such State does not have a regime 2
1800	1800	certified under section 4(b), provided that such 3
1801	1801	notice does not impose a de facto licensure or 4
1802	1802	chartering requirement on such State qualified 5
1803	1803	payment stablecoin issuer; 6
1804	1804	(B) such State qualified payment 7
1805	1805	stablecoin issuer shall comply with all require-8
1806	1806	ments of the issuer’s home State regulatory re-9
1807	1807	gime when conducting business in the host 10
1808	1808	State, and where the host State maintains a 11
1809	1809	payment stablecoin regulatory regime that is 12
1810	1810	certified under section 4(b), such issuer shall 13
1811	1811	comply with any obligations of the host State’s 14
1812	1812	payment stablecoin regulatory regime that ex-15
1813	1813	ceed those of such issuer’s home State regu-16
1814	1814	latory regime; 17
1815	1815	(C) where the host State does not maintain 18
1816	1816	a payment stablecoin regulatory regime that is 19
1817	1817	certified under section 4(b), such State quali-20
1818	1818	fied payment stablecoin issuer shall remain sub-21
1819	1819	ject to all applicable consumer protection laws 22
1820	1820	of such host State; and 23
1821	1821	(D) where the host State maintains a pay-24
1822	1822	ment stablecoin regulatory regime that is cer-25
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1825	1825	•HR 2392 IH
1826	1826	tified under section 4(b), such State qualified 1
1827	1827	payment stablecoin issuer shall remain subject 2
1828	1828	to applicable consumer protection laws of such 3
1829	1829	host State, but only to the same extent as State 4
1830	1830	qualified payment stablecoin issuers chartered 5
1831	1831	or licensed in that host State. 6
1832	1832	SEC. 8. CUSTOMER PROTECTION. 7
1833	1833	(a) I
1834	1834	NGENERAL.—A person may only engage in the 8
1835	1835	business of providing custodial or safekeeping services for 9
1836	1836	permitted payment stablecoins, reserves described in sec-10
1837	1837	tion 4(a)(1)(A), or private keys of permitted payment 11
1838	1838	stablecoins, if the person— 12
1839	1839	(1) is subject to— 13
1840	1840	(A) supervision or regulation by a primary 14
1841	1841	Federal payment stablecoin regulator or a pri-15
1842	1842	mary financial regulatory agency described 16
1843	1843	under subparagraph (B) or (C) of section 2(12) 17
1844	1844	of the Dodd-Frank Wall Street Reform and 18
1845	1845	Consumer Protection Act (12 U.S.C. 19
1846	1846	5301(12)); or 20
1847	1847	(B) supervision by a State bank super-21
1848	1848	visor, as defined in section 3 of the Federal De-22
1849	1849	posit Insurance Act (12 U.S.C. 1813) or a 23
1850	1850	State credit union supervisor, as defined in sec-24
1851	1851	tion 6003 of the Anti-Money Laundering Act of 25
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1854	1854	•HR 2392 IH
1855	1855	2020 (31 U.S.C. 5311 note), and such State 1
1856	1856	bank supervisor or State credit union supervisor 2
1857	1857	makes available to the Board such information 3
1858	1858	as the Board determines necessary and relevant 4
1859	1859	to the categories of information under sub-5
1860	1860	section (d); and 6
1861	1861	(2) complies with the segregation requirements 7
1862	1862	under subsections (b), (c), and (d), unless such per-8
1863	1863	son complies with similar requirements as required 9
1864	1864	by the Board, the Comptroller, the Corporation, the 10
1865	1865	Securities and Exchange Commission, or the Com-11
1866	1866	modity Futures Trading Commission, as applicable. 12
1867	1867	(b) C
1868	1868	USTOMERPROPERTYREQUIREMENTS.—A per-13
1869	1869	son described in subsection (a) shall— 14
1870	1870	(1) treat and deal with the payment stablecoins, 15
1871	1871	private keys, cash, and other property of another 16
1872	1872	person for whom or on whose behalf the person re-17
