Us Congress Senate Bill SB1582 Latest Draft

                            II 
Calendar No. 66 
119THCONGRESS 
1
STSESSION S. 1582 
To provide for the regulation of payment stablecoins, and for other purposes. 
IN THE SENATE OF THE UNITED STATES 
MAY1, 2025 
Mr. H
AGERTY(for himself, Ms. LUMMIS, and Mr. SCOTTof South Carolina) 
introduced the following bill; which was read the first time 
M
AY5, 2025 
Read the second time and placed on the calendar 
A BILL 
To provide for the regulation of payment stablecoins, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Guiding and Estab-4
lishing National Innovation for U.S. Stablecoins Act’’ or 5
the ‘‘GENIUS Act’’. 6
SEC. 2. DEFINITIONS. 7
In this Act: 8
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(1) APPROPRIATE FEDERAL BANKING AGEN -1
CY.—The term ‘‘appropriate Federal banking agen-2
cy’’ has the meaning given that term in section 3 of 3
the Federal Deposit Insurance Act (12 U.S.C. 4
1813). 5
(2) B
ANK SECRECY ACT.—The term ‘‘Bank Se-6
crecy Act’’ means— 7
(A) section 21 of the Federal Deposit In-8
surance Act (12 U.S.C. 1829b); 9
(B) chapter 2 of title I of Public Law 91– 10
508 (12 U.S.C. 1951 et seq.); and 11
(C) subchapter II of chapter 53 of title 31, 12
United States Code. 13
(3) B
OARD.—The term ‘‘Board’’ means the 14
Board of Governors of the Federal Reserve System. 15
(4) C
OMPTROLLER.—The term ‘‘Comptroller’’ 16
means the Office of the Comptroller of the Currency. 17
(5) C
ORPORATION.—The term ‘‘Corporation’’ 18
means the Federal Deposit Insurance Corporation. 19
(6) D
IGITAL ASSET.—The term ‘‘digital asset’’ 20
means any digital representation of value that is re-21
corded on a cryptographically secured distributed 22
ledger. 23
(7) D
IGITAL ASSET SERVICE PROVIDER .—The 24
term ‘‘digital asset service provider’’— 25
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(A) means a person that, for compensation 1
or profit, engages in the business in the United 2
States (including on behalf of customers or 3
users in the United States) of— 4
(i) exchanging digital assets for mone-5
tary value; 6
(ii) exchanging digital assets for other 7
digital assets; 8
(iii) transferring digital assets to a 9
third party; 10
(iv) acting as a digital asset custo-11
dian; or 12
(v) participating in financial services 13
relating to digital asset issuance; and 14
(B) does not include— 15
(i) a distributed ledger protocol; 16
(ii) developing, operating, or engaging 17
in the business of developing distributed 18
ledger protocols or self-custodial software 19
interfaces; 20
(iii) an immutable and self-custodial 21
software interface; 22
(iv) developing, operating, or engaging 23
in the business of validating transactions 24
or operating a distributed ledger node; or 25
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(v) participating in a liquidity pool or 1
other similar mechanism for the provi-2
sioning of liquidity for peer-to-peer trans-3
actions. 4
(8) D
ISTRIBUTED LEDGER.—The term ‘‘distrib-5
uted ledger’’ means technology in which data is 6
shared across a network that creates a public digital 7
ledger of verified transactions or information among 8
network participants and cryptography is used to 9
link the data to maintain the integrity of the public 10
ledger and execute other functions. 11
(9) D
ISTRIBUTED LEDGER PROTOCOL .—The 12
term ‘‘distributed ledger protocol’’ means publicly 13
available and accessible executable software deployed 14
to a distributed ledger, including smart contracts or 15
networks of smart contracts. 16
(10) F
EDERAL BRANCH .—The term ‘‘Federal 17
branch’’ has the meaning given that term in section 18
3 of the Federal Deposit Insurance Act (12 U.S.C. 19
1813). 20
(11) F
EDERAL QUALIFIED PAYMENT 21
STABLECOIN ISSUER.—The term ‘‘Federal qualified 22
payment stablecoin issuer’’ means— 23
(A) a nonbank entity, other than a State 24
qualified payment stablecoin issuer, approved 25
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by the Comptroller, pursuant to section 5, to 1
issue payment stablecoins; 2
(B) an uninsured national bank— 3
(i) that is chartered by the Comp-4
troller, pursuant to title LXII of the Re-5
vised Statutes; and 6
(ii) that is approved by the Comp-7
troller, pursuant to section 5, to issue pay-8
ment stablecoins; and 9
(C) a Federal branch that is approved by 10
the Comptroller, pursuant to section 5, to issue 11
payment stablecoins. 12
(12) F
OREIGN PAYMENT STABLECOIN 13
ISSUER.—The term ‘‘foreign payment stablecoin 14
issuer’’ means an issuer of a payment stablecoin 15
that is— 16
(A) organized under the laws of or domi-17
ciled in a foreign country, a territory of the 18
United States, Puerto Rico, Guam, American 19
Samoa, or the Virgin Islands; and 20
(B) not a permitted payment stablecoin 21
issuer. 22
(13) I
NSTITUTION-AFFILIATED PARTY .—With 23
respect to a permitted payment stablecoin issuer, the 24
term ‘‘institution-affiliated party’’ means any direc-25
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tor, officer, employee, or controlling stockholder of 1
the permitted payment stablecoin issuer. 2
(14) I
NSURED CREDIT UNION .—The term ‘‘in-3
sured credit union’’ has the meaning given that term 4
in section 101 of the Federal Credit Union Act (12 5
U.S.C. 1752). 6
(15) I
NSURED DEPOSITORY INSTITUTION .—The 7
term ‘‘insured depository institution’’ means— 8
(A) an insured depository institution, as 9
defined in section 3 of the Federal Deposit In-10
surance Act (12 U.S.C. 1813); and 11
(B) an insured credit union. 12
(16) L
AWFUL ORDER .—The term ‘‘lawful 13
order’’ means any final and valid writ, process, 14
order, rule, decree, command, or other requirement 15
issued or promulgated under Federal law, issued by 16
a court of competent jurisdiction or by an authorized 17
Federal agency pursuant to its statutory authority, 18
that— 19
(A) requires a person to seize, freeze, burn, 20
or prevent the transfer of payment stablecoins 21
issued by the person; 22
(B) specifies the payment stablecoins or 23
accounts subject to blocking with reasonable 24
particularity; and 25
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(C) is subject to judicial or administrative 1
review or appeal as provided by law. 2
(17) M
ONETARY VALUE.—The term ‘‘monetary 3
value’’ means a national currency or deposit (as de-4
fined in section 3 of the Federal Deposit Insurance 5
Act (12 U.S.C. 1813)) denominated in a national 6
currency. 7
(18) M
ONEY.—The term ‘‘money’’— 8
(A) means a medium of exchange currently 9
authorized or adopted by a domestic or foreign 10
government; and 11
(B) includes a monetary unit of account 12
established by an intergovernmental organiza-13
tion or by agreement between 2 or more coun-14
tries. 15
(19) N
ATIONAL CURRENCY .—The term ‘‘na-16
tional currency’’ means each of the following: 17
(A) A Federal Reserve note (as the term is 18
used in the first undesignated paragraph of sec-19
tion 16 of the Federal Reserve Act (12 U.S.C. 20
411)). 21
(B) Money standing to the credit of an ac-22
count with a Federal Reserve Bank. 23
(C) Money issued by a foreign central 24
bank. 25
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(D) Money issued by an intergovernmental 1
organization pursuant to an agreement by 2 or 2
more governments. 3
(20) N
ONBANK ENTITY.—The term ‘‘nonbank 4
entity’’ means a person that is not a depository in-5
stitution or subsidiary of a depository institution. 6
(21) O
FFER.—The term ‘‘offer’’ means to make 7
available for purchase, sale, or exchange. 8
(22) P
AYMENT STABLECOIN .—The term ‘‘pay-9
ment stablecoin’’— 10
(A) means a digital asset— 11
(i) that is, or is designed to be, used 12
as a means of payment or settlement; and 13
(ii) the issuer of which— 14
(I) is obligated to convert, re-15
deem, or repurchase for a fixed 16
amount of monetary value, not includ-17
ing a digital asset denominated in a 18
fixed amount of monetary value; and 19
(II) represents that such issuer 20
will maintain, or create the reasonable 21
expectation that it will maintain, a 22
stable value relative to the value of a 23
fixed amount of monetary value; and 24
(B) does not include a digital asset that— 25
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(i) is a national currency; 1
(ii) is a deposit (as defined in section 2
3 of the Federal Deposit Insurance Act 3
(12 U.S.C. 1813)), including a deposit re-4
corded using distributed ledger technology; 5
or 6
(iii) is a security, as defined in section 7
2 of the Securities Act of 1933 (15 U.S.C. 8
77b), section 3 of the Securities Exchange 9
Act of 1934 (15 U.S.C. 78c), or section 2 10
of the Investment Company Act of 1940 11
(15 U.S.C. 80a–2), except that, for the 12
avoidance of doubt, no bond, note, evidence 13
of indebtedness, or investment contract 14
that was issued by a permitted payment 15
stablecoin issuer shall qualify as a security 16
solely by virtue of its satisfying the condi-17
tions described in subparagraph (A), con-18
sistent with section 17 of this Act. 19
(23) P
ERMITTED PAYMENT STABLECOIN 20
ISSUER.—The term ‘‘permitted payment stablecoin 21
issuer’’ means a person formed in the United States 22
that— 23
(A) is— 24
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(i) a subsidiary of an insured deposi-1
tory institution that has been approved to 2
issue payment stablecoins under section 5; 3
(ii) a Federal qualified payment 4
stablecoin issuer; or 5
(iii) a State qualified payment 6
stablecoin issuer; and 7
(B) does not offer a payment of yield or 8
interest on its issued payment stablecoin. 9
(24) P
ERSON.—The term ‘‘person’’ means an 10
individual, partnership, company, corporation, asso-11
ciation, trust, estate, cooperative organization, or 12
other business entity, incorporated or unincor-13
porated. 14
(25) P
RIMARY FEDERAL PAYMENT STABLECOIN 15
REGULATOR.—The term ‘‘primary Federal payment 16
stablecoin regulator’’ means— 17
(A) with respect to a subsidiary of an in-18
sured depository institution (other than an in-19
sured credit union), the appropriate Federal 20
banking agency of such insured depository insti-21
tution; 22
(B) with respect to an insured credit union 23
or a subsidiary of an insured credit union, the 24
National Credit Union Administration; 25
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(C) with respect to a State chartered de-1
pository institution not specified under subpara-2
graph (A), the Corporation, the Comptroller, or 3
the Board; and 4
(D) with respect to a Federal qualified 5
payment stablecoin issuer, the Comptroller. 6
(26) R
EGISTERED PUBLIC ACCOUNTING 7
FIRM.—The term ‘‘registered public accounting 8
firm’’ has the meaning given that term under section 9
2 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 10
7201). 11
(27) S
TATE.—The term ‘‘State’’ means each of 12
the several States of the United States, the District 13
of Columbia, and each territory of the United 14
States. 15
(28) S
TATE CHARTERED DEPOSITORY INSTITU -16
TION.—The term ‘‘State chartered depository insti-17
tution’’ has the meaning given the term ‘‘State de-18
pository institution’’ in section 3(c) of the Federal 19
Deposit Insurance Act (12 U.S.C. 1813(c)). 20
(29) S
TATE PAYMENT STABLECOIN REGU -21
LATOR.—The term ‘‘State payment stablecoin regu-22
lator’’ means a State agency that has primary regu-23
latory and supervisory authority in such State over 24
entities that issue payment stablecoins. 25
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(30) STATE QUALIFIED PAYMENT STABLECOIN 1
ISSUER.—The term ‘‘State qualified payment 2
stablecoin issuer’’ means an entity that— 3
(A) is legally established under the laws of 4
a State and approved to issue payment 5
stablecoins by a State payment stablecoin regu-6
lator; and 7
(B) is not an uninsured national bank 8
chartered by the Comptroller pursuant to title 9
LXII of the Revised Statutes, a Federal 10
branch, an insured depository institution, or a 11
subsidiary of such national bank, Federal 12
branch, or insured depository institution. 13
(31) S
UBSIDIARY.—The term ‘‘subsidiary’’ has 14
the meaning given that term in section 3 of the Fed-15
eral Deposit Insurance Act (12 U.S.C. 1813). 16
(32) S
UBSIDIARY OF AN INSURED CREDIT 17
UNION.—With respect to an insured credit union, 18
the term ‘‘subsidiary of an insured credit union’’ 19
means— 20
(A) an organization providing services to 21
the insured credit union that are associated 22
with the routine operations of credit unions, as 23
described in section 107(7)(I) of the Federal 24
Credit Union Act (12 U.S.C. 1757(7)(I)); 25
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(B) a credit union service organization, as 1
such term is used under part 712 of title 12, 2
Code of Federal Regulations, with respect to 3
which the insured credit union has an owner-4
ship interest or to which the insured credit 5
union has extended a loan; and 6
(C) a subsidiary of a State chartered in-7
sured credit union authorized under State law. 8
SEC. 3. ISSUANCE AND TREATMENT OF PAYMENT 9
STABLECOINS. 10
(a) L
IMITATION ONISSUERS.—It shall be unlawful 11
for any person other than a permitted payment stablecoin 12
issuer to issue a payment stablecoin in the United States. 13
(b) P
ROHIBITION ONOFFERS ORSALES.— 14
(1) I
N GENERAL.—Except as provided in sub-15
section (c) and section 18, beginning on the date 16
that is 3 years after the date of enactment of this 17
Act, it shall be unlawful for any digital asset service 18
provider to offer or sell a payment stablecoin to a 19
person in the United States, unless the payment 20
stablecoin is issued by a permitted payment 21
stablecoin issuer. 22
(2) F
OREIGN PAYMENT STABLECOIN 23
ISSUERS.—It shall be unlawful for any person to 24
offer, sell, or otherwise make available in the United 25
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States a payment stablecoin issued by a foreign pay-1
ment stablecoin issuer unless the foreign payment 2
stablecoin issuer has the technological capability to 3
comply, and will comply, with the terms of any law-4
ful order or reciprocal arrangement pursuant to sec-5
tion 18. 6
(c) L
IMITEDSAFEHARBORS.— 7
(1) I
N GENERAL.—The Secretary of the Treas-8
ury may issue regulations providing safe harbors 9
from subsection (a) that are— 10
(A) consistent with the purposes of the 11
Act; 12
(B) limited in scope; and 13
(C) apply to a de minimis volume of trans-14
actions, as determined by the Secretary of the 15
Treasury. 16
(2) U
NUSUAL AND EXIGENT CIR -17
CUMSTANCES.—If the Secretary of the Treasury de-18
termines that unusual and exigent circumstances 19
exist, the Secretary may provide limited safe harbors 20
from subsection (a). 21
(d) R
ULEMAKING.—The Secretary of the Treasury 22
may, as the Secretary determines appropriate, issue regu-23
lations to implement this section, including regulations to 24
define statutory terms. 25
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(e) EXTRATERRITORIALEFFECT.—This section is in-1
tended to have extraterritorial effect if conduct involves 2
the offer or sale of a payment stablecoin to a person lo-3
cated in the United States. 4
(f) P
ENALTY FORVIOLATION.— 5
(1) I
N GENERAL.—Whoever knowingly partici-6
pates in a violation of subsection (a) shall be fined 7
not more than $1,000,000 for each such violation, 8
imprisoned for not more than 5 years, or both. 9
(2) R
EFERRAL TO ATTORNEY GENERAL .—If a 10
primary Federal payment stablecoin regulator has 11
reason to believe that any person has knowingly vio-12
lated subsection (a), the primary Federal payment 13
stablecoin regulator may refer the matter to the At-14
torney General. 15
(g) T
REATMENT.—A payment stablecoin that is not 16
issued by a permitted payment stablecoin issuer shall not 17
be— 18
(1) treated as cash or a cash equivalent for ac-19
counting purposes; 20
(2) eligible as cash or a cash equivalent margin 21
and collateral for futures commission merchants, de-22
rivative clearing organizations, broker-dealers, reg-23
istered clearing agencies, and swap dealers; or 24
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(3) acceptable as a settlement asset to facilitate 1
wholesale payments between banking organizations 2
or by a payment infrastructure to facilitate exchange 3
and settlement among banking organizations. 4
(h) R
ULE OFCONSTRUCTION.—This section shall not 5
apply to— 6
(1) the direct transfer of digital assets between 7
2 individuals acting on their own behalf and for 8
their own lawful purposes, without the involvement 9
of an intermediary; 10
(2) to any transaction involving the receipt of 11
digital assets by an individual between an account 12
owned by the individual in the United States and an 13
account owned by the individual abroad that are of-14
fered by the same parent company; or 15
(3) to any transaction by means of a software 16
or hardware wallet that facilitates an individual’s 17
own custody of digital assets. 18
SEC. 4. REQUIREMENTS FOR ISSUING PAYMENT 19
STABLECOINS. 20
(a) S
TANDARDS FOR THE ISSUANCE OFPAYMENT 21
S
TABLECOINS.— 22
(1) I
