Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB1582 Compare Versions

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

Old	New	Differences
1	1	II
2	2	Calendar No. 66
3	3	119THCONGRESS
4	4	1
5	5	STSESSION S. 1582
6	6	To provide for the regulation of payment stablecoins, and for other purposes.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	MAY1, 2025
9	9	Mr. H
10	10	AGERTY(for himself, Ms. LUMMIS, and Mr. SCOTTof South Carolina)
11	11	introduced the following bill; which was read the first time
12	12	M
13	13	AY5, 2025
14	14	Read the second time and placed on the calendar
15	15	A BILL
16	16	To provide for the regulation of payment stablecoins, and
17	17	for other purposes.
18	18	Be it enacted by the Senate and House of Representa-1
19	19	tives of the United States of America in Congress assembled, 2
20	20	SECTION 1. SHORT TITLE. 3
21	21	This Act may be cited as the ‘‘Guiding and Estab-4
22	22	lishing National Innovation for U.S. Stablecoins Act’’ or 5
23	23	the ‘‘GENIUS Act’’. 6
24	24	SEC. 2. DEFINITIONS. 7
25	25	In this Act: 8
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29	29	(1) APPROPRIATE FEDERAL BANKING AGEN -1
30	30	CY.—The term ‘‘appropriate Federal banking agen-2
31	31	cy’’ has the meaning given that term in section 3 of 3
32	32	the Federal Deposit Insurance Act (12 U.S.C. 4
33	33	1813). 5
34	34	(2) B
35	35	ANK SECRECY ACT.—The term ‘‘Bank Se-6
36	36	crecy Act’’ means— 7
37	37	(A) section 21 of the Federal Deposit In-8
38	38	surance Act (12 U.S.C. 1829b); 9
39	39	(B) chapter 2 of title I of Public Law 91– 10
40	40	508 (12 U.S.C. 1951 et seq.); and 11
41	41	(C) subchapter II of chapter 53 of title 31, 12
42	42	United States Code. 13
43	43	(3) B
44	44	OARD.—The term ‘‘Board’’ means the 14
45	45	Board of Governors of the Federal Reserve System. 15
46	46	(4) C
47	47	OMPTROLLER.—The term ‘‘Comptroller’’ 16
48	48	means the Office of the Comptroller of the Currency. 17
49	49	(5) C
50	50	ORPORATION.—The term ‘‘Corporation’’ 18
51	51	means the Federal Deposit Insurance Corporation. 19
52	52	(6) D
53	53	IGITAL ASSET.—The term ‘‘digital asset’’ 20
54	54	means any digital representation of value that is re-21
55	55	corded on a cryptographically secured distributed 22
56	56	ledger. 23
57	57	(7) D
58	58	IGITAL ASSET SERVICE PROVIDER .—The 24
59	59	term ‘‘digital asset service provider’’— 25
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63	63	(A) means a person that, for compensation 1
64	64	or profit, engages in the business in the United 2
65	65	States (including on behalf of customers or 3
66	66	users in the United States) of— 4
67	67	(i) exchanging digital assets for mone-5
68	68	tary value; 6
69	69	(ii) exchanging digital assets for other 7
70	70	digital assets; 8
71	71	(iii) transferring digital assets to a 9
72	72	third party; 10
73	73	(iv) acting as a digital asset custo-11
74	74	dian; or 12
75	75	(v) participating in financial services 13
76	76	relating to digital asset issuance; and 14
77	77	(B) does not include— 15
78	78	(i) a distributed ledger protocol; 16
79	79	(ii) developing, operating, or engaging 17
80	80	in the business of developing distributed 18
81	81	ledger protocols or self-custodial software 19
82	82	interfaces; 20
83	83	(iii) an immutable and self-custodial 21
84	84	software interface; 22
85	85	(iv) developing, operating, or engaging 23
86	86	in the business of validating transactions 24
87	87	or operating a distributed ledger node; or 25
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91	91	(v) participating in a liquidity pool or 1
92	92	other similar mechanism for the provi-2
93	93	sioning of liquidity for peer-to-peer trans-3
94	94	actions. 4
95	95	(8) D
96	96	ISTRIBUTED LEDGER.—The term ‘‘distrib-5
97	97	uted ledger’’ means technology in which data is 6
98	98	shared across a network that creates a public digital 7
99	99	ledger of verified transactions or information among 8
100	100	network participants and cryptography is used to 9
101	101	link the data to maintain the integrity of the public 10
102	102	ledger and execute other functions. 11
103	103	(9) D
104	104	ISTRIBUTED LEDGER PROTOCOL .—The 12
105	105	term ‘‘distributed ledger protocol’’ means publicly 13
106	106	available and accessible executable software deployed 14
107	107	to a distributed ledger, including smart contracts or 15
108	108	networks of smart contracts. 16
109	109	(10) F
110	110	EDERAL BRANCH .—The term ‘‘Federal 17
111	111	branch’’ has the meaning given that term in section 18
112	112	3 of the Federal Deposit Insurance Act (12 U.S.C. 19
113	113	1813). 20
114	114	(11) F
115	115	EDERAL QUALIFIED PAYMENT 21
116	116	STABLECOIN ISSUER.—The term ‘‘Federal qualified 22
117	117	payment stablecoin issuer’’ means— 23
118	118	(A) a nonbank entity, other than a State 24
119	119	qualified payment stablecoin issuer, approved 25
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123	123	by the Comptroller, pursuant to section 5, to 1
124	124	issue payment stablecoins; 2
125	125	(B) an uninsured national bank— 3
126	126	(i) that is chartered by the Comp-4
127	127	troller, pursuant to title LXII of the Re-5
128	128	vised Statutes; and 6
129	129	(ii) that is approved by the Comp-7
130	130	troller, pursuant to section 5, to issue pay-8
131	131	ment stablecoins; and 9
132	132	(C) a Federal branch that is approved by 10
133	133	the Comptroller, pursuant to section 5, to issue 11
134	134	payment stablecoins. 12
135	135	(12) F
136	136	OREIGN PAYMENT STABLECOIN 13
137	137	ISSUER.—The term ‘‘foreign payment stablecoin 14
138	138	issuer’’ means an issuer of a payment stablecoin 15
139	139	that is— 16
140	140	(A) organized under the laws of or domi-17
141	141	ciled in a foreign country, a territory of the 18
142	142	United States, Puerto Rico, Guam, American 19
143	143	Samoa, or the Virgin Islands; and 20
144	144	(B) not a permitted payment stablecoin 21
145	145	issuer. 22
146	146	(13) I
147	147	NSTITUTION-AFFILIATED PARTY .—With 23
148	148	respect to a permitted payment stablecoin issuer, the 24
149	149	term ‘‘institution-affiliated party’’ means any direc-25
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153	153	tor, officer, employee, or controlling stockholder of 1
154	154	the permitted payment stablecoin issuer. 2
155	155	(14) I
156	156	NSURED CREDIT UNION .—The term ‘‘in-3
157	157	sured credit union’’ has the meaning given that term 4
158	158	in section 101 of the Federal Credit Union Act (12 5
159	159	U.S.C. 1752). 6
160	160	(15) I
161	161	NSURED DEPOSITORY INSTITUTION .—The 7
162	162	term ‘‘insured depository institution’’ means— 8
163	163	(A) an insured depository institution, as 9
164	164	defined in section 3 of the Federal Deposit In-10
165	165	surance Act (12 U.S.C. 1813); and 11
166	166	(B) an insured credit union. 12
167	167	(16) L
168	168	AWFUL ORDER .—The term ‘‘lawful 13
169	169	order’’ means any final and valid writ, process, 14
170	170	order, rule, decree, command, or other requirement 15
171	171	issued or promulgated under Federal law, issued by 16
172	172	a court of competent jurisdiction or by an authorized 17
173	173	Federal agency pursuant to its statutory authority, 18
174	174	that— 19
175	175	(A) requires a person to seize, freeze, burn, 20
176	176	or prevent the transfer of payment stablecoins 21
177	177	issued by the person; 22
178	178	(B) specifies the payment stablecoins or 23
179	179	accounts subject to blocking with reasonable 24
180	180	particularity; and 25
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184	184	(C) is subject to judicial or administrative 1
185	185	review or appeal as provided by law. 2
186	186	(17) M
187	187	ONETARY VALUE.—The term ‘‘monetary 3
188	188	value’’ means a national currency or deposit (as de-4
189	189	fined in section 3 of the Federal Deposit Insurance 5
190	190	Act (12 U.S.C. 1813)) denominated in a national 6
191	191	currency. 7
192	192	(18) M
193	193	ONEY.—The term ‘‘money’’— 8
194	194	(A) means a medium of exchange currently 9
195	195	authorized or adopted by a domestic or foreign 10
196	196	government; and 11
197	197	(B) includes a monetary unit of account 12
198	198	established by an intergovernmental organiza-13
199	199	tion or by agreement between 2 or more coun-14
200	200	tries. 15
201	201	(19) N
202	202	ATIONAL CURRENCY .—The term ‘‘na-16
203	203	tional currency’’ means each of the following: 17
204	204	(A) A Federal Reserve note (as the term is 18
205	205	used in the first undesignated paragraph of sec-19
206	206	tion 16 of the Federal Reserve Act (12 U.S.C. 20
207	207	411)). 21
208	208	(B) Money standing to the credit of an ac-22
209	209	count with a Federal Reserve Bank. 23
210	210	(C) Money issued by a foreign central 24
211	211	bank. 25
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215	215	(D) Money issued by an intergovernmental 1
216	216	organization pursuant to an agreement by 2 or 2
217	217	more governments. 3
218	218	(20) N
219	219	ONBANK ENTITY.—The term ‘‘nonbank 4
220	220	entity’’ means a person that is not a depository in-5
221	221	stitution or subsidiary of a depository institution. 6
222	222	(21) O
223	223	FFER.—The term ‘‘offer’’ means to make 7
224	224	available for purchase, sale, or exchange. 8
225	225	(22) P
226	226	AYMENT STABLECOIN .—The term ‘‘pay-9
227	227	ment stablecoin’’— 10
228	228	(A) means a digital asset— 11
229	229	(i) that is, or is designed to be, used 12
230	230	as a means of payment or settlement; and 13
231	231	(ii) the issuer of which— 14
232	232	(I) is obligated to convert, re-15
233	233	deem, or repurchase for a fixed 16
234	234	amount of monetary value, not includ-17
235	235	ing a digital asset denominated in a 18
236	236	fixed amount of monetary value; and 19
237	237	(II) represents that such issuer 20
238	238	will maintain, or create the reasonable 21
239	239	expectation that it will maintain, a 22
240	240	stable value relative to the value of a 23
241	241	fixed amount of monetary value; and 24
242	242	(B) does not include a digital asset that— 25
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246	246	(i) is a national currency; 1
247	247	(ii) is a deposit (as defined in section 2
248	248	3 of the Federal Deposit Insurance Act 3
249	249	(12 U.S.C. 1813)), including a deposit re-4
250	250	corded using distributed ledger technology; 5
251	251	or 6
252	252	(iii) is a security, as defined in section 7
253	253	2 of the Securities Act of 1933 (15 U.S.C. 8
254	254	77b), section 3 of the Securities Exchange 9
255	255	Act of 1934 (15 U.S.C. 78c), or section 2 10
256	256	of the Investment Company Act of 1940 11
257	257	(15 U.S.C. 80a–2), except that, for the 12
258	258	avoidance of doubt, no bond, note, evidence 13
259	259	of indebtedness, or investment contract 14
260	260	that was issued by a permitted payment 15
261	261	stablecoin issuer shall qualify as a security 16
262	262	solely by virtue of its satisfying the condi-17
263	263	tions described in subparagraph (A), con-18
264	264	sistent with section 17 of this Act. 19
265	265	(23) P
266	266	ERMITTED PAYMENT STABLECOIN 20
267	267	ISSUER.—The term ‘‘permitted payment stablecoin 21
268	268	issuer’’ means a person formed in the United States 22
269	269	that— 23
270	270	(A) is— 24
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274	274	(i) a subsidiary of an insured deposi-1
275	275	tory institution that has been approved to 2
276	276	issue payment stablecoins under section 5; 3
277	277	(ii) a Federal qualified payment 4
278	278	stablecoin issuer; or 5
279	279	(iii) a State qualified payment 6
280	280	stablecoin issuer; and 7
281	281	(B) does not offer a payment of yield or 8
282	282	interest on its issued payment stablecoin. 9
283	283	(24) P
284	284	ERSON.—The term ‘‘person’’ means an 10
285	285	individual, partnership, company, corporation, asso-11
286	286	ciation, trust, estate, cooperative organization, or 12
287	287	other business entity, incorporated or unincor-13
288	288	porated. 14
289	289	(25) P
290	290	RIMARY FEDERAL PAYMENT STABLECOIN 15
291	291	REGULATOR.—The term ‘‘primary Federal payment 16
292	292	stablecoin regulator’’ means— 17
293	293	(A) with respect to a subsidiary of an in-18
294	294	sured depository institution (other than an in-19
295	295	sured credit union), the appropriate Federal 20
296	296	banking agency of such insured depository insti-21
297	297	tution; 22
298	298	(B) with respect to an insured credit union 23
299	299	or a subsidiary of an insured credit union, the 24
300	300	National Credit Union Administration; 25
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304	304	(C) with respect to a State chartered de-1
305	305	pository institution not specified under subpara-2
306	306	graph (A), the Corporation, the Comptroller, or 3
307	307	the Board; and 4
308	308	(D) with respect to a Federal qualified 5
309	309	payment stablecoin issuer, the Comptroller. 6
310	310	(26) R
311	311	EGISTERED PUBLIC ACCOUNTING 7
312	312	FIRM.—The term ‘‘registered public accounting 8
313	313	firm’’ has the meaning given that term under section 9
314	314	2 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 10
315	315	7201). 11
316	316	(27) S
317	317	TATE.—The term ‘‘State’’ means each of 12
318	318	the several States of the United States, the District 13
319	319	of Columbia, and each territory of the United 14
320	320	States. 15
321	321	(28) S
322	322	TATE CHARTERED DEPOSITORY INSTITU -16
323	323	TION.—The term ‘‘State chartered depository insti-17
324	324	tution’’ has the meaning given the term ‘‘State de-18
325	325	pository institution’’ in section 3(c) of the Federal 19
326	326	Deposit Insurance Act (12 U.S.C. 1813(c)). 20
327	327	(29) S
328	328	TATE PAYMENT STABLECOIN REGU -21
329	329	LATOR.—The term ‘‘State payment stablecoin regu-22
330	330	lator’’ means a State agency that has primary regu-23
331	331	latory and supervisory authority in such State over 24
332	332	entities that issue payment stablecoins. 25
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336	336	(30) STATE QUALIFIED PAYMENT STABLECOIN 1
337	337	ISSUER.—The term ‘‘State qualified payment 2
338	338	stablecoin issuer’’ means an entity that— 3
339	339	(A) is legally established under the laws of 4
340	340	a State and approved to issue payment 5
341	341	stablecoins by a State payment stablecoin regu-6
342	342	lator; and 7
343	343	(B) is not an uninsured national bank 8
344	344	chartered by the Comptroller pursuant to title 9
345	345	LXII of the Revised Statutes, a Federal 10
346	346	branch, an insured depository institution, or a 11
347	347	subsidiary of such national bank, Federal 12
348	348	branch, or insured depository institution. 13
349	349	(31) S
350	350	UBSIDIARY.—The term ‘‘subsidiary’’ has 14
351	351	the meaning given that term in section 3 of the Fed-15
352	352	eral Deposit Insurance Act (12 U.S.C. 1813). 16
353	353	(32) S
354	354	UBSIDIARY OF AN INSURED CREDIT 17
355	355	UNION.—With respect to an insured credit union, 18
356	356	the term ‘‘subsidiary of an insured credit union’’ 19
357	357	means— 20
358	358	(A) an organization providing services to 21
359	359	the insured credit union that are associated 22
360	360	with the routine operations of credit unions, as 23
361	361	described in section 107(7)(I) of the Federal 24
362	362	Credit Union Act (12 U.S.C. 1757(7)(I)); 25
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366	366	(B) a credit union service organization, as 1
367	367	such term is used under part 712 of title 12, 2
368	368	Code of Federal Regulations, with respect to 3
369	369	which the insured credit union has an owner-4
370	370	ship interest or to which the insured credit 5
371	371	union has extended a loan; and 6
372	372	(C) a subsidiary of a State chartered in-7
373	373	sured credit union authorized under State law. 8
374	374	SEC. 3. ISSUANCE AND TREATMENT OF PAYMENT 9
375	375	STABLECOINS. 10
376	376	(a) L
377	377	IMITATION ONISSUERS.—It shall be unlawful 11
378	378	for any person other than a permitted payment stablecoin 12
379	379	issuer to issue a payment stablecoin in the United States. 13
380	380	(b) P
381	381	ROHIBITION ONOFFERS ORSALES.— 14
382	382	(1) I
383	383	N GENERAL.—Except as provided in sub-15
384	384	section (c) and section 18, beginning on the date 16
385	385	that is 3 years after the date of enactment of this 17
386	386	Act, it shall be unlawful for any digital asset service 18
387	387	provider to offer or sell a payment stablecoin to a 19
388	388	person in the United States, unless the payment 20
389	389	stablecoin is issued by a permitted payment 21
390	390	stablecoin issuer. 22
391	391	(2) F
392	392	OREIGN PAYMENT STABLECOIN 23
393	393	ISSUERS.—It shall be unlawful for any person to 24
394	394	offer, sell, or otherwise make available in the United 25
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398	398	States a payment stablecoin issued by a foreign pay-1
399	399	ment stablecoin issuer unless the foreign payment 2
400	400	stablecoin issuer has the technological capability to 3
401	401	comply, and will comply, with the terms of any law-4
402	402	ful order or reciprocal arrangement pursuant to sec-5
403	403	tion 18. 6
404	404	(c) L
405	405	IMITEDSAFEHARBORS.— 7
406	406	(1) I
407	407	N GENERAL.—The Secretary of the Treas-8
408	408	ury may issue regulations providing safe harbors 9
409	409	from subsection (a) that are— 10
410	410	(A) consistent with the purposes of the 11
411	411	Act; 12
412	412	(B) limited in scope; and 13
413	413	(C) apply to a de minimis volume of trans-14
414	414	actions, as determined by the Secretary of the 15
415	415	Treasury. 16
416	416	(2) U
417	417	NUSUAL AND EXIGENT CIR -17
418	418	CUMSTANCES.—If the Secretary of the Treasury de-18
419	419	termines that unusual and exigent circumstances 19
420	420	exist, the Secretary may provide limited safe harbors 20
421	421	from subsection (a). 21
422	422	(d) R
423	423	ULEMAKING.—The Secretary of the Treasury 22
424	424	may, as the Secretary determines appropriate, issue regu-23
425	425	lations to implement this section, including regulations to 24
426	426	define statutory terms. 25
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430	430	(e) EXTRATERRITORIALEFFECT.—This section is in-1
431	431	tended to have extraterritorial effect if conduct involves 2
432	432	the offer or sale of a payment stablecoin to a person lo-3
433	433	cated in the United States. 4
434	434	(f) P
435	435	ENALTY FORVIOLATION.— 5
436	436	(1) I
437	437	N GENERAL.—Whoever knowingly partici-6
438	438	pates in a violation of subsection (a) shall be fined 7
439	439	not more than $1,000,000 for each such violation, 8
440	440	imprisoned for not more than 5 years, or both. 9
441	441	(2) R
442	442	EFERRAL TO ATTORNEY GENERAL .—If a 10
443	443	primary Federal payment stablecoin regulator has 11
444	444	reason to believe that any person has knowingly vio-12
445	445	lated subsection (a), the primary Federal payment 13
446	446	stablecoin regulator may refer the matter to the At-14
447	447	torney General. 15
448	448	(g) T
449	449	REATMENT.—A payment stablecoin that is not 16
450	450	issued by a permitted payment stablecoin issuer shall not 17
451	451	be— 18
452	452	(1) treated as cash or a cash equivalent for ac-19
453	453	counting purposes; 20
454	454	(2) eligible as cash or a cash equivalent margin 21
455	455	and collateral for futures commission merchants, de-22
456	456	rivative clearing organizations, broker-dealers, reg-23
457	457	istered clearing agencies, and swap dealers; or 24
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461	461	(3) acceptable as a settlement asset to facilitate 1
462	462	wholesale payments between banking organizations 2
463	463	or by a payment infrastructure to facilitate exchange 3
464	464	and settlement among banking organizations. 4
465	465	(h) R
466	466	ULE OFCONSTRUCTION.—This section shall not 5
467	467	apply to— 6
468	468	(1) the direct transfer of digital assets between 7
469	469	2 individuals acting on their own behalf and for 8
470	470	their own lawful purposes, without the involvement 9
471	471	of an intermediary; 10
472	472	(2) to any transaction involving the receipt of 11
473	473	digital assets by an individual between an account 12
474	474	owned by the individual in the United States and an 13
475	475	account owned by the individual abroad that are of-14
476	476	fered by the same parent company; or 15
477	477	(3) to any transaction by means of a software 16
478	478	or hardware wallet that facilitates an individual’s 17
479	479	own custody of digital assets. 18
480	480	SEC. 4. REQUIREMENTS FOR ISSUING PAYMENT 19
481	481	STABLECOINS. 20
482	482	(a) S
483	483	TANDARDS FOR THE ISSUANCE OFPAYMENT 21
484	484	S
485	485	TABLECOINS.— 22
486	486	(1) I
487	487	N GENERAL .—A permitted payment 23
488	488	stablecoin issuer shall— 24
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490	490	ssavage on LAPJG3WLY3PROD with BILLS 17
491	491	•S 1582 PCS
492	492	(A) maintain reserves backing the out-1
493	493	standing payment stablecoins of the permitted 2
494	494	payment stablecoin issuer on an at least 1 to 1 3
495	495	basis, with reserves comprising— 4
496	496	(i) United States coins and currency 5
497	497	(including Federal Reserve notes) or 6
498	498	money standing to the credit of an account 7
499	499	with a Federal Reserve Bank; 8
500	500	(ii) funds held as demand deposits (or 9
501	501	other deposits that may be withdrawn 10
