US
Us Congress Senate Bill SB919

Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB919 Compare Versions

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11 II
2+Calendar No. 33
23 119THCONGRESS
34 1
45 STSESSION S. 919
56 To provide for the regulation of payment stablecoins, and for other purposes.
67 IN THE SENATE OF THE UNITED STATES
78 MARCH10, 2025
89 Mr. H
910 AGERTY(for himself, Mr. SCOTTof South Carolina, Mrs. GILLIBRAND,
1011 Ms. L
1112 UMMIS, and Ms. ALSOBROOKS) introduced the following bill; which
1213 was read twice and referred to the Committee on Banking, Housing, and
1314 Urban Affairs
14-A BILL
15+M
16+ARCH18, 2025
17+Reported under authority of the order of the Senate of March 14, 2025, by
18+Mr. S
19+COTTof South Carolina, with an amendment
20+[Strike out all after the enacting clause and insert the part printed in italic] A BILL
1521 To provide for the regulation of payment stablecoins, and
1622 for other purposes.
1723 Be it enacted by the Senate and House of Representa-1
1824 tives of the United States of America in Congress assembled, 2
1925 SECTION1.SHORTTITLE. 3
2026 ThisActmaybecitedasthe‘‘GuidingandEstab-4
2127 lishingNationalInnovationforU.S.StablecoinsActof 5
2228 2025’’orthe‘‘GENIUSActof2025’’. 6
23-SEC. 2. DEFINITIONS. 7
24-In this Act: 8
25-(1) B
26-ANK SECRECY ACT.—The term ‘‘Bank Se-9
27-crecy Act’’ means— 10
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30-•S 919 IS
31-(A) section 21 of the Federal Deposit In-1
32-surance Act (12 U.S.C. 1829b); 2
33-(B) chapter 2 of title I of Public Law 91– 3
34-508 (12 U.S.C. 1951 et seq.); and 4
35-(C) subchapter II of chapter 53 of title 31, 5
36-United States Code. 6
37-(2) B
38-OARD.—The term ‘‘Board’’ means the 7
39-Board of Governors of the Federal Reserve System. 8
40-(3) C
41-OMPTROLLER.—The term ‘‘Comptroller’’ 9
42-means the Office of the Comptroller of the Currency. 10
43-(4) C
44-OMPTROLLER-REGULATED ENTITY .—The 11
45-term ‘‘Comptroller-regulated entity’’ means— 12
46-(A) any Federal qualified nonbank pay-13
47-ment stablecoin issuer that is subject to regula-14
48-tion and supervision exclusively by the Comp-15
49-troller, pursuant to section 4(a)(7); and 16
50-(B) any entity chartered by the Comp-17
51-troller. 18
52-(5) C
53-ORPORATION.—The term ‘‘Corporation’’ 19
54-means the Federal Deposit Insurance Corporation. 20
55-(6) D
56-IGITAL ASSET.—The term ‘‘digital asset’’ 21
57-means any digital representation of value which is 22
58-recorded on a cryptographically secured distributed 23
59-ledger. 24
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31+•S 919 RS
32+SEC.2.DEFINITIONS. 1
33+InthisAct: 2
34+(1)BANKSECRECYACT.—Theterm‘‘BankSe-3
35+crecyAct’’means— 4
36+(A)section21oftheFederalDepositIn-5
37+suranceAct(12U.S.C.1829b); 6
38+(B)chapter2oftitleIofPublicLaw91– 7
39+508(12U.S.C.1951etseq.);and 8
40+(C)subchapterIIofchapter53oftitle31, 9
41+UnitedStatesCode. 10
42+(2)BOARD.—Theterm‘‘Board’’meansthe 11
43+BoardofGovernorsoftheFederalReserveSystem. 12
44+(3)COMPTROLLER.—Theterm‘‘Comptroller’’ 13
45+meanstheOfficeoftheComptrolleroftheCurrency. 14
46+(4)COMPTROLLER-REGULATED ENTITY.—The 15
47+term‘‘Comptroller-regulatedentity’’means— 16
48+(A)anyFederalqualifiednonbankpay-17
49+mentstablecoinissuerthatissubjecttoregula-18
50+tionandsupervisionexclusivelybytheComp-19
51+troller,pursuanttosection4(a)(7);and 20
52+(B)anyentitycharteredbytheComp-21
53+troller. 22
54+(5)CORPORATION.—Theterm‘‘Corporation’’ 23
55+meanstheFederalDepositInsuranceCorporation. 24
56+(6)DIGITALASSET.—Theterm‘‘digitalasset’’ 25
57+meansanydigitalrepresentationofvaluewhichis 26
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62-•S 919 IS
63-(7) DISTRIBUTED LEDGER.—The term ‘‘distrib-1
64-uted ledger’’ means technology in which data is 2
65-shared across a network that creates a public digital 3
66-ledger of verified transactions or information among 4
67-network participants and cryptography is used to 5
68-link the data to maintain the integrity of the public 6
69-ledger and execute other functions. 7
70-(8) F
71-EDERAL QUALIFIED NONBANK PAYMENT 8
72-STABLECOIN ISSUER.—The term ‘‘Federal qualified 9
73-nonbank payment stablecoin issuer’’ means a 10
74-nonbank entity, other than a State qualified pay-11
75-ment stablecoin issuer, approved by the Comptroller, 12
76-pursuant to section 5, to issue payment stablecoins. 13
77-(9) I
78-NSTITUTION-AFFILIATED PARTY.—With re-14
79-spect to a permitted payment stablecoin issuer, the 15
80-term ‘‘institution-affiliated party’’ means any direc-16
81-tor, officer, employee, or controlling stockholder of 17
82-the permitted payment stablecoin issuer. 18
83-(10) I
84-NSURED DEPOSITORY INSTITUTION .—The 19
85-term ‘‘insured depository institution’’ means— 20
86-(A) an insured depository institution, as 21
87-defined in section 3 of the Federal Deposit In-22
88-surance Act (12 U.S.C. 1813); and 23
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60+•S 919 RS
61+recordedonacryptographically-secureddistributed 1
62+ledger. 2
63+(7)DISTRIBUTEDLEDGER.—Theterm‘‘distrib-3
64+utedledger’’meanstechnologyinwhichdatais 4
65+sharedacrossanetworkthatcreatesapublicdigital 5
66+ledgerofverifiedtransactionsorinformationamong 6
67+networkparticipantsandcryptographyisusedto 7
68+linkthedatatomaintaintheintegrityofthepublic 8
69+ledgerandexecuteotherfunctions. 9
70+(8)FEDERALQUALIFIEDNONBANK PAYMENT 10
71+STABLECOIN ISSUER.—Theterm‘‘Federalqualified 11
72+nonbankpaymentstablecoinissuer’’meansa 12
73+nonbankentity,otherthanaStatequalifiedpay-13
74+mentstablecoinissuer,approvedbytheComptroller, 14
75+pursuanttosection5,toissuepaymentstablecoins. 15
76+(9)INSTITUTION-AFFILIATEDPARTY.—Withre-16
77+specttoapermittedpaymentstablecoinissuer,the 17
78+term‘‘institution-affiliatedparty’’meansanydirec-18
79+tor,officer,employee,orcontrollingstockholderof 19
80+thepermittedpaymentstablecoinissuer. 20
81+(10)INSUREDDEPOSITORYINSTITUTION.—The 21
82+term‘‘insureddepositoryinstitution’’means— 22
83+(A)aninsureddepositoryinstitution,as 23
84+definedinsection3oftheFederalDepositIn-24
85+suranceAct(12U.S.C.1813);and 25
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91-•S 919 IS
88+•S 919 RS
9289 (B)aninsuredcreditunion,asdefinedin 1
9390 section101oftheFederalCreditUnionAct 2
9491 (12U.S.C.1752). 3
95-(11) M
96-ONETARY VALUE.—The term ‘‘monetary 4
92+(11)MONETARYVALUE.—Theterm‘‘monetary 4
9793 value’’meansanationalcurrencyordeposit(asde-5
9894 finedinsection3oftheFederalDepositInsurance 6
9995 Act)denominatedinanationalcurrency. 7
100-(12) M
101-ONEY.—The term ‘‘money’’ means any 8
96+(12)MONEY.—Theterm‘‘money’’meansany 8
10297 financialinstrumentthatis— 9
10398 (A)legaltender; 10
10499 (B)requiredtobereceivedbyataxingau-11
105100 thorityinsatisfactionoftaxobligations;or 12
106101 (C)widelyacceptedinaneconomyforthe 13
107102 paymentofgoodsorservices. 14
108-(13) N
109-ATIONAL CURRENCY .—The term ‘‘na-15
103+(13)NATIONALCURRENCY.—Theterm‘‘na-15
110104 tionalcurrency’’meanseachofthefollowing: 16
111105 (A)AFederalReservenote(asthetermis 17
112106 usedinthefirstundesignatedparagraphofsec-18
113107 tion16oftheFederalReserveAct(12U.S.C. 19
114108 411)). 20
115109 (B)Moneystandingtothecreditofanac-21
116110 countwithaFederalReserveBank. 22
117111 (C)Moneyissuedbyaforeigncentral 23
118112 bank. 24
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121-•S 919 IS
115+•S 919 RS