N GENERAL .—A permitted payment 23
stablecoin issuer shall— 24
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(A) maintain reserves backing the out-1
standing payment stablecoins of the permitted 2
payment stablecoin issuer on an at least 1 to 1 3
basis, with reserves comprising— 4
(i) United States coins and currency 5
(including Federal Reserve notes) or 6
money standing to the credit of an account 7
with a Federal Reserve Bank; 8
(ii) funds held as demand deposits (or 9
other deposits that may be withdrawn 10
upon request at any time) or insured 11
shares at an insured depository institution 12
(including any foreign branches or agents, 13
including correspondent banks, of an in-14
sured depository institution), subject to 15
limitations established by the Corporation 16
and the National Credit Union Administra-17
tion, as applicable, to address safety and 18
soundness risks of such insured depository 19
institution; 20
(iii) Treasury bills, notes, or bonds— 21
(I) with a remaining maturity of 22
93 days or less; or 23
(II) issued with a maturity of 93 24
days or less; 25
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(iv) money received under repurchase 1
agreements, with the permitted payment 2
stablecoin issuer acting as a seller of secu-3
rities and with an overnight maturity, that 4
are backed by Treasury bills with a matu-5
rity of 93 days or less; 6
(v) reverse repurchase agreements, 7
with the permitted payment stablecoin 8
issuer acting as a purchaser of securities 9
and with an overnight maturity, that are 10
collateralized by Treasury notes, bills, or 11
bonds on an overnight basis, subject to 12
overcollateralization in line with standard 13
market terms, that are— 14
(I) tri-party; 15
(II) centrally cleared through a 16
clearing agency registered with the 17
Securities and Exchange Commission; 18
or 19
(III) bilateral with a 20
counterparty that the issuer has de-21
termined to be adequately credit-22
worthy even in the event of severe 23
market stress; 24
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(vi) securities issued by an investment 1
company registered under section 8(a) of 2
the Investment Company Act of 1940 (15 3
U.S.C. 80a–8(a)), or other registered Gov-4
ernment money market fund, and that are 5
invested solely in underlying assets de-6
scribed in clauses (i) through (v); 7
(vii) any other similarly liquid Federal 8
Government-issued asset approved by the 9
primary Federal payment stablecoin regu-10
lator, in consultation with the State pay-11
ment stablecoin regulator, if applicable, of 12
the permitted payment stablecoin issuer; or 13
(viii) any reserve described in clause 14
(i) through (iii) or clause (vi) through (vii) 15
in tokenized form, provided that such re-16
serves comply with all applicable laws and 17
regulations; 18
(B) publicly disclose the issuer’s redemp-19
tion policy, which shall— 20
(i) establish clear and conspicuous 21
procedures for timely redemption of out-22
standing payment stablecoins, provided 23
that any discretionary limitations on timely 24
redemptions can only be imposed by a 25
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State qualified payment stablecoin regu-1
lator, the Corporation, the Comptroller, or 2
the Board, consistent with section 7; and 3
(ii) publicly, clearly, and conspicuously 4
disclose in plain language all fees associ-5
ated with purchasing or redeeming the 6
payment stablecoins, provided that such 7
fees can only be changed upon not less 8
than 7 days’ prior notice to consumers; 9
and 10
(C) publish the monthly composition of the 11
issuer’s reserves on the website of the issuer, 12
containing— 13
(i) the total number of outstanding 14
payment stablecoins issued by the issuer; 15
and 16
(ii) the amount and composition of 17
the reserves described in subparagraph 18
(A), including the average tenor and geo-19
graphic location of custody of each cat-20
egory of reserve instruments. 21
(2) P
ROHIBITION ON REHYPOTHECATION .—Re-22
serves required under paragraph (1)(A) may not be 23
pledged, rehypothecated, or reused by the permitted 24
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payment stablecoin issuer, either directly or indi-1
rectly, except for the purpose of— 2
(A) satisfying margin obligations in con-3
nection with investments in permitted reserves 4
under clauses (iv) and (v) of paragraph (1)(A); 5
(B) satisfying obligations associated with 6
the use, receipt, or provision of standard custo-7
dial services; or 8
(C) creating liquidity to meet reasonable 9
expectations of requests to redeem payment 10
stablecoins, such that reserves in the form of 11
Treasury bills may be sold as purchased securi-12
ties for repurchase agreements with a maturity 13
of 93 days or less, provided that either— 14
(i) the repurchase agreements are 15
cleared by a clearing agency registered 16
with the Securities and Exchange Commis-17
sion; or 18
(ii) the permitted payment stablecoin 19
issuer receives the prior approval of its pri-20
mary Federal payment stablecoin regulator 21
or State payment stablecoin regulator, as 22
applicable. 23
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(3) MONTHLY CERTIFICATION ; EXAMINATION 1
OF REPORTS BY REGISTERED PUBLIC ACCOUNTING 2
FIRM.— 3
(A) I
N GENERAL.—A permitted payment 4
stablecoin issuer shall, each month, have the in-5
formation disclosed in the previous month-end 6
report required under paragraph (1)(D) exam-7
ined by a registered public accounting firm. 8
(B) C
ERTIFICATION.—Each month, the 9
Chief Executive Officer and Chief Financial Of-10
ficer of a permitted payment stablecoin issuer 11
shall submit a certification as to the accuracy 12
of the monthly report to, as applicable— 13
(i) the primary Federal payment 14
stablecoin regulator of the permitted pay-15
ment stablecoin issuer; or 16
(ii) the State payment stablecoin reg-17
ulator of the permitted payment stablecoin 18
issuer. 19
(C) C
RIMINAL PENALTY.—Any person who 20
submits a certification required under subpara-21
graph (B) knowing that such certification is 22
false shall be subject to the same criminal pen-23
alties as those set forth under section 1350(c) 24
of title 18, United States Code. 25
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(4) CAPITAL, LIQUIDITY, AND RISK MANAGE -1
MENT REQUIREMENTS .— 2
(A) I
N GENERAL.—The primary Federal 3
payment stablecoin regulators shall, or in the 4
case of a State qualified payment stablecoin 5
issuer, the State payment stablecoin regulator 6
shall, consistent with section 13, issue regula-7
tions implementing— 8
(i) capital requirements applicable to 9
permitted payment stablecoin issuers 10
that— 11
(I) are tailored to the business 12
model and risk profile of permitted 13
payment stablecoin issuers; 14
(II) do not exceed requirements 15
that are sufficient to ensure the ongo-16
ing operations of permitted payment 17
stablecoin issuers; and 18
(III) in the case of the primary 19
Federal payment stablecoin regu-20
lators, if the primary Federal pay-21
ment stablecoin regulators determine 22
that a capital buffer is necessary to 23
ensure the ongoing operations of per-24
mitted payment stablecoin issuers, 25
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•S 1582 PCS
may include capital buffers that are 1
tailored to the business model and 2
risk profile of permitted payment 3
stablecoin issuers; 4
(ii) the liquidity standard under para-5
graph (1)(A); 6
(iii) reserve asset diversification, in-7
cluding deposit concentration at banking 8
institutions, and interest rate risk manage-9
ment standards applicable to permitted 10
payment stablecoin issuers that— 11
(I) are tailored to the business 12
model and risk profile of permitted 13
payment stablecoin issuers; and 14
(II) do not exceed standards that 15
are sufficient to ensure the ongoing 16
operations of permitted payment 17
stablecoin issuers; and 18
(iv) appropriate operational, compli-19
ance, and information technology risk 20
management principles-based requirements 21
and standards, including Bank Secrecy Act 22
and sanctions compliance standards, 23
that— 24
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•S 1582 PCS
(I) are tailored to the business 1
model and risk profile of permitted 2
payment stablecoin issuers; and 3
(II) are consistent with applicable 4
law. 5
(B) R
ULE OF CONSTRUCTION .—Nothing in 6
this paragraph shall be construed to limit— 7
(i) the authority of the primary Fed-8
eral payment stablecoin regulators, in pre-9
scribing standards under this paragraph, 10
to tailor or differentiate among issuers on 11
an individual basis or by category, taking 12
into consideration the capital structure, 13
business model risk profile, complexity, fi-14
nancial activities (including financial activi-15
ties of subsidiaries), size, and any other 16
risk-related factors of permitted payment 17
stablecoin issuers that a primary Federal 18
payment stablecoin regulator determines 19
appropriate, provided that such tailoring or 20
differentiation occurs without respect to 21
whether a permitted payment stablecoin 22
issuer is regulated by a State payment 23
stablecoin regulator; or 24
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•S 1582 PCS
(ii) any supervisory, regulatory, or en-1
forcement authority of a primary Federal 2
payment stablecoin regulator to further the 3
safe and sound operation of an institution 4
for which the primary Federal payment 5
stablecoin regulator is the appropriate reg-6
ulator. 7
(C) A
PPLICABILITY OF EXISTING CAPITAL 8
STANDARDS.— 9
(i) D
EFINITION.—In this subpara-10
graph, the term ‘‘depository institution 11
holding company’’ has the meaning given 12
that term under section 171(a)(3) of the 13
Financial Stability Act of 2010 (12 U.S.C. 14
5371(a)(3)). 15
(ii) A
PPLICABILITY OF FINANCIAL 16
STABILITY ACT.—With respect to the pro-17
mulgation of rules under subparagraph (A) 18
and clauses (iii) and (iv) of this subpara-19
graph, section 171 of the Financial Sta-20
bility Act of 2010 (12 U.S.C. 5371) shall 21
not apply. 22
(iii) R
ULES RELATING TO LEVERAGE 23
CAPITAL REQUIREMENTS OR RISK -BASED 24
CAPITAL REQUIREMENTS .—Any rule issued 25
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•S 1582 PCS
by an appropriate Federal banking agency 1
that imposes, on a consolidated basis, a le-2
verage capital requirement or risk-based 3
capital requirement with respect to an in-4
sured depository institution or depository 5
institution holding company shall provide 6
that, for purposes of such leverage capital 7
requirement or risk-based capital require-8
ment, any insured depository institution or 9
depository institution holding company 10
that includes, on a consolidated basis, a 11
permitted payment stablecoin issuer, shall 12
not be required to hold, with respect to 13
such permitted payment stablecoin issuer 14
and its assets and operations, any amount 15
of regulatory capital in excess of the cap-16
ital that such permitted payment 17
stablecoin issuer must maintain under the 18
capital requirements issued pursuant to 19
subparagraph (A)(i). 20
(iv) M
ODIFICATIONS.—Not later than 21
the earlier of the rulemaking deadline 22
under section 13 or the date on which the 23
Federal payment stablecoin regulators 24
issue regulations to carry out this section, 25
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each appropriate Federal banking agency 1
shall amend or otherwise modify any regu-2
lation of the appropriate Federal banking 3
agency described in clause (iii) so that 4
such regulation, as amended or otherwise 5
modified, complies with clause (iii) of this 6
subparagraph. 7
(5) T
REATMENT UNDER THE BANK SECRECY 8
ACT AND SANCTIONS LAWS .— 9
(A) I
N GENERAL.—A permitted payment 10
stablecoin issuer shall be treated as a financial 11
institution for purposes of the Bank Secrecy 12
Act, and as such, shall be subject to all Federal 13
laws applicable to a financial institution located 14
in the United States relating to economic sanc-15
tions, prevention of money laundering, customer 16
identification, and due diligence, including, as 17
applicable— 18
(i) maintenance of an effective anti- 19
money laundering and economic sanctions 20
compliance program, which shall include 21
appropriate risk assessments, verification 22
of sanctions lists, and designation of an of-23
ficer to supervise the programs; 24
(ii) retention of appropriate records; 25
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•S 1582 PCS
(iii) monitoring and reporting of any 1
suspicious transaction relevant to a pos-2
sible violation of law or regulation; 3
(iv) policies and procedures to block, 4
freeze, and reject specific or impermissible 5
transactions that violate Federal or State 6
laws, rules, or regulations; and 7
(v) maintenance of an effective cus-8
tomer identification program, including 9
identification and verification of account 10
holders with the permitted payment 11
stablecoin issuer, high-value transactions, 12
and appropriate enhanced due diligence. 13
(B) R
ULEMAKING.—The Financial Crimes 14
Enforcement Network shall adopt rules, tailored 15
to the size and complexity of permitted payment 16
stablecoin issuers, to implement subparagraph 17
(A). 18
(C) R
ESERVATION OF AUTHORITY .—Noth-19
ing in this Act shall restrict the authority of the 20
Secretary of the Treasury to implement, admin-21
ister, and enforce the provisions of subchapter 22
II of chapter 53 of title 31, United States Code. 23
(6) C
OORDINATION WITH PERMITTED PAYMENT 24
STABLECOIN ISSUERS WITH RESPECT TO BLOCKING 25
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OF PROPERTY AND TECHNOLOGICAL CAPABILITIES 1
TO COMPLY WITH LAWFUL ORDERS .— 2
(A) I
N GENERAL.—The Secretary of the 3
Treasury— 4
(i) shall, to the best of the Secretary’s 5
ability, coordinate with a permitted pay-6
ment stablecoin issuer before taking any 7
action to block and prohibit transactions in 8
property and interests in property of a for-9
eign person to ensure that the permitted 10
payment stablecoin issuer is able to effec-11
tively block a payment stablecoin of the 12
foreign person upon issuance of the pay-13
ment stablecoin; and 14
(ii) is not required to notify any per-15
mitted payment stablecoin issuer of any in-16
tended action described in clause (i) prior 17
to taking such action. 18
(B) C
OMPLIANCE WITH LAWFUL OR -19
DERS.—A permitted payment stablecoin issuer 20
may issue payment stablecoins only if the issuer 21
has the technological capability to comply, and 22
will comply, with the terms of any lawful order. 23
(C) R
EPORT REQUIRED.—Not later than 1 24
year after the date of enactment of this Act, the 25
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•S 1582 PCS
Attorney General and the Secretary of the 1
Treasury shall submit to the Committee on 2
Banking, Housing, and Urban Affairs of the 3
Senate and the Committee on Financial Serv-4
ices of the House of Representatives a report, 5
which may include a classified annex if applica-6
ble, on the coordination with permitted payment 7
stablecoin issuers required under subparagraph 8
(A). 9
(D) R
ULE OF CONSTRUCTION .—Nothing in 10
this paragraph shall be construed to alter or af-11
fect the authority of State payment stablecoin 12
regulators with respect to the offer of foreign- 13
issued digital assets that are issued within a 14
foreign jurisdiction. 15
(7) L
IMITATION ON PAYMENT STABLECOIN AC -16
TIVITIES.— 17
(A) I
N GENERAL.—A permitted payment 18
stablecoin issuer may only— 19
(i) issue payment stablecoins; 20
(ii) redeem payment stablecoins; 21
(iii) manage related reserves, includ-22
ing purchasing, selling, and holding reserve 23
assets or providing custodial services for 24
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•S 1582 PCS
reserve assets, consistent with State and 1
Federal law; 2
(iv) provide custodial or safekeeping 3
services for payment stablecoins, required 4
reserves, or private keys of payment 5
stablecoins, consistent with this Act; and 6
(v) undertake other activities that di-7
rectly support any of the activities de-8
scribed in clauses (i) through (iv). 9
(B) R
ULE OF CONSTRUCTION .—Nothing in 10
subparagraph (A) shall limit a permitted pay-11
ment stablecoin issuer from engaging in non- 12
payment stablecoin activities that are author-13
ized by the primary Federal payment stablecoin 14
regulator or the State payment stablecoin regu-15
lator, as applicable, consistent with all other 16
Federal and State laws, provided that the 17
claims of payment stablecoin holders rank sen-18
ior to any potential claims of non-stablecoin 19
creditors with respect to the reserve assets, con-20
sistent with section 11 and the amendments 21
made by that section. 22
(8) P
ROHIBITION ON TYING.— 23
(A) I
N GENERAL.—A permitted payment 24
stablecoin issuer may not provide services to a 25
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•S 1582 PCS
customer on the condition that the customer ob-1
tain an additional paid product or service from 2
the permitted payment stablecoin issuer, or any 3