502	502	upon request at any time) or insured 11
503	503	shares at an insured depository institution 12
504	504	(including any foreign branches or agents, 13
505	505	including correspondent banks, of an in-14
506	506	sured depository institution), subject to 15
507	507	limitations established by the Corporation 16
508	508	and the National Credit Union Administra-17
509	509	tion, as applicable, to address safety and 18
510	510	soundness risks of such insured depository 19
511	511	institution; 20
512	512	(iii) Treasury bills, notes, or bonds— 21
513	513	(I) with a remaining maturity of 22
514	514	93 days or less; or 23
515	515	(II) issued with a maturity of 93 24
516	516	days or less; 25
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518	518	ssavage on LAPJG3WLY3PROD with BILLS 18
519	519	•S 1582 PCS
520	520	(iv) money received under repurchase 1
521	521	agreements, with the permitted payment 2
522	522	stablecoin issuer acting as a seller of secu-3
523	523	rities and with an overnight maturity, that 4
524	524	are backed by Treasury bills with a matu-5
525	525	rity of 93 days or less; 6
526	526	(v) reverse repurchase agreements, 7
527	527	with the permitted payment stablecoin 8
528	528	issuer acting as a purchaser of securities 9
529	529	and with an overnight maturity, that are 10
530	530	collateralized by Treasury notes, bills, or 11
531	531	bonds on an overnight basis, subject to 12
532	532	overcollateralization in line with standard 13
533	533	market terms, that are— 14
534	534	(I) tri-party; 15
535	535	(II) centrally cleared through a 16
536	536	clearing agency registered with the 17
537	537	Securities and Exchange Commission; 18
538	538	or 19
539	539	(III) bilateral with a 20
540	540	counterparty that the issuer has de-21
541	541	termined to be adequately credit-22
542	542	worthy even in the event of severe 23
543	543	market stress; 24
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546	546	•S 1582 PCS
547	547	(vi) securities issued by an investment 1
548	548	company registered under section 8(a) of 2
549	549	the Investment Company Act of 1940 (15 3
550	550	U.S.C. 80a–8(a)), or other registered Gov-4
551	551	ernment money market fund, and that are 5
552	552	invested solely in underlying assets de-6
553	553	scribed in clauses (i) through (v); 7
554	554	(vii) any other similarly liquid Federal 8
555	555	Government-issued asset approved by the 9
556	556	primary Federal payment stablecoin regu-10
557	557	lator, in consultation with the State pay-11
558	558	ment stablecoin regulator, if applicable, of 12
559	559	the permitted payment stablecoin issuer; or 13
560	560	(viii) any reserve described in clause 14
561	561	(i) through (iii) or clause (vi) through (vii) 15
562	562	in tokenized form, provided that such re-16
563	563	serves comply with all applicable laws and 17
564	564	regulations; 18
565	565	(B) publicly disclose the issuer’s redemp-19
566	566	tion policy, which shall— 20
567	567	(i) establish clear and conspicuous 21
568	568	procedures for timely redemption of out-22
569	569	standing payment stablecoins, provided 23
570	570	that any discretionary limitations on timely 24
571	571	redemptions can only be imposed by a 25
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573	573	ssavage on LAPJG3WLY3PROD with BILLS 20
574	574	•S 1582 PCS
575	575	State qualified payment stablecoin regu-1
576	576	lator, the Corporation, the Comptroller, or 2
577	577	the Board, consistent with section 7; and 3
578	578	(ii) publicly, clearly, and conspicuously 4
579	579	disclose in plain language all fees associ-5
580	580	ated with purchasing or redeeming the 6
581	581	payment stablecoins, provided that such 7
582	582	fees can only be changed upon not less 8
583	583	than 7 days’ prior notice to consumers; 9
584	584	and 10
585	585	(C) publish the monthly composition of the 11
586	586	issuer’s reserves on the website of the issuer, 12
587	587	containing— 13
588	588	(i) the total number of outstanding 14
589	589	payment stablecoins issued by the issuer; 15
590	590	and 16
591	591	(ii) the amount and composition of 17
592	592	the reserves described in subparagraph 18
593	593	(A), including the average tenor and geo-19
594	594	graphic location of custody of each cat-20
595	595	egory of reserve instruments. 21
596	596	(2) P
597	597	ROHIBITION ON REHYPOTHECATION .—Re-22
598	598	serves required under paragraph (1)(A) may not be 23
599	599	pledged, rehypothecated, or reused by the permitted 24
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601	601	ssavage on LAPJG3WLY3PROD with BILLS 21
602	602	•S 1582 PCS
603	603	payment stablecoin issuer, either directly or indi-1
604	604	rectly, except for the purpose of— 2
605	605	(A) satisfying margin obligations in con-3
606	606	nection with investments in permitted reserves 4
607	607	under clauses (iv) and (v) of paragraph (1)(A); 5
608	608	(B) satisfying obligations associated with 6
609	609	the use, receipt, or provision of standard custo-7
610	610	dial services; or 8
611	611	(C) creating liquidity to meet reasonable 9
612	612	expectations of requests to redeem payment 10
613	613	stablecoins, such that reserves in the form of 11
614	614	Treasury bills may be sold as purchased securi-12
615	615	ties for repurchase agreements with a maturity 13
616	616	of 93 days or less, provided that either— 14
617	617	(i) the repurchase agreements are 15
618	618	cleared by a clearing agency registered 16
619	619	with the Securities and Exchange Commis-17
620	620	sion; or 18
621	621	(ii) the permitted payment stablecoin 19
622	622	issuer receives the prior approval of its pri-20
623	623	mary Federal payment stablecoin regulator 21
624	624	or State payment stablecoin regulator, as 22
625	625	applicable. 23
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628	628	•S 1582 PCS
629	629	(3) MONTHLY CERTIFICATION ; EXAMINATION 1
630	630	OF REPORTS BY REGISTERED PUBLIC ACCOUNTING 2
631	631	FIRM.— 3
632	632	(A) I
633	633	N GENERAL.—A permitted payment 4
634	634	stablecoin issuer shall, each month, have the in-5
635	635	formation disclosed in the previous month-end 6
636	636	report required under paragraph (1)(D) exam-7
637	637	ined by a registered public accounting firm. 8
638	638	(B) C
639	639	ERTIFICATION.—Each month, the 9
640	640	Chief Executive Officer and Chief Financial Of-10
641	641	ficer of a permitted payment stablecoin issuer 11
642	642	shall submit a certification as to the accuracy 12
643	643	of the monthly report to, as applicable— 13
644	644	(i) the primary Federal payment 14
645	645	stablecoin regulator of the permitted pay-15
646	646	ment stablecoin issuer; or 16
647	647	(ii) the State payment stablecoin reg-17
648	648	ulator of the permitted payment stablecoin 18
649	649	issuer. 19
650	650	(C) C
651	651	RIMINAL PENALTY.—Any person who 20
652	652	submits a certification required under subpara-21
653	653	graph (B) knowing that such certification is 22
654	654	false shall be subject to the same criminal pen-23
655	655	alties as those set forth under section 1350(c) 24
656	656	of title 18, United States Code. 25
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659	659	•S 1582 PCS
660	660	(4) CAPITAL, LIQUIDITY, AND RISK MANAGE -1
661	661	MENT REQUIREMENTS .— 2
662	662	(A) I
663	663	N GENERAL.—The primary Federal 3
664	664	payment stablecoin regulators shall, or in the 4
665	665	case of a State qualified payment stablecoin 5
666	666	issuer, the State payment stablecoin regulator 6
667	667	shall, consistent with section 13, issue regula-7
668	668	tions implementing— 8
669	669	(i) capital requirements applicable to 9
670	670	permitted payment stablecoin issuers 10
671	671	that— 11
672	672	(I) are tailored to the business 12
673	673	model and risk profile of permitted 13
674	674	payment stablecoin issuers; 14
675	675	(II) do not exceed requirements 15
676	676	that are sufficient to ensure the ongo-16
677	677	ing operations of permitted payment 17
678	678	stablecoin issuers; and 18
679	679	(III) in the case of the primary 19
680	680	Federal payment stablecoin regu-20
681	681	lators, if the primary Federal pay-21
682	682	ment stablecoin regulators determine 22
683	683	that a capital buffer is necessary to 23
684	684	ensure the ongoing operations of per-24
685	685	mitted payment stablecoin issuers, 25
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687	687	ssavage on LAPJG3WLY3PROD with BILLS 24
688	688	•S 1582 PCS
689	689	may include capital buffers that are 1
690	690	tailored to the business model and 2
691	691	risk profile of permitted payment 3
692	692	stablecoin issuers; 4
693	693	(ii) the liquidity standard under para-5
694	694	graph (1)(A); 6
695	695	(iii) reserve asset diversification, in-7
696	696	cluding deposit concentration at banking 8
697	697	institutions, and interest rate risk manage-9
698	698	ment standards applicable to permitted 10
699	699	payment stablecoin issuers that— 11
700	700	(I) are tailored to the business 12
701	701	model and risk profile of permitted 13
702	702	payment stablecoin issuers; and 14
703	703	(II) do not exceed standards that 15
704	704	are sufficient to ensure the ongoing 16
705	705	operations of permitted payment 17
706	706	stablecoin issuers; and 18
707	707	(iv) appropriate operational, compli-19
708	708	ance, and information technology risk 20
709	709	management principles-based requirements 21
710	710	and standards, including Bank Secrecy Act 22
711	711	and sanctions compliance standards, 23
712	712	that— 24
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714	714	ssavage on LAPJG3WLY3PROD with BILLS 25
715	715	•S 1582 PCS
716	716	(I) are tailored to the business 1
717	717	model and risk profile of permitted 2
718	718	payment stablecoin issuers; and 3
719	719	(II) are consistent with applicable 4
720	720	law. 5
721	721	(B) R
722	722	ULE OF CONSTRUCTION .—Nothing in 6
723	723	this paragraph shall be construed to limit— 7
724	724	(i) the authority of the primary Fed-8
725	725	eral payment stablecoin regulators, in pre-9
726	726	scribing standards under this paragraph, 10
727	727	to tailor or differentiate among issuers on 11
728	728	an individual basis or by category, taking 12
729	729	into consideration the capital structure, 13
730	730	business model risk profile, complexity, fi-14
731	731	nancial activities (including financial activi-15
732	732	ties of subsidiaries), size, and any other 16
733	733	risk-related factors of permitted payment 17
734	734	stablecoin issuers that a primary Federal 18
735	735	payment stablecoin regulator determines 19
736	736	appropriate, provided that such tailoring or 20
737	737	differentiation occurs without respect to 21
738	738	whether a permitted payment stablecoin 22
739	739	issuer is regulated by a State payment 23
740	740	stablecoin regulator; or 24
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743	743	•S 1582 PCS
744	744	(ii) any supervisory, regulatory, or en-1
745	745	forcement authority of a primary Federal 2
746	746	payment stablecoin regulator to further the 3
747	747	safe and sound operation of an institution 4
748	748	for which the primary Federal payment 5
749	749	stablecoin regulator is the appropriate reg-6
750	750	ulator. 7
751	751	(C) A
752	752	PPLICABILITY OF EXISTING CAPITAL 8
753	753	STANDARDS.— 9
754	754	(i) D
755	755	EFINITION.—In this subpara-10
756	756	graph, the term ‘‘depository institution 11
757	757	holding company’’ has the meaning given 12
758	758	that term under section 171(a)(3) of the 13
759	759	Financial Stability Act of 2010 (12 U.S.C. 14
760	760	5371(a)(3)). 15
761	761	(ii) A
762	762	PPLICABILITY OF FINANCIAL 16
763	763	STABILITY ACT.—With respect to the pro-17
764	764	mulgation of rules under subparagraph (A) 18
765	765	and clauses (iii) and (iv) of this subpara-19
766	766	graph, section 171 of the Financial Sta-20
767	767	bility Act of 2010 (12 U.S.C. 5371) shall 21
768	768	not apply. 22
769	769	(iii) R
770	770	ULES RELATING TO LEVERAGE 23
771	771	CAPITAL REQUIREMENTS OR RISK -BASED 24
772	772	CAPITAL REQUIREMENTS .—Any rule issued 25
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775	775	•S 1582 PCS
776	776	by an appropriate Federal banking agency 1
777	777	that imposes, on a consolidated basis, a le-2
778	778	verage capital requirement or risk-based 3
779	779	capital requirement with respect to an in-4
780	780	sured depository institution or depository 5
781	781	institution holding company shall provide 6
782	782	that, for purposes of such leverage capital 7
783	783	requirement or risk-based capital require-8
784	784	ment, any insured depository institution or 9
785	785	depository institution holding company 10
786	786	that includes, on a consolidated basis, a 11
787	787	permitted payment stablecoin issuer, shall 12
788	788	not be required to hold, with respect to 13
789	789	such permitted payment stablecoin issuer 14
790	790	and its assets and operations, any amount 15
791	791	of regulatory capital in excess of the cap-16
792	792	ital that such permitted payment 17
793	793	stablecoin issuer must maintain under the 18
794	794	capital requirements issued pursuant to 19
795	795	subparagraph (A)(i). 20
796	796	(iv) M
797	797	ODIFICATIONS.—Not later than 21
798	798	the earlier of the rulemaking deadline 22
799	799	under section 13 or the date on which the 23
800	800	Federal payment stablecoin regulators 24
801	801	issue regulations to carry out this section, 25
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804	804	•S 1582 PCS
805	805	each appropriate Federal banking agency 1
806	806	shall amend or otherwise modify any regu-2
807	807	lation of the appropriate Federal banking 3
808	808	agency described in clause (iii) so that 4
809	809	such regulation, as amended or otherwise 5
810	810	modified, complies with clause (iii) of this 6
811	811	subparagraph. 7
812	812	(5) T
813	813	REATMENT UNDER THE BANK SECRECY 8
814	814	ACT AND SANCTIONS LAWS .— 9
815	815	(A) I
816	816	N GENERAL.—A permitted payment 10
817	817	stablecoin issuer shall be treated as a financial 11
818	818	institution for purposes of the Bank Secrecy 12
819	819	Act, and as such, shall be subject to all Federal 13
820	820	laws applicable to a financial institution located 14
821	821	in the United States relating to economic sanc-15
822	822	tions, prevention of money laundering, customer 16
823	823	identification, and due diligence, including, as 17
824	824	applicable— 18
825	825	(i) maintenance of an effective anti- 19
826	826	money laundering and economic sanctions 20
827	827	compliance program, which shall include 21
828	828	appropriate risk assessments, verification 22
829	829	of sanctions lists, and designation of an of-23
830	830	ficer to supervise the programs; 24
831	831	(ii) retention of appropriate records; 25
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834	834	•S 1582 PCS
835	835	(iii) monitoring and reporting of any 1
836	836	suspicious transaction relevant to a pos-2
837	837	sible violation of law or regulation; 3
838	838	(iv) policies and procedures to block, 4
839	839	freeze, and reject specific or impermissible 5
840	840	transactions that violate Federal or State 6
841	841	laws, rules, or regulations; and 7
842	842	(v) maintenance of an effective cus-8
843	843	tomer identification program, including 9
844	844	identification and verification of account 10
845	845	holders with the permitted payment 11
846	846	stablecoin issuer, high-value transactions, 12
847	847	and appropriate enhanced due diligence. 13
848	848	(B) R
849	849	ULEMAKING.—The Financial Crimes 14
850	850	Enforcement Network shall adopt rules, tailored 15
851	851	to the size and complexity of permitted payment 16
852	852	stablecoin issuers, to implement subparagraph 17
853	853	(A). 18
854	854	(C) R
855	855	ESERVATION OF AUTHORITY .—Noth-19
856	856	ing in this Act shall restrict the authority of the 20
857	857	Secretary of the Treasury to implement, admin-21
858	858	ister, and enforce the provisions of subchapter 22
859	859	II of chapter 53 of title 31, United States Code. 23
860	860	(6) C
861	861	OORDINATION WITH PERMITTED PAYMENT 24
862	862	STABLECOIN ISSUERS WITH RESPECT TO BLOCKING 25
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865	865	•S 1582 PCS
866	866	OF PROPERTY AND TECHNOLOGICAL CAPABILITIES 1
867	867	TO COMPLY WITH LAWFUL ORDERS .— 2
868	868	(A) I
869	869	N GENERAL.—The Secretary of the 3
870	870	Treasury— 4
871	871	(i) shall, to the best of the Secretary’s 5
872	872	ability, coordinate with a permitted pay-6
873	873	ment stablecoin issuer before taking any 7
874	874	action to block and prohibit transactions in 8
875	875	property and interests in property of a for-9
876	876	eign person to ensure that the permitted 10
877	877	payment stablecoin issuer is able to effec-11
878	878	tively block a payment stablecoin of the 12
879	879	foreign person upon issuance of the pay-13
880	880	ment stablecoin; and 14
881	881	(ii) is not required to notify any per-15
882	882	mitted payment stablecoin issuer of any in-16
883	883	tended action described in clause (i) prior 17
884	884	to taking such action. 18
885	885	(B) C
886	886	OMPLIANCE WITH LAWFUL OR -19
887	887	DERS.—A permitted payment stablecoin issuer 20
888	888	may issue payment stablecoins only if the issuer 21
889	889	has the technological capability to comply, and 22
890	890	will comply, with the terms of any lawful order. 23
891	891	(C) R
892	892	EPORT REQUIRED.—Not later than 1 24
893	893	year after the date of enactment of this Act, the 25
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896	896	•S 1582 PCS
897	897	Attorney General and the Secretary of the 1
898	898	Treasury shall submit to the Committee on 2
899	899	Banking, Housing, and Urban Affairs of the 3
900	900	Senate and the Committee on Financial Serv-4
901	901	ices of the House of Representatives a report, 5
902	902	which may include a classified annex if applica-6
903	903	ble, on the coordination with permitted payment 7
904	904	stablecoin issuers required under subparagraph 8
905	905	(A). 9
906	906	(D) R
907	907	ULE OF CONSTRUCTION .—Nothing in 10
908	908	this paragraph shall be construed to alter or af-11
909	909	fect the authority of State payment stablecoin 12
910	910	regulators with respect to the offer of foreign- 13
911	911	issued digital assets that are issued within a 14
912	912	foreign jurisdiction. 15
913	913	(7) L
914	914	IMITATION ON PAYMENT STABLECOIN AC -16
915	915	TIVITIES.— 17
916	916	(A) I
917	917	N GENERAL.—A permitted payment 18
918	918	stablecoin issuer may only— 19
919	919	(i) issue payment stablecoins; 20
920	920	(ii) redeem payment stablecoins; 21
921	921	(iii) manage related reserves, includ-22
922	922	ing purchasing, selling, and holding reserve 23
923	923	assets or providing custodial services for 24
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926	926	•S 1582 PCS
927	927	reserve assets, consistent with State and 1
928	928	Federal law; 2
929	929	(iv) provide custodial or safekeeping 3
930	930	services for payment stablecoins, required 4
931	931	reserves, or private keys of payment 5
932	932	stablecoins, consistent with this Act; and 6
933	933	(v) undertake other activities that di-7
934	934	rectly support any of the activities de-8
935	935	scribed in clauses (i) through (iv). 9
936	936	(B) R
937	937	ULE OF CONSTRUCTION .—Nothing in 10
938	938	subparagraph (A) shall limit a permitted pay-11
939	939	ment stablecoin issuer from engaging in non- 12
940	940	payment stablecoin activities that are author-13
941	941	ized by the primary Federal payment stablecoin 14
942	942	regulator or the State payment stablecoin regu-15
943	943	lator, as applicable, consistent with all other 16
944	944	Federal and State laws, provided that the 17
945	945	claims of payment stablecoin holders rank sen-18
946	946	ior to any potential claims of non-stablecoin 19
947	947	creditors with respect to the reserve assets, con-20
948	948	sistent with section 11 and the amendments 21
949	949	made by that section. 22
950	950	(8) P
951	951	ROHIBITION ON TYING.— 23
952	952	(A) I
953	953	N GENERAL.—A permitted payment 24
954	954	stablecoin issuer may not provide services to a 25
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956	956	ssavage on LAPJG3WLY3PROD with BILLS 33
957	957	•S 1582 PCS
958	958	customer on the condition that the customer ob-1
959	959	tain an additional paid product or service from 2
960	960	the permitted payment stablecoin issuer, or any 3
961	961	of its subsidiaries, or agree to not obtain an ad-4
962	962	ditional product or service from a competitor. 5
963	963	(B) R
964	964	EGULATIONS.—The Board may issue 6
965	965	such regulations as are necessary to carry out 7
966	966	this paragraph, and, in consultation with other 8
967	967	relevant primary Federal payment stablecoin 9
968	968	regulators, may by regulation or order, permit 10
969	969	such exceptions to subparagraph (A) as the 11
970	970	Board considers will not be contrary to the pur-12
971	971	pose of this Act. 13
972	972	(9) P
973	973	ROHIBITION ON THE USE OF DECEPTIVE 14
974	974	NAMES.—A permitted payment stablecoin issuer may 15
975	975	not— 16
976	976	(A) use any combination of terms relating 17
977	977	to the United States Government, including 18
978	978	‘‘United States’’ and ‘‘United States Govern-19
979	979	ment’’, in the name of a payment stablecoin; or 20