122116 (D)Moneyissuedbyanintergovernmental 1
123117 organizationpursuanttoanagreementby1or 2
124118 moregovernments. 3
125-(14) N
126-ONBANK ENTITY.—The term ‘‘nonbank 4
119+(14)NONBANKENTITY.—Theterm‘‘nonbank 4
127120 entity’’meansapersonthatisnotadepositoryin-5
128121 stitutionorsubsidiaryofadepositoryinstitution. 6
129-(15) P
130-AYMENT STABLECOIN .—The term ‘‘pay-7
122+(15)PAYMENTSTABLECOIN.—Theterm‘‘pay-7
131123 mentstablecoin’’— 8
132124 (A)meansadigitalasset— 9
133125 (i)thatisorisdesignedtobeusedas 10
134126 ameansofpaymentorsettlement;and 11
135127 (ii)theissuerofwhich— 12
136128 (I)isobligatedtoconvert,re-13
137129 deem,orrepurchaseforafixed 14
138130 amountofmonetaryvalue,notinclud-15
139131 ingadigitalassetdenominatedina 16
140132 fixedamountofmonetaryvalue; 17
141133 (II)representsthatsuchissuer 18
142134 willmaintainorcreatesthereason-19
143135 ableexpectationthatitwillmaintain 20
144136 astablevaluerelativetothevalueof 21
145137 afixedamountofmonetaryvalue;or 22
146138 (III)hascompliedwiththeau-23
147139 thorizationrequirementsofthisAct; 24
148140 and 25
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151-•S 919 IS
143+•S 919 RS
152144 (B)that— 1
153145 (i)isnotanationalcurrency; 2
154146 (ii)isnotadeposit(asdefinedinsec-3
155147 tion3oftheFederalDepositInsurance 4
156148 Act),includingadepositrecordedusing 5
157149 distributedledgertechnology; 6
158150 (iii)doesnotofferapaymentofyield 7
159151 orinterest;and 8
160152 (iv)isnotasecurity,asdefinedin 9
161153 section2oftheSecuritiesActof1933(15 10
162154 U.S.C.77b),section3oftheSecurities 11
163155 ExchangeActof1934(15U.S.C.78c),or 12
164156 section2oftheInvestmentCompanyAct 13
165157 of1940(15U.S.C.80a–2),otherthana 14
166158 bond,note,evidenceofindebtedness,orin-15
167159 vestmentcontractsatisfyingtheconditions 16
168160 describedinsubparagraph(A). 17
169-(16) P
170-ERMITTED PAYMENT STABLECOIN 18
161+(16)PERMITTED PAYMENT STABLECOIN 18
171162 ISSUER.—Theterm‘‘permittedpaymentstablecoin 19
172163 issuer’’meansapersonincorporatedintheUnited 20
173164 Statesthatis— 21
174165 (A)asubsidiaryofaninsureddepository 22
175166 institutionthathasbeenapprovedtoissuepay-23
176167 mentstablecoinsundersection5; 24
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180171 (B)aFederalqualifiednonbankpayment 1
181172 stablecoinissuerthathasbeenapprovedto 2
182173 issuepaymentstablecoinsundersection5;or 3
183174 (C)aStatequalifiedpaymentstablecoin 4
184175 issuer. 5
185-(17) P
186-ERSON.—The term ‘‘person’’ means an 6
176+(17)PERSON.—Theterm‘‘person’’meansan 6
187177 individual,partnership,company,corporation,asso-7
188178 ciation,trust,estate,cooperativeorganization,or 8
189179 otherbusinessentity,incorporatedorunincor-9
190180 porated. 10
191-(18) P
192-RIMARY FEDERAL PAYMENT STABLECOIN 11
181+(18)PRIMARYFEDERALPAYMENTSTABLECOIN 11
193182 REGULATOR.—Theterm‘‘primaryFederalpayment 12
194183 stablecoinregulator’’means— 13
195184 (A)withrespecttoasubsidiaryofanin-14
196185 sureddepositoryinstitution(otherthananin-15
197186 suredcreditunion),theappropriateFederal 16
198187 bankingagency(asdefinedundersection3of 17
199188 theFederalDepositInsuranceAct(12U.S.C. 18
200189 1813))ofsuchinsureddepositoryinstitution; 19
201190 (B)withrespecttoaninsuredcreditunion 20
202191 orasubsidiaryofaninsuredcreditunion,the 21
203192 NationalCreditUnionAdministration; 22
204193 (C)withrespecttoaStatecharteredde-23
205194 positoryinstitutionnotspecifiedundersubpara-24
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208-•S 919 IS
197+•S 919 RS
209198 graph(A),theCorporation,theComptroller,or 1
210199 theBoard;and 2
211200 (D)withrespecttoaFederalqualified 3
212201 nonbankpaymentstablecoinissueroranyenti-4
213202 tycharteredbytheComptroller,theComp-5
214203 troller. 6
215-(19) R
216-EGISTERED PUBLIC ACCOUNTING 7
204+(19)REGISTERED PUBLIC ACCOUNTING 7
217205 FIRM.—Theterm‘‘registeredpublicaccounting 8
218206 firm’’hasthemeaninggiventhattermundersection 9
219207 2oftheSarbanes-OxleyActof2002(15U.S.C. 10
220208 7201). 11
221-(20) S
222-TATE.—The term ‘‘State’’ means each of 12
209+(20)STATE.—Theterm‘‘State’’meanseachof 12
223210 theseveralStatesoftheUnitedStates,theDistrict 13
224211 ofColumbia,andeachterritoryoftheUnited 14
225212 States. 15
226-(21) S
227-TATE QUALIFIED PAYMENT STABLECOIN 16
213+(21)STATEQUALIFIEDPAYMENTSTABLECOIN 16
228214 ISSUER.—Theterm‘‘Statequalifiedpayment 17
229215 stablecoinissuer’’meansanentitythatislegallyes-18
230216 tablishedunderthelawsofaStateandapprovedto 19
231217 issuepaymentstablecoinsbyaStatepayment 20
232218 stablecoinregulator. 21
233-(22) S
234-TATE PAYMENT STABLECOIN REGU -22
219+(22)STATEPAYMENT STABLECOIN REGU-22
235220 LATOR.—Theterm‘‘Statepaymentstablecoinregu-23
236221 lator’’meansaStateagencythathasprimaryregu-24
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239-•S 919 IS
224+•S 919 RS
240225 latoryandsupervisoryauthorityinsuchStateover 1
241226 entitiesthatissuepaymentstablecoins. 2
242-(23) S
243-TATE CHARTERED DEPOSITORY INSTITU -3
227+(23)STATECHARTERED DEPOSITORYINSTITU-3
244228 TION.—Theterm‘‘Statechartereddepositoryinsti-4
245229 tution’’hasthemeaninggiventheterm‘‘Statede-5
246230 positoryinstitution’’insection3(c)oftheFederal 6
247231 DepositInsuranceAct(12U.S.C.1813(c)). 7
248-(24) S
249-UBSIDIARY OF AN INSURED CREDIT 8
232+(24)SUBSIDIARY OFANINSURED CREDIT 8
250233 UNION.—Withrespecttoaninsuredcreditunion, 9
251234 theterm‘‘subsidiaryofaninsuredcreditunion’’ 10
252235 means— 11
253236 (A)anorganizationprovidingservicesto 12
254237 theinsuredcreditunionthatareassociated 13
255238 withtheroutineoperationsofcreditunions,as 14
256239 describedundersection107(7)(I)oftheFed-15
257240 eralCreditUnionAct(12U.S.C.1757(7)(I)); 16
258241 and 17
259242 (B)acreditunionserviceorganization,as 18
260243 suchtermisusedunderpart712oftitle12, 19
261244 CodeofFederalRegulations,withrespectto 20
262245 whichtheinsuredcreditunionhasanowner-21
263246 shipinterestortowhichtheinsuredcredit 22
264247 unionhasextendedaloan. 23
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268251 SEC.3.ISSUANCE AND TREATMENT OFPAYMENT 1
269252 STABLECOINS. 2
270-(a) I
271-SSUE.—It shall be unlawful for any person other 3
253+(a)ISSUE.—Itshallbeunlawfulforanypersonother 3
272254 thanapermittedpaymentstablecoinissuertoissueapay-4
273255 mentstablecoinintheUnitedStates. 5
274-(b) T
275-REATMENT.—A payment stablecoin that is not 6
256+(b)TREATMENT.—Apaymentstablecointhatisnot 6
276257 issuedbyapermittedpaymentstablecoinissuershallnot 7
277258 beacceptableasasettlementassettofacilitatewholesale 8
278259 paymentsbetweenbankingorganizationsorbyapayment 9
279260 infrastructuretofacilitateexchangeandsettlementamong 10
280261 bankingorganizations. 11
281-(c) P
282-ENALTY FORVIOLATION.— 12
283-(1) I
284-N GENERAL.—Whoever knowingly partici-13
262+(c)PENALTYFORVIOLATION.— 12
263+(1)INGENERAL.—Whoeverknowinglypartici-13
285264 patesinaviolationofsubsection(a)shallbefined 14
286265 notmorethan$1,000,000foreachsuchviolation, 15
287266 imprisonedfornotmorethan5years,orboth. 16
288-(2) R
289-EFERRAL TO ATTORNEY GENERAL .—If a 17
267+(2)REFERRALTOATTORNEY GENERAL.—Ifa 17
290268 primaryFederalpaymentstablecoinregulatorhas 18
291269 reasontobelievethatanypersonhasknowinglyvio-19
292270 latedsubsection(a),theprimaryFederalpayment 20
293271 stablecoinregulatorshallreferthemattertotheAt-21
294272 torneyGeneral. 22