of its subsidiaries, or agree to not obtain an ad-4
ditional product or service from a competitor. 5
(B) R
EGULATIONS.—The Board may issue 6
such regulations as are necessary to carry out 7
this paragraph, and, in consultation with other 8
relevant primary Federal payment stablecoin 9
regulators, may by regulation or order, permit 10
such exceptions to subparagraph (A) as the 11
Board considers will not be contrary to the pur-12
pose of this Act. 13
(9) P
ROHIBITION ON THE USE OF DECEPTIVE 14
NAMES.—A permitted payment stablecoin issuer may 15
not— 16
(A) use any combination of terms relating 17
to the United States Government, including 18
‘‘United States’’ and ‘‘United States Govern-19
ment’’, in the name of a payment stablecoin; or 20
(B) market a payment stablecoin in such a 21
way that a reasonable person would perceive the 22
payment stablecoin to be— 23
(i) legal tender, as described in section 24
5103 of title 31, United States Code; 25
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•S 1582 PCS
(ii) issued by the United States; or 1
(iii) guaranteed or approved by the 2
Government of the United States. 3
(10) A
UDITS AND REPORTS.— 4
(A) A
NNUAL FINANCIAL STATEMENT .— 5
(i) I
N GENERAL.—A permitted pay-6
ment stablecoin issuer with more than 7
$50,000,000,000 in consolidated total out-8
standing issuance, that is not subject to 9
the reporting requirements under section 10
13(a) or 15(d) of the Securities and Ex-11
change Act of 1934 (15 U.S.C. 78m, 12
78o(d)), shall prepare, in accordance with 13
generally accepted accounting principles, 14
an annual financial statement, which shall 15
include the disclosure of any related party 16
transactions, as defined by such generally 17
accepted accounting principles. 18
(ii) A
UDITOR.—A registered public ac-19
counting firm shall perform an audit of the 20
annual financial statements described in 21
clause (i). 22
(iii) S
TANDARDS.—An audit described 23
in clause (ii) shall be conducted in accord-24
ance with all applicable auditing standards 25
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•S 1582 PCS
established by the Public Company Ac-1
counting Oversight Board, including those 2
relating to auditor independence, internal 3
controls, and related party transactions. 4
(iv) R
ULE OF CONSTRUCTION .—Noth-5
ing in this subparagraph shall be construed 6
to limit, alter, or expand the jurisdiction of 7
the Public Company Accounting Oversight 8
Board over permitted payment stablecoin 9
issuers or registered public accounting 10
firms. 11
(B) P
UBLIC DISCLOSURE AND SUBMISSION 12
TO FEDERAL REGULATORS .—Each permitted 13
payment stablecoin issuer required to prepare 14
an audited annual financial statement under 15
subparagraph (A) shall— 16
(i) make such audited financial state-17
ments publicly available on the website of 18
the permitted payment stablecoin issuer; 19
and 20
(ii) submit such audited financial 21
statements annually to their primary Fed-22
eral payment stablecoin regulator. 23
(C) C
ONSULTATION.—The primary Fed-24
eral payment stablecoin regulators may consult 25
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•S 1582 PCS
with the Public Company Accounting Oversight 1
Board to determine best practices for deter-2
mining audit oversight and to detect fraud, ma-3
terial misstatements, and other financial mis-4
representations that could mislead permitted 5
payment stablecoin holders. 6
(11) E
LIGIBILITY.—The requirement to main-7
tain reserves under paragraph (1)(A) may not be 8
construed as expanding or contracting eligibility to 9
qualify as a depository institution under section 10
19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 11
461(b)(1)(A)). 12
(12) R
ULE OF CONSTRUCTION .—Compliance 13
with this section does not alter or affect any addi-14
tional requirement of a State payment stablecoin 15
regulator that may apply relating to the offering of 16
payment stablecoins. 17
(b) R
EGULATION BY THECOMPTROLLER.— 18
(1) I
N GENERAL.—Notwithstanding section 19
5136C of the Revised Statutes (12 U.S.C. 25b), sec-20
tion 6 of the Home Owners’ Loan Act (12 U.S.C. 21
1465), or any applicable State law relating to licens-22
ing and supervision, a Federal qualified payment 23
stablecoin issuer approved by the Comptroller pursu-24
ant to section 5 of this Act shall be licensed, regu-25
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•S 1582 PCS
lated, examined, and supervised exclusively by the 1
Comptroller, which shall have authority, in coordina-2
tion with other relevant primary Federal payment 3
stablecoin regulators and State payment stablecoin 4
regulators, to issue such regulations and orders as 5
necessary to ensure financial stability and implement 6
subsection (a). 7
(2) C
ONFORMING AMENDMENT .—Section 8
324(b) of the Revised Statutes (12 U.S.C. 1(b)) is 9
amended by adding at the end the following: 10
‘‘(3) R
EGULATION OF FEDERAL QUALIFIED 11
PAYMENT STABLECOIN ISSUERS .—The Comptroller 12
of the Currency shall, in coordination with other rel-13
evant regulators and consistent with section 13 of 14
the GENIUS Act, issue such regulations and orders 15
as necessary to ensure financial stability and imple-16
ment section 4(a) of that Act.’’. 17
(c) S
TATE-LEVELREGULATORYREGIMES.— 18
(1) O
PTION FOR STATE -LEVEL REGULATORY 19
REGIME.—Notwithstanding the Federal regulatory 20
framework established under this Act, a State quali-21
fied payment stablecoin issuer with a consolidated 22
total outstanding issuance of not more than 23
$10,000,000,000 may opt for regulation under a 24
State-level regulatory regime, provided that the 25
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•S 1582 PCS
State-level regulatory regime is substantially similar 1
to the Federal regulatory framework under that sub-2
section. 3
(2) P
RINCIPLES.—The Secretary of the Treas-4
ury shall, through notice and comment rulemaking, 5
establish broad-based principles for determining 6
whether a State-level regulatory regime is substan-7
tially similar to the Federal regulatory framework 8
under this Act. 9
(3) R
EVIEW.—State payment stablecoin regu-10
lators shall review State-level regulatory regimes ac-11
cording to the principles established by the Secretary 12
of the Treasury under paragraph (2) and for the 13
purposes of establishing any necessary cooperative 14
agreements to implement section 7(f). 15
(4) C
ERTIFICATION.— 16
(A) I
NITIAL CERTIFICATION.—Subject to 17
subparagraph (B), not later than 1 year after 18
the effective date of this Act, a State payment 19
stablecoin regulator shall submit to the 20
Stablecoin Certification Review Committee an 21
initial certification that the State-level regu-22
latory regime meets the criteria for substantial 23
similarity established pursuant to paragraph 24
(2). 25
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(B) FORM OF CERTIFICATION.—The initial 1
certification required under subparagraph (A) 2
shall contain, in a form prescribed by the 3
Stablecoin Certification Review Committee, an 4
attestation that the State-level regulatory re-5
gime meets the criteria for substantial simi-6
larity established pursuant to paragraph (2). 7
(C) A
NNUAL RECERTIFICATION .—Not later 8
than a date to be determined by the Secretary 9
of the Treasury each year, a State payment 10
stablecoin regulator shall submit to the 11
Stablecoin Certification Review Committee an 12
additional certification that confirms the accu-13
racy of the initial certification submitted under 14
subparagraph (A). 15
(5) C
ERTIFICATION REVIEW.— 16
(A) I
N GENERAL.—Not later than 30 days 17
after the date on which a State payment 18
stablecoin regulator submits an initial certifi-19
cation or a recertification under paragraph (4), 20
the Stablecoin Certification Review Committee 21
shall— 22
(i) approve such certification if the 23
Committee unanimously determines that 24
the State-level regulatory regime meets or 25
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•S 1582 PCS
exceeds the standards and requirements 1
described in subsection (a); or 2
(ii) deny such certification and pro-3
vide the State payment stablecoin regu-4
lator with a written explanation of the de-5
nial, describing the reasoned basis for the 6
denial with sufficient detail to enable the 7
State payment stablecoin regulator and 8
State-level regulatory regime to make any 9
changes necessary to meet or exceed the 10
standards and requirements described in 11
subsection (a). 12
(B) R
ECERTIFICATIONS.—With respect to 13
recertification certification submitted by a State 14
payment stablecoin regulator under paragraph 15
(4), the Stablecoin Certification Review Com-16
mittee shall only deny the recertification if— 17
(i) the State-level regulatory regime 18
has materially changed from the prior cer-19
tification or there has been a significant 20
change in circumstances; and 21
(ii) the material change in the regime 22
or significant change in circumstances de-23
scribed in clause (i) is such that the State- 24
level regulatory regime will not promote 25
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•S 1582 PCS
the safe and sound operation of State 1
qualified payment stablecoin issuers under 2
its supervision. 3
(C) O
PPORTUNITY TO CURE.— 4
(i) I
N GENERAL.—With respect to a 5
denial described under subparagraph (A) 6
or (B), the Stablecoin Certification Review 7
Committee shall provide the State payment 8
stablecoin regulator with not less than 180 9
days from the date on which the State pay-10
ment stablecoin regulator is notified of 11
such denial to— 12
(I) make such changes as may be 13
necessary to ensure the State-level 14
regulatory regime meets or exceeds 15
the standards described in subsection 16
(a); and 17
(II) resubmit the initial certifi-18
cation or recertification. 19
(ii) D
ENIAL.—If, after a State pay-20
ment stablecoin regulator resubmits an ini-21
tial certification or recertification under 22
clause (i), the Stablecoin Certification Re-23
view Committee again determines that the 24
initial certification or recertification shall 25
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•S 1582 PCS
result in a denial, the Stablecoin Certifi-1
cation Review Committee shall, not later 2
than 30 days after such determination, 3
provide the State payment stablecoin regu-4
lator with a written explanation for the de-5
termination. 6
(D) A
PPEAL OF DENIAL .—A State pay-7
ment stablecoin regulator in receipt of a denial 8
under subparagraph (C)(ii) may appeal the de-9
nial to the United States Court of Appeals for 10
the District of Columbia Circuit. 11
(E) R
IGHT TO RESUBMIT .—A State pay-12
ment stablecoin regulator in receipt of a denial 13
under this paragraph shall not be prohibited 14
from resubmitting a new certification under 15
paragraph (4). 16
(6) L
IST.—The Secretary of the Treasury shall 17
publish and maintain in the Federal Register and on 18
the website of the Department of the Treasury a list 19
of States that have submitted initial certifications 20
and recertifications under paragraph (4). 21
(7) S
TABLECOIN CERTIFICATION REVIEW COM -22
MITTEE ESTABLISHMENT .—For purposes of this 23
subsection, the Stablecoin Certification Review Com-24
mittee shall consist of the Secretary of the Treasury, 25
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•S 1582 PCS
the Chair of the Board, and the Chair of the Cor-1
poration. 2
(d) T
RANSITION TOFEDERALOVERSIGHT.— 3
(1) D
EPOSITORY INSTITUTION.—A State char-4
tered depository institution that is a State qualified 5
payment stablecoin issuer with a payment stablecoin 6
with a consolidated total outstanding issuance of 7
more than $10,000,000,000 shall— 8
(A) not later than 360 days after the pay-9
ment stablecoin reaches such threshold, transi-10
tion to the Federal regulatory framework of the 11
primary Federal payment stablecoin regulator 12
of the State chartered depository institution, 13
which shall be administered by the State pay-14
ment stablecoin regulator of the State chartered 15
depository institution and the primary Federal 16
payment stablecoin regulator acting jointly; or 17
(B) beginning on the date the payment 18
stablecoin reaches such threshold, cease issuing 19
new payment stablecoins until the payment 20
stablecoin is under the $10,000,000,000 con-21
solidated total outstanding issuance threshold. 22
(2) O
THER INSTITUTIONS.—A State qualified 23
payment stablecoin issuer not described in para-24
graph (1) with a payment stablecoin with a consoli-25
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dated total outstanding issuance of more than 1
$10,000,000,000 shall— 2
(A) not later than 360 days after the pay-3
ment stablecoin reaches such threshold, transi-4
tion to the Federal regulatory framework under 5
subsection (a) administered by the relevant 6
State payment stablecoin regulator and the 7
Comptroller, acting in coordination; or 8
(B) beginning on the date the payment 9
stablecoin reaches such threshold, cease issuing 10
new payment stablecoins until the payment 11
stablecoin is under the $10,000,000,000 con-12
solidated total outstanding issuance threshold. 13
(3) W
AIVER.— 14
(A) I
N GENERAL.—Notwithstanding para-15
graphs (1) and (2), the applicable primary Fed-16
eral payment stablecoin regulator may permit a 17
State qualified payment stablecoin issuer with a 18
payment stablecoin with a consolidated total 19
outstanding issuance of more than 20
$10,000,000,000 to remain solely supervised by 21
a State payment stablecoin regulator. 22
(B) C
RITERIA FOR WAIVER.—The primary 23
Federal payment stablecoin regulator shall con-24
sider the following exclusive criteria in deter-25
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mining whether to issue a waiver under this 1
paragraph: 2
(i) The capital maintained by the 3
State qualified payment stablecoin issuer. 4
(ii) The past operations and examina-5
tion history of the State qualified payment 6
stablecoin issuer. 7
(iii) The experience of the State pay-8
ment stablecoin regulator in supervising 9
payment stablecoin and digital asset activi-10
ties. 11
(iv) The supervisory framework, in-12
cluding regulations and guidance, of the 13
State qualified payment stablecoin issuer 14
with respect to payment stablecoins and 15
digital assets. 16
(C) R
ULE OF CONSTRUCTION .— 17
(i) F
EDERAL OVERSIGHT .—A State 18
qualified payment stablecoin issuer subject 19
to Federal oversight under paragraph (1) 20
or (2) of this subsection that does not re-21
ceive a waiver under this paragraph shall 22
continue to be supervised by the State pay-23
ment stablecoin regulator of the State 24
qualified payment stablecoin issuer jointly 25
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with the primary Federal payment 1
stablecoin regulator. Nothing in this sub-2
section shall require the State qualified 3
payment stablecoin issuer to convert to a 4
Federal charter. 5
(ii) S
TATE OVERSIGHT .—A State 6
qualified payment stablecoin issuer super-7
vised by a State payment stablecoin regu-8
lator that has established a prudential reg-9
ulatory regime (including regulations and 10
guidance) for the supervision of digital as-11
sets or payment stablecoins before the 90- 12
day period ending on the date of enact-13
ment of this Act that has been certified 14
pursuant to subsection (c) and has ap-15
proved 1 or more issuers to issue a pay-16
ment stablecoin under the supervision of 17
such State payment stablecoin regulator, 18
shall be presumptively approved for a waiv-19
er under this paragraph, unless the Fed-20
eral payment stablecoin regulator finds, by 21
clear and convincing evidence, that the re-22
quirements of subparagraph (B) are not 23
substantially met with respect to that 24
issuer or that the issuer poses significant 25
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safety and soundness risks to the financial 1
system of the United States. 2
(e) M
ISREPRESENTATION OF INSUREDSTATUS.— 3
(1) I
N GENERAL.—Payment stablecoins shall 4
not be backed by the full faith and credit of the 5
United States, guaranteed by the United States 6
Government, subject to deposit insurance by the 7
Federal Deposit Insurance Corporation, or subject 8
to share insurance by the National Credit Union Ad-9
ministration. 10
(2) M
ISREPRESENTATION OF INSURED STA -11
TUS.— 12
(A) I
N GENERAL.—It shall be unlawful to 13
represent that payment stablecoins are backed 14
by the full faith and credit of the United 15
States, guaranteed by the United States Gov-16
ernment, or subject to Federal deposit insur-17
ance or Federal share insurance, provided that 18
this subparagraph shall not prohibit a per-19
mitted payment stablecoin issuer from dis-20
closing which assets in its reserves are backed 21
by the full faith and credit of the United States 22
or what percentage of its total reserves are 23
backed by the full faith and credit of the United 24
States. 25
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(B) PENALTY.—A violation of subpara-1
graph (A) shall be considered a violation of sec-2