1873	1873	ceives, acquires, or holds payment stablecoins, pri-18
1874	1874	vate keys, cash, and other property (hereinafter in 19
1875	1875	this section referred to as the ‘‘customer’’) as be-20
1876	1876	longing to such customer and not as the property of 21
1877	1877	such person; and 22
1878	1878	(2) take such steps as are appropriate to pro-23
1879	1879	tect the payment stablecoins, private keys, cash, and 24
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1882	1882	•HR 2392 IH
1883	1883	other property of a customer from the claims of 1
1884	1884	creditors of the person. 2
1885	1885	(c) C
1886	1886	OMMINGLINGPROHIBITED.— 3
1887	1887	(1) I
1888	1888	N GENERAL.—Payment stablecoins, cash, 4
1889	1889	and other property of a customer shall be separately 5
1890	1890	accounted for by a person described in subsection 6
1891	1891	(a) and shall not be commingled with the funds of 7
1892	1892	the person. 8
1893	1893	(2) C
1894	1894	USTOMER PRIORITY.—The claims of a cus-9
1895	1895	tomer with respect to property of the customer shall 10
1896	1896	have priority over the claims of a payment stablecoin 11
1897	1897	issuer or any creditor of a payment stablecoin issuer 12
1898	1898	unless the customer expressly consents otherwise. 13
1899	1899	(3) E
1900	1900	XCEPTION.—Notwithstanding paragraph 14
1901	1901	(1)— 15
1902	1902	(A) the payment stablecoins, cash, and 16
1903	1903	other property of a customer may be commin-17
1904	1904	gled and deposited in an omnibus account hold-18
1905	1905	ing the payment stablecoins, cash, and other 19
1906	1906	property of more than 1 customer at an insured 20
1907	1907	depository institution or trust company; 21
1908	1908	(B) such share of the payment stablecoins, 22
1909	1909	cash, and other property of the customer that 23
1910	1910	shall be necessary to transfer, adjust, or settle 24
1911	1911	a transaction or transfer of assets may be with-25
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1914	1914	•HR 2392 IH
1915	1915	drawn and applied to such purposes, including 1
1916	1916	the payment of commissions, taxes, storage, 2
1917	1917	and other charges lawfully accruing in connec-3
1918	1918	tion with the provision of services by a person 4
1919	1919	described in subsection (a); and 5
1920	1920	(C) in accordance with such terms and 6
1921	1921	conditions as the Board may prescribe by rule, 7
1922	1922	regulation, or order, any customer payment 8
1923	1923	stablecoin, cash, and other property described 9
1924	1924	in this subsection may be commingled and de-10
1925	1925	posited in customer accounts with payment 11
1926	1926	stablecoins, cash, and other property received 12
1927	1927	by the person and required by the Board to be 13
1928	1928	separately accounted for, treated, and dealt 14
1929	1929	with as belonging to customers. 15
1930	1930	(d) R
1931	1931	EGULATORY INFORMATION.—A person de-16
1932	1932	scribed under subsection (a) shall submit to the primary 17
1933	1933	Federal payment stablecoin regulator (or, if the person 18
1934	1934	does not have a primary Federal payment stablecoin regu-19
1935	1935	lator, to the Board) information concerning the person’s 20
1936	1936	business operations and processes to protect customer 21
1937	1937	payment stablecoins, cash, and other property, in such 22
1938	1938	form and manner as the primary Federal payment 23
1939	1939	stablecoin regulator (or, if the person does not have a pri-24
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1942	1942	•HR 2392 IH
1943	1943	mary Federal payment stablecoin regulator, the Board) 1
1944	1944	shall determine. 2
1945	1945	(e) E
1946	1946	XCLUSION.—The requirements of this section 3
1947	1947	shall not apply to any person solely on the basis that such 4
1948	1948	person engages in the business of providing hardware or 5
1949	1949	software to facilitate a customer’s own custody or safe-6