295273 SEC. 4.REQUIREMENTS FOR ISSUING PAYMENT 23
296274 STABLECOINS. 24
297-(a) S
298-TANDARDS FOR THE ISSUANCE OFPAYMENT 25
299-S
300-TABLECOINS.— 26
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275+(a)STANDARDS FORTHEISSUANCEOFPAYMENT 25
276+STABLECOINS.— 26
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304280 (1)IN GENERAL.—Permittedpayment 1
305281 stablecoinissuersshall— 2
306282 (A)maintainreservesbackingtheout-3
307283 standingpaymentstablecoinsofthepermitted 4
308-payment stablecoin issuer on an at least a 1 to 5
309-1 basis, with reserves comprising— 6
284+paymentstablecoinissueronanatleast1to1 5
285+basis,withreservescomprising— 6
310286 (i)UnitedStatescoinsandcurrency 7
311287 (includingFederalreservenotes)ormoney 8
312288 standingtothecreditofanaccountwith 9
313289 aFederalReserveBank; 10
314290 (ii)fundsheldasdemanddeposits(or 11
315291 otherdepositsthatmaybewithdrawn 12
316292 uponrequestatanytime)orinsured 13
317293 sharesataninsureddepositoryinstitution 14
318294 (includinganyforeignbranchesandagen-15
319295 ciesofaninsureddepositoryinstitution), 16
320296 subjecttolimitationsestablishedbythe 17
321297 CorporationandtheNationalCreditUnion 18
322298 Administration,asapplicable,toaddress 19
323299 safetyandsoundnessrisksofsuchinsured 20
324300 depositoryinstitution; 21
325301 (iii)Treasurybills,notes,orbonds— 22
326302 (I)witharemainingmaturityof 23
327303 93daysorless;or 24
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331307 (II)issuedwithamaturityof93 1
332308 daysorless; 2
333309 (iv)repurchaseagreementswiththe 3
334310 permittedpaymentstablecoinissueracting 4
335311 asasellerofsecuritiesandwithanover-5
336312 nightmaturitythatarebackedbyTreas-6
337313 urybillswithamaturityof93daysor 7
338314 less; 8
339315 (v)reverserepurchaseagreements 9
340316 withthepermittedpaymentstablecoin 10
341317 issueractingasapurchaserofsecurities 11
342318 andwithanovernightmaturitythatare 12
343319 collateralizedbyTreasurynotes,bills,or 13
344320 bondsonanovernightbasis,subjectto 14
345321 overcollateralizationinlinewithstandard 15
346322 marketterms,thatare— 16
347323 (I)tri-party; 17
348324 (II)centrallyclearedthrougha 18
349325 clearinghouseregisteredwiththeSe-19
350326 curitiesandExchangeCommission;or 20
351327 (III)bilateralwitha 21
352328 counterpartythattheissuerhasde-22
353329 terminedtobeadequatelycredit-23
354330 worthyevenintheeventofsevere 24
355331 marketstress; 25
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358-•S 919 IS
334+•S 919 RS
359335 (vi)securitiesissuedbyaninvestment 1
360336 companyregisteredundersection8(a)of 2
361337 theInvestmentCompanyActof1940(15 3
362338 U.S.C.80a–8(a))thatoperatesasamoney 4
363339 marketfundincompliancewithrule2a–7 5
364340 issuedunderthatAct(oranysuccessor 6
365341 rule)andthatareinvestedsolelyinunder-7
366342 lyingassetsdescribedinclauses(i) 8
367343 through(iv)ofsubparagraph(A); 9
368344 (vii)anyothersimilarlyliquidasset 10
369345 approvedbytheprimaryFederalpayment 11
370346 stablecoinregulator,inconsultationwith 12
371347 theStatepaymentstablecoinregulator,if 13
372348 applicable,ofthepermittedpayment 14
373349 stablecoinissuer;or 15
374350 (viii)anyreservedescribedinclauses 16
375351 (i)through(vii)intokenizedform,pro-17
376352 videdthatsuchreservescomplywithall 18
377353 applicablelawsandregulations; 19
378354 (B)publiclydisclosetheissuer’sredemp-20
379355 tionpolicy; 21
380356 (C)establishproceduresfortimelyredemp-22
381357 tionofoutstandingpaymentstablecoins;and 23
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383359 ssavage on LAPJG3WLY3PROD with BILLS 14
384-•S 919 IS
360+•S 919 RS
385361 (D)publishthemonthlycompositionofthe 1
386362 issuer’sreservesonthewebsiteoftheissuer, 2
387363 containing— 3
388364 (i)thetotalnumberofoutstanding 4
389365 paymentstablecoinsissuedbytheissuer; 5
390366 and 6
391367 (ii)theamountandcompositionof 7
392368 thereservesdescribedundersubparagraph 8
393369 (A). 9
394-(2) P
395-ROHIBITION ON REHYPOTHECATION .—Re-10
370+(2)PROHIBITIONONREHYPOTHECATION .—Re-10
396371 servesrequiredunderparagraph(1)(A)maynotbe 11
397372 pledged,rehypothecated,orreusedbythepermitted 12
398373 paymentstablecoinissuer,eitherdirectlyorindi-13
399374 rectly,exceptforthepurposeof— 14
400375 (A)satisfyingmarginobligationsincon-15
401376 nectionwithinvestmentsinpermittedreserves 16
402377 underclauses(iv)and(v)ofparagraph(1)(A); 17
403378 (B)satisfyingobligationsassociatedwith 18
404379 theuseorreceiptofprovisionofstandardcus-19
405380 todialservices;or 20
406381 (C)creatingliquiditytomeetreasonable 21
407382 expectationsofrequeststoredeempayment 22
408383 stablecoins,suchthatreservesintheformof 23
409384 Treasurybillsmaybesoldaspurchasedsecuri-24
410-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
385+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
411386 ssavage on LAPJG3WLY3PROD with BILLS 15
412-•S 919 IS
387+•S 919 RS
413388 tiesforrepurchaseagreementswithamaturity 1
414389 of93daysorless,providedthateither— 2
415390 (i)therepurchaseagreementsare 3
416391 clearedbyaclearingagencyregistered 4
417392 withtheSecuritiesandExchangeCommis-5
418393 sion;or 6
419394 (ii)thepermittedpaymentstablecoin 7
420395 issuerreceivesthepriorapprovalofitspri-8
421396 maryFederalpaymentstablecoinregulator 9
422397 orStatepaymentstablecoinregulator,as 10
423398 applicable. 11
424-(3) M
425-ONTHLY CERTIFICATION ; EXAMINATION 12
399+(3)MONTHLY CERTIFICATION;EXAMINATION 12
426400 OFREPORTSBYREGISTERED PUBLICACCOUNTING 13
427401 FIRM.— 14
428-(A) I
429-N GENERAL.—A permitted payment 15
402+(A)INGENERAL.—Apermittedpayment 15
430403 stablecoinissuershall,eachmonth,havethein-16
431404 formationdisclosedinthepreviousmonth-end 17
432405 reportrequiredunderparagraph(1)(D)exam-18
433406 inedbyaregisteredpublicaccountingfirm. 19
434-(B) C
435-ERTIFICATION.—Each month, the 20
407+(B)CERTIFICATION.—Eachmonth,the 20
436408 ChiefExecutiveOfficerandChiefFinancialOf-21
437409 ficerofapermittedpaymentstablecoinissuer 22
438410 shallsubmitacertificationastotheaccuracy 23
439411 ofthemonthlyreportto,asapplicable— 24
440-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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441413 ssavage on LAPJG3WLY3PROD with BILLS 16
442-•S 919 IS
414+•S 919 RS
443415 (i)theprimaryFederalpayment 1
444416 stablecoinregulatorofthepermittedpay-2
445417 mentstablecoinissuer;or 3
446418 (ii)theStatepaymentstablecoinreg-4
447419 ulatorofthepermittedpaymentstablecoin 5
448420 issuer. 6
449-(C) C
450-RIMINAL PENALTY.—Any person who 7
421+(C)CRIMINALPENALTY.—Anypersonwho 7
451422 submitsacertificationrequiredundersubpara-8
452423 graph(B)knowingthatsuchcertificationis 9
453424 falseshallbesubjecttothecriminalpenalties 10
454425 setforthundersection1350(c)oftitle18, 11
455426 UnitedStatesCode. 12
456-(4) C
457-APITAL, LIQUIDITY, AND RISK MANAGE -13
427+(4)CAPITAL,LIQUIDITY,ANDRISKMANAGE-13
458428 MENTREQUIREMENTS.— 14
459-(A) I
460-N GENERAL.—The primary Federal 15
429+(A)INGENERAL.—TheprimaryFederal 15
461430 paymentstablecoinregulatorsshall,jointly,or 16
462431 inthecaseofaStatequalifiedpayment 17
463432 stablecoinissuer,theStatepaymentstablecoin 18
464433 regulatorshall,consistentwithsection18, 19
465434 issue— 20
466435 (i)capitalrequirementsapplicableto 21
467436 permittedpaymentstablecoinissuers 22
468437 that— 23