980	980	(B) market a payment stablecoin in such a 21
981	981	way that a reasonable person would perceive the 22
982	982	payment stablecoin to be— 23
983	983	(i) legal tender, as described in section 24
984	984	5103 of title 31, United States Code; 25
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987	987	•S 1582 PCS
988	988	(ii) issued by the United States; or 1
989	989	(iii) guaranteed or approved by the 2
990	990	Government of the United States. 3
991	991	(10) A
992	992	UDITS AND REPORTS.— 4
993	993	(A) A
994	994	NNUAL FINANCIAL STATEMENT .— 5
995	995	(i) I
996	996	N GENERAL.—A permitted pay-6
997	997	ment stablecoin issuer with more than 7
998	998	$50,000,000,000 in consolidated total out-8
999	999	standing issuance, that is not subject to 9
1000	1000	the reporting requirements under section 10
1001	1001	13(a) or 15(d) of the Securities and Ex-11
1002	1002	change Act of 1934 (15 U.S.C. 78m, 12
1003	1003	78o(d)), shall prepare, in accordance with 13
1004	1004	generally accepted accounting principles, 14
1005	1005	an annual financial statement, which shall 15
1006	1006	include the disclosure of any related party 16
1007	1007	transactions, as defined by such generally 17
1008	1008	accepted accounting principles. 18
1009	1009	(ii) A
1010	1010	UDITOR.—A registered public ac-19
1011	1011	counting firm shall perform an audit of the 20
1012	1012	annual financial statements described in 21
1013	1013	clause (i). 22
1014	1014	(iii) S
1015	1015	TANDARDS.—An audit described 23
1016	1016	in clause (ii) shall be conducted in accord-24
1017	1017	ance with all applicable auditing standards 25
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1020	1020	•S 1582 PCS
1021	1021	established by the Public Company Ac-1
1022	1022	counting Oversight Board, including those 2
1023	1023	relating to auditor independence, internal 3
1024	1024	controls, and related party transactions. 4
1025	1025	(iv) R
1026	1026	ULE OF CONSTRUCTION .—Noth-5
1027	1027	ing in this subparagraph shall be construed 6
1028	1028	to limit, alter, or expand the jurisdiction of 7
1029	1029	the Public Company Accounting Oversight 8
1030	1030	Board over permitted payment stablecoin 9
1031	1031	issuers or registered public accounting 10
1032	1032	firms. 11
1033	1033	(B) P
1034	1034	UBLIC DISCLOSURE AND SUBMISSION 12
1035	1035	TO FEDERAL REGULATORS .—Each permitted 13
1036	1036	payment stablecoin issuer required to prepare 14
1037	1037	an audited annual financial statement under 15
1038	1038	subparagraph (A) shall— 16
1039	1039	(i) make such audited financial state-17
1040	1040	ments publicly available on the website of 18
1041	1041	the permitted payment stablecoin issuer; 19
1042	1042	and 20
1043	1043	(ii) submit such audited financial 21
1044	1044	statements annually to their primary Fed-22
1045	1045	eral payment stablecoin regulator. 23
1046	1046	(C) C
1047	1047	ONSULTATION.—The primary Fed-24
1048	1048	eral payment stablecoin regulators may consult 25
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1051	1051	•S 1582 PCS
1052	1052	with the Public Company Accounting Oversight 1
1053	1053	Board to determine best practices for deter-2
1054	1054	mining audit oversight and to detect fraud, ma-3
1055	1055	terial misstatements, and other financial mis-4
1056	1056	representations that could mislead permitted 5
1057	1057	payment stablecoin holders. 6
1058	1058	(11) E
1059	1059	LIGIBILITY.—The requirement to main-7
1060	1060	tain reserves under paragraph (1)(A) may not be 8
1061	1061	construed as expanding or contracting eligibility to 9
1062	1062	qualify as a depository institution under section 10
1063	1063	19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 11
1064	1064	461(b)(1)(A)). 12
1065	1065	(12) R
1066	1066	ULE OF CONSTRUCTION .—Compliance 13
1067	1067	with this section does not alter or affect any addi-14
1068	1068	tional requirement of a State payment stablecoin 15
1069	1069	regulator that may apply relating to the offering of 16
1070	1070	payment stablecoins. 17
1071	1071	(b) R
1072	1072	EGULATION BY THECOMPTROLLER.— 18
1073	1073	(1) I
1074	1074	N GENERAL.—Notwithstanding section 19
1075	1075	5136C of the Revised Statutes (12 U.S.C. 25b), sec-20
1076	1076	tion 6 of the Home Owners’ Loan Act (12 U.S.C. 21
1077	1077	1465), or any applicable State law relating to licens-22
1078	1078	ing and supervision, a Federal qualified payment 23
1079	1079	stablecoin issuer approved by the Comptroller pursu-24
1080	1080	ant to section 5 of this Act shall be licensed, regu-25
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1083	1083	•S 1582 PCS
1084	1084	lated, examined, and supervised exclusively by the 1
1085	1085	Comptroller, which shall have authority, in coordina-2
1086	1086	tion with other relevant primary Federal payment 3
1087	1087	stablecoin regulators and State payment stablecoin 4
1088	1088	regulators, to issue such regulations and orders as 5
1089	1089	necessary to ensure financial stability and implement 6
1090	1090	subsection (a). 7
1091	1091	(2) C
1092	1092	ONFORMING AMENDMENT .—Section 8
1093	1093	324(b) of the Revised Statutes (12 U.S.C. 1(b)) is 9
1094	1094	amended by adding at the end the following: 10
1095	1095	‘‘(3) R
1096	1096	EGULATION OF FEDERAL QUALIFIED 11
1097	1097	PAYMENT STABLECOIN ISSUERS .—The Comptroller 12
1098	1098	of the Currency shall, in coordination with other rel-13
1099	1099	evant regulators and consistent with section 13 of 14
1100	1100	the GENIUS Act, issue such regulations and orders 15
1101	1101	as necessary to ensure financial stability and imple-16
1102	1102	ment section 4(a) of that Act.’’. 17
1103	1103	(c) S
1104	1104	TATE-LEVELREGULATORYREGIMES.— 18
1105	1105	(1) O
1106	1106	PTION FOR STATE -LEVEL REGULATORY 19
1107	1107	REGIME.—Notwithstanding the Federal regulatory 20
1108	1108	framework established under this Act, a State quali-21
1109	1109	fied payment stablecoin issuer with a consolidated 22
1110	1110	total outstanding issuance of not more than 23
1111	1111	$10,000,000,000 may opt for regulation under a 24
1112	1112	State-level regulatory regime, provided that the 25
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1115	1115	•S 1582 PCS
1116	1116	State-level regulatory regime is substantially similar 1
1117	1117	to the Federal regulatory framework under that sub-2
1118	1118	section. 3
1119	1119	(2) P
1120	1120	RINCIPLES.—The Secretary of the Treas-4
1121	1121	ury shall, through notice and comment rulemaking, 5
1122	1122	establish broad-based principles for determining 6
1123	1123	whether a State-level regulatory regime is substan-7
1124	1124	tially similar to the Federal regulatory framework 8
1125	1125	under this Act. 9
1126	1126	(3) R
1127	1127	EVIEW.—State payment stablecoin regu-10
1128	1128	lators shall review State-level regulatory regimes ac-11
1129	1129	cording to the principles established by the Secretary 12
1130	1130	of the Treasury under paragraph (2) and for the 13
1131	1131	purposes of establishing any necessary cooperative 14
1132	1132	agreements to implement section 7(f). 15
1133	1133	(4) C
1134	1134	ERTIFICATION.— 16
1135	1135	(A) I
1136	1136	NITIAL CERTIFICATION.—Subject to 17
1137	1137	subparagraph (B), not later than 1 year after 18
1138	1138	the effective date of this Act, a State payment 19
1139	1139	stablecoin regulator shall submit to the 20
1140	1140	Stablecoin Certification Review Committee an 21
1141	1141	initial certification that the State-level regu-22
1142	1142	latory regime meets the criteria for substantial 23
1143	1143	similarity established pursuant to paragraph 24
1144	1144	(2). 25
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1147	1147	•S 1582 PCS
1148	1148	(B) FORM OF CERTIFICATION.—The initial 1
1149	1149	certification required under subparagraph (A) 2
1150	1150	shall contain, in a form prescribed by the 3
1151	1151	Stablecoin Certification Review Committee, an 4
1152	1152	attestation that the State-level regulatory re-5
1153	1153	gime meets the criteria for substantial simi-6
1154	1154	larity established pursuant to paragraph (2). 7
1155	1155	(C) A
1156	1156	NNUAL RECERTIFICATION .—Not later 8
1157	1157	than a date to be determined by the Secretary 9
1158	1158	of the Treasury each year, a State payment 10
1159	1159	stablecoin regulator shall submit to the 11
1160	1160	Stablecoin Certification Review Committee an 12
1161	1161	additional certification that confirms the accu-13
1162	1162	racy of the initial certification submitted under 14
1163	1163	subparagraph (A). 15
1164	1164	(5) C
1165	1165	ERTIFICATION REVIEW.— 16
1166	1166	(A) I
1167	1167	N GENERAL.—Not later than 30 days 17
1168	1168	after the date on which a State payment 18
1169	1169	stablecoin regulator submits an initial certifi-19
1170	1170	cation or a recertification under paragraph (4), 20
1171	1171	the Stablecoin Certification Review Committee 21
1172	1172	shall— 22
1173	1173	(i) approve such certification if the 23
1174	1174	Committee unanimously determines that 24
1175	1175	the State-level regulatory regime meets or 25
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1178	1178	•S 1582 PCS
1179	1179	exceeds the standards and requirements 1
1180	1180	described in subsection (a); or 2
1181	1181	(ii) deny such certification and pro-3
1182	1182	vide the State payment stablecoin regu-4
1183	1183	lator with a written explanation of the de-5
1184	1184	nial, describing the reasoned basis for the 6
1185	1185	denial with sufficient detail to enable the 7
1186	1186	State payment stablecoin regulator and 8
1187	1187	State-level regulatory regime to make any 9
1188	1188	changes necessary to meet or exceed the 10
1189	1189	standards and requirements described in 11
1190	1190	subsection (a). 12
1191	1191	(B) R
1192	1192	ECERTIFICATIONS.—With respect to 13
1193	1193	recertification certification submitted by a State 14
1194	1194	payment stablecoin regulator under paragraph 15
1195	1195	(4), the Stablecoin Certification Review Com-16
1196	1196	mittee shall only deny the recertification if— 17
1197	1197	(i) the State-level regulatory regime 18
1198	1198	has materially changed from the prior cer-19
1199	1199	tification or there has been a significant 20
1200	1200	change in circumstances; and 21
1201	1201	(ii) the material change in the regime 22
1202	1202	or significant change in circumstances de-23
1203	1203	scribed in clause (i) is such that the State- 24
1204	1204	level regulatory regime will not promote 25
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1207	1207	•S 1582 PCS
1208	1208	the safe and sound operation of State 1
1209	1209	qualified payment stablecoin issuers under 2
1210	1210	its supervision. 3
1211	1211	(C) O
1212	1212	PPORTUNITY TO CURE.— 4
1213	1213	(i) I
1214	1214	N GENERAL.—With respect to a 5
1215	1215	denial described under subparagraph (A) 6
1216	1216	or (B), the Stablecoin Certification Review 7
1217	1217	Committee shall provide the State payment 8
1218	1218	stablecoin regulator with not less than 180 9
1219	1219	days from the date on which the State pay-10
1220	1220	ment stablecoin regulator is notified of 11
1221	1221	such denial to— 12
1222	1222	(I) make such changes as may be 13
1223	1223	necessary to ensure the State-level 14
1224	1224	regulatory regime meets or exceeds 15
1225	1225	the standards described in subsection 16
1226	1226	(a); and 17
1227	1227	(II) resubmit the initial certifi-18
1228	1228	cation or recertification. 19
1229	1229	(ii) D
1230	1230	ENIAL.—If, after a State pay-20
1231	1231	ment stablecoin regulator resubmits an ini-21
1232	1232	tial certification or recertification under 22
1233	1233	clause (i), the Stablecoin Certification Re-23
1234	1234	view Committee again determines that the 24
1235	1235	initial certification or recertification shall 25
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1238	1238	•S 1582 PCS
1239	1239	result in a denial, the Stablecoin Certifi-1
1240	1240	cation Review Committee shall, not later 2
1241	1241	than 30 days after such determination, 3
1242	1242	provide the State payment stablecoin regu-4
1243	1243	lator with a written explanation for the de-5
1244	1244	termination. 6
1245	1245	(D) A
1246	1246	PPEAL OF DENIAL .—A State pay-7
1247	1247	ment stablecoin regulator in receipt of a denial 8
1248	1248	under subparagraph (C)(ii) may appeal the de-9
1249	1249	nial to the United States Court of Appeals for 10
1250	1250	the District of Columbia Circuit. 11
1251	1251	(E) R
1252	1252	IGHT TO RESUBMIT .—A State pay-12
1253	1253	ment stablecoin regulator in receipt of a denial 13
1254	1254	under this paragraph shall not be prohibited 14
1255	1255	from resubmitting a new certification under 15
1256	1256	paragraph (4). 16
1257	1257	(6) L
1258	1258	IST.—The Secretary of the Treasury shall 17
1259	1259	publish and maintain in the Federal Register and on 18
1260	1260	the website of the Department of the Treasury a list 19
1261	1261	of States that have submitted initial certifications 20
1262	1262	and recertifications under paragraph (4). 21
1263	1263	(7) S
1264	1264	TABLECOIN CERTIFICATION REVIEW COM -22
1265	1265	MITTEE ESTABLISHMENT .—For purposes of this 23
1266	1266	subsection, the Stablecoin Certification Review Com-24
1267	1267	mittee shall consist of the Secretary of the Treasury, 25
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1270	1270	•S 1582 PCS
1271	1271	the Chair of the Board, and the Chair of the Cor-1
1272	1272	poration. 2
1273	1273	(d) T
1274	1274	RANSITION TOFEDERALOVERSIGHT.— 3
1275	1275	(1) D
1276	1276	EPOSITORY INSTITUTION.—A State char-4
1277	1277	tered depository institution that is a State qualified 5
1278	1278	payment stablecoin issuer with a payment stablecoin 6
1279	1279	with a consolidated total outstanding issuance of 7
1280	1280	more than $10,000,000,000 shall— 8
1281	1281	(A) not later than 360 days after the pay-9
1282	1282	ment stablecoin reaches such threshold, transi-10
1283	1283	tion to the Federal regulatory framework of the 11
1284	1284	primary Federal payment stablecoin regulator 12
1285	1285	of the State chartered depository institution, 13
1286	1286	which shall be administered by the State pay-14
1287	1287	ment stablecoin regulator of the State chartered 15
1288	1288	depository institution and the primary Federal 16
1289	1289	payment stablecoin regulator acting jointly; or 17
1290	1290	(B) beginning on the date the payment 18
1291	1291	stablecoin reaches such threshold, cease issuing 19
1292	1292	new payment stablecoins until the payment 20
1293	1293	stablecoin is under the $10,000,000,000 con-21
1294	1294	solidated total outstanding issuance threshold. 22
1295	1295	(2) O
1296	1296	THER INSTITUTIONS.—A State qualified 23
1297	1297	payment stablecoin issuer not described in para-24
1298	1298	graph (1) with a payment stablecoin with a consoli-25
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1301	1301	•S 1582 PCS
1302	1302	dated total outstanding issuance of more than 1
1303	1303	$10,000,000,000 shall— 2
1304	1304	(A) not later than 360 days after the pay-3
1305	1305	ment stablecoin reaches such threshold, transi-4
1306	1306	tion to the Federal regulatory framework under 5
1307	1307	subsection (a) administered by the relevant 6
1308	1308	State payment stablecoin regulator and the 7
1309	1309	Comptroller, acting in coordination; or 8
1310	1310	(B) beginning on the date the payment 9
1311	1311	stablecoin reaches such threshold, cease issuing 10
1312	1312	new payment stablecoins until the payment 11
1313	1313	stablecoin is under the $10,000,000,000 con-12
1314	1314	solidated total outstanding issuance threshold. 13
1315	1315	(3) W
1316	1316	AIVER.— 14
1317	1317	(A) I
1318	1318	N GENERAL.—Notwithstanding para-15
1319	1319	graphs (1) and (2), the applicable primary Fed-16
1320	1320	eral payment stablecoin regulator may permit a 17
1321	1321	State qualified payment stablecoin issuer with a 18
1322	1322	payment stablecoin with a consolidated total 19
1323	1323	outstanding issuance of more than 20
1324	1324	$10,000,000,000 to remain solely supervised by 21
1325	1325	a State payment stablecoin regulator. 22
1326	1326	(B) C
1327	1327	RITERIA FOR WAIVER.—The primary 23
1328	1328	Federal payment stablecoin regulator shall con-24
1329	1329	sider the following exclusive criteria in deter-25
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1332	1332	•S 1582 PCS
1333	1333	mining whether to issue a waiver under this 1
1334	1334	paragraph: 2
1335	1335	(i) The capital maintained by the 3
1336	1336	State qualified payment stablecoin issuer. 4
1337	1337	(ii) The past operations and examina-5
1338	1338	tion history of the State qualified payment 6
1339	1339	stablecoin issuer. 7
1340	1340	(iii) The experience of the State pay-8
1341	1341	ment stablecoin regulator in supervising 9
1342	1342	payment stablecoin and digital asset activi-10
1343	1343	ties. 11
1344	1344	(iv) The supervisory framework, in-12
1345	1345	cluding regulations and guidance, of the 13
1346	1346	State qualified payment stablecoin issuer 14
1347	1347	with respect to payment stablecoins and 15
1348	1348	digital assets. 16
1349	1349	(C) R
1350	1350	ULE OF CONSTRUCTION .— 17
1351	1351	(i) F
1352	1352	EDERAL OVERSIGHT .—A State 18
1353	1353	qualified payment stablecoin issuer subject 19
1354	1354	to Federal oversight under paragraph (1) 20
1355	1355	or (2) of this subsection that does not re-21
1356	1356	ceive a waiver under this paragraph shall 22
1357	1357	continue to be supervised by the State pay-23
1358	1358	ment stablecoin regulator of the State 24
1359	1359	qualified payment stablecoin issuer jointly 25
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1362	1362	•S 1582 PCS
1363	1363	with the primary Federal payment 1
1364	1364	stablecoin regulator. Nothing in this sub-2
1365	1365	section shall require the State qualified 3
1366	1366	payment stablecoin issuer to convert to a 4
1367	1367	Federal charter. 5
1368	1368	(ii) S
1369	1369	TATE OVERSIGHT .—A State 6
1370	1370	qualified payment stablecoin issuer super-7
1371	1371	vised by a State payment stablecoin regu-8
1372	1372	lator that has established a prudential reg-9
1373	1373	ulatory regime (including regulations and 10
1374	1374	guidance) for the supervision of digital as-11
1375	1375	sets or payment stablecoins before the 90- 12
1376	1376	day period ending on the date of enact-13
1377	1377	ment of this Act that has been certified 14
1378	1378	pursuant to subsection (c) and has ap-15
1379	1379	proved 1 or more issuers to issue a pay-16
1380	1380	ment stablecoin under the supervision of 17
1381	1381	such State payment stablecoin regulator, 18
1382	1382	shall be presumptively approved for a waiv-19
1383	1383	er under this paragraph, unless the Fed-20
1384	1384	eral payment stablecoin regulator finds, by 21
1385	1385	clear and convincing evidence, that the re-22
1386	1386	quirements of subparagraph (B) are not 23
1387	1387	substantially met with respect to that 24
1388	1388	issuer or that the issuer poses significant 25
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1391	1391	•S 1582 PCS
1392	1392	safety and soundness risks to the financial 1
1393	1393	system of the United States. 2
1394	1394	(e) M
1395	1395	ISREPRESENTATION OF INSUREDSTATUS.— 3
1396	1396	(1) I
1397	1397	N GENERAL.—Payment stablecoins shall 4
1398	1398	not be backed by the full faith and credit of the 5
1399	1399	United States, guaranteed by the United States 6
1400	1400	Government, subject to deposit insurance by the 7
1401	1401	Federal Deposit Insurance Corporation, or subject 8
1402	1402	to share insurance by the National Credit Union Ad-9
1403	1403	ministration. 10
1404	1404	(2) M
1405	1405	ISREPRESENTATION OF INSURED STA -11
1406	1406	TUS.— 12
1407	1407	(A) I
1408	1408	N GENERAL.—It shall be unlawful to 13
1409	1409	represent that payment stablecoins are backed 14
1410	1410	by the full faith and credit of the United 15
1411	1411	States, guaranteed by the United States Gov-16
1412	1412	ernment, or subject to Federal deposit insur-17
1413	1413	ance or Federal share insurance, provided that 18
1414	1414	this subparagraph shall not prohibit a per-19
1415	1415	mitted payment stablecoin issuer from dis-20
1416	1416	closing which assets in its reserves are backed 21
1417	1417	by the full faith and credit of the United States 22
1418	1418	or what percentage of its total reserves are 23
1419	1419	backed by the full faith and credit of the United 24
1420	1420	States. 25
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1423	1423	•S 1582 PCS
1424	1424	(B) PENALTY.—A violation of subpara-1
1425	1425	graph (A) shall be considered a violation of sec-2
1426	1426	tion 18(a)(4) of the Federal Deposit Insurance 3
1427	1427	Act (12 U.S.C. 1828(a)(4)) or section 709 of 4
1428	1428	title 18, United States Code, as applicable. 5
1429	1429	(3) M
1430	1430	ARKETING.— 6
1431	1431	(A) I
1432	1432	N GENERAL.—It shall be unlawful to 7
1433	1433	market a product in the United States as a 8
1434	1434	payment stablecoin unless the product is issued 9
1435	1435	pursuant to this Act. 10
1436	1436	(B) P
1437	1437	ENALTY.—Whoever knowingly and 11
1438	1438	willfully participates in a violation of subpara-12
1439	1439	graph (A) shall be fined by the Department of 13
1440	1440	the Treasury not more than $500,000 for each 14
1441	1441	such violation. 15
1442	1442	(C) D
1443	1443	ETERMINATION OF THE NUMBER OF 16