1950	1950	keeping of the customer’s payment stablecoins or private 7
1951	1951	keys. 8
1952	1952	SEC. 9. RULE OF CONSTRUCTION. 9
1953	1953	A digital asset shall not be construed to be a payment 10
1954	1954	stablecoin, if it is— 11
1955	1955	(1) redeemable by the issuer exclusively for 12
1956	1956	other digital assets, provided that such digital assets 13
1957	1957	for which it is redeemable are not primarily— 14
1958	1958	(A) payment stablecoins; or 15
1959	1959	(B) representations of permissible reserves 16
1960	1960	described under section 4(a)(1)(A) or similar 17
1961	1961	such assets; or 18
1962	1962	(2) primarily used within a system controlled by 19
1963	1963	such digital asset’s issuer as a means of accessing 20
1964	1964	products, services, or loyalty rewards. 21
1965	1965	SEC. 10. INTEROPERABILITY STANDARDS. 22
1966	1966	(a) I
1967	1967	NGENERAL.—The primary Federal payment 23
1968	1968	stablecoin regulators, in consultation with the National In-24
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1971	1971	•HR 2392 IH
1972	1972	stitute of Standards and Technology, other relevant stand-1
1973	1973	ard setting organizations, and State governments— 2
1974	1974	(1) shall assess compatibility and interoper-3
1975	1975	ability standards for permitted payment stablecoin 4
1976	1976	issuers; and 5
1977	1977	(2) if necessary, may, pursuant to section 553 6
1978	1978	of title 5 and in a manner consistent with the Na-7
1979	1979	tional Technology Transfer and Advancement Act of 8
1980	1980	1995 (Public Law 104–113), prescribe standards for 9
1981	1981	payment stablecoin issuers to promote compatibility 10
1982	1982	and interoperability. 11
1983	1983	(b) A
1984	1984	GREEMENTSWITHFOREIGNREGULATORS.— 12
1985	1985	The Secretary of the Treasury shall seek to enter into 13
1986	1986	agreements with foreign jurisdictions with comparable 14
1987	1987	payment stablecoin regulatory regimes to facilitate inter-15
1988	1988	national transactions and interoperability with any United 16
1989	1989	States dollar-denominated payment stablecoins issued 17
1990	1990	overseas. 18
1991	1991	SEC. 11. MORATORIUM ON ENDOGENOUSLY 19
1992	1992	COLLATERALIZED STABLECOINS. 20
1993	1993	(a) M
1994	1994	ORATORIUM.—During the 2-year period begin-21
1995	1995	ning on the date of enactment of this Act, it shall be un-22
1996	1996	lawful to issue an endogenously collateralized stablecoin 23
1997	1997	not in existence on the date of enactment of this Act. 24
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2000	2000	•HR 2392 IH
2001	2001	(b) ENDOGENOUSLY COLLATERALIZED STABLECOIN 1
2002	2002	D
2003	2003	EFINED.—In this section, the term ‘‘endogenously 2
2004	2004	collateralized stablecoin’’ means any digital asset— 3
2005	2005	(1) in which its issuer has represented will be 4
2006	2006	converted, redeemed, or repurchased for a fixed 5
2007	2007	amount of monetary value; and 6
2008	2008	(2) that relies solely on the value of another 7
2009	2009	digital asset created or maintained by the same 8
2010	2010	originator to maintain the fixed price. 9
2011	2011	SEC. 12. STUDIES AND REPORTS. 10
2012	2012	(a) S
2013	2013	TUDY BYTREASURY.—The Secretary of the 11
2014	2014	Treasury, in consultation with the Board, the Comptroller, 12
2015	2015	the Corporation, the National Credit Union Administra-13
2016	2016	tion, and the Securities and Exchange Commission, shall 14
2017	2017	carry out a study of non-payment stablecoins, including 15
2018	2018	decentralized stablecoins. 16
2019	2019	(b) R
2020	2020	EPORT.—Not later than 365 days after the date 17
2021	2021	of the enactment of this Act, the Secretary shall provide 18
2022	2022	to the Committee on Financial Services of the House of 19
2023	2023	Representatives and the Committee on Banking, Housing, 20
2024	2024	and Urban Affairs of the Senate a report that contains 21