469-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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470439 ssavage on LAPJG3WLY3PROD with BILLS 17
471-•S 919 IS
440+•S 919 RS
472441 (I)aretailoredtothebusiness 1
473442 modelandriskprofileofpermitted 2
474443 paymentstablecoinissuers; 3
475444 (II)donotexceedrequirements 4
476445 whicharesufficienttoensuretheon-5
477446 goingoperationsofpermittedpay-6
478447 mentstablecoinissuers;and 7
479448 (III)inthecaseoftheprimary 8
480449 Federalpaymentstablecoinregu-9
481450 lators,iftheprimaryFederalpay-10
482451 mentstablecoinregulatorsdetermine 11
483452 thatacapitalbufferisnecessaryto 12
484453 ensuretheongoingoperationsofper-13
485454 mittedpaymentstablecoinissuers, 14
486455 mayincludecapitalbuffersthatare 15
487456 tailoredtothebusinessmodeland 16
488457 riskprofileofpermittedpayment 17
489458 stablecoinissuers; 18
490459 (ii)regulationsimplementingtheli-19
491460 quiditystandardunderclause(i); 20
492461 (iii)reserveassetdiversificationand 21
493462 interestrateriskmanagementstandards 22
494463 applicabletopermittedpaymentstablecoin 23
495464 issuersthat— 24
496-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
465+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
497466 ssavage on LAPJG3WLY3PROD with BILLS 18
498-•S 919 IS
467+•S 919 RS
499468 (I)aretailoredtothebusiness 1
500469 modelandriskprofileofpermitted 2
501470 paymentstablecoinissuers;and 3
502471 (II)donotexceedstandards 4
503472 whicharesufficienttoensuretheon-5
504473 goingoperationsofpermittedpay-6
505474 mentstablecoinissuers;and 7
506475 (iv)appropriateoperational,compli-8
507476 ance,andinformationtechnologyrisk 9
508477 managementstandards,includingBank 10
509478 SecrecyActandsanctionscompliance, 11
510479 that— 12
511480 (I)aretailoredtothebusiness 13
512481 modelandriskprofileofpermitted 14
513482 paymentstablecoinissuers;and 15
514483 (II)areconsistentwithapplicable 16
515484 law. 17
516-(B) R
517-ULE OF CONSTRUCTION .—Nothing in 18
485+(B)RULEOFCONSTRUCTION.—Nothingin 18
518486 thisparagraphshallbeconstruedtolimit— 19
519487 (i)theauthorityoftheprimaryFed-20
520488 eralregulators,inprescribingstandards 21
521489 underthisparagraph,totailorordifferen-22
522490 tiateamongissuersonanindividualbasis 23
523491 orbycategory,takingintoconsideration 24
524492 thecapitalstructure,businessmodelrisk 25
525-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
493+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
526494 ssavage on LAPJG3WLY3PROD with BILLS 19
527-•S 919 IS
495+•S 919 RS
528496 profile,complexity,financialactivities(in-1
529497 cludingfinancialactivitiesofsubsidiaries), 2
530498 size,andanyotherriskrelatedfactorsof 3
531499 permittedpaymentstablecoinissuersthat 4
532500 theprimaryFederalregulatordetermines 5
533501 appropriate,providedthatsuchtailoringor 6
534502 differentiationoccurswithoutrespectto 7
535503 whetherapermittedpaymentstablecoin 8
536504 issuerisregulatedbyaStatepayment 9
537505 stablecoinregulator;or 10
538506 (ii)thesupervisory,regulatory,oren-11
539507 forcementauthorityofaFederalbanking 12
540508 agencytofurtherthesafeandsoundoper-13
541509 ationofaninstitutionforwhichtheFed-14
542510 eralbankingagencyistheappropriate 15
543511 Federalbankingagency(asdefinedunder 16
544512 section3oftheFederalDepositInsurance 17
545513 Act(12U.S.C.1813)). 18
546-(C) A
547-PPLICABILITY OF EXISTING CAPITAL 19
514+(C)APPLICABILITYOFEXISTINGCAPITAL 19
548515 STANDARDS.— 20
549-(i) D
550-EFINITIONS.—In this subpara-21
516+(i)DEFINITIONS.—Inthissubpara-21
551517 graph— 22
552518 (I)‘‘appropriateFederalbanking 23
553519 agency’’hasthemeaninggiventhat 24
554520 terminsection3(q)oftheFederal 25
555-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
521+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
556522 ssavage on LAPJG3WLY3PROD with BILLS 20
557-•S 919 IS
523+•S 919 RS
558524 DepositInsuranceAct(12U.S.C. 1
559-1813(q)); and 2
525+1813(q);and 2
560526 (II)‘‘depositoryinstitutionhold-3
561527 ingcompany’’hasthemeaninggiven 4
562528 thattermundersection171(a)(3)of 5
563529 theFinancialStabilityActof2010 6
564530 (12U.S.C.5371(a)(3)). 7
565-(ii) A
566-PPLICABILITY OF FINANCIAL 8
531+(ii)APPLICABILITY OFFINANCIAL 8
567532 STABILITYACT.—Withrespecttothepro-9
568533 mulgationofrulesundersubparagraph(A) 10
569534 andclauses(iii)and(iv)ofthissubpara-11
570535 graph,section171oftheFinancialSta-12
571536 bilityActof2010(12U.S.C.5371)shall 13
572537 notapply. 14
573-(iii) R
574-ULES RELATING TO LEVERAGE 15
538+(iii)RULESRELATINGTOLEVERAGE 15
575539 CAPITALREQUIREMENTS ORRISK-BASED 16
576540 CAPITALREQUIREMENTS.—Anyruleissued 17
577541 byanappropriateFederalbankingagency 18
578542 thatimposes,onaconsolidatedbasis,ale-19
579543 veragecapitalrequirementorrisk-based 20
580544 capitalrequirementwithrespecttoanin-21
581545 sureddepositoryinstitutionordepository 22
582546 institutionholdingcompanyshallprovide 23
583547 that,forpurposesofsuchleveragecapital 24
584548 requirementorrisk-basedcapitalrequire-25
585-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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586550 ssavage on LAPJG3WLY3PROD with BILLS 21
587-•S 919 IS
551+•S 919 RS
588552 ment,anyinsureddepositoryinstitutionor 1
589553 depositoryinstitutionholdingcompany 2
590554 thatincludes,onaconsolidatedbasis,a 3
591555 permittedpaymentstablecoinissuershall 4
592556 notberequiredtohold,withrespectto 5
593557 suchpermittedpaymentstablecoinissuer 6
594558 anditsassetsandoperations,anyamount 7
595559 ofregulatorycapitalinexcessofthecap-8
596560 italthatsuchpermittedpayment 9
597561 stablecoinissuermustmaintainunderthe 10
598562 capitalrequirementspromulgatedpursuant 11
599563 toparagraph(1)(A)(i). 12
600-(iv) M
601-ODIFICATIONS.—Not later than 13
564+(iv)MODIFICATIONS.—Notlaterthan 13
602565 theearlieroftherulemakingdeadline 14
603566 undersection18orthedatetheFederal 15
604567 paymentstablecoinregulatorsissueregula-16
605568 tionstocarryoutthissection,eachappro-17
606569 priateFederalbankingagencyshallamend 18
607570 orotherwisemodifyanyregulationofthe 19
608571 Federalbankingagencydescribedinclause 20
609572 (iii)sothatsuchregulation,asamendedor 21
610573 otherwisemodified,complieswithclause 22
611574 (iii)ofthissubparagraph. 23
612-(5) T
613-REATMENT UNDER THE BANK SECRECY 24
575+(5)TREATMENT UNDERTHEBANKSECRECY 24
614576 ACTANDSANCTIONSLAWS.— 25
615-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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616578 ssavage on LAPJG3WLY3PROD with BILLS 22
617-•S 919 IS
579+•S 919 RS
618580 (A)INGENERAL.—Apermittedpayment 1
619581 stablecoinissuershallbetreatedasafinancial 2
620582 institutionforpurposesoftheBankSecrecy 3
621583 Act,andassuch,shallbesubjecttoallFederal 4
622584 lawsapplicabletoafinancialinstitutionlocated 5
623585 intheUnitedStatesrelatingtoeconomicsanc-6
624586 tions,preventionofmoneylaundering,customer 7
625587 identification,andduediligence,including— 8
626588 (i)maintenanceofaneffectiveanti- 9
627589 moneylaunderingandeconomicsanctions 10
628590 complianceprogram,whichshallinclude 11
629591 appropriateriskassessments,verification 12
630592 ofsanctionslistsanddesignationofanof-13
631593 ficertosupervisetheprograms; 14
632594 (ii)retentionofappropriaterecordsof 15
633595 paymentstablecointransactions; 16
634596 (iii)monitoringandreportingsus-17
635597 piciousactivity; 18