1444	1444	VIOLATIONS.—For purposes of determining the 17
1445	1445	number of violations for which to impose pen-18
1446	1446	alties under subparagraph (B), separate acts of 19
1447	1447	noncompliance are a single violation when the 20
1448	1448	acts are the result of— 21
1449	1449	(i) a common or substantially overlap-22
1450	1450	ping originating cause; or 23
1451	1451	(ii) the same statement or publication. 24
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1454	1454	•S 1582 PCS
1455	1455	(D) REFERRAL TO SECRETARY OF THE 1
1456	1456	TREASURY.—If a Federal payment stablecoin 2
1457	1457	regulator has reason to believe that any person 3
1458	1458	has knowingly and willfully violated subpara-4
1459	1459	graph (A), the Federal payment stablecoin reg-5
1460	1460	ulator may refer the matter to the Secretary of 6
1461	1461	the Treasury. 7
1462	1462	(f) O
1463	1463	FFICERS ORDIRECTORSCONVICTED OFCER-8
1464	1464	TAINFELONIES.— 9
1465	1465	(1) I
1466	1466	N GENERAL.—No individual who has been 10
1467	1467	convicted of a felony offense involving insider trad-11
1468	1468	ing, embezzlement, cybercrime, money laundering, fi-12
1469	1469	nancing of terrorism, or financial fraud may serve 13
1470	1470	as— 14
1471	1471	(A) an officer of a payment stablecoin 15
1472	1472	issuer; or 16
1473	1473	(B) a director of a payment stablecoin 17
1474	1474	issuer. 18
1475	1475	(2) P
1476	1476	ENALTY.— 19
1477	1477	(A) I
1478	1478	N GENERAL.—Whoever knowingly 20
1479	1479	participates in a violation of paragraph (1) shall 21
1480	1480	be fined not more than $1,000,000 for each 22
1481	1481	such violation, imprisoned for not more than 5 23
1482	1482	years, or both. 24
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1485	1485	•S 1582 PCS
1486	1486	(B) REFERRAL TO ATTORNEY GENERAL .— 1
1487	1487	If a Federal payment stablecoin regulator has 2
1488	1488	reason to believe that any person has knowingly 3
1489	1489	violated paragraph (1), the Federal payment 4
1490	1490	stablecoin regulator shall refer the matter to 5
1491	1491	the Attorney General. 6
1492	1492	(g) C
1493	1493	LARIFICATIONRELATING TOFEDERALSAVINGS 7
1494	1494	A
1495	1495	SSOCIATIONRESERVES.—A Federal savings association 8
1496	1496	established under the Home Owners’ Loan Act (12 U.S.C. 9
1497	1497	1461 et seq.) that holds a reserve that satisfies the re-10
1498	1498	quirements of section 4(a)(1) shall not be required to sat-11
1499	1499	isfy the qualified thrift lender test under section 10(m) 12
1500	1500	of the Home Owners’ Loan Act (12 U.S.C. 1467a(m)) 13
1501	1501	with respect to such reserve assets. 14
1502	1502	(h) R
1503	1503	ULEMAKING.— 15
1504	1504	(1) I
1505	1505	N GENERAL.—Consistent with section 13, 16
1506	1506	the primary Federal payment stablecoin regulators 17
1507	1507	shall, and State payment stablecoin regulators may, 18
1508	1508	issue such regulations relating to permitted payment 19
1509	1509	stablecoin issuers as may be necessary to establish 20
1510	1510	a payment stablecoin regulatory framework nec-21
1511	1511	essary to administer and carry out the requirements 22
1512	1512	of this section, including to establish conditions, and 23
1513	1513	to prevent evasion thereof. 24
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1517	1517	(2) COORDINATED ISSUANCE OF REGULA -1
1518	1518	TIONS.—All regulations issued to carry out this sec-2
1519	1519	tion shall be issued in coordination by the primary 3
1520	1520	Federal payment stablecoin regulators, if not issued 4
1521	1521	by a State payment stablecoin regulator. 5
1522	1522	(i) R
1523	1523	ULES OFCONSTRUCTION.—Nothing in this Act 6
1524	1524	shall be construed— 7
1525	1525	(1) as expanding the authority of the Board 8
1526	1526	with respect to the services the Board can make di-9
1527	1527	rectly available to the public; or 10
1528	1528	(2) to limit or prevent the continued application 11
1529	1529	of applicable ethics statutes and regulations adminis-12
1530	1530	tered by the Office of Government Ethics, or the 13
1531	1531	ethics rules of the House of Representatives and the 14
1532	1532	Senate, including section 208 of title 18, United 15
1533	1533	States Code, and sections 2635.702 and 2635.802 of 16
1534	1534	title 5, Code of Federal Regulations. For the avoid-17
1535	1535	ance of doubt, existing Office of Government Ethics 18
1536	1536	laws and the ethics rules of the House of Represent-19
1537	1537	atives and the Senate prohibit any member of Con-20
1538	1538	gress or senior executive branch official from issuing 21
1539	1539	a payment stablecoin product during their time in 22
1540	1540	public service. 23
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1543	1543	•S 1582 PCS
1544	1544	SEC. 5. APPROVAL OF SUBSIDIARIES OF INSURED DEPOSI-1
1545	1545	TORY INSTITUTIONS AND FEDERAL QUALI-2
1546	1546	FIED PAYMENT STABLECOIN ISSUERS. 3
1547	1547	(a) A
1548	1548	PPLICATION.— 4
1549	1549	(1) I
1550	1550	N GENERAL.—Each primary Federal pay-5
1551	1551	ment stablecoin regulator shall— 6
1552	1552	(A) receive, review, and consider for ap-7
1553	1553	proval applications from any insured depository 8
1554	1554	institution that seeks to issue payment 9
1555	1555	stablecoins through a subsidiary and any 10
1556	1556	nonbank entity, Federal branch, or uninsured 11
1557	1557	national bank that is chartered by the Comp-12
1558	1558	troller pursuant to title LXII of the Revised 13
1559	1559	Statutes, and that seeks to issue payment 14
1560	1560	stablecoins as a Federal qualified payment 15
1561	1561	stablecoin issuer; and 16
1562	1562	(B) establish a process and framework for 17
1563	1563	the licensing, regulation, examination, and su-18
1564	1564	pervision of such entities that prioritizes the 19
1565	1565	safety and soundness of such entities. 20
1566	1566	(2) A
1567	1567	UTHORITY TO ISSUE REGULATIONS AND 21
1568	1568	PROCESS APPLICATIONS.—The primary Federal pay-22
1569	1569	ment stablecoin regulators shall, before the date de-23
1570	1570	scribed in section 13— 24
1571	1571	(A) issue regulations consistent with that 25
1572	1572	section to carry out this section; and 26
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1575	1575	•S 1582 PCS
1576	1576	(B) pursuant to the regulations described 1
1577	1577	in subparagraph (A), accept and process appli-2
1578	1578	cations described in paragraph (1). 3
1579	1579	(3) M
1580	1580	ANDATORY APPROVAL PROCESS .—A pri-4
1581	1581	mary Federal payment stablecoin regulator shall, 5
1582	1582	upon receipt of a substantially complete application 6
1583	1583	received under paragraph (1), evaluate and make a 7
1584	1584	determination on each application based on the cri-8
1585	1585	teria established under this Act. 9
1586	1586	(b) E
1587	1587	VALUATION OFAPPLICATIONS.—A substantially 10
1588	1588	complete application received under subsection (a) shall be 11
1589	1589	evaluated by the primary Federal payment stablecoin reg-12
1590	1590	ulator using the factors described in subsection (c). 13
1591	1591	(c) F
1592	1592	ACTORS TOBECONSIDERED.—The factors de-14
1593	1593	scribed in this subsection are the following: 15
1594	1594	(1) The ability of the applicant (or, in the case 16
1595	1595	of an applicant that is an insured depository institu-17
1596	1596	tion, the subsidiary of the applicant), based on fi-18
1597	1597	nancial condition and resources, to meet the require-19
1598	1598	ments set forth under section 4. 20
1599	1599	(2) Whether an individual who has been con-21
1600	1600	victed of a felony offense involving insider trading, 22
1601	1601	embezzlement, cybercrime, money laundering, fi-23
1602	1602	nancing of terrorism, or financial fraud is serving as 24
1603	1603	an officer or director of the applicant. 25
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1607	1607	(3) The competence, experience, and integrity 1
1608	1608	of the officers, directors, and principal shareholders 2
1609	1609	of the applicant, its subsidiaries, and parent com-3
1610	1610	pany, including— 4
1611	1611	(A) the record of those officers, directors, 5
1612	1612	and principal shareholders of compliance with 6
1613	1613	laws and regulations; and 7
1614	1614	(B) the ability of those officers, directors, 8
1615	1615	and principal shareholders to fulfill any com-9
1616	1616	mitments to, and any conditions imposed by, 10
1617	1617	their primary Federal payment stablecoin regu-11
1618	1618	lator in connection with the application at issue 12
1619	1619	and any prior applications. 13
1620	1620	(4) Whether the redemption policy of the appli-14
1621	1621	cant meets the standards under section 4(a)(1)(B). 15
1622	1622	(5) Any other factors established by the pri-16
1623	1623	mary Federal payment stablecoin regulator that are 17
1624	1624	necessary to ensure the safety and soundness of the 18
1625	1625	permitted payment stablecoin issuer. 19
1626	1626	(d) T
1627	1627	IMING FORDECISION; GROUNDS FOR DE-20
1628	1628	NIAL.— 21
1629	1629	(1) T
1630	1630	IMING FOR DECISIONS ON APPLICA -22
1631	1631	TIONS.— 23
1632	1632	(A) I
1633	1633	N GENERAL.—Not later than 120 24
1634	1634	days after receiving a substantially complete ap-25
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1637	1637	•S 1582 PCS
1638	1638	plication under subsection (a), a primary Fed-1
1639	1639	eral payment stablecoin regulator shall render a 2
1640	1640	decision on the application. 3
1641	1641	(B) S
1642	1642	UBSTANTIALLY COMPLETE .— 4
1643	1643	(i) I
1644	1644	N GENERAL.—For purposes of 5
1645	1645	subparagraph (A), an application shall be 6
1646	1646	considered substantially complete if the ap-7
1647	1647	plication contains sufficient information for 8
1648	1648	the primary Federal payment stablecoin 9
1649	1649	regulator to render a decision on whether 10
1650	1650	the applicant satisfies the factors described 11
1651	1651	in subsection (c). 12
1652	1652	(ii) N
1653	1653	OTIFICATION.—Not later than 13
1654	1654	30 days after receiving an application 14
1655	1655	under subsection (a), a primary Federal 15
1656	1656	payment stablecoin regulator shall notify 16
1657	1657	the applicant as to whether the primary 17
1658	1658	Federal payment stablecoin regulator con-18
1659	1659	siders the application to be substantially 19
1660	1660	complete and, if the application is not sub-20
1661	1661	stantially complete, the additional informa-21
1662	1662	tion the applicant shall provide in order for 22
1663	1663	the application to be considered substan-23
1664	1664	tially complete. 24
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1668	1668	(iii) MATERIAL CHANGE IN CIR -1
1669	1669	CUMSTANCES.—An application considered 2
1670	1670	substantially complete under this subpara-3
1671	1671	graph remains substantially complete un-4
1672	1672	less there is a material change in cir-5
1673	1673	cumstances that requires the primary Fed-6
1674	1674	eral payment stablecoin regulator to treat 7
1675	1675	the application as a new application. 8
1676	1676	(2) D
1677	1677	ENIAL OF APPLICATION.— 9
1678	1678	(A) G
1679	1679	ROUNDS FOR DENIAL.— 10
1680	1680	(i) I
1681	1681	N GENERAL.—A primary Federal 11
1682	1682	payment stablecoin regulator shall only 12
1683	1683	deny a substantially complete application 13
1684	1684	received under subsection (a) if the regu-14
1685	1685	lator determines that the activities of the 15
1686	1686	applicant would be unsafe or unsound 16
1687	1687	based on the factors described in sub-17
1688	1688	section (c). 18
1689	1689	(ii) I
1690	1690	SSUANCE ON OPEN , PUBLIC, OR 19
1691	1691	DECENTRALIZED NETWORK NOT GROUND 20
1692	1692	FOR DENIAL.—The issuance of a payment 21
1693	1693	stablecoin on an open, public, or decentral-22
1694	1694	ized network shall not be a valid ground 23
1695	1695	for denial of an application received under 24
1696	1696	subsection (a). 25
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1700	1700	(B) EXPLANATION REQUIRED .—If a pri-1
1701	1701	mary Federal payment stablecoin regulator de-2
1702	1702	nies a complete application received under sub-3
1703	1703	section (a), not later than 30 days after the 4
1704	1704	date of such denial, the regulator shall provide 5
1705	1705	the applicant with written notice explaining the 6
1706	1706	denial with specificity, including all findings 7
1707	1707	made by the regulator with respect to all identi-8
1708	1708	fied material shortcomings in the application, 9
1709	1709	including actionable recommendations on how 10
1710	1710	the applicant could address the identified mate-11
1711	1711	rial shortcomings. 12
1712	1712	(C) O
1713	1713	PPORTUNITY FOR HEARING ; FINAL 13
1714	1714	DETERMINATION.— 14
1715	1715	(i) I
1716	1716	N GENERAL.—Not later than 30 15
1717	1717	days after the date of receipt of any notice 16
1718	1718	of the denial of an application under this 17
1719	1719	section, the applicant may request, in writ-18
1720	1720	ing, an opportunity for a written or oral 19
1721	1721	hearing before the primary Federal pay-20
1722	1722	ment stablecoin regulator to appeal the de-21
1723	1723	nial. 22
1724	1724	(ii) T
1725	1725	IMING.—Upon receipt of a timely 23
1726	1726	request under clause (i), the primary Fed-24
1727	1727	eral payment stablecoin regulator shall no-25
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1730	1730	•S 1582 PCS
1731	1731	tice a time (not later than 30 days after 1
1732	1732	the date of receipt of the request) and 2
1733	1733	place at which the applicant may appear, 3
1734	1734	personally or through counsel, to submit 4
1735	1735	written materials or provide oral testimony 5
1736	1736	and oral argument. 6
1737	1737	(iii) F
1738	1738	INAL DETERMINATION .—Not 7
1739	1739	later than 60 days after the date of a hear-8
1740	1740	ing under this subparagraph, the applica-9
1741	1741	ble primary Federal payment stablecoin 10
1742	1742	regulator shall notify the applicant of a 11
1743	1743	final determination, which shall contain a 12
1744	1744	statement of the basis for that determina-13
1745	1745	tion, with specific findings. 14
1746	1746	(iv) N
1747	1747	OTICE IF NO HEARING .—If an 15
1748	1748	applicant does not make a timely request 16
1749	1749	for a hearing under this subparagraph, the 17
1750	1750	primary Federal payment stablecoin regu-18
1751	1751	lator shall notify the applicant, not later 19
1752	1752	than 10 days after the date by which the 20
1753	1753	applicant may request a hearing under this 21
1754	1754	subparagraph, in writing, that the denial 22
1755	1755	of the application is a final determination 23
1756	1756	of the primary Federal payment stablecoin 24
1757	1757	regulator. 25
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1761	1761	(3) FAILURE TO RENDER A DECISION .—If a 1
1762	1762	primary Federal payment stablecoin regulator fails 2
1763	1763	to render a decision on a complete application within 3
1764	1764	the time period specified in paragraph (1), the appli-4
1765	1765	cation shall be deemed approved. 5
1766	1766	(4) R
1767	1767	IGHT TO REAPPLY.—The denial of an ap-6
1768	1768	plication under this section shall not prohibit the ap-7
1769	1769	plicant from filing a subsequent application. 8
1770	1770	(e) R
1771	1771	EPORTS ON PENDINGAPPLICATIONS.—Each 9
1772	1772	primary Federal payment stablecoin regulator shall— 10
1773	1773	(1) notify Congress upon beginning to process 11
1774	1774	applications under this Act; and 12
1775	1775	(2) annually report to Congress on the applica-13
1776	1776	tions that have been pending for 180 days or more 14
1777	1777	since the date the initial application was filed and 15
1778	1778	for which the applicant has been informed that the 16
1779	1779	application remains incomplete, including docu-17
1780	1780	mentation on the status of such applications and 18
1781	1781	why such applications have not yet been approved. 19
1782	1782	(f) S
1783	1783	AFEHARBOR FORPENDINGAPPLICATIONS.— 20
1784	1784	The primary Federal payment stablecoin regulators may 21
1785	1785	waive the application of the requirements of this Act for 22
1786	1786	a period not to exceed 12 months beginning on the effec-23
1787	1787	tive date of this Act, with respect to— 24
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1790	1790	•S 1582 PCS
1791	1791	(1) a subsidiary of an insured depository insti-1
1792	1792	tution, if the insured depository institution has an 2
1793	1793	application pending for the subsidiary to become a 3
1794	1794	permitted payment stablecoin issuer on that effective 4
1795	1795	date; or 5
1796	1796	(2) a Federal qualified payment stablecoin 6
1797	1797	issuer with a pending application on that effective 7
1798	1798	date. 8
1799	1799	(g) R
1800	1800	ULEMAKING.—Consistent with section 13, the 9
1801	1801	primary Federal payment stablecoin regulators shall issue 10
1802	1802	rules necessary for the regulation of the issuance of pay-11
1803	1803	ment stablecoins, but may not impose requirements in ad-12
1804	1804	dition to the requirements specified under section 4. 13
1805	1805	(h) R
1806	1806	ELATION TO OTHERLICENSINGREQUIRE-14
1807	1807	MENTS.—The provisions of this section supersede and pre-15
1808	1808	empt any State requirement for a charter, license, or other 16
1809	1809	authorization to do business with respect to a Federal 17
1810	1810	qualified payment stablecoin issuer or subsidiary of an in-18
1811	1811	sured depository institution or credit union that is ap-19
1812	1812	proved under this section to be a permitted payment 20
1813	1813	stablecoin issuer. 21
1814	1814	(i) C
1815	1815	ERTIFICATIONREQUIRED.— 22
1816	1816	(1) I
1817	1817	N GENERAL.—Not later than 180 days 23
1818	1818	after the approval of an application, and on an an-24
1819	1819	nual basis thereafter, each permitted payment 25
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1823	1823	stablecoin issuer shall submit to its primary Federal 1
1824	1824	payment stablecoin regulator, or in the case of a 2
1825	1825	State qualified payment stablecoin issuer its State 3
1826	1826	payment stablecoin regulator, a certification that the 4
1827	1827	issuer has implemented anti-money laundering and 5
1828	1828	economic sanctions compliance programs that are 6
1829	1829	reasonably designed to prevent the permitted pay-7
1830	1830	ment stablecoin issuer from facilitating money laun-8
1831	1831	dering, including, in particular, facilitating money 9
1832	1832	laundering for cartels and organizations designated 10
1833	1833	as foreign terrorist organizations under section 219 11
1834	1834	of the Immigration and Nationality Act (8 U.S.C. 12
1835	1835	1189) and the financing of terrorist activities, con-13
1836	1836	sistent with the requirements of this Act. 14
1837	1837	(2) A
1838	1838	VAILABILITY OF CERTIFICATIONS .—Fed-15
1839	1839	eral payment stablecoin regulators and State pay-16
1840	1840	ment stablecoin regulators shall make certifications 17
1841	1841	described in paragraph (1) available to the Secretary 18
1842	1842	of Treasury upon request. 19
1843	1843	(3) P
1844	1844	ENALTIES.— 20
1845	1845	(A) A
1846	1846	PPROVAL REVOCATION .—The pri-21
1847	1847	mary Federal payment stablecoin regulator or 22
1848	1848	State payment stablecoin regulator of a per-23
1849	1849	mitted payment stablecoin issuer that does not 24
1850	1850	submit a certification pursuant to paragraph 25
1851	1851	VerDate Sep 11 2014 22:33 May 05, 2025 Jkt 059200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S1582.PCS S1582
1852	1852	ssavage on LAPJG3WLY3PROD with BILLS 62
1853	1853	•S 1582 PCS
1854	1854	(1) may revoke the approval of the payment 1
1855	1855	stablecoin issuer under this section. 2
1856	1856	(B) C
1857	1857	RIMINAL PENALTY.— 3
1858	1858	(i) I
1859	1859	N GENERAL.—Any person that 4
1860	1860	knowingly submits a certification pursuant 5
1861	1861	to paragraph (1) that is false shall be sub-6
1862	1862	ject to the criminal penalties set forth 7
1863	1863	under section 1001 of title 18, United 8
1864	1864	States Code. 9
1865	1865	(ii) R
1866	1866	EFERRAL TO ATTORNEY GEN -10
1867	1867	ERAL.—If a Federal payment stablecoin 11
1868	1868	regulator or State payment stablecoin reg-12
1869	1869	ulator has reason to believe that any per-13
1870	1870	son has knowingly violated paragraph (1), 14
1871	1871	the applicable regulator may refer the mat-15
1872	1872	ter to the Attorney General or to the attor-16
1873	1873	ney general of the payment stablecoin 17
1874	1874	issuer’s host State. 18
1875	1875	SEC. 6. SUPERVISION AND ENFORCEMENT WITH RESPECT 19
1876	1876	TO FEDERAL QUALIFIED PAYMENT 20
1877	1877	STABLECOIN ISSUERS AND SUBSIDIARIES OF 21
1878	1878	INSURED DEPOSITORY INSTITUTIONS. 22
1879	1879	(a) S
1880	1880	UPERVISION.— 23
1881	1881	(1) I
1882	1882	N GENERAL.—Each permitted payment 24
1883	1883	stablecoin issuer that is not a State qualified pay-25
1884	1884	VerDate Sep 11 2014 22:33 May 05, 2025 Jkt 059200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S1582.PCS S1582
1885	1885	ssavage on LAPJG3WLY3PROD with BILLS 63
1886	1886	•S 1582 PCS
1887	1887	ment stablecoin issuer with a payment stablecoin 1
1888	1888	with a consolidated total outstanding issuance of less 2
1889	1889	than $10,000,000,000 shall be subject to supervision 3
1890	1890	by the appropriate primary Federal payment 4
1891	1891	stablecoin regulator. 5
1892	1892	(2) S
1893	1893	UBMISSION OF REPORTS .—Each permitted 6
1894	1894	payment stablecoin issuer described in paragraph (1) 7