2025	2025	all findings made in carrying out the study under sub-22
2026	2026	section (a), including an analysis of— 23
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2029	2029	•HR 2392 IH
2030	2030	(1) the categories of non-payment stablecoins, 1
2031	2031	including the benefits and risks of technological de-2
2032	2032	sign features; 3
2033	2033	(2) the participants in non-payment stablecoin 4
2034	2034	arrangements; 5
2035	2035	(3) utilization and potential utilization of non- 6
2036	2036	payment stablecoins; 7
2037	2037	(4) nature of reserve compositions; 8
2038	2038	(5) governance structure, including aspects of 9
2039	2039	decentralization; 10
2040	2040	(6) nature of public promotion and advertising; 11
2041	2041	and 12
2042	2042	(7) clarity and availability of consumer notices 13
2043	2043	disclosures. 14
2044	2044	SEC. 13. REPORT ON RULEMAKING STATUS. 15
2045	2045	Not later than 6 months after the date of enactment 16
2046	2046	of this Act, the primary Federal payment stablecoin regu-17
2047	2047	lators shall provide a status update on the development 18
2048	2048	of the rulemaking under this Act to the Committee on Fi-19
2049	2049	nancial Services of the House of Representatives and the 20
2050	2050	Committee on Banking, Housing, and Urban Affairs of 21
2051	2051	the Senate. 22
2052	2052	SEC. 14. AUTHORITY OF BANKING INSTITUTIONS. 23
2053	2053	(a) R
2054	2054	ULE OFCONSTRUCTION.—Nothing in this Act 24
2055	2055	may be construed to limit the authority of a depository 25
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2058	2058	•HR 2392 IH
2059	2059	institution, Federal credit union, State credit union, or 1
2060	2060	trust company to engage in activities permissible pursuant 2
2061	2061	to applicable State and Federal law, including— 3
2062	2062	(1) accepting or receiving deposits and issuing 4
2063	2063	digital assets that represent deposits; 5
2064	2064	(2) utilizing a distributed ledger for the books 6
2065	2065	and records of the entity and to affect intrabank 7
2066	2066	transfers; and 8
2067	2067	(3) providing custodial services for payment 9
2068	2068	stablecoins, private keys of payment stablecoins, or 10
2069	2069	reserves backing payment stablecoins. 11
2070	2070	(b) R
2071	2071	EGULATORYREVIEW.—The primary Federal 12
2072	2072	payment stablecoin regulators shall review all existing reg-13
2073	2073	ulations and guidance and, if necessary, amend such regu-14
2074	2074	lations or guidance or issue new regulations or guidance 15
2075	2075	to clarify that regulated entities can engage in the pay-16
2076	2076	ment stablecoin activities contemplated in, and in accord-17
2077	2077	ance with, this Act. 18
2078	2078	(c) T
2079	2079	REATMENT OFCUSTODYACTIVITIES.—The ap-19
2080	2080	propriate Federal banking agency, the National Credit 20
2081	2081	Union Administration (in the case of a credit union), and 21
2082	2082	the Securities and Exchange Commission may not require 22
2083	2083	a depository institution, national bank, Federal credit 23
2084	2084	union, State credit union, or trust company, or any affil-24
2085	2085	iate thereof (the ‘‘entity’’)— 25
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2088	2088	•HR 2392 IH
2089	2089	(1) to include assets held in custody that are 1
2090	2090	not owned by the entity as a liability on the financial 2
2091	2091	statement or balance sheet of the entity, including 3
2092	2092	payment stablecoin custody or safekeeping activities; 4
2093	2093	(2) to hold additional regulatory capital against 5
2094	2094	assets in custody or safekeeping, except as necessary 6
2095	2095	to mitigate against operational risks inherent with 7
2096	2096	the custody or safekeeping services, as determined 8
2097	2097	by— 9
2098	2098	(A) the appropriate Federal banking agen-10
2099	2099	cy; 11
2100	2100	(B) the National Credit Union Administra-12