636598 (iv)policiesandprocedurestoblock, 19
637599 freeze,andrejectspecificorimpermissible 20
638600 transactionsthatviolateFederalorState 21
639601 laws,rules,orregulations;and 22
640602 (v)maintenanceofaneffectivecus-23
641603 tomeridentificationprogram,including 24
642604 identificationandverificationofaccount 25
643-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
605+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
644606 ssavage on LAPJG3WLY3PROD with BILLS 23
645-•S 919 IS
607+•S 919 RS
646608 holderswiththepermittedpayment 1
647609 stablecoinissuer,highvaluetransactions 2
648610 andappropriateenhancedduediligence. 3
649-(B) R
650-ULEMAKING.—The Financial Crimes 4
611+(B)RULEMAKING.—TheFinancialCrimes 4
651612 EnforcementNetworkshalladoptrules,tailored 5
652613 tothesizeandcomplexityofthepermittedpay-6
653614 mentstablecoinissuer,toimplementsubpara-7
654615 graph(A). 8
655-(6) C
656-OORDINATION WITH PERMITTED PAYMENT 9
616+(6)COORDINATION WITHPERMITTEDPAYMENT 9
657617 STABLECOIN ISSUERSWITHRESPECTTOBLOCKING 10
658618 OFPROPERTY ANDTECHNOLOGICAL CAPABILITIES 11
659619 TOCOMPLYWITHLAWFULORDERS.— 12
660-(A) I
661-N GENERAL.—The Secretary of the 13
620+(A)INGENERAL.—TheSecretaryofthe 13
662621 Treasury— 14
663622 (i)shall,tothebestoftheSecretary’s 15
664623 ability,coordinatewithapermittedpay-16
665624 mentstablecoinissuerbeforetakingany 17
666625 actiontoblockandprohibittransactionsin 18
667626 propertyandinterestsinpropertyofafor-19
668627 eignpersontoensurethatthepermitted 20
669628 paymentstablecoinissuerisabletoeffec-21
670629 tivelyblockadigitalassetoftheforeign 22
671630 personuponissueofthedigitalasset;and 23
672631 (ii)isnotrequiredtonotifyanyper-24
673632 mittedpaymentstablecoinissuerofanyin-25
674-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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675634 ssavage on LAPJG3WLY3PROD with BILLS 24
676-•S 919 IS
635+•S 919 RS
677636 tendedactiondescribedinclause(i)prior 1
678637 totakingsuchaction. 2
679-(B) C
680-OMPLIANCE WITH LAWFUL OR -3
638+(B)COMPLIANCE WITH LAWFUL OR-3
681639 DERS.— 4
682-(i) I
683-N GENERAL.— 5
684-(I) P
685-ERMITTED PAYMENT 6
640+(i)INGENERAL.— 5
641+(I)PERMITTED PAYMENT 6
686642 STABLECOIN ISSUERS.—Apermitted 7
687643 paymentstablecoinissuermayissue 8
688644 paymentstablecoinsonlyiftheissuer 9
689645 hasthetechnologicalcapabilityto 10
690646 complyandwillcomplywiththeterms 11
691647 ofanylawfulorder. 12
692-(II) F
693-OREIGN PAYMENT 13
648+(II)FOREIGN PAYMENT 13
694649 STABLECOINS.—Aforeignpayment 14
695650 stablecointhatisnotlicensedunder 15
696651 thisActmaynotbepubliclyoffered, 16
697652 sold,orotherwisemadeavailablefor 17
698653 tradingintheUnitedStatesunless 18
699654 thepaymentstablecoinissuerhasthe 19
700655 technologicalcapabilitytocomplyand 20
701656 willcomplywiththetermsofanylaw-21
702657 fulorder. 22
703-(ii) L
704-AWFUL ORDER DEFINED .—In 23
658+(ii)LAWFUL ORDER DEFINED.—In 23
705659 thisparagraph,theterm‘‘lawfulorder’’ 24
706660 meansanyfinalandvalidwrit,process, 25
707-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
661+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
708662 ssavage on LAPJG3WLY3PROD with BILLS 25
709-•S 919 IS
663+•S 919 RS
710664 order,rule,decree,command,orotherre-1
711665 quirementissuedorpromulgatedunder 2
712666 Federallaw,issuedbyacourtofcom-3
713667 petentjurisdictionorbyanauthorized 4
714668 Federalagencypursuanttoitsstatutory 5
715669 authority,that— 6
716670 (I)requiresthepermittedpay-7
717671 mentstablecoinissuertoseize,freeze, 8
718672 burn,orpreventthetransferofpay-9
719673 mentstablecoinsissuedbytheper-10
720674 mittedpaymentstablecoinissuer; 11
721675 (II)specifiesthedigitalassetsor 12
722676 accountssubjecttoblockingwithrea-13
723677 sonableparticularity;and 14
724678 (III)issubjecttojudicialorad-15
725679 ministrativerevieworappealaspro-16
726680 videdbylaw. 17
727-(C) R
728-EPORT REQUIRED.—Not later than 1 18
681+(C)REPORTREQUIRED.—Notlaterthan1 18
729682 yearafterthedateofenactmentofthisAct,the 19
730683 SecretaryoftheTreasuryshallsubmittothe 20
731684 CommitteeonBanking,Housing,andUrban 21
732685 AffairsoftheSenateandtheCommitteeonFi-22
733686 nancialServicesoftheHouseofRepresenta-23
734687 tivesareportonthecoordinationwithper-24
735-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
688+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
736689 ssavage on LAPJG3WLY3PROD with BILLS 26
737-•S 919 IS
690+•S 919 RS
738691 mittedpaymentstablecoinissuersrequired 1
739692 undersubparagraph(A). 2
740-(7) L
741-IMITATION ON PAYMENT STABLECOIN AC -3
693+(7)LIMITATIONONPAYMENTSTABLECOINAC-3
742694 TIVITIES.— 4
743-(A) I
744-N GENERAL.—A permitted payment 5
695+(A)INGENERAL.—Apermittedpayment 5
745696 stablecoinissuermayonly— 6
746697 (i)issuepaymentstablecoins; 7
747698 (ii)redeempaymentstablecoins; 8
748699 (iii)managerelatedreserves,includ-9
749700 ingpurchasing,selling,andholdingreserve 10
750701 assetsorprovidingcustodialservicesfor 11
751702 reserveassets,consistentwithStateand 12
752703 Federallaw; 13
753704 (iv)providecustodialorsafekeeping 14
754705 servicesforpaymentstablecoins,required 15
755706 reserves,orprivatekeysofpayment 16
756707 stablecoins,consistentwiththisAct;and 17
757708 (v)undertakeotheractivitiesthatdi-18
758709 rectlysupportanyoftheactivitiesde-19
759710 scribedinclauses(i)through(iv). 20
760-(B) R
761-ULE OF CONSTRUCTION .—Nothing in 21
711+(B)RULEOFCONSTRUCTION.—Nothingin 21
762712 subparagraph(A)shallpreventapermitted 22
763713 paymentstablecoinissuerfromengagingin 23
764714 non-paymentstablecoinactivitiesthatareal-24
765715 lowedbytheprimaryFederalpayment 25
766-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
716+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
767717 ssavage on LAPJG3WLY3PROD with BILLS 27
768-•S 919 IS
718+•S 919 RS
769719 stablecoinregulatorortheStatepayment 1
770720 stablecoinregulator,asapplicable. 2
771-(8) P
772-ROHIBITION ON TYING.— 3
773-(A) I
774-N GENERAL.—A permitted payment 4
721+(8)PROHIBITIONONTYING.— 3
722+(A)INGENERAL.—Apermittedpayment 4
775723 stablecoinissuermaynotprovideservicestoa 5
776724 customerontheconditionthatthecustomerob-6
777725 tainanadditionalpaidproductorservicefrom 7
778726 thepermittedpaymentstablecoinissuer,orany 8
779727 ofitssubsidiaries,oragreetonotobtainanad-9
780728 ditionalproductorservicefromacompetitor. 10
781-(B) R
782-EGULATIONS.—The Board may issue 11
729+(B)REGULATIONS.—TheBoardmayissue 11
783730 suchregulationsasarenecessarytocarryout 12
784731 thissubparagraph,and,inconsultationwiththe 13
785732 ComptrollerandtheCorporation,maybyregu-14
786733 lationororder,permitsuchexceptionstoclause 15
787734 (i)astheBoardconsiderswillnotbecontrary 16
788735 tothepurposeofthisAct. 17
789-(9) R
790-EGULATION BY THE COMPTROLLER .— 18
791-(A) I
792-N GENERAL.—A Federal qualified 19
736+(9)REGULATIONBYTHECOMPTROLLER.— 18
737+(A)INGENERAL.—AFederalqualified 19
793738 nonbankpaymentstablecoinissuershallbereg-20
794739 ulatedandsupervisedexclusivelybytheComp-21
795740 troller,whichshallhaveauthority,incoordina-22
796741 tionwithotherrelevantprimaryFederalpay-23
797742 mentstablecoinregulatorsandStatepayment 24
798743 stablecoinregulators,toissuesuchregulations 25
799-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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800745 ssavage on LAPJG3WLY3PROD with BILLS 28
801-•S 919 IS