1895	1895	shall, upon request, submit to the appropriate pri-8
1896	1896	mary Federal payment stablecoin regulator a report 9
1897	1897	on— 10
1898	1898	(A) the financial condition of the permitted 11
1899	1899	payment stablecoin issuer; 12
1900	1900	(B) the systems of the permitted payment 13
1901	1901	stablecoin issuer for monitoring and controlling 14
1902	1902	financial and operating risks; 15
1903	1903	(C) compliance by the permitted payment 16
1904	1904	stablecoin issuer (and any subsidiary thereof) 17
1905	1905	with this Act; and 18
1906	1906	(D) the compliance of the Federal qualified 19
1907	1907	nonbank payment stablecoin issuer with the re-20
1908	1908	quirements of the Bank Secrecy Act and with 21
1909	1909	laws authorizing the imposition of sanctions to 22
1910	1910	be implemented by the Secretary of the Treas-23
1911	1911	ury. 24
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1913	1913	ssavage on LAPJG3WLY3PROD with BILLS 64
1914	1914	•S 1582 PCS
1915	1915	(3) EXAMINATIONS.—The appropriate primary 1
1916	1916	Federal payment stablecoin regulator shall examine 2
1917	1917	a permitted payment stablecoin issuer described in 3
1918	1918	paragraph (1) in order to assess— 4
1919	1919	(A) the nature of the operations and finan-5
1920	1920	cial condition of the permitted payment 6
1921	1921	stablecoin issuer; 7
1922	1922	(B) the financial, operational, techno-8
1923	1923	logical, and other risks associated with the per-9
1924	1924	mitted payment stablecoin issuer that may pose 10
1925	1925	a threat to— 11
1926	1926	(i) the safety and soundness of the 12
1927	1927	permitted payment stablecoin issuer; or 13
1928	1928	(ii) the stability of the financial sys-14
1929	1929	tem of the United States; and 15
1930	1930	(C) the systems of the permitted payment 16
1931	1931	stablecoin issuer for monitoring and controlling 17
1932	1932	the risks described in subparagraph (B). 18
1933	1933	(4) R
1934	1934	EQUIREMENTS FOR EFFICIENCY .— 19
1935	1935	(A) U
1936	1936	SE OF EXISTING REPORTS .—In su-20
1937	1937	pervising and examining a permitted payment 21
1938	1938	stablecoin issuer under this subsection, a pri-22
1939	1939	mary Federal payment stablecoin regulator 23
1940	1940	shall, to the fullest extent possible, use existing 24
1941	1941	reports and other supervisory information. 25
1942	1942	VerDate Sep 11 2014 22:33 May 05, 2025 Jkt 059200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S1582.PCS S1582
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1944	1944	•S 1582 PCS
1945	1945	(B) AVOIDANCE OF DUPLICATION .—A pri-1
1946	1946	mary Federal payment stablecoin regulator 2
1947	1947	shall, to the fullest extent possible, avoid dupli-3
1948	1948	cation of examination activities, reporting re-4
1949	1949	quirements, and requests for information in 5
1950	1950	carrying out this subsection with respect to a 6
1951	1951	permitted payment stablecoin issuer. 7
1952	1952	(C) C
1953	1953	ONSIDERATION OF BURDEN .—A pri-8
1954	1954	mary Federal payment stablecoin regulator 9
1955	1955	shall, with respect to any examination or re-10
1956	1956	quest for the submission of a report under this 11
1957	1957	subsection, only request examinations and re-12
1958	1958	ports at a cadence and in a format that is simi-13
1959	1959	lar to that required for similarly situated enti-14
1960	1960	ties regulated by the primary Federal payment 15
1961	1961	stablecoin regulator. 16
1962	1962	(b) E
1963	1963	NFORCEMENT.— 17
1964	1964	(1) S
1965	1965	USPENSION OR REVOCATION OF REGISTRA -18
1966	1966	TION.—The primary Federal payment stablecoin 19
1967	1967	regulator of a permitted payment stablecoin issuer 20
1968	1968	that is not a State qualified payment stablecoin 21
1969	1969	issuer with a payment stablecoin with a consolidated 22
1970	1970	total outstanding issuance of less than 23
1971	1971	$10,000,000,000 may prohibit the permitted pay-24
1972	1972	ment stablecoin issuer from issuing payment 25
1973	1973	VerDate Sep 11 2014 22:33 May 05, 2025 Jkt 059200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\S1582.PCS S1582
1974	1974	ssavage on LAPJG3WLY3PROD with BILLS 66
1975	1975	•S 1582 PCS
1976	1976	stablecoins, if the primary Federal payment 1
1977	1977	stablecoin regulator determines that such permitted 2
1978	1978	payment stablecoin issuer, or an institution-affiliated 3
1979	1979	party of the permitted payment stablecoin issuer is 4
1980	1980	willfully violating or has willfully violated— 5
1981	1981	(A) this Act or any regulation or order 6
1982	1982	issued under this Act; or 7
1983	1983	(B) any condition imposed in writing by 8
1984	1984	the primary Federal payment stablecoin regu-9
1985	1985	lator in connection with a written agreement 10
1986	1986	entered into between the permitted payment 11
1987	1987	stablecoin issuer and the primary Federal pay-12
1988	1988	ment stablecoin regulator. 13
1989	1989	(2) C
1990	1990	EASE-AND-DESIST PROCEEDINGS .—If the 14
1991	1991	primary Federal payment stablecoin regulator of a 15
1992	1992	permitted payment stablecoin issuer that is not a 16
1993	1993	State qualified payment stablecoin issuer with a pay-17
1994	1994	ment stablecoin with a consolidated total out-18
1995	1995	standing issuance of less than $10,000,000,000 has 19
1996	1996	reasonable cause to believe that the permitted pay-20
1997	1997	ment stablecoin issuer or any institution-affiliated 21
1998	1998	party of the permitted payment stablecoin issuer is 22
1999	1999	violating, has violated, or is attempting to violate 23
2000	2000	this Act, any regulation or order issued under this 24
2001	2001	Act, or any written agreement entered into with the 25
2002	2002	VerDate Sep 11 2014 22:33 May 05, 2025 Jkt 059200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S1582.PCS S1582
2003	2003	ssavage on LAPJG3WLY3PROD with BILLS 67
2004	2004	•S 1582 PCS
2005	2005	primary Federal payment stablecoin regulator or 1
2006	2006	condition imposed in writing by the primary Federal 2
2007	2007	payment stablecoin regulator in connection with any 3
2008	2008	application or other request, the primary Federal 4
2009	2009	payment stablecoin regulator may, by provisions that 5
2010	2010	are mandatory or otherwise, order the permitted 6
2011	2011	payment stablecoin issuer or institution-affiliated 7
2012	2012	party of the permitted payment stablecoin issuer 8
2013	2013	to— 9
2014	2014	(A) cease and desist from such violation or 10
2015	2015	practice; or 11
2016	2016	(B) take affirmative action to correct the 12
2017	2017	conditions resulting from any such violation or 13
2018	2018	practice. 14
2019	2019	(3) R
2020	2020	EMOVAL AND PROHIBITION AUTHORITY .— 15
2021	2021	The primary Federal payment stablecoin regulator 16
2022	2022	of a permitted payment stablecoin issuer that is not 17
2023	2023	a State qualified payment stablecoin issuer may re-18
2024	2024	move an institution-affiliated party of the permitted 19
2025	2025	payment stablecoin issuer from the position or office 20
2026	2026	of that institution-affiliated party or prohibit further 21
2027	2027	participation in the affairs of the permitted payment 22
2028	2028	stablecoin issuer or of all such permitted payment 23
2029	2029	stablecoin issuers by that institution-affiliated party, 24
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2031	2031	ssavage on LAPJG3WLY3PROD with BILLS 68
2032	2032	•S 1582 PCS
2033	2033	if the primary Federal payment stablecoin regulator 1
2034	2034	determines that— 2
2035	2035	(A) the institution-affiliated party has 3
2036	2036	knowingly committed a violation or attempted 4
2037	2037	violation of this Act or any regulation or order 5
2038	2038	issued under this Act; or 6
2039	2039	(B) the institution-affiliated party has 7
2040	2040	knowingly committed a violation of any provi-8
2041	2041	sion of subchapter II of chapter 53 of title 31, 9
2042	2042	United States Code. 10
2043	2043	(4) P
2044	2044	ROCEDURES.— 11
2045	2045	(A) I
2046	2046	N GENERAL.—If a primary Federal 12
2047	2047	payment stablecoin regulator identifies a viola-13
2048	2048	tion or attempted violation of this Act or makes 14
2049	2049	a determination under paragraph (1), (2), or 15
2050	2050	(3), the primary Federal payment stablecoin 16
2051	2051	regulator shall comply with the procedures set 17
2052	2052	forth in subsections (b) and (e) of section 8 of 18
2053	2053	the Federal Deposit Insurance Act (12 U.S.C. 19
2054	2054	1818) or subsections (e) and (g) of section 206 20
2055	2055	the Federal Credit Union Act (12 U.S.C. 21
2056	2056	1786(e) and (g)), as applicable. 22
2057	2057	(B) J
2058	2058	UDICIAL REVIEW.—A person ag-23
2059	2059	grieved by a final action under this subsection 24
2060	2060	may obtain judicial review of such action exclu-25
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2062	2062	ssavage on LAPJG3WLY3PROD with BILLS 69
2063	2063	•S 1582 PCS
2064	2064	sively as provided in section 8(h) of the Federal 1
2065	2065	Deposit Insurance Act (12 U.S.C. 1818(h)) or 2
2066	2066	section 206(j) of the Federal Credit Union Act 3
2067	2067	(12 U.S.C. 1786(j)), as applicable. 4
2068	2068	(C) I
2069	2069	NJUNCTION.—A primary Federal pay-5
2070	2070	ment stablecoin regulator may, at the discretion 6
2071	2071	of the regulator, follow the procedures provided 7
2072	2072	in section 8(i)(1) of the Federal Deposit Insur-8
2073	2073	ance Act (12 U.S.C. 1818(i)(1)) or section 9
2074	2074	206(k)(1) of the Federal Credit Union Act (12 10
2075	2075	U.S.C. 1786(k)(1)), as applicable, for judicial 11
2076	2076	enforcement of any effective and outstanding 12
2077	2077	notice or order issued under this subsection. 13
2078	2078	(D) T
2079	2079	EMPORARY CEASE-AND-DESIST PRO-14
2080	2080	CEEDINGS.—If a primary Federal payment 15
2081	2081	stablecoin regulator determines that a violation 16
2082	2082	or attempted violation of this Act or an action 17
2083	2083	with respect to which a determination was made 18
2084	2084	under paragraph (1), (2), or (3), or the con-19
2085	2085	tinuation thereof, is likely to cause insolvency or 20
2086	2086	significant dissipation of assets or earnings of a 21
2087	2087	permitted payment stablecoin issuer, or is likely 22
2088	2088	to weaken the condition of the permitted pay-23
2089	2089	ment stablecoin issuer or otherwise prejudice 24
2090	2090	the interests of the customers of the permitted 25
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2092	2092	ssavage on LAPJG3WLY3PROD with BILLS 70
2093	2093	•S 1582 PCS
2094	2094	payment stablecoin issuer prior to the comple-1
2095	2095	tion of the proceedings conducted under this 2
2096	2096	paragraph, the primary Federal payment 3
2097	2097	stablecoin regulator may follow the procedures 4
2098	2098	provided in section 8(c) of the Federal Deposit 5
2099	2099	Insurance Act (12 U.S.C. 1818(c)) or section 6
2100	2100	206(f) of the Federal Credit Union Act (12 7
2101	2101	U.S.C. 1786(f)), as applicable, to issue a tem-8
2102	2102	porary cease and desist order. 9
2103	2103	(5) C
2104	2104	IVIL MONEY PENALTIES .—Unless other-10
2105	2105	wise specified in this Act, the civil money penalties 11
2106	2106	for violations of this Act consist of the following: 12
2107	2107	(A) F
2108	2108	AILURE TO BE APPROVED .—Any per-13
2109	2109	son that issues a United States dollar-denomi-14
2110	2110	nated payment stablecoin in violation of section 15
2111	2111	3, and any institution-affiliated party of such a 16
2112	2112	person who knowingly participates in issuing 17
2113	2113	such a payment stablecoin, shall be liable for a 18
2114	2114	civil penalty of not more than $100,000 for 19
2115	2115	each day during which such payment 20
2116	2116	stablecoins are issued. 21
2117	2117	(B) F
2118	2118	IRST TIER.—Except as provided in 22
2119	2119	subparagraph (A), a permitted payment 23
2120	2120	stablecoin issuer or institution-affiliated party 24
2121	2121	of such permitted payment stablecoin issuer 25
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2123	2123	ssavage on LAPJG3WLY3PROD with BILLS 71
2124	2124	•S 1582 PCS
2125	2125	that materially violates this Act or any regula-1
2126	2126	tion or order issued under this Act, or that ma-2
2127	2127	terially violates any condition imposed in writ-3
2128	2128	ing by the appropriate primary Federal pay-4
2129	2129	ment stablecoin regulator in connection with a 5
2130	2130	written agreement entered into between the per-6
2131	2131	mitted payment stablecoin issuer and that pri-7
2132	2132	mary Federal payment stablecoin regulator, 8
2133	2133	shall be liable for a civil penalty of not more 9
2134	2134	than $100,000 for each day during which the 10
2135	2135	violation continues. 11
2136	2136	(C) S
2137	2137	ECOND TIER.—Except as provided in 12
2138	2138	subparagraph (A), and in addition to the pen-13
2139	2139	alties described in subparagraph (B), a per-14
2140	2140	mitted payment stablecoin issuer or institution- 15
2141	2141	affiliated party of such permitted payment 16
2142	2142	stablecoin issuer who knowingly participates in 17
2143	2143	a violation of any provision of this Act, or any 18
2144	2144	regulation or order issued under this Act, shall 19
2145	2145	be liable for a civil penalty of not more than an 20
2146	2146	additional $100,000 for each day during which 21
2147	2147	the violation continues. 22
2148	2148	(D) P
2149	2149	ROCEDURE.—Any penalty imposed 23
2150	2150	under this paragraph may be assessed and col-24
2151	2151	lected by the appropriate primary Federal pay-25
2152	2152	VerDate Sep 11 2014 22:33 May 05, 2025 Jkt 059200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S1582.PCS S1582
2153	2153	ssavage on LAPJG3WLY3PROD with BILLS 72
2154	2154	•S 1582 PCS
2155	2155	ment stablecoin regulator pursuant to the pro-1
2156	2156	cedures set forth in section 8(i)(2) of the Fed-2
2157	2157	eral Deposit Insurance Act (12 U.S.C. 3
2158	2158	1818(i)(2)) or section 206(k)(2) of the Federal 4
2159	2159	Credit Union Act (12 U.S.C. 1786(k)(2)), as 5
2160	2160	applicable. 6
2161	2161	(E) N
2162	2162	OTICE AND ORDERS AFTER SEPARA -7
2163	2163	TION FROM SERVICE.—The resignation, termi-8
2164	2164	nation of employment or participation, or sepa-9
2165	2165	ration of an institution-affiliated party (includ-10
2166	2166	ing a separation caused by the closing of a per-11
2167	2167	mitted payment stablecoin issuer) shall not af-12
2168	2168	fect the jurisdiction and authority of a primary 13
2169	2169	Federal payment stablecoin regulator to issue 14
2170	2170	any notice or order and proceed under this sub-15
2171	2171	section against any such party, if such notice or 16
2172	2172	order is served before the end of the 6-year pe-17
2173	2173	riod beginning on the date on which such party 18
2174	2174	ceased to be an institution-affiliated party with 19
2175	2175	respect to such permitted payment stablecoin 20
2176	2176	issuer. 21
2177	2177	(6) N
2178	2178	ON-APPLICABILITY TO A STATE QUALI -22
2179	2179	FIED PAYMENT STABLECOIN ISSUER .—Notwith-23
2180	2180	standing anything in this subsection to the contrary, 24
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2183	2183	•S 1582 PCS
2184	2184	this subsection shall not apply to a State qualified 1
2185	2185	payment stablecoin issuer. 2
2186	2186	(c) F
2187	2187	EDERALTRADECOMMISSIONJURISDICTION.— 3
2188	2188	Nothing in this Act shall be construed to limit, impair, 4
2189	2189	or otherwise affect the authority or jurisdiction of the Fed-5
2190	2190	eral Trade Commission under the Federal Trade Commis-6
2191	2191	sion Act (15 U.S.C. 41 et seq.) or any other applicable 7
2192	2192	Federal law. 8
2193	2193	SEC. 7. STATE QUALIFIED PAYMENT STABLECOIN ISSUERS. 9
2194	2194	(a) I
2195	2195	NGENERAL.—A State payment stablecoin regu-10
2196	2196	lator shall have supervisory, examination, and enforcement 11
2197	2197	authority over all State qualified payment stablecoin 12
2198	2198	issuers of such State. 13
2199	2199	(b) A
2200	2200	UTHORITYTOENTERINTOAGREEMENTS 14
2201	2201	W
2202	2202	ITH THEBOARD.—A State payment stablecoin regu-15
2203	2203	lator may enter into a memorandum of understanding 16
2204	2204	with the Board, by mutual agreement, under which the 17
2205	2205	Board may participate in the supervision, examination, 18
2206	2206	and enforcement of this Act with respect to the State 19
2207	2207	qualified payment stablecoin issuers of such State. 20
2208	2208	(c) S
2209	2209	HARING OFINFORMATION.—A State payment 21
2210	2210	stablecoin regulator and the Board shall share information 22
2211	2211	on an ongoing basis with respect to a State qualified pay-23
2212	2212	ment stablecoin issuer of such State, including a copy of 24
2213	2213	the initial application and any accompanying documents. 25
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2216	2216	•S 1582 PCS
2217	2217	(d) RULEMAKING.—A State payment stablecoin regu-1
2218	2218	lator may issue orders and rules under section 4 applicable 2
2219	2219	to State qualified payment stablecoin issuers to the same 3
2220	2220	extent as the primary Federal payment stablecoin regu-4
2221	2221	lators issue orders and rules under section 4 applicable 5
2222	2222	to permitted payment stablecoin issuers that are not State 6
2223	2223	qualified payment stablecoin issuers. 7
2224	2224	(e) E
2225	2225	NFORCEMENT AUTHORITY INUNUSUAL AND 8
2226	2226	E
2227	2227	XIGENTCIRCUMSTANCES.— 9
2228	2228	(1) B
2229	2229	OARD.— 10
2230	2230	(A) I
2231	2231	N GENERAL.—Subject to subpara-11
2232	2232	graph (C), under unusual and exigent cir-12
2233	2233	cumstances that the Board determines to exist, 13
2234	2234	the Board may, after not less than 48 hours’ 14
2235	2235	prior written notice to the applicable State pay-15
2236	2236	ment stablecoin regulator, take an enforcement 16
2237	2237	action against a State qualified payment 17
2238	2238	stablecoin issuer or an institution-affiliated 18
2239	2239	party of such issuer for violations of this Act 19
2240	2240	during such unusual and exigent circumstances. 20
2241	2241	(B) R
2242	2242	ULEMAKING.—Consistent with sec-21
2243	2243	tion 13, the Board shall issue rules to set forth 22
2244	2244	the unusual and exigent circumstances in which 23
2245	2245	the Board may act under this paragraph. 24
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2248	2248	•S 1582 PCS
2249	2249	(C) LIMITATIONS.—If, after unusual and 1
2250	2250	exigent circumstances are determined to exist 2
2251	2251	pursuant to subparagraph (A), the Board deter-3
2252	2252	mines that there is reasonable cause to believe 4
2253	2253	that the continuation by a State qualified pay-5
2254	2254	ment stablecoin issuer of any activity con-6
2255	2255	stitutes a serious risk to the financial safety, 7
2256	2256	soundness, or stability of the State qualified 8
2257	2257	payment stablecoin issuer, the Board may im-9
2258	2258	pose such restrictions as the Board determines 10
2259	2259	to be necessary to address such risk during 11
2260	2260	such unusual and exigent circumstances, which 12
2261	2261	may include limitations on redemptions of pay-13
2262	2262	ment stablecoins, and which shall be issued in 14
2263	2263	the form of a directive, with the effect of a 15
2264	2264	cease and desist order that has become final, to 16
2265	2265	the State qualified payment stablecoin issuer 17
2266	2266	and any of its affiliates, limiting— 18
2267	2267	(i) transactions between the State 19
2268	2268	qualified payment stablecoin issuer, a hold-20
2269	2269	ing company, and the subsidiaries or affili-21
2270	2270	ates of either the State qualified payment 22
2271	2271	stablecoin issuer or the holding company; 23
2272	2272	and 24
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2275	2275	•S 1582 PCS
2276	2276	(ii) any activities of the State quali-1
2277	2277	fied payment stablecoin issuer that might 2
2278	2278	create a serious risk that the liabilities of 3
2279	2279	a holding company and the affiliates of the 4
2280	2280	holding company may be imposed on the 5
2281	2281	State qualified payment stablecoin issuer. 6
2282	2282	(D) R
2283	2283	EVIEW OF DIRECTIVE.— 7
2284	2284	(i) A
2285	2285	DMINISTRATIVE REVIEW.— 8
2286	2286	(I) I
2287	2287	N GENERAL.—After a direc-9
2288	2288	tive described in subparagraph (C) is 10
2289	2289	issued, the applicable State qualified 11
2290	2290	payment stablecoin issuer, or any in-12
2291	2291	stitution-affiliated party of the State 13
2292	2292	qualified payment stablecoin issuer 14
2293	2293	subject to the directive, may object 15
2294	2294	and present to the Board, in writing, 16
2295	2295	the reasons why the directive should 17
2296	2296	be modified or rescinded. 18
2297	2297	(II) A
2298	2298	UTOMATIC LAPSE OF DI -19
2299	2299	RECTIVE.—If, after 10 days after the 20
2300	2300	receipt of a response described in sub-21
2301	2301	clause (I), the Board does not affirm, 22
2302	2302	modify, or rescind the directive, the 23
2303	2303	directive shall automatically lapse. 24
2304	2304	(ii) J
2305	2305	UDICIAL REVIEW.— 25
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2309	2309	(I) IN GENERAL.—If the Board 1
2310	2310	affirms or modifies a directive pursu-2
2311	2311	ant to clause (i), any affected party 3
2312	2312	may immediately thereafter petition 4
2313	2313	the United States district court for 5
2314	2314	the district in which the main office of 6