tion 18(a)(4) of the Federal Deposit Insurance 3
Act (12 U.S.C. 1828(a)(4)) or section 709 of 4
title 18, United States Code, as applicable. 5
(3) M
ARKETING.— 6
(A) I
N GENERAL.—It shall be unlawful to 7
market a product in the United States as a 8
payment stablecoin unless the product is issued 9
pursuant to this Act. 10
(B) P
ENALTY.—Whoever knowingly and 11
willfully participates in a violation of subpara-12
graph (A) shall be fined by the Department of 13
the Treasury not more than $500,000 for each 14
such violation. 15
(C) D
ETERMINATION OF THE NUMBER OF 16
VIOLATIONS.—For purposes of determining the 17
number of violations for which to impose pen-18
alties under subparagraph (B), separate acts of 19
noncompliance are a single violation when the 20
acts are the result of— 21
(i) a common or substantially overlap-22
ping originating cause; or 23
(ii) the same statement or publication. 24
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(D) REFERRAL TO SECRETARY OF THE 1
TREASURY.—If a Federal payment stablecoin 2
regulator has reason to believe that any person 3
has knowingly and willfully violated subpara-4
graph (A), the Federal payment stablecoin reg-5
ulator may refer the matter to the Secretary of 6
the Treasury. 7
(f) O
FFICERS ORDIRECTORSCONVICTED OFCER-8
TAINFELONIES.— 9
(1) I
N GENERAL.—No individual who has been 10
convicted of a felony offense involving insider trad-11
ing, embezzlement, cybercrime, money laundering, fi-12
nancing of terrorism, or financial fraud may serve 13
as— 14
(A) an officer of a payment stablecoin 15
issuer; or 16
(B) a director of a payment stablecoin 17
issuer. 18
(2) P
ENALTY.— 19
(A) I
N GENERAL.—Whoever knowingly 20
participates in a violation of paragraph (1) shall 21
be fined not more than $1,000,000 for each 22
such violation, imprisoned for not more than 5 23
years, or both. 24
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(B) REFERRAL TO ATTORNEY GENERAL .— 1
If a Federal payment stablecoin regulator has 2
reason to believe that any person has knowingly 3
violated paragraph (1), the Federal payment 4
stablecoin regulator shall refer the matter to 5
the Attorney General. 6
(g) C
LARIFICATIONRELATING TOFEDERALSAVINGS 7
A
SSOCIATIONRESERVES.—A Federal savings association 8
established under the Home Owners’ Loan Act (12 U.S.C. 9
1461 et seq.) that holds a reserve that satisfies the re-10
quirements of section 4(a)(1) shall not be required to sat-11
isfy the qualified thrift lender test under section 10(m) 12
of the Home Owners’ Loan Act (12 U.S.C. 1467a(m)) 13
with respect to such reserve assets. 14
(h) R
ULEMAKING.— 15
(1) I
N GENERAL.—Consistent with section 13, 16
the primary Federal payment stablecoin regulators 17
shall, and State payment stablecoin regulators may, 18
issue such regulations relating to permitted payment 19
stablecoin issuers as may be necessary to establish 20
a payment stablecoin regulatory framework nec-21
essary to administer and carry out the requirements 22
of this section, including to establish conditions, and 23
to prevent evasion thereof. 24
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(2) COORDINATED ISSUANCE OF REGULA -1
TIONS.—All regulations issued to carry out this sec-2
tion shall be issued in coordination by the primary 3
Federal payment stablecoin regulators, if not issued 4
by a State payment stablecoin regulator. 5
(i) R
ULES OFCONSTRUCTION.—Nothing in this Act 6
shall be construed— 7
(1) as expanding the authority of the Board 8
with respect to the services the Board can make di-9
rectly available to the public; or 10
(2) to limit or prevent the continued application 11
of applicable ethics statutes and regulations adminis-12
tered by the Office of Government Ethics, or the 13
ethics rules of the House of Representatives and the 14
Senate, including section 208 of title 18, United 15
States Code, and sections 2635.702 and 2635.802 of 16
title 5, Code of Federal Regulations. For the avoid-17
ance of doubt, existing Office of Government Ethics 18
laws and the ethics rules of the House of Represent-19
atives and the Senate prohibit any member of Con-20
gress or senior executive branch official from issuing 21
a payment stablecoin product during their time in 22
public service. 23
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SEC. 5. APPROVAL OF SUBSIDIARIES OF INSURED DEPOSI-1
TORY INSTITUTIONS AND FEDERAL QUALI-2
FIED PAYMENT STABLECOIN ISSUERS. 3
(a) A
PPLICATION.— 4
(1) I
N GENERAL.—Each primary Federal pay-5
ment stablecoin regulator shall— 6
(A) receive, review, and consider for ap-7
proval applications from any insured depository 8
institution that seeks to issue payment 9
stablecoins through a subsidiary and any 10
nonbank entity, Federal branch, or uninsured 11
national bank that is chartered by the Comp-12
troller pursuant to title LXII of the Revised 13
Statutes, and that seeks to issue payment 14
stablecoins as a Federal qualified payment 15
stablecoin issuer; and 16
(B) establish a process and framework for 17
the licensing, regulation, examination, and su-18
pervision of such entities that prioritizes the 19
safety and soundness of such entities. 20
(2) A
UTHORITY TO ISSUE REGULATIONS AND 21
PROCESS APPLICATIONS.—The primary Federal pay-22
ment stablecoin regulators shall, before the date de-23
scribed in section 13— 24
(A) issue regulations consistent with that 25
section to carry out this section; and 26
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(B) pursuant to the regulations described 1
in subparagraph (A), accept and process appli-2
cations described in paragraph (1). 3
(3) M
ANDATORY APPROVAL PROCESS .—A pri-4
mary Federal payment stablecoin regulator shall, 5
upon receipt of a substantially complete application 6
received under paragraph (1), evaluate and make a 7
determination on each application based on the cri-8
teria established under this Act. 9
(b) E
VALUATION OFAPPLICATIONS.—A substantially 10
complete application received under subsection (a) shall be 11
evaluated by the primary Federal payment stablecoin reg-12
ulator using the factors described in subsection (c). 13
(c) F
ACTORS TOBECONSIDERED.—The factors de-14
scribed in this subsection are the following: 15
(1) The ability of the applicant (or, in the case 16
of an applicant that is an insured depository institu-17
tion, the subsidiary of the applicant), based on fi-18
nancial condition and resources, to meet the require-19
ments set forth under section 4. 20
(2) Whether an individual who has been con-21
victed of a felony offense involving insider trading, 22
embezzlement, cybercrime, money laundering, fi-23
nancing of terrorism, or financial fraud is serving as 24
an officer or director of the applicant. 25
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(3) The competence, experience, and integrity 1
of the officers, directors, and principal shareholders 2
of the applicant, its subsidiaries, and parent com-3
pany, including— 4
(A) the record of those officers, directors, 5
and principal shareholders of compliance with 6
laws and regulations; and 7
(B) the ability of those officers, directors, 8
and principal shareholders to fulfill any com-9
mitments to, and any conditions imposed by, 10
their primary Federal payment stablecoin regu-11
lator in connection with the application at issue 12
and any prior applications. 13
(4) Whether the redemption policy of the appli-14
cant meets the standards under section 4(a)(1)(B). 15
(5) Any other factors established by the pri-16
mary Federal payment stablecoin regulator that are 17
necessary to ensure the safety and soundness of the 18
permitted payment stablecoin issuer. 19
(d) T
IMING FORDECISION; GROUNDS FOR DE-20
NIAL.— 21
(1) T
IMING FOR DECISIONS ON APPLICA -22
TIONS.— 23
(A) I
N GENERAL.—Not later than 120 24
days after receiving a substantially complete ap-25
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plication under subsection (a), a primary Fed-1
eral payment stablecoin regulator shall render a 2
decision on the application. 3
(B) S
UBSTANTIALLY COMPLETE .— 4
(i) I
N GENERAL.—For purposes of 5
subparagraph (A), an application shall be 6
considered substantially complete if the ap-7
plication contains sufficient information for 8
the primary Federal payment stablecoin 9
regulator to render a decision on whether 10
the applicant satisfies the factors described 11
in subsection (c). 12
(ii) N
OTIFICATION.—Not later than 13
30 days after receiving an application 14
under subsection (a), a primary Federal 15
payment stablecoin regulator shall notify 16
the applicant as to whether the primary 17
Federal payment stablecoin regulator con-18
siders the application to be substantially 19
complete and, if the application is not sub-20
stantially complete, the additional informa-21
tion the applicant shall provide in order for 22
the application to be considered substan-23
tially complete. 24
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(iii) MATERIAL CHANGE IN CIR -1
CUMSTANCES.—An application considered 2
substantially complete under this subpara-3
graph remains substantially complete un-4
less there is a material change in cir-5
cumstances that requires the primary Fed-6
eral payment stablecoin regulator to treat 7
the application as a new application. 8
(2) D
ENIAL OF APPLICATION.— 9
(A) G
ROUNDS FOR DENIAL.— 10
(i) I
N GENERAL.—A primary Federal 11
payment stablecoin regulator shall only 12
deny a substantially complete application 13
received under subsection (a) if the regu-14
lator determines that the activities of the 15
applicant would be unsafe or unsound 16
based on the factors described in sub-17
section (c). 18
(ii) I
SSUANCE ON OPEN , PUBLIC, OR 19
DECENTRALIZED NETWORK NOT GROUND 20
FOR DENIAL.—The issuance of a payment 21
stablecoin on an open, public, or decentral-22
ized network shall not be a valid ground 23
for denial of an application received under 24
subsection (a). 25
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(B) EXPLANATION REQUIRED .—If a pri-1
mary Federal payment stablecoin regulator de-2
nies a complete application received under sub-3
section (a), not later than 30 days after the 4
date of such denial, the regulator shall provide 5
the applicant with written notice explaining the 6
denial with specificity, including all findings 7
made by the regulator with respect to all identi-8
fied material shortcomings in the application, 9
including actionable recommendations on how 10
the applicant could address the identified mate-11
rial shortcomings. 12
(C) O
PPORTUNITY FOR HEARING ; FINAL 13
DETERMINATION.— 14
(i) I
N GENERAL.—Not later than 30 15
days after the date of receipt of any notice 16
of the denial of an application under this 17
section, the applicant may request, in writ-18
ing, an opportunity for a written or oral 19
hearing before the primary Federal pay-20
ment stablecoin regulator to appeal the de-21
nial. 22
(ii) T
IMING.—Upon receipt of a timely 23
request under clause (i), the primary Fed-24
eral payment stablecoin regulator shall no-25
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tice a time (not later than 30 days after 1
the date of receipt of the request) and 2
place at which the applicant may appear, 3
personally or through counsel, to submit 4
written materials or provide oral testimony 5
and oral argument. 6
(iii) F
INAL DETERMINATION .—Not 7
later than 60 days after the date of a hear-8
ing under this subparagraph, the applica-9
ble primary Federal payment stablecoin 10
regulator shall notify the applicant of a 11
final determination, which shall contain a 12
statement of the basis for that determina-13
tion, with specific findings. 14
(iv) N
OTICE IF NO HEARING .—If an 15
applicant does not make a timely request 16
for a hearing under this subparagraph, the 17
primary Federal payment stablecoin regu-18
lator shall notify the applicant, not later 19
than 10 days after the date by which the 20
applicant may request a hearing under this 21
subparagraph, in writing, that the denial 22
of the application is a final determination 23
of the primary Federal payment stablecoin 24
regulator. 25
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(3) FAILURE TO RENDER A DECISION .—If a 1
primary Federal payment stablecoin regulator fails 2
to render a decision on a complete application within 3
the time period specified in paragraph (1), the appli-4
cation shall be deemed approved. 5
(4) R
IGHT TO REAPPLY.—The denial of an ap-6
plication under this section shall not prohibit the ap-7
plicant from filing a subsequent application. 8
(e) R
EPORTS ON PENDINGAPPLICATIONS.—Each 9
primary Federal payment stablecoin regulator shall— 10
(1) notify Congress upon beginning to process 11
applications under this Act; and 12
(2) annually report to Congress on the applica-13
tions that have been pending for 180 days or more 14
since the date the initial application was filed and 15
for which the applicant has been informed that the 16
application remains incomplete, including docu-17
mentation on the status of such applications and 18
why such applications have not yet been approved. 19
(f) S
AFEHARBOR FORPENDINGAPPLICATIONS.— 20
The primary Federal payment stablecoin regulators may 21
waive the application of the requirements of this Act for 22
a period not to exceed 12 months beginning on the effec-23
tive date of this Act, with respect to— 24
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(1) a subsidiary of an insured depository insti-1
tution, if the insured depository institution has an 2
application pending for the subsidiary to become a 3
permitted payment stablecoin issuer on that effective 4
date; or 5
(2) a Federal qualified payment stablecoin 6
issuer with a pending application on that effective 7
date. 8
(g) R
ULEMAKING.—Consistent with section 13, the 9
primary Federal payment stablecoin regulators shall issue 10
rules necessary for the regulation of the issuance of pay-11
ment stablecoins, but may not impose requirements in ad-12
dition to the requirements specified under section 4. 13
(h) R
ELATION TO OTHERLICENSINGREQUIRE-14
MENTS.—The provisions of this section supersede and pre-15
empt any State requirement for a charter, license, or other 16
authorization to do business with respect to a Federal 17
qualified payment stablecoin issuer or subsidiary of an in-18
sured depository institution or credit union that is ap-19
proved under this section to be a permitted payment 20
stablecoin issuer. 21
(i) C
ERTIFICATIONREQUIRED.— 22
(1) I
N GENERAL.—Not later than 180 days 23
after the approval of an application, and on an an-24
nual basis thereafter, each permitted payment 25
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stablecoin issuer shall submit to its primary Federal 1
payment stablecoin regulator, or in the case of a 2
State qualified payment stablecoin issuer its State 3
payment stablecoin regulator, a certification that the 4
issuer has implemented anti-money laundering and 5
economic sanctions compliance programs that are 6
reasonably designed to prevent the permitted pay-7
ment stablecoin issuer from facilitating money laun-8
dering, including, in particular, facilitating money 9
laundering for cartels and organizations designated 10
as foreign terrorist organizations under section 219 11
of the Immigration and Nationality Act (8 U.S.C. 12
1189) and the financing of terrorist activities, con-13
sistent with the requirements of this Act. 14
(2) A
VAILABILITY OF CERTIFICATIONS .—Fed-15
eral payment stablecoin regulators and State pay-16
ment stablecoin regulators shall make certifications 17
described in paragraph (1) available to the Secretary 18
of Treasury upon request. 19
(3) P
ENALTIES.— 20
(A) A
PPROVAL REVOCATION .—The pri-21
mary Federal payment stablecoin regulator or 22
State payment stablecoin regulator of a per-23
mitted payment stablecoin issuer that does not 24
submit a certification pursuant to paragraph 25
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(1) may revoke the approval of the payment 1
stablecoin issuer under this section. 2
(B) C
RIMINAL PENALTY.— 3
(i) I
N GENERAL.—Any person that 4
knowingly submits a certification pursuant 5
to paragraph (1) that is false shall be sub-6
ject to the criminal penalties set forth 7
under section 1001 of title 18, United 8
States Code. 9
(ii) R
EFERRAL TO ATTORNEY GEN -10
ERAL.—If a Federal payment stablecoin 11
regulator or State payment stablecoin reg-12
ulator has reason to believe that any per-13
son has knowingly violated paragraph (1), 14
the applicable regulator may refer the mat-15
ter to the Attorney General or to the attor-16
ney general of the payment stablecoin 17
issuer’s host State. 18
SEC. 6. SUPERVISION AND ENFORCEMENT WITH RESPECT 19
TO FEDERAL QUALIFIED PAYMENT 20
STABLECOIN ISSUERS AND SUBSIDIARIES OF 21
INSURED DEPOSITORY INSTITUTIONS. 22
(a) S
UPERVISION.— 23
(1) I
N GENERAL.—Each permitted payment 24
stablecoin issuer that is not a State qualified pay-25
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ment stablecoin issuer with a payment stablecoin 1