746+•S 919 RS
802747 andordersasnecessarytoensurefinancialsta-1
803748 bilityandimplementthissubsection. 2
804-(B) C
805-ONFORMING AMENDMENT .—Section 3
749+(B)CONFORMING AMENDMENT.—Section 3
806750 324(b)oftheRevisedStatutes(12U.S.C.1(b)) 4
807751 isamendedbyaddingattheendthefollowing: 5
808-‘‘(3) R
809-EGULATION OF FEDERAL QUALIFIED 6
752+‘‘(3)REGULATION OFFEDERAL QUALIFIED 6
810753 NONBANK PAYMENT STABLECOIN ISSUERS.—The 7
811754 ComptrolleroftheCurrencyshall,incoordination 8
812755 withotherrelevantregulatorsandconsistentwith 9
813756 section18oftheGuidingandEstablishingNational 10
814757 InnovationforU.S.StablecoinsActof2025,issue 11
815758 suchregulationsandordersasnecessarytoensure 12
816759 financialstabilityandimplementsection4(a)ofthat 13
817760 Act.’’. 14
818-(10) A
819-UDITS AND REPORTS.— 15
820-(A) A
821-NNUAL FINANCIAL STATEMENT .— 16
822-(i) I
823-N GENERAL.—A permitted pay-17
761+(10)AUDITSANDREPORTS.— 15
762+(A)ANNUALFINANCIALSTATEMENT.— 16
763+(i)INGENERAL.—Apermittedpay-17
824764 mentstablecoinissuerwithmorethan 18
825765 $50,000,000,000inconsolidatedtotalout-19
826766 standingissuance,thatisnotsubjectto 20
827767 thereportingrequirementsundersections 21
828768 13(a)or15(d)oftheSecuritiesandEx-22
829769 changeActof1934(15U.S.C.78m, 23
830770 78o(d)),shallprepare,inaccordancewith 24
831771 generallyacceptedaccountingprinciples, 25
832-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
772+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
833773 ssavage on LAPJG3WLY3PROD with BILLS 29
834-•S 919 IS
774+•S 919 RS
835775 anannualfinancialstatement,whichshall 1
836776 includethedisclosureofanyrelatedparty 2
837777 transactions,asdefinedbysuchgenerally 3
838778 acceptedaccountingprinciples. 4
839-(ii) A
840-UDITOR.—A registered public ac-5
779+(ii)AUDITOR.—Aregisteredpublicac-5
841780 countingfirmshallperformanauditofthe 6
842781 annualfinancialstatementsdescribedin 7
843782 clause(i). 8
844-(iii) S
845-TANDARDS.—An audit described 9
783+(iii)STANDARDS.—Anauditdescribed 9
846784 inclause(ii)shallbeconductedinaccord-10
847785 ancewithallapplicableauditingstandards 11
848786 establishedbythePublicCompanyAc-12
849787 countingOversightBoard,includingthose 13
850788 relatingtoauditorindependence,internal 14
851789 controls,andrelatedpartytransactions. 15
852-(iv) R
853-ULE OF CONSTRUCTION .—Noth-16
790+(iv)RULEOFCONSTRUCTION.—Noth-16
854791 inginthissubparagraphshallbeconstrued 17
855792 tolimit,alter,orexpandthejurisdictionof 18
856793 thePublicCompanyAccountingOversight 19
857794 Boardoverpermittedpaymentstablecoin 20
858795 issuersorregisteredpublicaccounting 21
859796 firms. 22
860-(B) P
861-UBLIC DISCLOSURE AND SUBMISSION 23
797+(B)PUBLICDISCLOSUREANDSUBMISSION 23
862798 TOFEDERAL REGULATORS.—Eachpermitted 24
863799 paymentstablecoinissuerrequiredtoprepare 25
864-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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865801 ssavage on LAPJG3WLY3PROD with BILLS 30
866-•S 919 IS
802+•S 919 RS
867803 anauditedannualfinancialstatementunder 1
868804 subparagraph(A)shall: 2
869805 (i)makesuchauditedfinancialstate-3
870806 mentspubliclyavailableonthewebsiteof 4
871807 thepermittedpaymentstablecoinissuer; 5
872808 and 6
873809 (ii)submitsuchauditedfinancial 7
874810 statementsannuallytotheirprimaryFed-8
875811 eralpaymentstablecoinregulator. 9
876-(C) C
877-ONSULTATION.—The primary Fed-10
812+(C)CONSULTATION.—TheprimaryFed-10
878813 eralpaymentstablecoinregulatorsmayconsult 11
879814 withthePublicCompanyAccountingOversight 12
880815 Boardtodeterminebestpracticesfordeter-13
881816 miningauditoversightandtodetectfraud,ma-14
882817 terialmisstatements,andotherfinancialmis-15
883818 representationsthatcouldmisleadpermitted 16
884819 paymentstablecoinholders. 17
885-(b) S
886-TATE-LEVELREGULATORYREGIMES.— 18
887-(1) O
888-PTION FOR STATE -LEVEL REGULATORY 19
820+(b)STATE-LEVELREGULATORYREGIMES.— 18
821+(1)OPTIONFORSTATE-LEVELREGULATORY 19
889822 REGIME.—NotwithstandingtheFederalregulatory 20
890823 frameworkestablishedundersubsection(a),aState 21
891824 qualifiedpaymentstablecoinissuerwithaconsoli-22
892825 datedtotaloutstandingissuanceofnotmorethan 23
893826 $10,000,000,000mayoptforregulationundera 24
894827 State-levelregulatoryregime,providedthatthe 25
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828+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
896829 ssavage on LAPJG3WLY3PROD with BILLS 31
897-•S 919 IS
830+•S 919 RS
898831 State-levelregulatoryregimeissubstantiallysimilar 1
899832 totheFederalregulatoryframeworkunderthatsub-2
900833 section. 3
901-(2) P
902-RINCIPLES.—The Secretary of the Treas-4
834+(2)PRINCIPLES.—TheSecretaryoftheTreas-4
903835 uryshall,throughnoticeandcommentrulemaking, 5
904836 establishbroadbasedprinciplesfordetermining 6
905837 whetheraState-levelregulatoryregimeissubstan-7
906838 tiallysimilartotheFederalregulatoryframework 8
907839 undersubsection(a). 9
908-(3) R
909-EVIEW.—State payment stablecoin regu-10
840+(3)REVIEW.—Statepaymentstablecoinregu-10
910841 latorsshallreviewState-levelregulatoryregimesac-11
911842 cordingtotheprinciplesestablishedbytheSecretary 12
912843 oftheTreasuryunderparagraph(2)andforthe 13
913844 purposesofestablishinganynecessarycooperative 14
914845 agreementstoimplementsection7(f). 15
915-(4) C
916-ERTIFICATION.— 16
917-(A) I
918-NITIAL CERTIFICATION.—Subject to 17
846+(4)CERTIFICATION.— 16
847+(A)INITIALCERTIFICATION.—Subjectto 17
919848 subparagraph(B),notlaterthan1yearafter 18
920849 theeffectivedateofthisAct,aStatepayment 19
921850 stablecoinregulatorshallsubmittotheSec-20
922851 retaryoftheTreasuryaninitialcertification 21
923852 thattheState-levelregulatoryregimemeetsthe 22
924853 criteriaforsubstantialsimilarityestablished 23
925854 pursuanttoparagraph(2). 24
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927856 ssavage on LAPJG3WLY3PROD with BILLS 32
928-•S 919 IS
857+•S 919 RS
929858 (B)FORMOFCERTIFICATION.—Theinitial 1
930859 certificationrequiredundersubparagraph(A) 2
931860 shallcontain,inaformprescribedbytheSec-3
932861 retaryoftheTreasury,anattestationthatthe 4
933862 State-levelregulatoryregimemeetsthecriteria 5
934863 forsubstantialsimilarityestablishedpursuant 6
935864 toparagraph(2). 7
936-(C) A
937-NNUAL RECERTIFICATION .—Not later 8
865+(C)ANNUALRECERTIFICATION.—Notlater 8
938866 thanadatetobedeterminedbytheSecretary 9
939867 eachyear,aStatepaymentstablecoinregulator 10
940868 shallsubmittotheSecretaryoftheTreasury 11
941869 anadditionalcertificationthatconfirmstheac-12
942870 curacyofinitialcertificationsubmittedunder 13
943871 subparagraph(A). 14
944-(5) N
945-OT SUBSTANTIALLY SIMILAR .— 15
946-(A) I
947-N GENERAL.—If a State payment 16
872+(5)NOTSUBSTANTIALLY SIMILAR.— 15
873+(A)INGENERAL.—IfaStatepayment 16
948874 stablecoinregulatordeterminesthatthecriteria 17
949-established under paragraph (2) are not met 18
875+establishedunderparagraph(2)arenotmeet 18
950876 andtheStatepaymentstablecoinregulator 19
951877 doesnotsubmitacertificationunderparagraph 20
952878 (4),thenapermittedpaymentstablecoinissuer 21
953879 operatingunderthissubsectionshallbesubject 22
954880 totheFederalregulatoryframeworkasde-23
955881 scribedinsubsection(c),notwithstandingthe 24
956882 totalissuancethresholdtherein. 25
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958884 ssavage on LAPJG3WLY3PROD with BILLS 33