2315	2315	the affected party is located, or in the 7
2316	2316	United States District Court for the 8
2317	2317	District of Columbia, to stay, modify, 9
2318	2318	terminate, or set aside the directive. 10
2319	2319	(II) R
2320	2320	ELIEF FOR EXTRAOR -11
2321	2321	DINARY CAUSE.—Upon a showing of 12
2322	2322	extraordinary cause, an affected party 13
2323	2323	may petition for relief under subclause 14
2324	2324	(I) without first pursuing or exhaust-15
2325	2325	ing the administrative remedies under 16
2326	2326	clause (i). 17
2327	2327	(2) C
2328	2328	OMPTROLLER.— 18
2329	2329	(A) I
2330	2330	N GENERAL.—Subject to subpara-19
2331	2331	graph (C), under unusual and exigent cir-20
2332	2332	cumstances determined to exist by the Comp-21
2333	2333	troller, the Comptroller shall, after not less 22
2334	2334	than 48 hours’ prior written notice to the appli-23
2335	2335	cable State payment stablecoin regulator, take 24
2336	2336	an enforcement action against a State qualified 25
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2339	2339	•S 1582 PCS
2340	2340	payment stablecoin issuer that is a nonbank en-1
2341	2341	tity for violations of this Act. 2
2342	2342	(B) R
2343	2343	ULEMAKING.—Consistent with sec-3
2344	2344	tion 13, the Comptroller shall issue rules to set 4
2345	2345	forth the unusual and exigent circumstances in 5
2346	2346	which the Comptroller may act under this para-6
2347	2347	graph. 7
2348	2348	(C) L
2349	2349	IMITATIONS.—If, after unusual and 8
2350	2350	exigent circumstances are determined to exist 9
2351	2351	under subparagraph (A), the Comptroller deter-10
2352	2352	mines that there is reasonable cause to believe 11
2353	2353	that the continuation of any activity by a State 12
2354	2354	qualified payment stablecoin issuer that is a 13
2355	2355	nonbank entity constitutes a serious risk to the 14
2356	2356	financial safety, soundness, or stability of the 15
2357	2357	State qualified payment stablecoin issuer that is 16
2358	2358	a nonbank entity, the Comptroller shall impose 17
2359	2359	such restrictions as the Comptroller determines 18
2360	2360	to be necessary to address such risk during 19
2361	2361	such unusual and exigent circumstances, which 20
2362	2362	may include limitations on redemption of pay-21
2363	2363	ment stablecoins, and which shall be issued in 22
2364	2364	the form of a directive, with the effect of a 23
2365	2365	cease and desist order that has become final, to 24
2366	2366	the State qualified payment stablecoin issuer 25
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2370	2370	that is a nonbank entity and any of its affili-1
2371	2371	ates, limiting— 2
2372	2372	(i) transactions between the State 3
2373	2373	qualified payment stablecoin issuer, a hold-4
2374	2374	ing company, and the subsidiaries or affili-5
2375	2375	ates of either the State qualified payment 6
2376	2376	stablecoin issuer or the holding company; 7
2377	2377	and 8
2378	2378	(ii) any activities of the State quali-9
2379	2379	fied payment stablecoin issuer that might 10
2380	2380	create a serious risk that the liabilities of 11
2381	2381	a holding company and the affiliates of the 12
2382	2382	holding company may be imposed on the 13
2383	2383	State qualified payment stablecoin issuer. 14
2384	2384	(D) R
2385	2385	EVIEW OF DIRECTIVE.— 15
2386	2386	(i) A
2387	2387	DMINISTRATIVE REVIEW.— 16
2388	2388	(I) I
2389	2389	N GENERAL.—After a direc-17
2390	2390	tive described in subparagraph (C) is 18
2391	2391	issued, the applicable Federal quali-19
2392	2392	fied payment stablecoin issuer, or any 20
2393	2393	institution-affiliated party of the Fed-21
2394	2394	eral qualified payment stablecoin 22
2395	2395	issuer subject to the directive, may 23
2396	2396	object and present to the Comptroller, 24
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2399	2399	•S 1582 PCS
2400	2400	in writing, the reasons that the direc-1
2401	2401	tive should be modified or rescinded. 2
2402	2402	(II) A
2403	2403	UTOMATIC LAPSE OF DI -3
2404	2404	RECTIVE.—If, after 10 days after the 4
2405	2405	receipt of a response described in sub-5
2406	2406	clause (I), the Comptroller does not 6
2407	2407	affirm, modify, or rescind the direc-7
2408	2408	tive, the directive shall automatically 8
2409	2409	lapse. 9
2410	2410	(ii) J
2411	2411	UDICIAL REVIEW.— 10
2412	2412	(I) I
2413	2413	N GENERAL.—If the Comp-11
2414	2414	troller affirms or modifies a directive 12
2415	2415	pursuant to clause (i), any affected 13
2416	2416	party may immediately thereafter pe-14
2417	2417	tition the United States district court 15
2418	2418	for the district in which the main of-16
2419	2419	fice of the affected party is located, or 17
2420	2420	in the United States District Court 18
2421	2421	for the District of Columbia, to stay, 19
2422	2422	modify, terminate, or set aside the di-20
2423	2423	rective. 21
2424	2424	(II) R
2425	2425	ELIEF FOR EXTRAOR -22
2426	2426	DINARY CAUSE.—Upon a showing of 23
2427	2427	extraordinary cause, an affected party 24
2428	2428	may petition for relief under subclause 25
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2431	2431	•S 1582 PCS
2432	2432	(I) without first pursuing or exhaust-1
2433	2433	ing the administrative remedies under 2
2434	2434	clause (i). 3
2435	2435	(f) E
2436	2436	FFECT ONSTATELAW.— 4
2437	2437	(1) H
2438	2438	OST STATE LAW.—Unless otherwise pro-5
2439	2439	vided in this Act, the laws of a host State, including 6
2440	2440	laws relating to consumer protection, shall only 7
2441	2441	apply to the activities conducted in the host State by 8
2442	2442	an out-of-State State qualified payment stablecoin 9
2443	2443	issuer to the same extent as such laws apply to the 10
2444	2444	activities conducted in the host State by an out-of- 11
2445	2445	State Federal qualified payment stablecoin issuer. 12
2446	2446	(2) H
2447	2447	OME STATE LAW.—If any host State law 13
2448	2448	is determined not to apply under paragraph (1), the 14
2449	2449	laws of the home State of the State qualified pay-15
2450	2450	ment stablecoin issuer shall govern the activities of 16
2451	2451	the permitted payment stablecoin issuer conducted 17
2452	2452	in the host State. 18
2453	2453	(3) A
2454	2454	PPLICABILITY.— 19
2455	2455	(A) I
2456	2456	N GENERAL.—This subsection shall 20
2457	2457	only apply to an out-of-State State qualified 21
2458	2458	payment stablecoin issuer chartered, licensed, 22
2459	2459	or otherwise authorized to do business by a 23
2460	2460	State that has a certification in place pursuant 24
2461	2461	to section 4(c) of this Act. 25
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2465	2465	(B) EXCLUSION.—The laws applicable to 1
2466	2466	an out-of-State qualified payment stablecoin 2
2467	2467	issuer under paragraph (1) exclude host State 3
2468	2468	laws governing the chartering, licensure, or 4
2469	2469	other authorization to do business in the host 5
2470	2470	State as a permitted payment stablecoin issuer 6
2471	2471	pursuant to this Act. 7
2472	2472	(4) R
2473	2473	ULE OF CONSTRUCTION .—Except as speci-8
2474	2474	fied in this subsection, nothing in this Act shall pre-9
2475	2475	empt State consumer protection laws, including com-10
2476	2476	mon law, and the remedies available thereunder. 11
2477	2477	SEC. 8. ANTI-MONEY LAUNDERING PROTECTIONS. 12
2478	2478	(a) P
2479	2479	AYMENTSTABLECOINISSUED BY AFOREIGN 13
2480	2480	P
2481	2481	AYMENTSTABLECOINISSUER.— 14
2482	2482	(1) I
2483	2483	N GENERAL.—Payment stablecoin that is 15
2484	2484	issued by a foreign payment stablecoin issuer may 16
2485	2485	not be publicly offered, sold, or otherwise made 17
2486	2486	available for trading in the United States unless the 18
2487	2487	foreign payment stablecoin issuer has the techno-19
2488	2488	logical capability to comply and complies with the 20
2489	2489	terms of any lawful order. 21
2490	2490	(2) E
2491	2491	NFORCEMENT.— 22
2492	2492	(A) A
2493	2493	UTHORITY.—The Secretary of the 23
2494	2494	Treasury shall have the authority to designate 24
2495	2495	any foreign issuer that publicly offers, sells, or 25
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2498	2498	•S 1582 PCS
2499	2499	otherwise makes available a payment stablecoin 1
2500	2500	in violation of paragraph (1) as noncompliant. 2
2501	2501	(B) D
2502	2502	ESIGNATION AS NONCOMPLIANT .— 3
2503	2503	Not later than 30 days after the Department of 4
2504	2504	the Treasury has identified a foreign payment 5
2505	2505	stablecoin issuer of any payment stablecoin that 6
2506	2506	is trading in the United States that is in viola-7
2507	2507	tion of paragraph (1), the Secretary of the 8
2508	2508	Treasury, in coordination with relevant Federal 9
2509	2509	agencies, may, pursuant to the authority under 10
2510	2510	subparagraph (A), designate the foreign pay-11
2511	2511	ment stablecoin issuer as noncompliant and no-12
2512	2512	tify the foreign payment stablecoin issuer in 13
2513	2513	writing of the designation. 14
2514	2514	(3) A
2515	2515	PPEAL.—A determination of noncompli-15
2516	2516	ance under this subsection is subject to judicial re-16
2517	2517	view in the United States Court of Appeals for the 17
2518	2518	District of Columbia Circuit. 18
2519	2519	(b) P
2520	2520	UBLICATION OF DESIGNATION; PROHIBITION 19
2521	2521	ONSECONDARYTRADING.— 20
2522	2522	(1) I
2523	2523	N GENERAL.—If a foreign payment 21
2524	2524	stablecoin issuer does not come into compliance with 22
2525	2525	the lawful order within 30 days from the date of 23
2526	2526	issuance of the written notice described in subsection 24
2527	2527	(a), the Secretary of the Treasury may— 25
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2531	2531	(A) publish the determination of non-1
2532	2532	compliance in the Federal Register, including a 2
2533	2533	statement on the failure of the foreign payment 3
2534	2534	stablecoin issuer to comply with the lawful 4
2535	2535	order after the written notice; and 5
2536	2536	(B) issue a notification in the Federal Reg-6
2537	2537	ister prohibiting digital asset service providers 7
2538	2538	from facilitating secondary trading of payment 8
2539	2539	stablecoins issued by the foreign payment 9
2540	2540	stablecoin issuer in the United States. 10
2541	2541	(2) E
2542	2542	FFECTIVE DATE OF PROHIBITION .—The 11
2543	2543	prohibition on facilitation of secondary trading de-12
2544	2544	scribed in paragraph (1) shall become effective on 13
2545	2545	the date that is 30 days after the date of issue of 14
2546	2546	notification of the prohibition in the Federal Reg-15
2547	2547	ister. 16
2548	2548	(3) E
2549	2549	XPIRATION OF PROHIBITION .— 17
2550	2550	(A) I
2551	2551	N GENERAL.—The prohibition on fa-18
2552	2552	cilitation of secondary trading described in 19
2553	2553	paragraph (1)(B) shall expire upon the Sec-20
2554	2554	retary of the Treasury’s determination that the 21
2555	2555	foreign payment stablecoin issuer is no longer 22
2556	2556	noncompliant. 23
2557	2557	(B) R
2558	2558	ULEMAKING.—Consistent with sec-24
2559	2559	tion 13, the Secretary of the Treasury shall 25
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2562	2562	•S 1582 PCS
2563	2563	specify the criteria that a noncompliant foreign 1
2564	2564	issuer must meet for the Secretary of the 2
2565	2565	Treasury to determine that the foreign payment 3
2566	2566	stablecoin issuer is no longer noncompliant. 4
2567	2567	(4) C
2568	2568	IVIL MONETARY PENALTIES .—The Sec-5
2569	2569	retary of the Treasury may impose a civil monetary 6
2570	2570	penalty as follows: 7
2571	2571	(A) D
2572	2572	IGITAL ASSET SERVICE PRO -8
2573	2573	VIDERS.—Any digital asset service provider that 9
2574	2574	knowingly violates a prohibition under para-10
2575	2575	graph (1)(B) shall be subject to a civil mone-11
2576	2576	tary penalty of not more than $100,000 per vio-12
2577	2577	lation per day. 13
2578	2578	(B) F
2579	2579	OREIGN PAYMENT STABLECOIN 14
2580	2580	ISSUERS.—Any foreign payment stablecoin 15
2581	2581	issuer that knowingly continues to publicly offer 16
2582	2582	a payment stablecoin in the United States after 17
2583	2583	publication of the determination of noncompli-18
2584	2584	ance under paragraph (1)(A) shall be subject to 19
2585	2585	a civil monetary penalty of not more than 20
2586	2586	$1,000,000 per violation per day, and the Sec-21
2587	2587	retary of the Treasury may seek an injunction 22
2588	2588	in a district court of the United States to bar 23
2589	2589	the foreign payment stablecoin issuer from en-24
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2591	2591	ssavage on LAPJG3WLY3PROD with BILLS 86
2592	2592	•S 1582 PCS
2593	2593	gaging in financial transactions in the United 1
2594	2594	States or with United States persons. 2
2595	2595	(C) D
2596	2596	ETERMINATION OF THE NUMBER OF 3
2597	2597	VIOLATIONS.—For purposes of determining the 4
2598	2598	number of violations for which to impose a pen-5
2599	2599	alty under subparagraph (A) or (B), separate 6
2600	2600	acts of noncompliance are a single violation 7
2601	2601	when the acts are the result of a common or 8
2602	2602	substantially overlapping originating cause. 9
2603	2603	(D) C
2604	2604	OMMENCEMENT OF CIVIL ACTIONS .— 10
2605	2605	The Secretary of the Treasury may commence 11
2606	2606	a civil action against a foreign payment 12
2607	2607	stablecoin issuer in a district court of the 13
2608	2608	United States to— 14
2609	2609	(i) recover a civil monetary penalty as-15
2610	2610	sessed under subparagraph (A) or (B); 16
2611	2611	(ii) seek an injunction to bar the for-17
2612	2612	eign payment stablecoin issuer from engag-18
2613	2613	ing in financial transactions in the United 19
2614	2614	States or with United States persons; or 20
2615	2615	(iii) seek an injunction to stop a dig-21
2616	2616	ital asset service provider from offering on 22
2617	2617	the platform of the digital asset service 23
2618	2618	provider payment stablecoins issued by the 24
2619	2619	foreign payment stablecoin issuer. 25
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2623	2623	(c) WAIVER ANDLICENSINGAUTHORITYEXEMP-1
2624	2624	TIONS.— 2
2625	2625	(1) I
2626	2626	N GENERAL.—The Secretary of the Treas-3
2627	2627	ury may offer a waiver, general license, or specific 4
2628	2628	license to any United States person engaging in sec-5
2629	2629	ondary trading described in subsection (b)(1)(B) on 6
2630	2630	a case-by-case basis if the Secretary determines 7
2631	2631	that— 8
2632	2632	(A) prohibiting secondary trading would 9
2633	2633	adversely affect the financial system of the 10
2634	2634	United States; or 11
2635	2635	(B) the foreign payment stablecoin issuer 12
2636	2636	is taking tangible steps to remedy the failure to 13
2637	2637	comply with the lawful order that resulted in 14
2638	2638	the noncompliance determination under sub-15
2639	2639	section (a). 16
2640	2640	(2) N
2641	2641	ATIONAL SECURITY WAIVER .—The Sec-17
2642	2642	retary of the Treasury, in consultation with the Di-18
2643	2643	rector of National Intelligence and the Secretary of 19
2644	2644	State, may waive the application of the secondary 20
2645	2645	trading restrictions under subsection (b)(1)(B) if the 21
2646	2646	Secretary of the Treasury determines that the waiv-22
2647	2647	er is in the national security interest of the United 23
2648	2648	States. 24
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2652	2652	(3) WAIVER FOR INTELLIGENCE AND LAW EN -1
2653	2653	FORCEMENT ACTIVITIES .—The head of a depart-2
2654	2654	ment or agency may waive the application of this 3
2655	2655	section with respect to— 4
2656	2656	(A) activities subject to the reporting re-5
2657	2657	quirements under title V of the National Secu-6
2658	2658	rity Act of 1947 (50 U.S.C. 3091 et seq.), or 7
2659	2659	any authorized intelligence activities of the 8
2660	2660	United States; or 9
2661	2661	(B) activities necessary to carry out or as-10
2662	2662	sist law enforcement activity of the United 11
2663	2663	States. 12
2664	2664	(4) R
2665	2665	EPORT REQUIRED.—Not later than 7 days 13
2666	2666	after issuing a waiver or a license under paragraph 14
2667	2667	(1), the Secretary of the Treasury shall submit a re-15
2668	2668	port to the chairs and ranking members of the Com-16
2669	2669	mittee on Banking, Housing, and Urban Affairs of 17
2670	2670	the Senate and the Committee on Financial Services 18
2671	2671	of the House of Representatives, including the text 19
2672	2672	of the waiver or license, as well as the facts and cir-20
2673	2673	cumstances justifying the waiver determination, and 21
2674	2674	provide a briefing on the report. 22
2675	2675	SEC. 9. ANTI-MONEY LAUNDERING INNOVATION. 23
2676	2676	(a) P
2677	2677	UBLICCOMMENT.—Beginning on the date that 24
2678	2678	is 30 days after the date of enactment of this Act, and 25
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2681	2681	•S 1582 PCS
2682	2682	for a period of 60 days thereafter, the Secretary of the 1
2683	2683	Treasury shall seek public comment to identify innovative 2
2684	2684	or novel methods, techniques, or strategies that regulated 3
2685	2685	financial institutions use, or have the potential to use, to 4
2686	2686	detect illicit activity, such as money laundering, involving 5
2687	2687	digital assets, including comments with respect to— 6
2688	2688	(1) application program interfaces; 7
2689	2689	(2) artificial intelligence; 8
2690	2690	(3) digital identify verification; and 9
2691	2691	(4) use of blockchain technology and moni-10
2692	2692	toring. 11
2693	2693	(b) T
2694	2694	REASURYRESEARCH.— 12
2695	2695	(1) I
2696	2696	N GENERAL.—Upon completion of the pub-13
2697	2697	lic comment period described in subsection (a), the 14
2698	2698	Secretary of the Treasury shall conduct research on 15
2699	2699	the innovative or novel methods, techniques, or 16
2700	2700	strategies that regulated financial institutions use, 17
2701	2701	or have the potential to use, to detect illicit activity, 18
2702	2702	such as money laundering, involving digital assets 19
2703	2703	that were identified in such public comment period. 20
2704	2704	(2) R
2705	2705	ESEARCH FACTORS.—With respect to each 21
2706	2706	innovative or novel method, technique, or strategy 22
2707	2707	described in paragraph (1), the Financial Crimes 23
2708	2708	Enforcement Network shall evaluate and consider 24
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2712	2712	the following factors against existing methods, tech-1
2713	2713	niques, or strategies: 2
2714	2714	(A) Improvements in the ability of finan-3
2715	2715	cial institutions to detect illicit activity involving 4
2716	2716	digital assets. 5
2717	2717	(B) Costs to regulated financial institu-6
2718	2718	tions. 7
2719	2719	(C) The amount and sensitivity of informa-8
2720	2720	tion that is collected or reviewed. 9
2721	2721	(D) Privacy risks associated with the infor-10
2722	2722	mation that is collected or reviewed. 11
2723	2723	(E) Operational challenges and efficiency 12
2724	2724	considerations. 13
2725	2725	(F) Cybersecurity risks. 14
2726	2726	(G) Effectiveness of methods, techniques, 15
2727	2727	or strategies at mitigating illicit finance. 16
2728	2728	(c) T
2729	2729	REASURYRISKASSESSMENT.—As part of the 17
2730	2730	national strategy for combating terrorist and other illicit 18
2731	2731	financing required under sections 261 and 262 of the 19
2732	2732	Countering America’s Adversaries Through Sanctions Act 20
2733	2733	(Public Law 115–44; 131 Stat. 934), the Secretary of the 21
2734	2734	Treasury shall consider— 22
2735	2735	(1) the source of illicit activity, such as money 23
2736	2736	laundering and sanctions evasion involving digital 24
2737	2737	assets; 25
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2740	2740	•S 1582 PCS
2741	2741	(2) the effectiveness of and gaps in existing 1
2742	2742	methods, techniques, and strategies used by regu-2
2743	2743	lated financial institutions in detecting illicit activity, 3
2744	2744	such as money laundering, involving digital assets; 4
2745	2745	(3) the impact of existing regulatory frame-5
2746	2746	works on the use and development of innovative 6
2747	2747	methods, techniques, or strategies by regulated fi-7
2748	2748	nancial institutions; and 8
2749	2749	(4) any foreign jurisdictions that pose a high 9
2750	2750	risk of facilitating illicit activity through the use of 10
2751	2751	digital assets to obtain fiat currency. 11
2752	2752	(d) F
2753	2753	INCEN GUIDANCE OR RULEMAKING.—Not 12
2754	2754	later than 2 years after the date of enactment of this Act, 13
2755	2755	the Financial Crimes Enforcement Network shall issue 14
2756	2756	public guidance or notice and comment rulemaking, based 15
2757	2757	on the results of the research and risk assessments re-16
2758	2758	quired under this section, relating to the following: 17
2759	2759	(1) The implementation of innovative or novel 18
2760	2760	methods, techniques, or strategies by regulated fi-19
2761	2761	nancial institutions to detect illicit activity involving 20
2762	2762	digital assets. 21
2763	2763	(2) Best practices for payment stablecoin 22
2764	2764	issuers to identify and report illicit activity involving 23
2765	2765	the payment stablecoin of a permitted payment 24
2766	2766	stablecoin issuer, including, fraud, cybercrime, 25
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2769	2769	•S 1582 PCS