with a consolidated total outstanding issuance of less 2
than $10,000,000,000 shall be subject to supervision 3
by the appropriate primary Federal payment 4
stablecoin regulator. 5
(2) S
UBMISSION OF REPORTS .—Each permitted 6
payment stablecoin issuer described in paragraph (1) 7
shall, upon request, submit to the appropriate pri-8
mary Federal payment stablecoin regulator a report 9
on— 10
(A) the financial condition of the permitted 11
payment stablecoin issuer; 12
(B) the systems of the permitted payment 13
stablecoin issuer for monitoring and controlling 14
financial and operating risks; 15
(C) compliance by the permitted payment 16
stablecoin issuer (and any subsidiary thereof) 17
with this Act; and 18
(D) the compliance of the Federal qualified 19
nonbank payment stablecoin issuer with the re-20
quirements of the Bank Secrecy Act and with 21
laws authorizing the imposition of sanctions to 22
be implemented by the Secretary of the Treas-23
ury. 24
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(3) EXAMINATIONS.—The appropriate primary 1
Federal payment stablecoin regulator shall examine 2
a permitted payment stablecoin issuer described in 3
paragraph (1) in order to assess— 4
(A) the nature of the operations and finan-5
cial condition of the permitted payment 6
stablecoin issuer; 7
(B) the financial, operational, techno-8
logical, and other risks associated with the per-9
mitted payment stablecoin issuer that may pose 10
a threat to— 11
(i) the safety and soundness of the 12
permitted payment stablecoin issuer; or 13
(ii) the stability of the financial sys-14
tem of the United States; and 15
(C) the systems of the permitted payment 16
stablecoin issuer for monitoring and controlling 17
the risks described in subparagraph (B). 18
(4) R
EQUIREMENTS FOR EFFICIENCY .— 19
(A) U
SE OF EXISTING REPORTS .—In su-20
pervising and examining a permitted payment 21
stablecoin issuer under this subsection, a pri-22
mary Federal payment stablecoin regulator 23
shall, to the fullest extent possible, use existing 24
reports and other supervisory information. 25
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(B) AVOIDANCE OF DUPLICATION .—A pri-1
mary Federal payment stablecoin regulator 2
shall, to the fullest extent possible, avoid dupli-3
cation of examination activities, reporting re-4
quirements, and requests for information in 5
carrying out this subsection with respect to a 6
permitted payment stablecoin issuer. 7
(C) C
ONSIDERATION OF BURDEN .—A pri-8
mary Federal payment stablecoin regulator 9
shall, with respect to any examination or re-10
quest for the submission of a report under this 11
subsection, only request examinations and re-12
ports at a cadence and in a format that is simi-13
lar to that required for similarly situated enti-14
ties regulated by the primary Federal payment 15
stablecoin regulator. 16
(b) E
NFORCEMENT.— 17
(1) S
USPENSION OR REVOCATION OF REGISTRA -18
TION.—The primary Federal payment stablecoin 19
regulator of a permitted payment stablecoin issuer 20
that is not a State qualified payment stablecoin 21
issuer with a payment stablecoin with a consolidated 22
total outstanding issuance of less than 23
$10,000,000,000 may prohibit the permitted pay-24
ment stablecoin issuer from issuing payment 25
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stablecoins, if the primary Federal payment 1
stablecoin regulator determines that such permitted 2
payment stablecoin issuer, or an institution-affiliated 3
party of the permitted payment stablecoin issuer is 4
willfully violating or has willfully violated— 5
(A) this Act or any regulation or order 6
issued under this Act; or 7
(B) any condition imposed in writing by 8
the primary Federal payment stablecoin regu-9
lator in connection with a written agreement 10
entered into between the permitted payment 11
stablecoin issuer and the primary Federal pay-12
ment stablecoin regulator. 13
(2) C
EASE-AND-DESIST PROCEEDINGS .—If the 14
primary Federal payment stablecoin regulator of a 15
permitted payment stablecoin issuer that is not a 16
State qualified payment stablecoin issuer with a pay-17
ment stablecoin with a consolidated total out-18
standing issuance of less than $10,000,000,000 has 19
reasonable cause to believe that the permitted pay-20
ment stablecoin issuer or any institution-affiliated 21
party of the permitted payment stablecoin issuer is 22
violating, has violated, or is attempting to violate 23
this Act, any regulation or order issued under this 24
Act, or any written agreement entered into with the 25
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primary Federal payment stablecoin regulator or 1
condition imposed in writing by the primary Federal 2
payment stablecoin regulator in connection with any 3
application or other request, the primary Federal 4
payment stablecoin regulator may, by provisions that 5
are mandatory or otherwise, order the permitted 6
payment stablecoin issuer or institution-affiliated 7
party of the permitted payment stablecoin issuer 8
to— 9
(A) cease and desist from such violation or 10
practice; or 11
(B) take affirmative action to correct the 12
conditions resulting from any such violation or 13
practice. 14
(3) R
EMOVAL AND PROHIBITION AUTHORITY .— 15
The primary Federal payment stablecoin regulator 16
of a permitted payment stablecoin issuer that is not 17
a State qualified payment stablecoin issuer may re-18
move an institution-affiliated party of the permitted 19
payment stablecoin issuer from the position or office 20
of that institution-affiliated party or prohibit further 21
participation in the affairs of the permitted payment 22
stablecoin issuer or of all such permitted payment 23
stablecoin issuers by that institution-affiliated party, 24
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if the primary Federal payment stablecoin regulator 1
determines that— 2
(A) the institution-affiliated party has 3
knowingly committed a violation or attempted 4
violation of this Act or any regulation or order 5
issued under this Act; or 6
(B) the institution-affiliated party has 7
knowingly committed a violation of any provi-8
sion of subchapter II of chapter 53 of title 31, 9
United States Code. 10
(4) P
ROCEDURES.— 11
(A) I
N GENERAL.—If a primary Federal 12
payment stablecoin regulator identifies a viola-13
tion or attempted violation of this Act or makes 14
a determination under paragraph (1), (2), or 15
(3), the primary Federal payment stablecoin 16
regulator shall comply with the procedures set 17
forth in subsections (b) and (e) of section 8 of 18
the Federal Deposit Insurance Act (12 U.S.C. 19
1818) or subsections (e) and (g) of section 206 20
the Federal Credit Union Act (12 U.S.C. 21
1786(e) and (g)), as applicable. 22
(B) J
UDICIAL REVIEW.—A person ag-23
grieved by a final action under this subsection 24
may obtain judicial review of such action exclu-25
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sively as provided in section 8(h) of the Federal 1
Deposit Insurance Act (12 U.S.C. 1818(h)) or 2
section 206(j) of the Federal Credit Union Act 3
(12 U.S.C. 1786(j)), as applicable. 4
(C) I
NJUNCTION.—A primary Federal pay-5
ment stablecoin regulator may, at the discretion 6
of the regulator, follow the procedures provided 7
in section 8(i)(1) of the Federal Deposit Insur-8
ance Act (12 U.S.C. 1818(i)(1)) or section 9
206(k)(1) of the Federal Credit Union Act (12 10
U.S.C. 1786(k)(1)), as applicable, for judicial 11
enforcement of any effective and outstanding 12
notice or order issued under this subsection. 13
(D) T
EMPORARY CEASE-AND-DESIST PRO-14
CEEDINGS.—If a primary Federal payment 15
stablecoin regulator determines that a violation 16
or attempted violation of this Act or an action 17
with respect to which a determination was made 18
under paragraph (1), (2), or (3), or the con-19
tinuation thereof, is likely to cause insolvency or 20
significant dissipation of assets or earnings of a 21
permitted payment stablecoin issuer, or is likely 22
to weaken the condition of the permitted pay-23
ment stablecoin issuer or otherwise prejudice 24
the interests of the customers of the permitted 25
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payment stablecoin issuer prior to the comple-1
tion of the proceedings conducted under this 2
paragraph, the primary Federal payment 3
stablecoin regulator may follow the procedures 4
provided in section 8(c) of the Federal Deposit 5
Insurance Act (12 U.S.C. 1818(c)) or section 6
206(f) of the Federal Credit Union Act (12 7
U.S.C. 1786(f)), as applicable, to issue a tem-8
porary cease and desist order. 9
(5) C
IVIL MONEY PENALTIES .—Unless other-10
wise specified in this Act, the civil money penalties 11
for violations of this Act consist of the following: 12
(A) F
AILURE TO BE APPROVED .—Any per-13
son that issues a United States dollar-denomi-14
nated payment stablecoin in violation of section 15
3, and any institution-affiliated party of such a 16
person who knowingly participates in issuing 17
such a payment stablecoin, shall be liable for a 18
civil penalty of not more than $100,000 for 19
each day during which such payment 20
stablecoins are issued. 21
(B) F
IRST TIER.—Except as provided in 22
subparagraph (A), a permitted payment 23
stablecoin issuer or institution-affiliated party 24
of such permitted payment stablecoin issuer 25
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•S 1582 PCS
that materially violates this Act or any regula-1
tion or order issued under this Act, or that ma-2
terially violates any condition imposed in writ-3
ing by the appropriate primary Federal pay-4
ment stablecoin regulator in connection with a 5
written agreement entered into between the per-6
mitted payment stablecoin issuer and that pri-7
mary Federal payment stablecoin regulator, 8
shall be liable for a civil penalty of not more 9
than $100,000 for each day during which the 10
violation continues. 11
(C) S
ECOND TIER.—Except as provided in 12
subparagraph (A), and in addition to the pen-13
alties described in subparagraph (B), a per-14
mitted payment stablecoin issuer or institution- 15
affiliated party of such permitted payment 16
stablecoin issuer who knowingly participates in 17
a violation of any provision of this Act, or any 18
regulation or order issued under this Act, shall 19
be liable for a civil penalty of not more than an 20
additional $100,000 for each day during which 21
the violation continues. 22
(D) P
ROCEDURE.—Any penalty imposed 23
under this paragraph may be assessed and col-24
lected by the appropriate primary Federal pay-25
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•S 1582 PCS
ment stablecoin regulator pursuant to the pro-1
cedures set forth in section 8(i)(2) of the Fed-2
eral Deposit Insurance Act (12 U.S.C. 3
1818(i)(2)) or section 206(k)(2) of the Federal 4
Credit Union Act (12 U.S.C. 1786(k)(2)), as 5
applicable. 6
(E) N
OTICE AND ORDERS AFTER SEPARA -7
TION FROM SERVICE.—The resignation, termi-8
nation of employment or participation, or sepa-9
ration of an institution-affiliated party (includ-10
ing a separation caused by the closing of a per-11
mitted payment stablecoin issuer) shall not af-12
fect the jurisdiction and authority of a primary 13
Federal payment stablecoin regulator to issue 14
any notice or order and proceed under this sub-15
section against any such party, if such notice or 16
order is served before the end of the 6-year pe-17
riod beginning on the date on which such party 18
ceased to be an institution-affiliated party with 19
respect to such permitted payment stablecoin 20
issuer. 21
(6) N
ON-APPLICABILITY TO A STATE QUALI -22
FIED PAYMENT STABLECOIN ISSUER .—Notwith-23
standing anything in this subsection to the contrary, 24
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•S 1582 PCS
this subsection shall not apply to a State qualified 1
payment stablecoin issuer. 2
(c) F
EDERALTRADECOMMISSIONJURISDICTION.— 3
Nothing in this Act shall be construed to limit, impair, 4
or otherwise affect the authority or jurisdiction of the Fed-5
eral Trade Commission under the Federal Trade Commis-6
sion Act (15 U.S.C. 41 et seq.) or any other applicable 7
Federal law. 8
SEC. 7. STATE QUALIFIED PAYMENT STABLECOIN ISSUERS. 9
(a) I
NGENERAL.—A State payment stablecoin regu-10
lator shall have supervisory, examination, and enforcement 11
authority over all State qualified payment stablecoin 12
issuers of such State. 13
(b) A
UTHORITYTOENTERINTOAGREEMENTS 14
W
ITH THEBOARD.—A State payment stablecoin regu-15
lator may enter into a memorandum of understanding 16
with the Board, by mutual agreement, under which the 17
Board may participate in the supervision, examination, 18
and enforcement of this Act with respect to the State 19
qualified payment stablecoin issuers of such State. 20
(c) S
HARING OFINFORMATION.—A State payment 21
stablecoin regulator and the Board shall share information 22
on an ongoing basis with respect to a State qualified pay-23
ment stablecoin issuer of such State, including a copy of 24
the initial application and any accompanying documents. 25
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(d) RULEMAKING.—A State payment stablecoin regu-1
lator may issue orders and rules under section 4 applicable 2
to State qualified payment stablecoin issuers to the same 3
extent as the primary Federal payment stablecoin regu-4
lators issue orders and rules under section 4 applicable 5
to permitted payment stablecoin issuers that are not State 6
qualified payment stablecoin issuers. 7
(e) E
NFORCEMENT AUTHORITY INUNUSUAL AND 8
E
XIGENTCIRCUMSTANCES.— 9
(1) B
OARD.— 10
(A) I
N GENERAL.—Subject to subpara-11
graph (C), under unusual and exigent cir-12
cumstances that the Board determines to exist, 13
the Board may, after not less than 48 hours’ 14
prior written notice to the applicable State pay-15
ment stablecoin regulator, take an enforcement 16
action against a State qualified payment 17
stablecoin issuer or an institution-affiliated 18
party of such issuer for violations of this Act 19
during such unusual and exigent circumstances. 20
(B) R
ULEMAKING.—Consistent with sec-21
tion 13, the Board shall issue rules to set forth 22
the unusual and exigent circumstances in which 23
the Board may act under this paragraph. 24
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(C) LIMITATIONS.—If, after unusual and 1
exigent circumstances are determined to exist 2
pursuant to subparagraph (A), the Board deter-3
mines that there is reasonable cause to believe 4
that the continuation by a State qualified pay-5
ment stablecoin issuer of any activity con-6
stitutes a serious risk to the financial safety, 7
soundness, or stability of the State qualified 8
payment stablecoin issuer, the Board may im-9
pose such restrictions as the Board determines 10
to be necessary to address such risk during 11
such unusual and exigent circumstances, which 12
may include limitations on redemptions of pay-13
ment stablecoins, and which shall be issued in 14
the form of a directive, with the effect of a 15
cease and desist order that has become final, to 16
the State qualified payment stablecoin issuer 17
and any of its affiliates, limiting— 18
(i) transactions between the State 19
qualified payment stablecoin issuer, a hold-20
ing company, and the subsidiaries or affili-21
ates of either the State qualified payment 22
stablecoin issuer or the holding company; 23
and 24
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•S 1582 PCS
(ii) any activities of the State quali-1
fied payment stablecoin issuer that might 2
create a serious risk that the liabilities of 3
a holding company and the affiliates of the 4
holding company may be imposed on the 5
State qualified payment stablecoin issuer. 6
(D) R
EVIEW OF DIRECTIVE.— 7
(i) A
DMINISTRATIVE REVIEW.— 8
(I) I
N GENERAL.—After a direc-9
tive described in subparagraph (C) is 10
issued, the applicable State qualified 11
payment stablecoin issuer, or any in-12
stitution-affiliated party of the State 13
qualified payment stablecoin issuer 14
subject to the directive, may object 15
and present to the Board, in writing, 16
the reasons why the directive should 17
be modified or rescinded. 18
(II) A
UTOMATIC LAPSE OF DI -19
RECTIVE.—If, after 10 days after the 20
receipt of a response described in sub-21
clause (I), the Board does not affirm, 22
modify, or rescind the directive, the 23
directive shall automatically lapse. 24
(ii) J
UDICIAL REVIEW.— 25
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(I) IN GENERAL.—If the Board 1
affirms or modifies a directive pursu-2
ant to clause (i), any affected party 3
may immediately thereafter petition 4
the United States district court for 5
the district in which the main office of 6
the affected party is located, or in the 7
United States District Court for the 8
District of Columbia, to stay, modify, 9
terminate, or set aside the directive. 10
(II) R
ELIEF FOR EXTRAOR -11
DINARY CAUSE.—Upon a showing of 12
extraordinary cause, an affected party 13
may petition for relief under subclause 14