959-•S 919 IS
885+•S 919 RS
960886 (B)TREASURYREVIEW.—Notlaterthan 1
961887 30daysafterthedateofreceiptofacertifi-2
962-cation under paragraph (4), the Secretary may 3
963-reject the certification if the Secretary deter-4
964-mines that the State-level regulatory regime is 5
965-not substantially similar to the Federal regu-6
966-latory framework under subsection (a), and the 7
967-permitted payment stablecoin issuer shall be 8
968-subject to the Federal regulatory framework as 9
969-described in subsection (c), notwithstanding the 10
888+cationunderparagraph(4),theSecretaryre-3
889+jectthecertificationiftheSecretarydetermines 4
890+thattheState-levelregulatoryregimeisnot 5
891+substantiallysimilartotheFederalregulatory 6
892+frameworkundersubsection(a),andtheper-7
893+mittedpaymentstablecoinissuershallbesub-8
894+jecttotheFederalregulatoryframeworkasde-9
895+scribedinsubsection(c),notwithstandingthe 10
970896 totalissuancethresholdtherein. 11
971-(C) A
972-PPELLATE REVIEW .—A State pay-12
897+(C)APPELLATE REVIEW.—AStatepay-12
973898 mentstablecoinregulatormaychallengethede-13
974899 terminationoftheSecretaryoftheTreasury 14
975900 underthisparagraphintheUnitedStates 15
976901 CourtofAppealsfortheDistrictofColumbia 16
977902 Circuit. 17
978-(6) L
979-IST.—The Secretary of the Treasury shall 18
903+(6)LIST.—TheSecretaryoftheTreasuryshall 18
980904 publishandmaintainintheFederalRegisterandon 19
981905 thewebsiteoftheDepartmentoftheTreasuryalist 20
982906 ofStatesthathavesubmittedinitialcertifications 21
983907 andrecertificationsunderparagraph(4). 22
984-(c) T
985-RANSITION TOFEDERALOVERSIGHT.— 23
986-(1) D
987-EPOSITORY INSTITUTION.—A State char-24
908+(c)TRANSITIONTOFEDERALOVERSIGHT.— 23
909+(1)DEPOSITORYINSTITUTION.—AStatechar-24
988910 tereddepositoryinstitutionthatisaStatequalified 25
989-VerDate Sep 11 2014 23:37 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
911+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
990912 ssavage on LAPJG3WLY3PROD with BILLS 34
991-•S 919 IS
913+•S 919 RS
992914 paymentstablecoinissuerwithapaymentstablecoin 1
993915 withaconsolidatedtotaloutstandingissuanceof 2
994916 morethan$10,000,000,000shall— 3
995917 (A)notlaterthan360daysafterthepay-4
996918 mentstablecoinreachessuchthreshold,transi-5
997919 tiontotheFederalregulatoryframeworkofthe 6
998920 primaryFederalpaymentstablecoinregulator 7
999921 oftheStatechartereddepositoryinstitution, 8
1000922 whichshallbeadministeredbytheStatepay-9
1001923 mentstablecoinregulatoroftheStatechartered 10
1002924 depositoryinstitutionandtheprimaryFederal 11
1003925 paymentstablecoinregulatoractingjointly;or 12
1004926 (B)beginningonthedatethepayment 13
1005927 stablecoinreachessuchthreshold,ceaseissuing 14
1006928 newpaymentstablecoinsuntilthepayment 15
1007929 stablecoinisunderthe$10,000,000,000con-16
1008930 solidatedtotaloutstandingissuancethreshold. 17
1009-(2) O
1010-THER INSTITUTIONS.—A State qualified 18
931+(2)OTHERINSTITUTIONS.—AStatequalified 18
1011932 paymentstablecoinissuernotdescribedinpara-19
1012933 graph(1)withapaymentstablecoinwithaconsoli-20
1013934 datedtotaloutstandingissuanceofmorethan 21
1014935 $10,000,000,000shall— 22
1015936 (A)notlaterthan360daysafterthepay-23
1016937 mentstablecoinreachessuchthreshold,transi-24
1017938 tiontotheFederalregulatoryframeworkunder 25
1018-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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1019940 ssavage on LAPJG3WLY3PROD with BILLS 35
1020-•S 919 IS
941+•S 919 RS
1021942 subsection(a)administeredbytheStatepay-1
1022943 mentstablecoinregulatoroftheStatequalified 2
1023944 paymentstablecoinissuer;or 3
1024945 (B)beginningonthedatethepayment 4
1025946 stablecoinreachessuchthreshold,ceaseissuing 5
1026947 newpaymentstablecoinsuntilthepayment 6
1027948 stablecoinisunderthe$10,000,000,000con-7
1028949 solidatedtotaloutstandingissuancethreshold. 8
1029-(3) W
1030-AIVER.— 9
1031-(A) I
1032-N GENERAL.—Notwithstanding para-10
950+(3)WAIVER.— 9
951+(A)INGENERAL.—Notwithstandingpara-10
1033952 graphs(1)and(2),theapplicableprimaryFed-11
1034953 eralpaymentstablecoinregulatormaypermita 12
1035954 Statequalifiedpaymentstablecoinissuerwitha 13
1036955 paymentstablecoinwithaconsolidatedtotal 14
1037956 outstandingissuanceofmorethan 15
1038957 $10,000,000,000toremainsolelysupervisedby 16
1039958 aStatepaymentstablecoinregulator. 17
1040-(B) C
1041-RITERIA FOR WAIVER.—The primary 18
959+(B)CRITERIAFORWAIVER.—Theprimary 18
1042960 Federalpaymentstablecoinregulatorshallcon-19
1043961 siderthefollowingexclusivecriteriaindeter-20
1044962 miningwhethertoissueawaiverunderthis 21
1045963 paragraph: 22
1046964 (i)Thecapitalmaintainedbythe 23
1047965 Statequalifiedpaymentstablecoinissuer. 24
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1049967 ssavage on LAPJG3WLY3PROD with BILLS 36
1050-•S 919 IS
968+•S 919 RS
1051969 (ii)Thepastoperationsandexamina-1
1052970 tionhistoryoftheStatequalifiedpayment 2
1053971 stablecoinissuer. 3
1054972 (iii)TheexperienceoftheStatepay-4
1055973 mentstablecoinregulatorinsupervising 5
1056974 paymentstablecoinanddigitalassetactivi-6
1057975 ties. 7
1058976 (iv)Thelawsandrulesapplicableto, 8
1059977 andthesupervisoryframeworkof,the 9
1060978 Statequalifiedpaymentstablecoinissuer 10
1061979 withrespecttopaymentstablecoinsand 11
1062980 digitalassets. 12
1063-(C) R
1064-ULE OF CONSTRUCTION .—A State 13
981+(C)RULEOFCONSTRUCTION.—AState 13
1065982 qualifiedpaymentstablecoinissuersubjectto 14
1066983 Federaloversightunderparagraph(1)or(2)of 15
1067984 thissubsectionthatdoesnotreceiveawaiver 16
1068985 underthisparagraphshallcontinuetobesu-17
1069986 pervisedbytheStatepaymentstablecoinregu-18
1070987 latoroftheStatequalifiedpaymentstablecoin 19
1071988 issueralongjointlywiththeprimaryFederal 20
1072989 paymentstablecoinregulator.Nothinginthis 21
1073990 subsectionshallrequiretheStatequalifiedpay-22
1074991 mentstablecoinissuertoconverttoaFederal 23
1075992 charter. 24
1076-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
993+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
1077994 ssavage on LAPJG3WLY3PROD with BILLS 37
1078-•S 919 IS
995+•S 919 RS
1079996 (d)MISREPRESENTATION OFINSUREDSTATUS; 1
1080-M
1081-ARKETING.— 2
1082-(1) I
1083-N GENERAL.—Payment stablecoins shall 3
997+MARKETING.— 2
998+(1)INGENERAL.—Paymentstablecoinsshall 3
1084999 notbebackedbythefullfaithandcreditofthe 4
10851000 UnitedStates,guaranteedbytheUnitedStates 5
10861001 Government,subjecttodepositinsurancebythe 6
10871002 FederalDepositInsuranceCorporation,orsubject 7
10881003 toshareinsurancebytheNationalCreditUnionAd-8
10891004 ministration. 9
1090-(2) M
1091-ISREPRESENTATION OF INSURED STA -10
1005+(2)MISREPRESENTATION OFINSURED STA-10
10921006 TUS.— 11
1093-(A) I
1094-N GENERAL.—It shall be unlawful to 12
1007+(A)INGENERAL.—Itshallbeunlawfulto 12
10951008 representthatpaymentstablecoinsarebacked 13
10961009 bythefullfaithandcreditoftheUnited 14
10971010 States,guaranteedbytheUnitedStatesGov-15
10981011 ernment,orsubjecttoFederaldepositinsur-16
10991012 anceorFederalshareinsurance. 17
1100-(B) P
1101-ENALTY.—A violation of subpara-18
1013+(B)PENALTY.—Aviolationofsubpara-18
11021014 graph(A)shallbeconsideredaviolationofsec-19
11031015 tion18(a)(4)oftheFederalDepositInsurance 20
11041016 Act(12U.S.C.1828(a)(4))orsection709of 21
11051017 title18,UnitedStatesCode,asapplicable. 22