2770	2770	money laundering, financing of terrorism, sanctions 1
2771	2771	evasion, and insider trading. 2
2772	2772	(3) Best practices for payment stablecoin 3
2773	2773	issuers’ systems and practices to monitor trans-4
2774	2774	actions on blockchains, digital asset mixing services, 5
2775	2775	tumblers, or other similar services that mix payment 6
2776	2776	stablecoins in such a way as to make such trans-7
2777	2777	action or the identity of the transaction parties less 8
2778	2778	identifiable. 9
2779	2779	(e) R
2780	2780	ECOMMENDATIONS AND REPORT TO CON-10
2781	2781	GRESS.—Not later than 2 years after the date of enact-11
2782	2782	ment of this Act, and annually thereafter for a period of 12
2783	2783	4 years, the Secretary of the Treasury shall submit to the 13
2784	2784	chairs and ranking members of the Committee on Bank-14
2785	2785	ing, Housing, and Urban Affairs of the Senate and the 15
2786	2786	Committee on Financial Services of the House of Rep-16
2787	2787	resentatives a report, and provide a briefing of such re-17
2788	2788	port, on— 18
2789	2789	(1) legislative and regulatory proposals to allow 19
2790	2790	regulated financial institutions to develop and imple-20
2791	2791	ment novel and innovative methods, techniques, or 21
2792	2792	strategies to detect illicit activity, such as money 22
2793	2793	laundering and sanctions evasion, involving digital 23
2794	2794	assets; 24
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2797	2797	•S 1582 PCS
2798	2798	(2) the results of the research and risk assess-1
2799	2799	ments conducted pursuant to this section; and 2
2800	2800	(3) efforts to support the ability of financial in-3
2801	2801	stitutions to implement novel and innovative meth-4
2802	2802	ods, techniques, or strategies to detect illicit activity, 5
2803	2803	such as money laundering and sanctions evasion, in-6
2804	2804	volving digital assets. 7
2805	2805	(f) R
2806	2806	ULE OFCONSTRUCTION.—Nothing in this sec-8
2807	2807	tion shall be construed to limit the existing authority of 9
2808	2808	the Secretary of the Treasury or the primary Federal pay-10
2809	2809	ment stablecoin regulators to, prior to the submission of 11
2810	2810	a report required under this section, use existing exemp-12
2811	2811	tive authorities, the no-action letter process, or rulemaking 13
2812	2812	authorities in a manner that encourages regulated finan-14
2813	2813	cial institutions to adopt novel or innovative methods, 15
2814	2814	techniques, or strategies to detect illicit activity, such as 16
2815	2815	money laundering, involving digital assets. 17
2816	2816	SEC. 10. CUSTODY OF PAYMENT STABLECOIN RESERVE 18
2817	2817	AND COLLATERAL. 19
2818	2818	(a) I
2819	2819	NGENERAL.—A person may only engage in the 20
2820	2820	business of providing custodial or safekeeping services for 21
2821	2821	the payment stablecoin reserve, the payment stablecoins 22
2822	2822	used as collateral, or the private keys used to issue per-23
2823	2823	mitted payment stablecoins if the person— 24
2824	2824	(1) is subject to— 25
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2827	2827	•S 1582 PCS
2828	2828	(A) supervision or regulation by a primary 1
2829	2829	Federal payment stablecoin regulator or a pri-2
2830	2830	mary financial regulatory agency described 3
2831	2831	under subparagraph (B) or (C) of section 2(12) 4
2832	2832	of the Dodd-Frank Wall Street Reform and 5
2833	2833	Consumer Protection Act (12 U.S.C. 6
2834	2834	5301(12)); or 7
2835	2835	(B) supervision by a State bank super-8
2836	2836	visor, as defined under section 3 of the Federal 9
2837	2837	Deposit Insurance Act (12 U.S.C. 1813), or a 10
2838	2838	State credit union supervisor, as defined under 11
2839	2839	section 6003 of the Anti-Money Laundering Act 12
2840	2840	of 2020 (31 U.S.C. 5311 note), and such State 13
2841	2841	bank supervisor or State credit union supervisor 14
2842	2842	makes available to the Board such information 15
2843	2843	as the Board determines necessary and relevant 16
2844	2844	to the categories of information under sub-17
2845	2845	section (d); and 18
2846	2846	(2) complies with the requirements under sub-19
2847	2847	section (b), unless such person holds such property 20
2848	2848	in accordance with similar requirements as required 21
2849	2849	by a primary Federal payment stablecoin regulator, 22
2850	2850	the Securities and Exchange Commission, or the 23
2851	2851	Commodity Futures Trading Commission. 24
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2855	2855	(b) CUSTOMERPROPERTYREQUIREMENT.—A per-1
2856	2856	son described in subsection (a) shall— 2
2857	2857	(1) with respect to payment stablecoin reserves 3
2858	2858	received from a permitted payment stablecoin issuer 4
2859	2859	for deposit in a reserve account, treat and deal with 5
2860	2860	such payment stablecoin reserves as belonging to the 6
2861	2861	holders of the permitted payment stablecoins issued 7
2862	2862	by such issuer and not as the property of such per-8
2863	2863	son or of such permitted payment stablecoin issuer; 9
2864	2864	and 10
2865	2865	(2) with respect to other property described in 11
2866	2866	subsection (a)— 12
2867	2867	(A) treat and deal with the payment 13
2868	2868	stablecoins, private keys, cash, and other prop-14
2869	2869	erty of a person for whom or on whose behalf 15
2870	2870	the person described in that subsection receives, 16
2871	2871	acquires, or holds payment stablecoins, private 17
2872	2872	keys, cash, and other property (hereinafter re-18
2873	2873	ferred to in this section as the ‘‘customer’’) as 19
2874	2874	belonging to such customer and not as the 20
2875	2875	property of such person; and 21
2876	2876	(B) take such steps as are appropriate to 22
2877	2877	protect the payment stablecoins, private keys, 23
2878	2878	cash, and other property of a customer from 24
2879	2879	the claims of creditors of the person. 25
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2882	2882	•S 1582 PCS
2883	2883	(c) COMMINGLINGPROHIBITED.— 1
2884	2884	(1) I
2885	2885	N GENERAL.—Payment stablecoin reserves, 2
2886	2886	payment stablecoins, cash, and other property of a 3
2887	2887	permitted payment stablecoin issuer or customer 4
2888	2888	shall be separately accounted for by a person de-5
2889	2889	scribed in subsection (a) and shall be segregated 6
2890	2890	from and not be commingled with the funds of the 7
2891	2891	person. 8
2892	2892	(2) E
2893	2893	XCEPTIONS.—Notwithstanding paragraph 9
2894	2894	(1) or subsection (b)— 10
2895	2895	(A) the payment stablecoin reserves, pay-11
2896	2896	ment stablecoins, cash, and other property of a 12
2897	2897	permitted payment stablecoin issuer or cus-13
2898	2898	tomer may, for convenience, be commingled and 14
2899	2899	deposited in an omnibus account holding the 15
2900	2900	payment stablecoin reserves, payment 16
2901	2901	stablecoins, cash, and other property of more 17
2902	2902	than 1 permitted payment stablecoin issuer or 18
2903	2903	customer at a State chartered depository insti-19
2904	2904	tution, an insured depository institution, na-20
2905	2905	tional bank, or trust company, and any pay-21
2906	2906	ment stablecoin reserves in the form of cash 22
2907	2907	held in the form of a deposit liability at a de-23
2908	2908	pository institution shall not be subject to any 24
2909	2909	requirement relating to the separation of such 25
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2913	2913	cash from the property of the applicable deposi-1
2914	2914	tory institution; 2
2915	2915	(B) such share of the payment stablecoin 3
2916	2916	reserves, payment stablecoins, cash, and other 4
2917	2917	property of the permitted payment stablecoin 5
2918	2918	issuer or customer that shall be necessary to 6
2919	2919	transfer, adjust, or settle a transaction or 7
2920	2920	transfer of assets may be withdrawn and ap-8
2921	2921	plied to such purposes, including the payment 9
2922	2922	of commissions, taxes, storage, and other 10
2923	2923	charges lawfully accruing in connection with the 11
2924	2924	provision of services by a person described in 12
2925	2925	subsection (a); 13
2926	2926	(C) in accordance with such terms and 14
2927	2927	conditions as a primary Federal payment 15
2928	2928	stablecoin regulator may prescribe by rule, reg-16
2929	2929	ulation, or order, any payment stablecoin re-17
2930	2930	serves, payment stablecoins, cash, and other 18
2931	2931	property described in this subsection may be 19
2932	2932	commingled and deposited in permitted pay-20
2933	2933	ment stablecoin issuer or customer accounts 21
2934	2934	with payment stablecoin reserves, payment 22
2935	2935	stablecoins, cash, and other property received 23
2936	2936	by the person and required by the primary Fed-24
2937	2937	eral payment stablecoin regulator to be sepa-25
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2940	2940	•S 1582 PCS
2941	2941	rately accounted for, treated as, and dealt with 1
2942	2942	as belonging to such permitted payment 2
2943	2943	stablecoin issuers or customers; or 3
2944	2944	(D) an insured depository institution that 4
2945	2945	provides custodial or safekeeping services for 5
2946	2946	payment stablecoin reserves shall be permitted 6
2947	2947	to hold payment stablecoin reserves in the form 7
2948	2948	of cash on deposit. 8
2949	2949	(3) C
2950	2950	USTOMER PRIORITY.—With or without the 9
2951	2951	segregation required under paragraph (1), the 10
2952	2952	claims of a customer with respect to the property de-11
2953	2953	scribed in that paragraph shall have priority over 12
2954	2954	the claims of any person other than a customer 13
2955	2955	against a person described in subparagraph (a) un-14
2956	2956	less the customer expressly consents to such other 15
2957	2957	priority of claim. 16
2958	2958	(d) R
2959	2959	EGULATORY INFORMATION.—A person de-17
2960	2960	scribed under subsection (a) shall submit to the applicable 18
2961	2961	primary Federal payment stablecoin regulator information 19
2962	2962	concerning the person’s business operations and processes 20
2963	2963	to protect customer assets, in such form and manner as 21
2964	2964	the primary regulator shall determine. 22
2965	2965	(e) E
2966	2966	XCLUSION.—The requirements of this section 23
2967	2967	shall not apply to any person solely on the basis that such 24
2968	2968	person engages in the business of providing hardware or 25
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2972	2972	software to facilitate a customer’s own custody or safe-1
2973	2973	keeping of the customer’s payment stablecoins or private 2
2974	2974	keys. 3
2975	2975	SEC. 11. TREATMENT OF PAYMENT STABLECOIN ISSUERS 4
2976	2976	IN INSOLVENCY PROCEEDINGS. 5
2977	2977	(a) I
2978	2978	NGENERAL.—In any insolvency proceeding of 6
2979	2979	a permitted payment stablecoin issuer under Federal or 7
2980	2980	State law, including any proceeding under title 11, United 8
2981	2981	States Code, and any insolvency proceeding administered 9
2982	2982	by a State payment stablecoin regulator with respect to 10
2983	2983	a permitted payment stablecoin issuer, the claim of a per-11
2984	2984	son holding payment stablecoins issued by the permitted 12
2985	2985	payment stablecoin issuer shall have priority over the 13
2986	2986	claims of the permitted payment stablecoin issuer and any 14
2987	2987	other creditor of the permitted payment stablecoin issuer, 15
2988	2988	with respect to required payment stablecoin reserves, sub-16
2989	2989	ject to section 507(e) of title 11, United States Code, as 17
2990	2990	added by subsection (d). 18
2991	2991	(b) D
2992	2992	EFINITIONS.—Section 101 of title 11, United 19
2993	2993	States Code, is amended by adding after paragraph (40B) 20
2994	2994	the following: 21
2995	2995	‘‘(40C) The terms ‘payment stablecoin’ and 22
2996	2996	‘permitted payment stablecoin issuer’ have the 23
2997	2997	meanings given those terms in section 2 of the GE-24
2998	2998	NIUS Act.’’. 25
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3002	3002	(c) AUTOMATICSTAY.—Section 362 of title 11, 1
3003	3003	United States Code, is amended— 2
3004	3004	(1) in subsection (a)— 3
3005	3005	(A) in paragraph (7), by striking ‘‘and’’; 4
3006	3006	(B) in paragraph (8), by striking the pe-5
3007	3007	riod and inserting ‘‘; and’’; and 6
3008	3008	(C) by adding at the end the following: 7
3009	3009	‘‘(9) the redemption of payment stablecoins 8
3010	3010	issued by the permitted payment stablecoin issuer, 9
3011	3011	from payment stablecoin reserves required to be 10
3012	3012	maintained under section 4 of the GENIUS Act.’’; 11
3013	3013	and 12
3014	3014	(2) in subsection (d)— 13
3015	3015	(A) in paragraph (3)(B)(ii), by striking 14
3016	3016	‘‘or’’ at the end; 15
3017	3017	(B) in paragraph (4)(B), by striking the 16
3018	3018	period at the end and inserting ‘‘; or’’; and 17
3019	3019	(C) by inserting after paragraph (4) the 18
3020	3020	following: 19
3021	3021	‘‘(5) with respect to the redemption of payment 20
3022	3022	stablecoins held by a person, if the court finds, sub-21
3023	3023	ject to the motion and attestation of the permitted 22
3024	3024	payment stablecoin issuer on the petition date, there 23
3025	3025	are payment stablecoin reserves available for dis-24
3026	3026	tribution on a ratable basis to similarly situated pay-25
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3029	3029	•S 1582 PCS
3030	3030	ment stablecoin holders, provided that the court 1
3031	3031	shall use best efforts to enter a final order to begin 2
3032	3032	distributions under this paragraph not later than 14 3
3033	3033	days after the date of the required hearing.’’. 4
3034	3034	(d) P
3035	3035	RIORITY INBANKRUPTCYPROCEEDINGS.—Sec-5
3036	3036	tion 507 of title 11, United States Code, is amended— 6
3037	3037	(1) in subsection (a), in the matter preceding 7
3038	3038	paragraph (1), by striking ‘‘The following’’ and in-8
3039	3039	serting ‘‘Subject to subsection (e), the following’’; 9
3040	3040	and 10
3041	3041	(2) by adding at the end the following: 11
3042	3042	‘‘(e) Notwithstanding subsection (a), if a payment 12
3043	3043	stablecoin holder is not able to redeem all outstanding pay-13
3044	3044	ment stablecoin claims from required payment stablecoin 14
3045	3045	reserves maintained by the permitted payment stablecoin 15
3046	3046	issuer, any remaining claim of a person holding a payment 16
3047	3047	stablecoin issued by the permitted payment stablecoin 17
3048	3048	issuer shall have first priority over any other claim, includ-18
3049	3049	ing over any expenses and claims that have priority under 19
3050	3050	that subsection, to the extent compliance with section 4 20
3051	3051	of the GENIUS Act would have required additional re-21
3052	3052	serves to be maintained by the permitted payment 22
3053	3053	stablecoin issuer for payment stablecoin holders.’’. 23
3054	3054	(e) P
3055	3055	AYMENTSTABLECOIN RESERVES.—Section 24
3056	3056	541(b) of title 11, United States Code, is amended— 25
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3060	3060	(1) in paragraph (9), in the matter following 1
3061	3061	subparagraph (B), by striking ‘‘or’’ at the end; 2
3062	3062	(2) in paragraph (10)(C), by striking the period 3
3063	3063	and inserting ‘‘; or’’; and 4
3064	3064	(3) by inserting after paragraph (10) the fol-5
3065	3065	lowing: 6
3066	3066	‘‘(11) required payment stablecoin reserves 7
3067	3067	under section 4 of the GENIUS Act.’’. 8
3068	3068	(f) I
3069	3069	NTERVENTION.—Section 1109 of title 11, United 9
3070	3070	States Code, is amended by adding at the end the fol-10
3071	3071	lowing: 11
3072	3072	‘‘(c) The Comptroller of the Currency or State pay-12
3073	3073	ment stablecoin regulator (as defined in section 2 of the 13
3074	3074	GENIUS Act) shall raise, and shall appear and be heard 14
3075	3075	on, any issue, including the protection of customers, in 15
3076	3076	a case under this chapter in which the debtor is a per-16
3077	3077	mitted payment stablecoin issuer.’’. 17
3078	3078	(g) A
3079	3079	PPLICATION OFEXISTINGINSOLVENCYLAW.— 18
3080	3080	In accordance with otherwise applicable law, an insolvency 19
3081	3081	proceeding with respect to a permitted payment stablecoin 20
3082	3082	issuer shall occur as follows: 21
3083	3083	(1) A depository institution (as defined in sec-22
3084	3084	tion 3 of the Federal Deposit Insurance Act (12 23
3085	3085	U.S.C. 1813)) shall be resolved by the Federal De-24
3086	3086	posit Insurance Corporation, National Credit Union 25
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3090	3090	Administration, or State payment stablecoin regu-1
3091	3091	lator, as applicable. 2
3092	3092	(2) A subsidiary of a depository institution (as 3
3093	3093	defined in section 3 of the Federal Deposit Insur-4
3094	3094	ance Act (12 U.S.C. 1813)) or a nonbank entity 5
3095	3095	may be considered a debtor under title 11, United 6
3096	3096	States Code. 7
3097	3097	SEC. 12. INTEROPERABILITY STANDARDS. 8
3098	3098	The primary Federal payment stablecoin regulators, 9
3099	3099	in consultation with the National Institute of Standards 10
3100	3100	and Technology, other relevant standard-setting organiza-11
3101	3101	tions, and State bank and credit union regulators, shall 12
3102	3102	assess and, if necessary, may, pursuant to section 553 of 13
3103	3103	title 5, United States Code, and in a manner consistent 14
3104	3104	with the National Technology Transfer and Advancement 15
3105	3105	Act of 1995 (Public Law 104–113), prescribe standards 16
3106	3106	for permitted payment stablecoin issuers to promote com-17
3107	3107	patibility and interoperability with— 18
3108	3108	(1) other permitted payment stablecoin issuers; 19
3109	3109	and 20
3110	3110	(2) the broader digital finance ecosystem, in-21
3111	3111	cluding accepted communications protocols and 22
3112	3112	blockchains, permissioned or public. 23
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3116	3116	SEC. 13. RULEMAKING. 1
3117	3117	(a) I
3118	3118	NGENERAL.—Not later than 1 year after the 2
3119	3119	date of enactment of this Act, each primary Federal pay-3
3120	3120	ment stablecoin regulator, the Secretary of the Treasury, 4
3121	3121	and each State payment stablecoin regulator shall promul-5
3122	3122	gate regulations to carry out this Act through appropriate 6
3123	3123	notice and comment rulemaking. 7
3124	3124	(b) C
3125	3125	OORDINATION.—Federal payment stablecoin 8
3126	3126	regulators, the Secretary of the Treasury, and State pay-9
3127	3127	ment stablecoin regulators should coordinate, as appro-10
3128	3128	priate, on the issuance of any regulations to implement 11
3129	3129	this Act. 12
3130	3130	(c) R
3131	3131	EPORTREQUIRED.—Not later than 180 days 13
3132	3132	after the effective date of this Act, each Federal banking 14
3133	3133	agency shall submit to the Committee on Banking, Hous-15
3134	3134	ing, and Urban Affairs of the Senate and the Committee 16
3135	3135	on Financial Services of the House of Representatives a 17
3136	3136	report that confirms and describes the regulations promul-18
3137	3137	gated to carry out this Act. 19
3138	3138	SEC. 14. STUDY ON NON-PAYMENT STABLECOINS. 20
3139	3139	(a) S
3140	3140	TUDY BYTREASURY.— 21
3141	3141	(1) S
3142	3142	TUDY.—The Secretary of the Treasury, in 22
3143	3143	consultation with the Board, the Comptroller, the 23
3144	3144	Corporation, the Securities and Exchange Commis-24
3145	3145	sion, and the Commodity Futures Trading Commis-25
3146	3146	sion shall carry out a study of non-payment 26
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3149	3149	•S 1582 PCS
3150	3150	stablecoins, including endogenously collateralized 1
3151	3151	payment stablecoins. 2
3152	3152	(2) R
3153	3153	EPORT.—Not later than 365 days after 3
3154	3154	the date of the enactment of this Act, the Secretary 4
3155	3155	of the Treasury shall provide to the Committee on 5
3156	3156	Banking, Housing, and Urban Affairs of the Senate 6
3157	3157	and the Committee on Financial Services of the 7
3158	3158	House of Representatives a report that contains all 8
3159	3159	findings made in carrying out the study under para-9
3160	3160	graph (1), including an analysis of— 10
3161	3161	(A) the categories of non-payment 11
3162	3162	stablecoins, including the benefits and risks of 12
3163	3163	technological design features; 13
3164	3164	(B) the participants in non-payment 14
3165	3165	stablecoin arrangements; 15
3166	3166	(C) utilization and potential utilization of 16
3167	3167	non-payment stablecoins; 17
3168	3168	(D) the nature of reserve compositions; 18
3169	3169	(E) types of algorithms being employed; 19
3170	3170	(F) governance structure, including aspects 20
3171	3171	of decentralization; 21
3172	3172	(G) the nature of public promotion and ad-22
3173	3173	vertising; and 23
3174	3174	(H) the clarity and availability of con-24
3175	3175	sumer notices disclosures. 25
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3178	3178	•S 1582 PCS
3179	3179	(3) CLASSIFIED ANNEX.—A report under this 1
3180	3180	section may include a classified annex, if applicable. 2
3181	3181	(b) E
3182	3182	NDOGENOUSLY COLLATERALIZED PAYMENT 3
3183	3183	S
3184	3184	TABLECOIN DEFINED.—In this section, the term 4
3185	3185	‘‘endogenously collateralized payment stablecoin’’ means 5
3186	3186	any digital asset— 6