(I) without first pursuing or exhaust-15
ing the administrative remedies under 16
clause (i). 17
(2) C
OMPTROLLER.— 18
(A) I
N GENERAL.—Subject to subpara-19
graph (C), under unusual and exigent cir-20
cumstances determined to exist by the Comp-21
troller, the Comptroller shall, after not less 22
than 48 hours’ prior written notice to the appli-23
cable State payment stablecoin regulator, take 24
an enforcement action against a State qualified 25
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•S 1582 PCS
payment stablecoin issuer that is a nonbank en-1
tity for violations of this Act. 2
(B) R
ULEMAKING.—Consistent with sec-3
tion 13, the Comptroller shall issue rules to set 4
forth the unusual and exigent circumstances in 5
which the Comptroller may act under this para-6
graph. 7
(C) L
IMITATIONS.—If, after unusual and 8
exigent circumstances are determined to exist 9
under subparagraph (A), the Comptroller deter-10
mines that there is reasonable cause to believe 11
that the continuation of any activity by a State 12
qualified payment stablecoin issuer that is a 13
nonbank entity constitutes a serious risk to the 14
financial safety, soundness, or stability of the 15
State qualified payment stablecoin issuer that is 16
a nonbank entity, the Comptroller shall impose 17
such restrictions as the Comptroller determines 18
to be necessary to address such risk during 19
such unusual and exigent circumstances, which 20
may include limitations on redemption of pay-21
ment stablecoins, and which shall be issued in 22
the form of a directive, with the effect of a 23
cease and desist order that has become final, to 24
the State qualified payment stablecoin issuer 25
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•S 1582 PCS
that is a nonbank entity and any of its affili-1
ates, limiting— 2
(i) transactions between the State 3
qualified payment stablecoin issuer, a hold-4
ing company, and the subsidiaries or affili-5
ates of either the State qualified payment 6
stablecoin issuer or the holding company; 7
and 8
(ii) any activities of the State quali-9
fied payment stablecoin issuer that might 10
create a serious risk that the liabilities of 11
a holding company and the affiliates of the 12
holding company may be imposed on the 13
State qualified payment stablecoin issuer. 14
(D) R
EVIEW OF DIRECTIVE.— 15
(i) A
DMINISTRATIVE REVIEW.— 16
(I) I
N GENERAL.—After a direc-17
tive described in subparagraph (C) is 18
issued, the applicable Federal quali-19
fied payment stablecoin issuer, or any 20
institution-affiliated party of the Fed-21
eral qualified payment stablecoin 22
issuer subject to the directive, may 23
object and present to the Comptroller, 24
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•S 1582 PCS
in writing, the reasons that the direc-1
tive should be modified or rescinded. 2
(II) A
UTOMATIC LAPSE OF DI -3
RECTIVE.—If, after 10 days after the 4
receipt of a response described in sub-5
clause (I), the Comptroller does not 6
affirm, modify, or rescind the direc-7
tive, the directive shall automatically 8
lapse. 9
(ii) J
UDICIAL REVIEW.— 10
(I) I
N GENERAL.—If the Comp-11
troller affirms or modifies a directive 12
pursuant to clause (i), any affected 13
party may immediately thereafter pe-14
tition the United States district court 15
for the district in which the main of-16
fice of the affected party is located, or 17
in the United States District Court 18
for the District of Columbia, to stay, 19
modify, terminate, or set aside the di-20
rective. 21
(II) R
ELIEF FOR EXTRAOR -22
DINARY CAUSE.—Upon a showing of 23
extraordinary cause, an affected party 24
may petition for relief under subclause 25
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•S 1582 PCS
(I) without first pursuing or exhaust-1
ing the administrative remedies under 2
clause (i). 3
(f) E
FFECT ONSTATELAW.— 4
(1) H
OST STATE LAW.—Unless otherwise pro-5
vided in this Act, the laws of a host State, including 6
laws relating to consumer protection, shall only 7
apply to the activities conducted in the host State by 8
an out-of-State State qualified payment stablecoin 9
issuer to the same extent as such laws apply to the 10
activities conducted in the host State by an out-of- 11
State Federal qualified payment stablecoin issuer. 12
(2) H
OME STATE LAW.—If any host State law 13
is determined not to apply under paragraph (1), the 14
laws of the home State of the State qualified pay-15
ment stablecoin issuer shall govern the activities of 16
the permitted payment stablecoin issuer conducted 17
in the host State. 18
(3) A
PPLICABILITY.— 19
(A) I
N GENERAL.—This subsection shall 20
only apply to an out-of-State State qualified 21
payment stablecoin issuer chartered, licensed, 22
or otherwise authorized to do business by a 23
State that has a certification in place pursuant 24
to section 4(c) of this Act. 25
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•S 1582 PCS
(B) EXCLUSION.—The laws applicable to 1
an out-of-State qualified payment stablecoin 2
issuer under paragraph (1) exclude host State 3
laws governing the chartering, licensure, or 4
other authorization to do business in the host 5
State as a permitted payment stablecoin issuer 6
pursuant to this Act. 7
(4) R
ULE OF CONSTRUCTION .—Except as speci-8
fied in this subsection, nothing in this Act shall pre-9
empt State consumer protection laws, including com-10
mon law, and the remedies available thereunder. 11
SEC. 8. ANTI-MONEY LAUNDERING PROTECTIONS. 12
(a) P
AYMENTSTABLECOINISSUED BY AFOREIGN 13
P
AYMENTSTABLECOINISSUER.— 14
(1) I
N GENERAL.—Payment stablecoin that is 15
issued by a foreign payment stablecoin issuer may 16
not be publicly offered, sold, or otherwise made 17
available for trading in the United States unless the 18
foreign payment stablecoin issuer has the techno-19
logical capability to comply and complies with the 20
terms of any lawful order. 21
(2) E
NFORCEMENT.— 22
(A) A
UTHORITY.—The Secretary of the 23
Treasury shall have the authority to designate 24
any foreign issuer that publicly offers, sells, or 25
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otherwise makes available a payment stablecoin 1
in violation of paragraph (1) as noncompliant. 2
(B) D
ESIGNATION AS NONCOMPLIANT .— 3
Not later than 30 days after the Department of 4
the Treasury has identified a foreign payment 5
stablecoin issuer of any payment stablecoin that 6
is trading in the United States that is in viola-7
tion of paragraph (1), the Secretary of the 8
Treasury, in coordination with relevant Federal 9
agencies, may, pursuant to the authority under 10
subparagraph (A), designate the foreign pay-11
ment stablecoin issuer as noncompliant and no-12
tify the foreign payment stablecoin issuer in 13
writing of the designation. 14
(3) A
PPEAL.—A determination of noncompli-15
ance under this subsection is subject to judicial re-16
view in the United States Court of Appeals for the 17
District of Columbia Circuit. 18
(b) P
UBLICATION OF DESIGNATION; PROHIBITION 19
ONSECONDARYTRADING.— 20
(1) I
N GENERAL.—If a foreign payment 21
stablecoin issuer does not come into compliance with 22
the lawful order within 30 days from the date of 23
issuance of the written notice described in subsection 24
(a), the Secretary of the Treasury may— 25
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(A) publish the determination of non-1
compliance in the Federal Register, including a 2
statement on the failure of the foreign payment 3
stablecoin issuer to comply with the lawful 4
order after the written notice; and 5
(B) issue a notification in the Federal Reg-6
ister prohibiting digital asset service providers 7
from facilitating secondary trading of payment 8
stablecoins issued by the foreign payment 9
stablecoin issuer in the United States. 10
(2) E
FFECTIVE DATE OF PROHIBITION .—The 11
prohibition on facilitation of secondary trading de-12
scribed in paragraph (1) shall become effective on 13
the date that is 30 days after the date of issue of 14
notification of the prohibition in the Federal Reg-15
ister. 16
(3) E
XPIRATION OF PROHIBITION .— 17
(A) I
N GENERAL.—The prohibition on fa-18
cilitation of secondary trading described in 19
paragraph (1)(B) shall expire upon the Sec-20
retary of the Treasury’s determination that the 21
foreign payment stablecoin issuer is no longer 22
noncompliant. 23
(B) R
ULEMAKING.—Consistent with sec-24
tion 13, the Secretary of the Treasury shall 25
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specify the criteria that a noncompliant foreign 1
issuer must meet for the Secretary of the 2
Treasury to determine that the foreign payment 3
stablecoin issuer is no longer noncompliant. 4
(4) C
IVIL MONETARY PENALTIES .—The Sec-5
retary of the Treasury may impose a civil monetary 6
penalty as follows: 7
(A) D
IGITAL ASSET SERVICE PRO -8
VIDERS.—Any digital asset service provider that 9
knowingly violates a prohibition under para-10
graph (1)(B) shall be subject to a civil mone-11
tary penalty of not more than $100,000 per vio-12
lation per day. 13
(B) F
OREIGN PAYMENT STABLECOIN 14
ISSUERS.—Any foreign payment stablecoin 15
issuer that knowingly continues to publicly offer 16
a payment stablecoin in the United States after 17
publication of the determination of noncompli-18
ance under paragraph (1)(A) shall be subject to 19
a civil monetary penalty of not more than 20
$1,000,000 per violation per day, and the Sec-21
retary of the Treasury may seek an injunction 22
in a district court of the United States to bar 23
the foreign payment stablecoin issuer from en-24
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gaging in financial transactions in the United 1
States or with United States persons. 2
(C) D
ETERMINATION OF THE NUMBER OF 3
VIOLATIONS.—For purposes of determining the 4
number of violations for which to impose a pen-5
alty under subparagraph (A) or (B), separate 6
acts of noncompliance are a single violation 7
when the acts are the result of a common or 8
substantially overlapping originating cause. 9
(D) C
OMMENCEMENT OF CIVIL ACTIONS .— 10
The Secretary of the Treasury may commence 11
a civil action against a foreign payment 12
stablecoin issuer in a district court of the 13
United States to— 14
(i) recover a civil monetary penalty as-15
sessed under subparagraph (A) or (B); 16
(ii) seek an injunction to bar the for-17
eign payment stablecoin issuer from engag-18
ing in financial transactions in the United 19
States or with United States persons; or 20
(iii) seek an injunction to stop a dig-21
ital asset service provider from offering on 22
the platform of the digital asset service 23
provider payment stablecoins issued by the 24
foreign payment stablecoin issuer. 25
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(c) WAIVER ANDLICENSINGAUTHORITYEXEMP-1
TIONS.— 2
(1) I
N GENERAL.—The Secretary of the Treas-3
ury may offer a waiver, general license, or specific 4
license to any United States person engaging in sec-5
ondary trading described in subsection (b)(1)(B) on 6
a case-by-case basis if the Secretary determines 7
that— 8
(A) prohibiting secondary trading would 9
adversely affect the financial system of the 10
United States; or 11
(B) the foreign payment stablecoin issuer 12
is taking tangible steps to remedy the failure to 13
comply with the lawful order that resulted in 14
the noncompliance determination under sub-15
section (a). 16
(2) N
ATIONAL SECURITY WAIVER .—The Sec-17
retary of the Treasury, in consultation with the Di-18
rector of National Intelligence and the Secretary of 19
State, may waive the application of the secondary 20
trading restrictions under subsection (b)(1)(B) if the 21
Secretary of the Treasury determines that the waiv-22
er is in the national security interest of the United 23
States. 24
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(3) WAIVER FOR INTELLIGENCE AND LAW EN -1
FORCEMENT ACTIVITIES .—The head of a depart-2
ment or agency may waive the application of this 3
section with respect to— 4
(A) activities subject to the reporting re-5
quirements under title V of the National Secu-6
rity Act of 1947 (50 U.S.C. 3091 et seq.), or 7
any authorized intelligence activities of the 8
United States; or 9
(B) activities necessary to carry out or as-10
sist law enforcement activity of the United 11
States. 12
(4) R
EPORT REQUIRED.—Not later than 7 days 13
after issuing a waiver or a license under paragraph 14
(1), the Secretary of the Treasury shall submit a re-15
port to the chairs and ranking members of the Com-16
mittee on Banking, Housing, and Urban Affairs of 17
the Senate and the Committee on Financial Services 18
of the House of Representatives, including the text 19
of the waiver or license, as well as the facts and cir-20
cumstances justifying the waiver determination, and 21
provide a briefing on the report. 22
SEC. 9. ANTI-MONEY LAUNDERING INNOVATION. 23
(a) P
UBLICCOMMENT.—Beginning on the date that 24
is 30 days after the date of enactment of this Act, and 25
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for a period of 60 days thereafter, the Secretary of the 1
Treasury shall seek public comment to identify innovative 2
or novel methods, techniques, or strategies that regulated 3
financial institutions use, or have the potential to use, to 4
detect illicit activity, such as money laundering, involving 5
digital assets, including comments with respect to— 6
(1) application program interfaces; 7
(2) artificial intelligence; 8
(3) digital identify verification; and 9
(4) use of blockchain technology and moni-10
toring. 11
(b) T
REASURYRESEARCH.— 12
(1) I
N GENERAL.—Upon completion of the pub-13
lic comment period described in subsection (a), the 14
Secretary of the Treasury shall conduct research on 15
the innovative or novel methods, techniques, or 16
strategies that regulated financial institutions use, 17
or have the potential to use, to detect illicit activity, 18
such as money laundering, involving digital assets 19
that were identified in such public comment period. 20
(2) R
ESEARCH FACTORS.—With respect to each 21
innovative or novel method, technique, or strategy 22
described in paragraph (1), the Financial Crimes 23
Enforcement Network shall evaluate and consider 24
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the following factors against existing methods, tech-1
niques, or strategies: 2
(A) Improvements in the ability of finan-3
cial institutions to detect illicit activity involving 4
digital assets. 5
(B) Costs to regulated financial institu-6
tions. 7
(C) The amount and sensitivity of informa-8
tion that is collected or reviewed. 9
(D) Privacy risks associated with the infor-10
mation that is collected or reviewed. 11
(E) Operational challenges and efficiency 12
considerations. 13
(F) Cybersecurity risks. 14
(G) Effectiveness of methods, techniques, 15
or strategies at mitigating illicit finance. 16
(c) T
REASURYRISKASSESSMENT.—As part of the 17
national strategy for combating terrorist and other illicit 18
financing required under sections 261 and 262 of the 19
Countering America’s Adversaries Through Sanctions Act 20
(Public Law 115–44; 131 Stat. 934), the Secretary of the 21
Treasury shall consider— 22
(1) the source of illicit activity, such as money 23
laundering and sanctions evasion involving digital 24
assets; 25
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(2) the effectiveness of and gaps in existing 1
methods, techniques, and strategies used by regu-2
lated financial institutions in detecting illicit activity, 3
such as money laundering, involving digital assets; 4
(3) the impact of existing regulatory frame-5
works on the use and development of innovative 6
methods, techniques, or strategies by regulated fi-7
nancial institutions; and 8
(4) any foreign jurisdictions that pose a high 9
risk of facilitating illicit activity through the use of 10
digital assets to obtain fiat currency. 11
(d) F
INCEN GUIDANCE OR RULEMAKING.—Not 12
later than 2 years after the date of enactment of this Act, 13
the Financial Crimes Enforcement Network shall issue 14
public guidance or notice and comment rulemaking, based 15
on the results of the research and risk assessments re-16
quired under this section, relating to the following: 17
(1) The implementation of innovative or novel 18
methods, techniques, or strategies by regulated fi-19
nancial institutions to detect illicit activity involving 20
digital assets. 21
(2) Best practices for payment stablecoin 22
issuers to identify and report illicit activity involving 23
the payment stablecoin of a permitted payment 24
stablecoin issuer, including, fraud, cybercrime, 25
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money laundering, financing of terrorism, sanctions 1
evasion, and insider trading. 2
(3) Best practices for payment stablecoin 3
issuers’ systems and practices to monitor trans-4
actions on blockchains, digital asset mixing services, 5
tumblers, or other similar services that mix payment 6
stablecoins in such a way as to make such trans-7