2101	2101	tion (in the case of a credit union); 13
2102	2102	(C) a State bank supervisor (as defined in 14
2103	2103	section 3 of the Federal Deposit Insurance Act 15
2104	2104	(12 U.S.C. 1813)); or 16
2105	2105	(D) a State credit union supervisor (as de-17
2106	2106	fined in section 6003 of the Anti-Money Laun-18
2107	2107	dering Act of 2020 (31 U.S.C. 5311 note)); 19
2108	2108	(3) to recognize a liability for any obligations 20
2109	2109	related to activities or services performed for digital 21
2110	2110	assets that the entity does not own if that liability 22
2111	2111	would exceed the expense recognized in the income 23
2112	2112	statement as a result of the corresponding obliga-24
2113	2113	tion. 25
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2116	2116	•HR 2392 IH
2117	2117	(d) DEPOSITORYINSTITUTIONDEFINED.—In this 1
2118	2118	section, the term ‘‘depository institution’’ has the meaning 2
2119	2119	given that term in section 3 of the Federal Deposit Insur-3
2120	2120	ance Act (12 U.S.C. 1813). 4
2121	2121	SEC. 15. AMENDMENTS TO CLARIFY THAT PAYMENT 5
2122	2122	STABLECOINS ARE NOT SECURITIES. 6
2123	2123	(a) I
2124	2124	NVESTMENTADVISERSACT OF1940.—Section 7
2125	2125	202(a)(18) of the Investment Advisers Act of 1940 (15 8
2126	2126	U.S.C. 80b–2(a)(18)) is amended by adding at the end 9
2127	2127	the following: ‘‘The term ‘security’ does not include a pay-10
2128	2128	ment stablecoin issued by a permitted payment stablecoin 11
2129	2129	issuer, as such terms are defined, respectively, in section 12
2130	2130	2 of the STABLE Act of 2025.’’. 13
2131	2131	(b) I
2132	2132	NVESTMENTCOMPANYACT OF1940.—The In-14
2133	2133	vestment Company Act of 1940 is amended— 15
2134	2134	(1) in section 2(a)(36) (15 U.S.C. 80a– 16
2135	2135	2(a)(36)), by adding at the end the following: ‘‘The 17
2136	2136	term ‘security’ does not include a payment stablecoin 18
2137	2137	issued by a permitted payment stablecoin issuer, as 19
2138	2138	such terms are defined, respectively, in section 2 of 20
2139	2139	the STABLE Act of 2025.’’; and 21
2140	2140	(2) in section 3(c) (15 U.S.C. 80a–3(c)), by 22
2141	2141	adding at the end the following: 23
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2144	2144	•HR 2392 IH
2145	2145	‘‘(15) Any permitted payment stablecoin issuer, 1
2146	2146	as such term is defined in section 2 of the STABLE 2
2147	2147	Act of 2025.’’. 3
2148	2148	(c) S
2149	2149	ECURITIESACT OF1933.—Section 2(a)(1) of 4
2150	2150	the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is 5
2151	2151	amended by adding at the end the following: ‘‘The term 6
2152	2152	‘security’ does not include a payment stablecoin issued by 7
2153	2153	a permitted payment stablecoin issuer, as such terms are 8
2154	2154	defined, respectively, in section 2 of the STABLE Act of 9
2155	2155	2025.’’. 10
2156	2156	(d) S
2157	2157	ECURITIESEXCHANGEACT OF1934.—Section 11
2158	2158	3(a)(10) of the Securities Exchange Act of 1934 (15 12
2159	2159	U.S.C. 78c(a)(10)) is amended by adding at the end the 13
2160	2160	following: ‘‘The term ‘security’ does not include a payment 14
2161	2161	stablecoin issued by a permitted payment stablecoin 15
2162	2162	issuer, as such terms are defined, respectively, in section 16
2163	2163	2 of the STABLE Act of 2025.’’. 17
2164	2164	(e) S
2165	2165	ECURITIESINVESTORPROTECTIONACT OF 18
2166	2166	1970.—Section 16(14) of the Securities Investor Protec-19
2167	2167	tion Act of 1970 (15 U.S.C. 78lll(14)) is amended by add-20
2168	2168	ing at the end the following: ‘‘The term ‘security’ does 21
2169	2169	not include a payment stablecoin issued by a permitted 22
2170	2170	payment stablecoin issuer, as such terms are defined, re-23
2171	2171	spectively, in section 2 of the STABLE Act of 2025.’’. 24
2172	2172	Æ
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