3187	3187	(1) the originator of which has represented will 7
3188	3188	be converted, redeemed, or repurchased for a fixed 8
3189	3189	amount of monetary value; and 9
3190	3190	(2) that relies solely on the value of another 10
3191	3191	digital asset created or maintained by the same 11
3192	3192	originator to maintain the fixed price. 12
3193	3193	SEC. 15. REPORTS. 13
3194	3194	(a) A
3195	3195	NNUALREPORTINGREQUIREMENT.—Beginning 14
3196	3196	on the date that is 1 year after the date of enactment 15
3197	3197	of this Act, and annually thereafter, the primary Federal 16
3198	3198	payment stablecoin regulators shall submit to the Com-17
3199	3199	mittee on Banking, Housing, and Urban Affairs of the 18
3200	3200	Senate, the Committee on Financial Services of the House 19
3201	3201	of Representatives, and the Director of the Office of Fi-20
3202	3202	nancial Research a report, which may include a classified 21
3203	3203	annex, if applicable, on the status of the payment 22
3204	3204	stablecoin industry, including— 23
3205	3205	(1) a summary of trends in payment stablecoin 24
3206	3206	activities; 25
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3209	3209	•S 1582 PCS
3210	3210	(2) a summary of the number of applications 1
3211	3211	for approval as a permitted payment stablecoin 2
3212	3212	issuer under section 5, including aggregate approvals 3
3213	3213	and rejections of applications; and 4
3214	3214	(3) a description of the potential financial sta-5
3215	3215	bility risks posed to the safety and soundness of the 6
3216	3216	broader financial system by payment stablecoin ac-7
3217	3217	tivities. 8
3218	3218	(b) FSOC R
3219	3219	EPORT.—The Financial Stability Over-9
3220	3220	sight Council shall incorporate the findings in the report 10
3221	3221	under subsection (a) into the annual report of the Council 11
3222	3222	required under section 112(a)(2)(N) of the Financial Sta-12
3223	3223	bility Act of 2010 (12 U.S.C. 5322(a)(2)(N)). 13
3224	3224	SEC. 16. AUTHORITY OF BANKING INSTITUTIONS. 14
3225	3225	(a) R
3226	3226	ULE OFCONSTRUCTION.—Nothing in this Act 15
3227	3227	may be construed to limit the authority of a depository 16
3228	3228	institution, Federal credit union, State credit union, na-17
3229	3229	tional bank, or trust company to engage in activities per-18
3230	3230	missible pursuant to applicable State and Federal law, in-19
3231	3231	cluding— 20
3232	3232	(1) accepting or receiving deposits or shares (in 21
3233	3233	the case of a credit union), and issuing digital assets 22
3234	3234	that represent those deposits or shares; 23
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3237	3237	•S 1582 PCS
3238	3238	(2) utilizing a distributed ledger for the books 1
3239	3239	and records of the entity and to effect intrabank 2
3240	3240	transfers; and 3
3241	3241	(3) providing custodial services for payment 4
3242	3242	stablecoins, private keys of payment stablecoins, or 5
3243	3243	reserves backing payment stablecoins. 6
3244	3244	(b) R
3245	3245	EGULATORYREVIEW.—Entities regulated by 7
3246	3246	the primary Federal payment stablecoin regulators are au-8
3247	3247	thorized to engage in the payment stablecoin activities and 9
3248	3248	investments contemplated by this Act, including acting as 10
3249	3249	a principal or agent with respect to any payment 11
3250	3250	stablecoin and payment of fees to facilitate customer 12
3251	3251	transactions. The primary Federal payment stablecoin 13
3252	3252	regulators shall review all existing guidance and regula-14
3253	3253	tions, and if necessary, amend or promulgate new regula-15
3254	3254	tions and guidance, to clarify that regulated entities are 16
3255	3255	authorized to engage in such activities and investments. 17
3256	3256	(c) T
3257	3257	REATMENT OFCUSTODYACTIVITIES.—The ap-18
3258	3258	propriate Federal banking agency, the National Credit 19
3259	3259	Union Administration (in the case of a credit union), and 20
3260	3260	the Securities and Exchange Commission may not require 21
3261	3261	a depository institution, national bank, Federal credit 22
3262	3262	union, State credit union, or trust company, or any affil-23
3263	3263	iate thereof— 24
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3266	3266	•S 1582 PCS
3267	3267	(1) to include digital assets held in custody that 1
3268	3268	are not owned by the entity as a liability on the fi-2
3269	3269	nancial statement or balance sheet of the entity, in-3
3270	3270	cluding payment stablecoin custody or safekeeping 4
3271	3271	activities; or 5
3272	3272	(2) to hold in custody or safekeeping regulatory 6
3273	3273	capital against digital assets and reserves backing 7
3274	3274	such assets described in section 4(a)(1)(A), except 8
3275	3275	as necessary to mitigate against operational risks in-9
3276	3276	herent in custody or safekeeping services, as deter-10
3277	3277	mined by— 11
3278	3278	(A) the appropriate Federal banking agen-12
3279	3279	cy; 13
3280	3280	(B) the National Credit Union Administra-14
3281	3281	tion (in the case of a credit union); 15
3282	3282	(C) a State bank supervisor; or 16
3283	3283	(D) a State credit union supervisor. 17
3284	3284	(d) S
3285	3285	TATE-CHARTERED DEPOSITORY INSTITU-18
3286	3286	TIONS.—A State-chartered depository institution char-19
3287	3287	tered under the banking laws of a State shall not be re-20
3288	3288	quired to obtain a charter, license, or other authorization 21
3289	3289	to do business from a State to engage in the business of 22
3290	3290	money transmission, the issuance of payment instruments 23
3291	3291	or stored value, custodial services, or any similar or re-24
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3295	3295	lated activity, if such State-chartered depository institu-1
3296	3296	tion is— 2
3297	3297	(1) subject to prudential regulation and super-3
3298	3298	vision by the chartering State in a manner that is 4
3299	3299	substantially similar to the prudential regulation and 5
3300	3300	supervision applicable to insured depository institu-6
3301	3301	tions chartered by such State; and 7
3302	3302	(2) required by the laws of the chartering State 8
3303	3303	to maintain reserves for any outstanding deposit li-9
3304	3304	abilities in an amount equal to or greater than such 10
3305	3305	liabilities and to hold such reserves in a manner that 11
3306	3306	is at least as protective of customers as is required 12
3307	3307	under section 8. 13
3308	3308	(e) D
3309	3309	EFINITIONS.—In this section: 14
3310	3310	(1) D
3311	3311	EPOSITORY INSTITUTION ; STATE BANK 15
3312	3312	SUPERVISOR.—The terms ‘‘depository institution’’ 16
3313	3313	and ‘‘State bank supervisor’’ have the meanings 17
3314	3314	given those terms under section 3 of the Federal De-18
3315	3315	posit Insurance Act (12 U.S.C. 1813). 19
3316	3316	(2) F
3317	3317	EDERAL CREDIT UNION ; STATE CREDIT 20
3318	3318	UNION.—The terms ‘‘Federal credit union’’ and 21
3319	3319	‘‘State credit union’’ have the meanings given those 22
3320	3320	terms in section 101 of the Federal Credit Union 23
3321	3321	Act (12 U.S.C. 1752). 24
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3324	3324	•S 1582 PCS
3325	3325	(3) STATE CREDIT UNION SUPERVISOR .—The 1
3326	3326	term ‘‘State credit union supervisor’’ has the mean-2
3327	3327	ing given that term in section 6003 of the Anti- 3
3328	3328	Money Laundering Act of 2020 (31 U.S.C. 5311 4
3329	3329	note). 5
3330	3330	SEC. 17. AMENDMENTS TO CLARIFY THAT PAYMENT 6
3331	3331	STABLECOINS ARE NOT SECURITIES OR COM-7
3332	3332	MODITIES AND PERMITTED PAYMENT 8
3333	3333	STABLECOIN ISSUERS ARE NOT INVESTMENT 9
3334	3334	COMPANIES. 10
3335	3335	(a) I
3336	3336	NVESTMENTADVISERSACT OF1940.—Section 11
3337	3337	202(a)(18) of the Investment Advisers Act of 1940 (15 12
3338	3338	U.S.C. 80b–2(a)(18)) is amended by adding at the end 13
3339	3339	the following: ‘‘The term ‘security’ does not include a pay-14
3340	3340	ment stablecoin issued by a permitted payment stablecoin 15
3341	3341	issuer, as such terms are defined in section 2 of the GE-16
3342	3342	NIUS Act.’’. 17
3343	3343	(b) I
3344	3344	NVESTMENTCOMPANYACT OF1940.—The In-18
3345	3345	vestment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) 19
3346	3346	is amended— 20
3347	3347	(1) in section 2(a)(36) of the Act (15 U.S.C. 21
3348	3348	80a–2(a)(36)), by adding at the end the following: 22
3349	3349	‘‘The term ‘security’ does not include a payment 23
3350	3350	stablecoin issued by a permitted payment stablecoin 24
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3353	3353	•S 1582 PCS
3354	3354	issuer, as such terms are defined in section 2 of the 1
3355	3355	GENIUS Act.’’; and 2
3356	3356	(2) in section 3(c)(3) of the Act (15 U.S.C. 3
3357	3357	80a–3(c)(3)), by inserting ‘‘any permitted payment 4
3358	3358	stablecoin issuer, as such term is defined in section 5
3359	3359	2 of the GENIUS Act;’’ after ‘‘therefor;’’. 6
3360	3360	(c) S
3361	3361	ECURITIESACT OF1933.—Section 2(a)(1) of 7
3362	3362	the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is 8
3363	3363	amended by adding at the end the following: ‘‘The term 9
3364	3364	‘security’ does not include a payment stablecoin issued by 10
3365	3365	a permitted payment stablecoin issuer, as such terms are 11
3366	3366	defined in section 2 of the GENIUS Act.’’. 12
3367	3367	(d) S
3368	3368	ECURITIESEXCHANGEACT OF1934.—Section 13
3369	3369	3(a)(10) of the Securities Exchange Act of 1934 (15 14
3370	3370	U.S.C. 78c(a)(10)) is amended by adding at the end the 15
3371	3371	following: ‘‘The term ‘security’ does not include a payment 16
3372	3372	stablecoin issued by a permitted payment stablecoin 17
3373	3373	issuer, as such terms are defined in section 2 of the GE-18
3374	3374	NIUS Act.’’. 19
3375	3375	(e) S
3376	3376	ECURITIESINVESTORPROTECTIONACT OF 20
3377	3377	1970.—Section 16(14) of the Securities Investor Protec-21
3378	3378	tion Act of 1970 (15 U.S.C. 78lll(14)) is amended by add-22
3379	3379	ing at the end the following: ‘‘The term ‘security’ does 23
3380	3380	not include a payment stablecoin issued by a permitted 24
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3383	3383	•S 1582 PCS
3384	3384	payment stablecoin issuer, as such terms are defined in 1
3385	3385	section 2 of the GENIUS Act.’’. 2
3386	3386	(f) C
3387	3387	OMMODITYEXCHANGEACT.—Section 1a(9) of 3
3388	3388	the Commodity Exchange Act (7 U.S.C. 1a(9)) is amend-4
3389	3389	ed by adding at the end the following: ‘‘The term ‘com-5
3390	3390	modity’ does not include a payment stablecoin issued by 6
3391	3391	a permitted payment stablecoin issuer, as such terms are 7
3392	3392	defined in section 2 of the GENIUS Act.’’ 8
3393	3393	SEC. 18. EXCEPTION FOR FOREIGN PAYMENT STABLECOIN 9
3394	3394	ISSUERS AND RECIPROCITY FOR PAYMENT 10
3395	3395	STABLECOINS ISSUED IN OVERSEAS JURIS-11
3396	3396	DICTIONS. 12
3397	3397	(a) I
3398	3398	NGENERAL.—The prohibitions under section 3 13
3399	3399	shall not apply to a foreign payment stablecoin issuer if 14
3400	3400	all of the following apply: 15
3401	3401	(1) The foreign payment stablecoin issuer is 16
3402	3402	subject to regulation and supervision by a foreign 17
3403	3403	payment stablecoin regulator of a foreign country, a 18
3404	3404	territory of the United States, Puerto Rico, Guam, 19
3405	3405	American Samoa, or the Virgin Islands that has a 20
3406	3406	regulatory and supervisory regime with respect to 21
3407	3407	payment stablecoins that the Secretary of the Treas-22
3408	3408	ury determines, pursuant to subsection (b), is com-23
3409	3409	parable to the regulatory and supervisory regime es-24
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3413	3413	tablished under this Act, including, in particular, the 1
3414	3414	requirements under section 4(a). 2
3415	3415	(2) The foreign payment stablecoin issuer is 3
3416	3416	registered with the Comptroller pursuant to sub-4
3417	3417	section (c). 5
3418	3418	(3) The foreign payment stablecoin issuer holds 6
3419	3419	reserves in a United States financial institution suf-7
3420	3420	ficient to meet liquidity demands of United States 8
3421	3421	customers, unless otherwise permitted under a recip-9
3422	3422	rocal arrangement established pursuant to sub-10
3423	3423	section (d). 11
3424	3424	(b) T
3425	3425	REASURYDETERMINATION.— 12
3426	3426	(1) I
3427	3427	N GENERAL.—The Secretary of the Treas-13
3428	3428	ury may, in consultation with the Federal payment 14
3429	3429	stablecoin regulators, make a determination as to 15
3430	3430	whether a foreign country has a regulatory and su-16
3431	3431	pervisory regime that is comparable to the require-17
3432	3432	ments established under this Act, including the re-18
3433	3433	quirements under section 4(a). 19
3434	3434	(2) R
3435	3435	EQUEST.—A foreign payment stablecoin 20
3436	3436	issuer or a foreign payment stablecoin regulator may 21
3437	3437	request from the Secretary of the Treasury a deter-22
3438	3438	mination under paragraph (1). 23
3439	3439	(3) T
3440	3440	IMING FOR DETERMINATION .—If a foreign 24
3441	3441	payment stablecoin issuer or foreign payment 25
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3445	3445	stablecoin regulator requests a determination under 1
3446	3446	paragraph (2), the Secretary of the Treasury shall 2
3447	3447	render a decision on the determination not later 3
3448	3448	than 210 days after the receipt of a substantially 4
3449	3449	complete determination request. 5
3450	3450	(4) R
3451	3451	ESCISSION OF DETERMINATION .— 6
3452	3452	(A) I
3453	3453	N GENERAL.—The Secretary of the 7
3454	3454	Treasury may, in consultation with the Federal 8
3455	3455	payment stablecoin regulators, rescind a deter-9
3456	3456	mination made under paragraph (1), if the Sec-10
3457	3457	retary determines that the regulatory regime of 11
3458	3458	such foreign country is no longer comparable to 12
3459	3459	the requirements established under this Act. 13
3460	3460	(B) L
3461	3461	IMITED SAFE HARBOR .—If the Sec-14
3462	3462	retary of the Treasury rescinds a determination 15
3463	3463	pursuant to subparagraph (A), a digital asset 16
3464	3464	service provider shall have 90 days before the 17
3465	3465	offer or sale of a payment stablecoin issued by 18
3466	3466	the foreign payment stablecoin issuer that is 19
3467	3467	the subject of the rescinded determination shall 20
3468	3468	be in violation of section 3. 21
3469	3469	(5) P
3470	3470	UBLIC NOTICE.—The Secretary of the 22
3471	3471	Treasury shall keep and make publicly available a 23
3472	3472	current list of foreign countries for which a deter-24
3473	3473	mination under paragraph (1) has been made. 25
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3477	3477	(6) RULEMAKING.—Not later than 1 year after 1
3478	3478	the date of enactment of this Act, the Secretary of 2
3479	3479	the Treasury shall issue such rules as may be re-3
3480	3480	quired to carry out this section. 4
3481	3481	(c) R
3482	3482	EGISTRATION ANDONGOINGMONITORING.— 5
3483	3483	(1) R
3484	3484	EGISTRATION.— 6
3485	3485	(A) I
3486	3486	N GENERAL.—A foreign payment 7
3487	3487	stablecoin issuer may offer or sell payment 8
3488	3488	stablecoins using a digital asset service provider 9
3489	3489	if the foreign payment stablecoin issuer is reg-10
3490	3490	istered with the Comptroller. 11
3491	3491	(B) R
3492	3492	EGISTRATION APPROVAL .—A reg-12
3493	3493	istration of a foreign payment stablecoin issuer 13
3494	3494	filed in accordance with this section shall be 14
3495	3495	deemed approved on the date that is 30 days 15
3496	3496	after the date the Comptroller receives the reg-16
3497	3497	istration, unless the Comptroller notifies the 17
3498	3498	foreign payment stablecoin issuer in writing 18
3499	3499	that such registration has been rejected. 19
3500	3500	(C) S
3501	3501	TANDARDS FOR REJECTION .—In de-20
3502	3502	termining whether to reject a foreign payment 21
3503	3503	stablecoin issuer’s registration, the Comptroller 22
3504	3504	shall consider— 23
3505	3505	(i) the final determination of the Sec-24
3506	3506	retary of the Treasury under this section; 25
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3510	3510	(ii) the financial and managerial re-1
3511	3511	sources of the United States operations of 2
3512	3512	the foreign payment stablecoin issuer; 3
3513	3513	(iii) whether the foreign payment 4
3514	3514	stablecoin issuer will provide adequate in-5
3515	3515	formation to the Comptroller as the Comp-6
3516	3516	troller determines is necessary to deter-7
3517	3517	mine compliance with this Act; 8
3518	3518	(iv) whether the foreign payment 9
3519	3519	stablecoin presents a risk to the financial 10
3520	3520	stability of the United States; and 11
3521	3521	(v) whether the foreign payment 12
3522	3522	stablecoin issuer presents illicit finance 13
3523	3523	risks to the United States. 14
3524	3524	(D) P
3525	3525	ROCEDURE FOR APPEAL .—If the 15
3526	3526	Comptroller rejects a registration, not later 16
3527	3527	than 30 days after the date of receipt of such 17
3528	3528	rejection, the foreign payment stablecoin issuer 18
3529	3529	may appeal the rejection by notifying the 19
3530	3530	Comptroller of the request to appeal. 20
3531	3531	(E) R
3532	3532	ULEMAKING.—Pursuant to section 21
3533	3533	13 of this Act, the Comptroller shall issue rules 22
3534	3534	relating to the standards for approval of reg-23
3535	3535	istration requests and the process for appealing 24
3536	3536	denials of such registration requests. 25
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3539	3539	•S 1582 PCS
3540	3540	(F) PUBLIC NOTICE.—The Comptroller 1
3541	3541	shall keep and make publicly available a current 2
3542	3542	list of foreign payment stablecoin issuer reg-3
3543	3543	istrations that have been approved. 4
3544	3544	(2) O
3545	3545	NGOING MONITORING.—A foreign payment 5
3546	3546	stablecoin issuer shall— 6
3547	3547	(A) be subject to reporting, supervision, 7
3548	3548	and examination requirements as determined by 8
3549	3549	the Comptroller; and 9
3550	3550	(B) consent to United States jurisdiction 10
3551	3551	relating to the enforcement of this Act. 11
3552	3552	(3) L
3553	3553	ACK OF COMPLIANCE.— 12
3554	3554	(A) C
3555	3555	OMPTROLLER ACTION .—The Comp-13
3556	3556	troller may, in consultation with the Secretary 14
3557	3557	of the Treasury, rescind approval of a registra-15
3558	3558	tion of a foreign payment stablecoin issuer 16
3559	3559	under this subsection if the Comptroller deter-17
3560	3560	mines that the foreign payment stablecoin 18
3561	3561	issuer is not in compliance with the require-19
3562	3562	ments of this Act, including for maintaining in-20
3563	3563	sufficient reserves or posing an illicit finance 21
3564	3564	risk or financial stability risk. 22
3565	3565	(B) S
3566	3566	ECRETARY ACTION.—The Secretary 23
3567	3567	of the Treasury, in consultation with the Comp-24
3568	3568	troller, may revoke a registration of a foreign 25
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3571	3571	•S 1582 PCS
3572	3572	payment stablecoin issuer under this subsection 1
3573	3573	if the Secretary determines that reasonable 2
3574	3574	grounds exist for concluding that the foreign 3
3575	3575	payment stablecoin issuer presents economic 4
3576	3576	sanctions evasion, money laundering, or other 5
3577	3577	illicit finance risks, or, as applicable, violations, 6
3578	3578	or facilitation thereof. 7
3579	3579	(d) R
3580	3580	ECIPROCITY.— 8
3581	3581	(1) I
3582	3582	N GENERAL.—The Secretary of the Treas-9
3583	3583	ury may create and implement reciprocal arrange-10
3584	3584	ments or other bilateral agreements between the 11
3585	3585	United States and jurisdictions with payment 12
3586	3586	stablecoin regulatory regimes that are comparable to 13
3587	3587	the requirements established under this Act, includ-14
3588	3588	ing, in particular, section 4(a), and can demonstrate 15
3589	3589	adequate supervisory and enforcement capacity to 16
3590	3590	facilitate international transactions and interoper-17
3591	3591	ability with United States dollar-denominated pay-18
3592	3592	ment stablecoins issued overseas. 19
3593	3593	(2) C
3594	3594	OMPLETION.—The Secretary of the Treas-20
3595	3595	ury should complete the arrangements under this 21
3596	3596	subsection not later than the date that is 2 years 22
3597	3597	after the date of enactment of this Act. 23
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3600	3600	•S 1582 PCS
3601	3601	SEC. 19. EFFECTIVE DATE. 1
3602	3602	This Act, and the amendments made by this Act, 2
3603	3603	shall take effect on the earlier of— 3
3604	3604	(1) the date that is 18 months after the date 4
3605	3605	of enactment of this Act; or 5
3606	3606	(2) the date that is 120 days after the date on 6
3607	3607	which the primary Federal payment stablecoin regu-7
3608	3608	lators issue any final regulations implementing this 8
3609	3609	Act. 9
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3613	3613	66
3614	3614	119
3615	3615	TH
3616	3616	CONGRESS
3617	3617	1
3618	3618	ST
3619	3619	S
3620	3620	ESSION
3621	3621
3622	3622	S. 1582 A BILL
3623	3623	To provide for the regulation of payment
3624	3624	stablecoins, and for other purposes.
3625	3625	M
3626	3626	AY
3627	3627	5, 2025
3628	3628	Read the second time and placed on the calendar
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