action or the identity of the transaction parties less 8
identifiable. 9
(e) R
ECOMMENDATIONS AND REPORT TO CON-10
GRESS.—Not later than 2 years after the date of enact-11
ment of this Act, and annually thereafter for a period of 12
4 years, the Secretary of the Treasury shall submit to the 13
chairs and ranking members of the Committee on Bank-14
ing, Housing, and Urban Affairs of the Senate and the 15
Committee on Financial Services of the House of Rep-16
resentatives a report, and provide a briefing of such re-17
port, on— 18
(1) legislative and regulatory proposals to allow 19
regulated financial institutions to develop and imple-20
ment novel and innovative methods, techniques, or 21
strategies to detect illicit activity, such as money 22
laundering and sanctions evasion, involving digital 23
assets; 24
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(2) the results of the research and risk assess-1
ments conducted pursuant to this section; and 2
(3) efforts to support the ability of financial in-3
stitutions to implement novel and innovative meth-4
ods, techniques, or strategies to detect illicit activity, 5
such as money laundering and sanctions evasion, in-6
volving digital assets. 7
(f) R
ULE OFCONSTRUCTION.—Nothing in this sec-8
tion shall be construed to limit the existing authority of 9
the Secretary of the Treasury or the primary Federal pay-10
ment stablecoin regulators to, prior to the submission of 11
a report required under this section, use existing exemp-12
tive authorities, the no-action letter process, or rulemaking 13
authorities in a manner that encourages regulated finan-14
cial institutions to adopt novel or innovative methods, 15
techniques, or strategies to detect illicit activity, such as 16
money laundering, involving digital assets. 17
SEC. 10. CUSTODY OF PAYMENT STABLECOIN RESERVE 18
AND COLLATERAL. 19
(a) I
NGENERAL.—A person may only engage in the 20
business of providing custodial or safekeeping services for 21
the payment stablecoin reserve, the payment stablecoins 22
used as collateral, or the private keys used to issue per-23
mitted payment stablecoins if the person— 24
(1) is subject to— 25
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(A) supervision or regulation by a primary 1
Federal payment stablecoin regulator or a pri-2
mary financial regulatory agency described 3
under subparagraph (B) or (C) of section 2(12) 4
of the Dodd-Frank Wall Street Reform and 5
Consumer Protection Act (12 U.S.C. 6
5301(12)); or 7
(B) supervision by a State bank super-8
visor, as defined under section 3 of the Federal 9
Deposit Insurance Act (12 U.S.C. 1813), or a 10
State credit union supervisor, as defined under 11
section 6003 of the Anti-Money Laundering Act 12
of 2020 (31 U.S.C. 5311 note), and such State 13
bank supervisor or State credit union supervisor 14
makes available to the Board such information 15
as the Board determines necessary and relevant 16
to the categories of information under sub-17
section (d); and 18
(2) complies with the requirements under sub-19
section (b), unless such person holds such property 20
in accordance with similar requirements as required 21
by a primary Federal payment stablecoin regulator, 22
the Securities and Exchange Commission, or the 23
Commodity Futures Trading Commission. 24
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(b) CUSTOMERPROPERTYREQUIREMENT.—A per-1
son described in subsection (a) shall— 2
(1) with respect to payment stablecoin reserves 3
received from a permitted payment stablecoin issuer 4
for deposit in a reserve account, treat and deal with 5
such payment stablecoin reserves as belonging to the 6
holders of the permitted payment stablecoins issued 7
by such issuer and not as the property of such per-8
son or of such permitted payment stablecoin issuer; 9
and 10
(2) with respect to other property described in 11
subsection (a)— 12
(A) treat and deal with the payment 13
stablecoins, private keys, cash, and other prop-14
erty of a person for whom or on whose behalf 15
the person described in that subsection receives, 16
acquires, or holds payment stablecoins, private 17
keys, cash, and other property (hereinafter re-18
ferred to in this section as the ‘‘customer’’) as 19
belonging to such customer and not as the 20
property of such person; and 21
(B) take such steps as are appropriate to 22
protect the payment stablecoins, private keys, 23
cash, and other property of a customer from 24
the claims of creditors of the person. 25
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(c) COMMINGLINGPROHIBITED.— 1
(1) I
N GENERAL.—Payment stablecoin reserves, 2
payment stablecoins, cash, and other property of a 3
permitted payment stablecoin issuer or customer 4
shall be separately accounted for by a person de-5
scribed in subsection (a) and shall be segregated 6
from and not be commingled with the funds of the 7
person. 8
(2) E
XCEPTIONS.—Notwithstanding paragraph 9
(1) or subsection (b)— 10
(A) the payment stablecoin reserves, pay-11
ment stablecoins, cash, and other property of a 12
permitted payment stablecoin issuer or cus-13
tomer may, for convenience, be commingled and 14
deposited in an omnibus account holding the 15
payment stablecoin reserves, payment 16
stablecoins, cash, and other property of more 17
than 1 permitted payment stablecoin issuer or 18
customer at a State chartered depository insti-19
tution, an insured depository institution, na-20
tional bank, or trust company, and any pay-21
ment stablecoin reserves in the form of cash 22
held in the form of a deposit liability at a de-23
pository institution shall not be subject to any 24
requirement relating to the separation of such 25
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cash from the property of the applicable deposi-1
tory institution; 2
(B) such share of the payment stablecoin 3
reserves, payment stablecoins, cash, and other 4
property of the permitted payment stablecoin 5
issuer or customer that shall be necessary to 6
transfer, adjust, or settle a transaction or 7
transfer of assets may be withdrawn and ap-8
plied to such purposes, including the payment 9
of commissions, taxes, storage, and other 10
charges lawfully accruing in connection with the 11
provision of services by a person described in 12
subsection (a); 13
(C) in accordance with such terms and 14
conditions as a primary Federal payment 15
stablecoin regulator may prescribe by rule, reg-16
ulation, or order, any payment stablecoin re-17
serves, payment stablecoins, cash, and other 18
property described in this subsection may be 19
commingled and deposited in permitted pay-20
ment stablecoin issuer or customer accounts 21
with payment stablecoin reserves, payment 22
stablecoins, cash, and other property received 23
by the person and required by the primary Fed-24
eral payment stablecoin regulator to be sepa-25
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rately accounted for, treated as, and dealt with 1
as belonging to such permitted payment 2
stablecoin issuers or customers; or 3
(D) an insured depository institution that 4
provides custodial or safekeeping services for 5
payment stablecoin reserves shall be permitted 6
to hold payment stablecoin reserves in the form 7
of cash on deposit. 8
(3) C
USTOMER PRIORITY.—With or without the 9
segregation required under paragraph (1), the 10
claims of a customer with respect to the property de-11
scribed in that paragraph shall have priority over 12
the claims of any person other than a customer 13
against a person described in subparagraph (a) un-14
less the customer expressly consents to such other 15
priority of claim. 16
(d) R
EGULATORY INFORMATION.—A person de-17
scribed under subsection (a) shall submit to the applicable 18
primary Federal payment stablecoin regulator information 19
concerning the person’s business operations and processes 20
to protect customer assets, in such form and manner as 21
the primary regulator shall determine. 22
(e) E
XCLUSION.—The requirements of this section 23
shall not apply to any person solely on the basis that such 24
person engages in the business of providing hardware or 25
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software to facilitate a customer’s own custody or safe-1
keeping of the customer’s payment stablecoins or private 2
keys. 3
SEC. 11. TREATMENT OF PAYMENT STABLECOIN ISSUERS 4
IN INSOLVENCY PROCEEDINGS. 5
(a) I
NGENERAL.—In any insolvency proceeding of 6
a permitted payment stablecoin issuer under Federal or 7
State law, including any proceeding under title 11, United 8
States Code, and any insolvency proceeding administered 9
by a State payment stablecoin regulator with respect to 10
a permitted payment stablecoin issuer, the claim of a per-11
son holding payment stablecoins issued by the permitted 12
payment stablecoin issuer shall have priority over the 13
claims of the permitted payment stablecoin issuer and any 14
other creditor of the permitted payment stablecoin issuer, 15
with respect to required payment stablecoin reserves, sub-16
ject to section 507(e) of title 11, United States Code, as 17
added by subsection (d). 18
(b) D
EFINITIONS.—Section 101 of title 11, United 19
States Code, is amended by adding after paragraph (40B) 20
the following: 21
‘‘(40C) The terms ‘payment stablecoin’ and 22
‘permitted payment stablecoin issuer’ have the 23
meanings given those terms in section 2 of the GE-24
NIUS Act.’’. 25
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(c) AUTOMATICSTAY.—Section 362 of title 11, 1
United States Code, is amended— 2
(1) in subsection (a)— 3
(A) in paragraph (7), by striking ‘‘and’’; 4
(B) in paragraph (8), by striking the pe-5
riod and inserting ‘‘; and’’; and 6
(C) by adding at the end the following: 7
‘‘(9) the redemption of payment stablecoins 8
issued by the permitted payment stablecoin issuer, 9
from payment stablecoin reserves required to be 10
maintained under section 4 of the GENIUS Act.’’; 11
and 12
(2) in subsection (d)— 13
(A) in paragraph (3)(B)(ii), by striking 14
‘‘or’’ at the end; 15
(B) in paragraph (4)(B), by striking the 16
period at the end and inserting ‘‘; or’’; and 17
(C) by inserting after paragraph (4) the 18
following: 19
‘‘(5) with respect to the redemption of payment 20
stablecoins held by a person, if the court finds, sub-21
ject to the motion and attestation of the permitted 22
payment stablecoin issuer on the petition date, there 23
are payment stablecoin reserves available for dis-24
tribution on a ratable basis to similarly situated pay-25
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ment stablecoin holders, provided that the court 1
shall use best efforts to enter a final order to begin 2
distributions under this paragraph not later than 14 3
days after the date of the required hearing.’’. 4
(d) P
RIORITY INBANKRUPTCYPROCEEDINGS.—Sec-5
tion 507 of title 11, United States Code, is amended— 6
(1) in subsection (a), in the matter preceding 7
paragraph (1), by striking ‘‘The following’’ and in-8
serting ‘‘Subject to subsection (e), the following’’; 9
and 10
(2) by adding at the end the following: 11
‘‘(e) Notwithstanding subsection (a), if a payment 12
stablecoin holder is not able to redeem all outstanding pay-13
ment stablecoin claims from required payment stablecoin 14
reserves maintained by the permitted payment stablecoin 15
issuer, any remaining claim of a person holding a payment 16
stablecoin issued by the permitted payment stablecoin 17
issuer shall have first priority over any other claim, includ-18
ing over any expenses and claims that have priority under 19
that subsection, to the extent compliance with section 4 20
of the GENIUS Act would have required additional re-21
serves to be maintained by the permitted payment 22
stablecoin issuer for payment stablecoin holders.’’. 23
(e) P
AYMENTSTABLECOIN RESERVES.—Section 24
541(b) of title 11, United States Code, is amended— 25
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(1) in paragraph (9), in the matter following 1
subparagraph (B), by striking ‘‘or’’ at the end; 2
(2) in paragraph (10)(C), by striking the period 3
and inserting ‘‘; or’’; and 4
(3) by inserting after paragraph (10) the fol-5
lowing: 6
‘‘(11) required payment stablecoin reserves 7
under section 4 of the GENIUS Act.’’. 8
(f) I
NTERVENTION.—Section 1109 of title 11, United 9
States Code, is amended by adding at the end the fol-10
lowing: 11
‘‘(c) The Comptroller of the Currency or State pay-12
ment stablecoin regulator (as defined in section 2 of the 13
GENIUS Act) shall raise, and shall appear and be heard 14
on, any issue, including the protection of customers, in 15
a case under this chapter in which the debtor is a per-16
mitted payment stablecoin issuer.’’. 17
(g) A
PPLICATION OFEXISTINGINSOLVENCYLAW.— 18
In accordance with otherwise applicable law, an insolvency 19
proceeding with respect to a permitted payment stablecoin 20
issuer shall occur as follows: 21
(1) A depository institution (as defined in sec-22
tion 3 of the Federal Deposit Insurance Act (12 23
U.S.C. 1813)) shall be resolved by the Federal De-24
posit Insurance Corporation, National Credit Union 25
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Administration, or State payment stablecoin regu-1
lator, as applicable. 2
(2) A subsidiary of a depository institution (as 3
defined in section 3 of the Federal Deposit Insur-4
ance Act (12 U.S.C. 1813)) or a nonbank entity 5
may be considered a debtor under title 11, United 6
States Code. 7
SEC. 12. INTEROPERABILITY STANDARDS. 8
The primary Federal payment stablecoin regulators, 9
in consultation with the National Institute of Standards 10
and Technology, other relevant standard-setting organiza-11
tions, and State bank and credit union regulators, shall 12
assess and, if necessary, may, pursuant to section 553 of 13
title 5, United States Code, and in a manner consistent 14
with the National Technology Transfer and Advancement 15
Act of 1995 (Public Law 104–113), prescribe standards 16
for permitted payment stablecoin issuers to promote com-17
patibility and interoperability with— 18
(1) other permitted payment stablecoin issuers; 19
and 20
(2) the broader digital finance ecosystem, in-21
cluding accepted communications protocols and 22
blockchains, permissioned or public. 23
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SEC. 13. RULEMAKING. 1
(a) I
NGENERAL.—Not later than 1 year after the 2
date of enactment of this Act, each primary Federal pay-3
ment stablecoin regulator, the Secretary of the Treasury, 4
and each State payment stablecoin regulator shall promul-5
gate regulations to carry out this Act through appropriate 6
notice and comment rulemaking. 7
(b) C
OORDINATION.—Federal payment stablecoin 8
regulators, the Secretary of the Treasury, and State pay-9
ment stablecoin regulators should coordinate, as appro-10
priate, on the issuance of any regulations to implement 11
this Act. 12
(c) R
EPORTREQUIRED.—Not later than 180 days 13
after the effective date of this Act, each Federal banking 14
agency shall submit to the Committee on Banking, Hous-15
ing, and Urban Affairs of the Senate and the Committee 16
on Financial Services of the House of Representatives a 17
report that confirms and describes the regulations promul-18
gated to carry out this Act. 19
SEC. 14. STUDY ON NON-PAYMENT STABLECOINS. 20
(a) S
TUDY BYTREASURY.— 21
(1) S
TUDY.—The Secretary of the Treasury, in 22
consultation with the Board, the Comptroller, the 23
Corporation, the Securities and Exchange Commis-24
sion, and the Commodity Futures Trading Commis-25
sion shall carry out a study of non-payment 26
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stablecoins, including endogenously collateralized 1
payment stablecoins. 2
(2) R
EPORT.—Not later than 365 days after 3
the date of the enactment of this Act, the Secretary 4
of the Treasury shall provide to the Committee on 5
Banking, Housing, and Urban Affairs of the Senate 6
and the Committee on Financial Services of the 7
House of Representatives a report that contains all 8
findings made in carrying out the study under para-9
graph (1), including an analysis of— 10
(A) the categories of non-payment 11
stablecoins, including the benefits and risks of 12
technological design features; 13
(B) the participants in non-payment 14
stablecoin arrangements; 15
(C) utilization and potential utilization of 16
non-payment stablecoins; 17
(D) the nature of reserve compositions; 18
(E) types of algorithms being employed; 19
(F) governance structure, including aspects 20
of decentralization; 21
(G) the nature of public promotion and ad-22
vertising; and 23
(H) the clarity and availability of con-24
sumer notices disclosures. 25
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(3) CLASSIFIED ANNEX.—A report under this 1
section may include a classified annex, if applicable. 2
(b) E
NDOGENOUSLY COLLATERALIZED PAYMENT 3
S
TABLECOIN DEFINED.—In this section, the term 4
‘‘endogenously collateralized payment stablecoin’’ means 5
any digital asset— 6
(1) the originator of which has represented will 7
be converted, redeemed, or repurchased for a fixed 8
amount of monetary value; and 9
(2) that relies solely on the value of another 10
digital asset created or maintained by the same 11
originator to maintain the fixed price. 12
SEC. 15. REPORTS. 13
(a) A
NNUALREPORTINGREQUIREMENT.—Beginning 14
on the date that is 1 year after the date of enactment 15
of this Act, and annually thereafter, the primary Federal 16
payment stablecoin regulators shall submit to the Com-17
mittee on Banking, Housing, and Urban Affairs of the 18
Senate, the Committee on Financial Services of the House 19
of Representatives, and the Director of the Office of Fi-20
nancial Research a report, which may include a classified 21
annex, if applicable, on the status of the payment 22
stablecoin industry, including— 23
(1) a summary of trends in payment stablecoin 24
activities; 25
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(2) a summary of the number of applications 1
for approval as a permitted payment stablecoin 2
issuer under section 5, including aggregate approvals 3
and rejections of applications; and 4
(3) a description of the potential financial sta-5
bility risks posed to the safety and soundness of the 6
broader financial system by payment stablecoin ac-7
tivities. 8
(b) FSOC R
EPORT.—The Financial Stability Over-9
sight Council shall incorporate the findings in the report 10
under subsection (a) into the annual report of the Council 11
required under section 112(a)(2)(N) of the Financial Sta-12
bility Act of 2010 (12 U.S.C. 5322(a)(2)(N)). 13
SEC. 16. AUTHORITY OF BANKING INSTITUTIONS. 14
(a) R
ULE OFCONSTRUCTION.—Nothing in this Act 15
may be construed to limit the authority of a depository 16
institution, Federal credit union, State credit union, na-17
tional bank, or trust company to engage in activities per-18
missible pursuant to applicable State and Federal law, in-19
cluding— 20
(1) accepting or receiving deposits or shares (in 21
the case of a credit union), and issuing digital assets 22
that represent those deposits or shares; 23
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(2) utilizing a distributed ledger for the books 1
and records of the entity and to effect intrabank 2
transfers; and 3
(3) providing custodial services for payment 4
stablecoins, private keys of payment stablecoins, or 5
reserves backing payment stablecoins. 6
(b) R
EGULATORYREVIEW.—Entities regulated by 7
the primary Federal payment stablecoin regulators are au-8
thorized to engage in the payment stablecoin activities and 9
investments contemplated by this Act, including acting as 10
a principal or agent with respect to any payment 11
stablecoin and payment of fees to facilitate customer 12
transactions. The primary Federal payment stablecoin 13
regulators shall review all existing guidance and regula-14
tions, and if necessary, amend or promulgate new regula-15
tions and guidance, to clarify that regulated entities are 16
authorized to engage in such activities and investments. 17
(c) T
REATMENT OFCUSTODYACTIVITIES.—The ap-18
propriate Federal banking agency, the National Credit 19
Union Administration (in the case of a credit union), and 20
the Securities and Exchange Commission may not require 21
a depository institution, national bank, Federal credit 22
union, State credit union, or trust company, or any affil-23
iate thereof— 24
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(1) to include digital assets held in custody that 1
are not owned by the entity as a liability on the fi-2
nancial statement or balance sheet of the entity, in-3
cluding payment stablecoin custody or safekeeping 4
activities; or 5
(2) to hold in custody or safekeeping regulatory 6
capital against digital assets and reserves backing 7
such assets described in section 4(a)(1)(A), except 8
as necessary to mitigate against operational risks in-9
herent in custody or safekeeping services, as deter-10
mined by— 11
(A) the appropriate Federal banking agen-12
cy; 13
(B) the National Credit Union Administra-14
tion (in the case of a credit union); 15
(C) a State bank supervisor; or 16
(D) a State credit union supervisor. 17
(d) S
TATE-CHARTERED DEPOSITORY INSTITU-18
TIONS.—A State-chartered depository institution char-19
tered under the banking laws of a State shall not be re-20
quired to obtain a charter, license, or other authorization 21
to do business from a State to engage in the business of 22
money transmission, the issuance of payment instruments 23
or stored value, custodial services, or any similar or re-24
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lated activity, if such State-chartered depository institu-1
tion is— 2
(1) subject to prudential regulation and super-3
vision by the chartering State in a manner that is 4
substantially similar to the prudential regulation and 5
supervision applicable to insured depository institu-6
tions chartered by such State; and 7
(2) required by the laws of the chartering State 8
to maintain reserves for any outstanding deposit li-9
abilities in an amount equal to or greater than such 10
liabilities and to hold such reserves in a manner that 11
is at least as protective of customers as is required 12
under section 8. 13
(e) D
EFINITIONS.—In this section: 14
(1) D
EPOSITORY INSTITUTION ; STATE BANK 15
SUPERVISOR.—The terms ‘‘depository institution’’ 16
and ‘‘State bank supervisor’’ have the meanings 17
given those terms under section 3 of the Federal De-18
posit Insurance Act (12 U.S.C. 1813). 19
(2) F
EDERAL CREDIT UNION ; STATE CREDIT 20
UNION.—The terms ‘‘Federal credit union’’ and 21
‘‘State credit union’’ have the meanings given those 22
terms in section 101 of the Federal Credit Union 23
Act (12 U.S.C. 1752). 24
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(3) STATE CREDIT UNION SUPERVISOR .—The 1
term ‘‘State credit union supervisor’’ has the mean-2
ing given that term in section 6003 of the Anti- 3
Money Laundering Act of 2020 (31 U.S.C. 5311 4
note). 5
SEC. 17. AMENDMENTS TO CLARIFY THAT PAYMENT 6
STABLECOINS ARE NOT SECURITIES OR COM-7
MODITIES AND PERMITTED PAYMENT 8
STABLECOIN ISSUERS ARE NOT INVESTMENT 9
COMPANIES. 10
(a) I
NVESTMENTADVISERSACT OF1940.—Section 11
202(a)(18) of the Investment Advisers Act of 1940 (15 12
U.S.C. 80b–2(a)(18)) is amended by adding at the end 13
the following: ‘‘The term ‘security’ does not include a pay-14
ment stablecoin issued by a permitted payment stablecoin 15
issuer, as such terms are defined in section 2 of the GE-16
NIUS Act.’’. 17
(b) I
NVESTMENTCOMPANYACT OF1940.—The In-18
vestment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) 19
is amended— 20
(1) in section 2(a)(36) of the Act (15 U.S.C. 21
80a–2(a)(36)), by adding at the end the following: 22
‘‘The term ‘security’ does not include a payment 23
stablecoin issued by a permitted payment stablecoin 24
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issuer, as such terms are defined in section 2 of the 1
GENIUS Act.’’; and 2
(2) in section 3(c)(3) of the Act (15 U.S.C. 3
80a–3(c)(3)), by inserting ‘‘any permitted payment 4
stablecoin issuer, as such term is defined in section 5
2 of the GENIUS Act;’’ after ‘‘therefor;’’. 6
(c) S
ECURITIESACT OF1933.—Section 2(a)(1) of 7
the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is 8
amended by adding at the end the following: ‘‘The term 9
‘security’ does not include a payment stablecoin issued by 10
a permitted payment stablecoin issuer, as such terms are 11
defined in section 2 of the GENIUS Act.’’. 12
(d) S
ECURITIESEXCHANGEACT OF1934.—Section 13
3(a)(10) of the Securities Exchange Act of 1934 (15 14
U.S.C. 78c(a)(10)) is amended by adding at the end the 15
following: ‘‘The term ‘security’ does not include a payment 16
stablecoin issued by a permitted payment stablecoin 17
issuer, as such terms are defined in section 2 of the GE-18
NIUS Act.’’. 19
(e) S
ECURITIESINVESTORPROTECTIONACT OF 20
1970.—Section 16(14) of the Securities Investor Protec-21
tion Act of 1970 (15 U.S.C. 78lll(14)) is amended by add-22
ing at the end the following: ‘‘The term ‘security’ does 23
not include a payment stablecoin issued by a permitted 24
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payment stablecoin issuer, as such terms are defined in 1
section 2 of the GENIUS Act.’’. 2
(f) C
OMMODITYEXCHANGEACT.—Section 1a(9) of 3
the Commodity Exchange Act (7 U.S.C. 1a(9)) is amend-4
ed by adding at the end the following: ‘‘The term ‘com-5
modity’ does not include a payment stablecoin issued by 6
a permitted payment stablecoin issuer, as such terms are 7
defined in section 2 of the GENIUS Act.’’ 8
SEC. 18. EXCEPTION FOR FOREIGN PAYMENT STABLECOIN 9
ISSUERS AND RECIPROCITY FOR PAYMENT 10
STABLECOINS ISSUED IN OVERSEAS JURIS-11
DICTIONS. 12
(a) I
NGENERAL.—The prohibitions under section 3 13
shall not apply to a foreign payment stablecoin issuer if 14
all of the following apply: 15
(1) The foreign payment stablecoin issuer is 16
subject to regulation and supervision by a foreign 17
payment stablecoin regulator of a foreign country, a 18
territory of the United States, Puerto Rico, Guam, 19
American Samoa, or the Virgin Islands that has a 20
regulatory and supervisory regime with respect to 21
payment stablecoins that the Secretary of the Treas-22
ury determines, pursuant to subsection (b), is com-23
parable to the regulatory and supervisory regime es-24
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tablished under this Act, including, in particular, the 1
requirements under section 4(a). 2
(2) The foreign payment stablecoin issuer is 3
registered with the Comptroller pursuant to sub-4
section (c). 5
(3) The foreign payment stablecoin issuer holds 6
reserves in a United States financial institution suf-7
ficient to meet liquidity demands of United States 8
customers, unless otherwise permitted under a recip-9
rocal arrangement established pursuant to sub-10
section (d). 11
(b) T
REASURYDETERMINATION.— 12
(1) I
N GENERAL.—The Secretary of the Treas-13
ury may, in consultation with the Federal payment 14
stablecoin regulators, make a determination as to 15
whether a foreign country has a regulatory and su-16
pervisory regime that is comparable to the require-17
ments established under this Act, including the re-18
quirements under section 4(a). 19
(2) R
EQUEST.—A foreign payment stablecoin 20
issuer or a foreign payment stablecoin regulator may 21
request from the Secretary of the Treasury a deter-22
mination under paragraph (1). 23
(3) T
IMING FOR DETERMINATION .—If a foreign 24
payment stablecoin issuer or foreign payment 25
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stablecoin regulator requests a determination under 1
paragraph (2), the Secretary of the Treasury shall 2
render a decision on the determination not later 3
than 210 days after the receipt of a substantially 4
complete determination request. 5
(4) R
ESCISSION OF DETERMINATION .— 6
(A) I
N GENERAL.—The Secretary of the 7
Treasury may, in consultation with the Federal 8
payment stablecoin regulators, rescind a deter-9
mination made under paragraph (1), if the Sec-10
retary determines that the regulatory regime of 11
such foreign country is no longer comparable to 12
the requirements established under this Act. 13
(B) L
IMITED SAFE HARBOR .—If the Sec-14
retary of the Treasury rescinds a determination 15
pursuant to subparagraph (A), a digital asset 16
service provider shall have 90 days before the 17
offer or sale of a payment stablecoin issued by 18
the foreign payment stablecoin issuer that is 19
the subject of the rescinded determination shall 20
be in violation of section 3. 21
(5) P
UBLIC NOTICE.—The Secretary of the 22
Treasury shall keep and make publicly available a 23
current list of foreign countries for which a deter-24
mination under paragraph (1) has been made. 25
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(6) RULEMAKING.—Not later than 1 year after 1
the date of enactment of this Act, the Secretary of 2
the Treasury shall issue such rules as may be re-3
quired to carry out this section. 4
(c) R
EGISTRATION ANDONGOINGMONITORING.— 5
(1) R
EGISTRATION.— 6
(A) I
N GENERAL.—A foreign payment 7
stablecoin issuer may offer or sell payment 8
stablecoins using a digital asset service provider 9
if the foreign payment stablecoin issuer is reg-10
istered with the Comptroller. 11
(B) R
EGISTRATION APPROVAL .—A reg-12
istration of a foreign payment stablecoin issuer 13
filed in accordance with this section shall be 14
deemed approved on the date that is 30 days 15
after the date the Comptroller receives the reg-16
istration, unless the Comptroller notifies the 17
foreign payment stablecoin issuer in writing 18
that such registration has been rejected. 19
(C) S
TANDARDS FOR REJECTION .—In de-20
termining whether to reject a foreign payment 21
stablecoin issuer’s registration, the Comptroller 22
shall consider— 23
(i) the final determination of the Sec-24
retary of the Treasury under this section; 25
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(ii) the financial and managerial re-1
sources of the United States operations of 2
the foreign payment stablecoin issuer; 3
(iii) whether the foreign payment 4
stablecoin issuer will provide adequate in-5
formation to the Comptroller as the Comp-6
troller determines is necessary to deter-7
mine compliance with this Act; 8
(iv) whether the foreign payment 9
stablecoin presents a risk to the financial 10
stability of the United States; and 11
(v) whether the foreign payment 12
stablecoin issuer presents illicit finance 13
risks to the United States. 14
(D) P
ROCEDURE FOR APPEAL .—If the 15
Comptroller rejects a registration, not later 16
than 30 days after the date of receipt of such 17
rejection, the foreign payment stablecoin issuer 18
may appeal the rejection by notifying the 19
Comptroller of the request to appeal. 20
(E) R
ULEMAKING.—Pursuant to section 21
13 of this Act, the Comptroller shall issue rules 22
relating to the standards for approval of reg-23
istration requests and the process for appealing 24
denials of such registration requests. 25
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(F) PUBLIC NOTICE.—The Comptroller 1
shall keep and make publicly available a current 2
list of foreign payment stablecoin issuer reg-3
istrations that have been approved. 4
(2) O
NGOING MONITORING.—A foreign payment 5
stablecoin issuer shall— 6
(A) be subject to reporting, supervision, 7
and examination requirements as determined by 8
the Comptroller; and 9
(B) consent to United States jurisdiction 10
relating to the enforcement of this Act. 11
(3) L
ACK OF COMPLIANCE.— 12
(A) C
OMPTROLLER ACTION .—The Comp-13
troller may, in consultation with the Secretary 14
of the Treasury, rescind approval of a registra-15
tion of a foreign payment stablecoin issuer 16
under this subsection if the Comptroller deter-17
mines that the foreign payment stablecoin 18
issuer is not in compliance with the require-19
ments of this Act, including for maintaining in-20
sufficient reserves or posing an illicit finance 21
risk or financial stability risk. 22
(B) S
ECRETARY ACTION.—The Secretary 23
of the Treasury, in consultation with the Comp-24
troller, may revoke a registration of a foreign 25
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payment stablecoin issuer under this subsection 1
if the Secretary determines that reasonable 2
grounds exist for concluding that the foreign 3
payment stablecoin issuer presents economic 4
sanctions evasion, money laundering, or other 5
illicit finance risks, or, as applicable, violations, 6
or facilitation thereof. 7
(d) R
ECIPROCITY.— 8
(1) I
N GENERAL.—The Secretary of the Treas-9
ury may create and implement reciprocal arrange-10
ments or other bilateral agreements between the 11
United States and jurisdictions with payment 12
stablecoin regulatory regimes that are comparable to 13
the requirements established under this Act, includ-14
ing, in particular, section 4(a), and can demonstrate 15
adequate supervisory and enforcement capacity to 16
facilitate international transactions and interoper-17
ability with United States dollar-denominated pay-18
ment stablecoins issued overseas. 19
(2) C
OMPLETION.—The Secretary of the Treas-20
ury should complete the arrangements under this 21
subsection not later than the date that is 2 years 22
after the date of enactment of this Act. 23
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SEC. 19. EFFECTIVE DATE. 1
This Act, and the amendments made by this Act, 2
shall take effect on the earlier of— 3
(1) the date that is 18 months after the date 4
of enactment of this Act; or 5
(2) the date that is 120 days after the date on 6
which the primary Federal payment stablecoin regu-7
lators issue any final regulations implementing this 8
Act. 9
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66 
119
TH
CONGRESS 
1
ST
S
ESSION
 
S. 1582 A BILL 
To provide for the regulation of payment 
stablecoins, and for other purposes. 
M
AY
5, 2025 
Read the second time and placed on the calendar 
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