1106-(3) M
1107-ARKETING.—It shall be unlawful to mar-23
1018+(3)MARKETING.—Itshallbeunlawfultomar-23
11081019 ketadigitalassetintheUnitedStatesasapayment 24
1109-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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11101021 ssavage on LAPJG3WLY3PROD with BILLS 38
1111-•S 919 IS
1022+•S 919 RS
11121023 stablecoinunlessthedigitalassetisissuedpursuant 1
11131024 tothisAct. 2
1114-(e) O
1115-FFICERS ORDIRECTORSCONVICTED OFCER-3
1025+(e)OFFICERSORDIRECTORSCONVICTEDOFCER-3
11161026 TAINFELONIES.— 4
1117-(1) I
1118-N GENERAL.—No individual who has been 5
1027+(1)INGENERAL.—Noindividualwhohasbeen 5
11191028 convictedofafelonyoffenseinvolvinginsidertrad-6
11201029 ing,embezzlement,cybercrime,moneylaundering,fi-7
11211030 nancingofterrorism,orfinancialfraudmayserve 8
11221031 as— 9
11231032 (A)anofficerofapaymentstablecoin 10
11241033 issuer;or 11
11251034 (B)adirectorofapaymentstablecoin 12
11261035 issuer. 13
1127-(2) P
1128-ENALTY.— 14
1129-(A) I
1130-N GENERAL.—Whoever knowingly 15
1036+(2)PENALTY.— 14
1037+(A)INGENERAL.—Whoeverknowingly 15
11311038 participatesinaviolationofparagraph(1)shall 16
11321039 befinednotmorethan$1,000,000foreach 17
11331040 suchviolation,imprisonedfornotmorethan5 18
11341041 years;orboth. 19
1135-(B) R
1136-EFERRAL TO ATTORNEY GENERAL .— 20
1042+(B)REFERRALTOATTORNEYGENERAL.— 20
11371043 IfaFederalpaymentstablecoinregulatorhas 21
11381044 reasontobelievethatanypersonhasknowingly 22
11391045 violatedparagraph(1),theFederalpayment 23
11401046 stablecoinregulatorshallreferthematterto 24
11411047 theAttorneyGeneral. 25
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11431049 ssavage on LAPJG3WLY3PROD with BILLS 39
1144-•S 919 IS
1050+•S 919 RS
11451051 (f)RULEMAKING.— 1
1146-(1) I
1147-N GENERAL.—Consistent with section 18, 2
1052+(1)INGENERAL.—Consistentwithsection18, 2
11481053 theprimaryFederalpaymentstablecoinregulators 3
11491054 andStatepaymentstablecoinregulatorsshallissue 4
11501055 suchregulationsasmaybenecessarytoestablisha 5
11511056 paymentstablecoinregulatoryframeworknecessary 6
11521057 toadministerandcarryouttherequirementsofthis 7
11531058 section,includingtoestablishconditions,andtopre-8
11541059 ventevasionsthereof. 9
1155-(2) J
1156-OINT ISSUANCE OF REGULATION .—All reg-10
1060+(2)JOINTISSUANCEOFREGULATION.—Allreg-10
11571061 ulationsissuedtocarryoutthissectionshallbe 11
11581062 issuedjointlybytheprimaryFederalpayment 12
11591063 stablecoinregulators,ifnotissuedbyaStatepay-13
11601064 mentstablecoinregulator. 14
11611065 SEC.5.APPROVAL OFSUBSIDIARIES OFINSURED DEPOSI-15
11621066 TORYINSTITUTIONS ANDFEDERAL QUALI-16
11631067 FIED NONBANK PAYMENT STABLECOIN 17
11641068 ISSUERS. 18
1165-(a) A
1166-PPLICATION.— 19
1167-(1) I
1168-N GENERAL.—Each primary Federal pay-20
1069+(a)APPLICATION.— 19
1070+(1)INGENERAL.—EachprimaryFederalpay-20
11691071 mentstablecoinregulatorshallreceive,review,and 21
11701072 considerforapprovalapplicationsfromanyinsured 22
11711073 depositoryinstitutionthatseekstoissuepayment 23
11721074 stablecoinsthroughasubsidiaryandanynonbank 24
11731075 entitythatseekstoissuepaymentstablecoinsasa 25
1174-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
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11751077 ssavage on LAPJG3WLY3PROD with BILLS 40
1176-•S 919 IS
1078+•S 919 RS
11771079 Federalqualifiednonbankpaymentstablecoin 1
11781080 issuer.EachprimaryFederalpaymentstablecoin 2
11791081 regulatorshallestablishaprocessandframework 3
11801082 forthelicensing,regulation,examination,andsuper-4
11811083 visionofsuchentitiesthatprioritizesthesafetyand 5
11821084 soundnessofsuchentities. 6
1183-(2) A
1184-UTHORITY TO ISSUE REGULATIONS AND 7
1085+(2)AUTHORITY TOISSUEREGULATIONS AND 7
11851086 PROCESSAPPLICATIONS.—TheprimaryFederalpay-8
11861087 mentstablecoinregulatorsshall,beforethedatede-9
11871088 scribedinsection18— 10
11881089 (A)issueregulationsconsistentwiththat 11
11891090 sectiontocarryoutthissection;and 12
11901091 (B)pursuanttotheregulationsdescribed 13
11911092 insubparagraph(A),acceptandprocessappli-14
11921093 cationsunderthisAct. 15
1193-(3) M
1194-ANDATORY APPROVAL PROCESS .—The pri-16
1094+(3)MANDATORYAPPROVALPROCESS.—Thepri-16
11951095 maryFederalpaymentstablecoinregulatorshall, 17
11961096 uponreceiptofasubstantiallycompleteapplication, 18
11971097 evaluateandmakeadeterminationoneachapplica-19
11981098 tionbasedonthecriteriaestablishedunderthisAct. 20
1199-(b) E
1200-VALUATION OFAPPLICATIONS.—A substantially 21
1099+(b)EVALUATIONOFAPPLICATIONS.—Asubstantially 21
12011100 completeapplicationreceivedundersubsection(a)shallbe 22
12021101 evaluatedbytheprimaryFederalpaymentstablecoinreg-23
12031102 ulatorusingthefactorsdescribedinsubsection(c). 24
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12051104 ssavage on LAPJG3WLY3PROD with BILLS 41
1206-•S 919 IS
1105+•S 919 RS
12071106 (c)FACTORSTOBECONSIDERED.—Thefactorsde-1
12081107 scribedinthissubsectionarethefollowing: 2
12091108 (1)Theabilityoftheapplicant(or,inthecase 3
12101109 ofanapplicantthatisaninsureddepositoryinstitu-4
12111110 tion,thesubsidiaryoftheapplicant),basedonfi-5
12121111 nancialconditionandresources,tomeettherequire-6
12131112 mentssetforthundersection4. 7
12141113 (2)Whetheranindividualwhohasbeencon-8
12151114 victedofafelonyoffenseinvolvinginsidertrading, 9
12161115 embezzlement,cybercrime,moneylaundering,fi-10
12171116 nancingofterrorism,orfinancialfraudisservingas 11
12181117 anofficerordirectoroftheapplicant. 12
12191118 (3)Anyotherfactorsestablishedbythepri-13
12201119 maryFederalpaymentstablecoinregulatorthatare 14
12211120 necessarytoensurethesafetyandsoundnessofthe 15
12221121 permittedpaymentstablecoinissuer. 16
1223-(d) T
1224-IMING FORDECISION; GROUNDS FOR DE-17
1122+(d)TIMINGFORDECISION;GROUNDS FORDE-17
12251123 NIAL.— 18
1226-(1) T
1227-IMING FOR DECISIONS ON APPLICA -19
1124+(1)TIMINGFORDECISIONS ONAPPLICA-19
12281125 TIONS.— 20
1229-(A) I
1230-N GENERAL.—Not later than 120 21
1126+(A)INGENERAL.—Notlaterthan120 21
12311127 daysafterreceivingasubstantiallycompleteap-22
12321128 plicationundersubsection(a),aprimaryFed-23
12331129 eralpaymentstablecoinregulatorshallrendera 24
12341130 decisionontheapplication. 25
1235-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1131+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
12361132 ssavage on LAPJG3WLY3PROD with BILLS 42
1237-•S 919 IS
1133+•S 919 RS
12381134 (B)SUBSTANTIALLY COMPLETE.— 1
1239-(i) I
1240-N GENERAL.—For purposes of 2
1135+(i)INGENERAL.—Forpurposesof 2
12411136 subparagraph(A),anapplicationshallbe 3
12421137 consideredsubstantiallycompleteiftheap-4
12431138 plicationcontainssufficientinformationfor 5
12441139 theprimaryFederalpaymentstablecoin 6
12451140 regulatortorenderadecisiononwhether 7
12461141 theapplicantsatisfiesthecriteriaunder 8
12471142 subsection(c). 9
1248-(ii) N
1249-OTIFICATION.—Not later than 10
1143+(ii)NOTIFICATION.—Notlaterthan 10
12501144 30daysafterreceivinganapplication 11
12511145 undersubsection(a),aprimaryFederal 12
12521146 paymentstablecoinregulatorshallnotify 13
12531147 theapplicantwhethertheprimaryFederal 14
12541148 paymentstablecoinregulatorconsidersthe 15
12551149 applicationtobesubstantiallycomplete 16
12561150 and,iftheapplicationisnotsubstantially 17
12571151 complete,theadditionalinformationthe 18
12581152 applicantmustprovideinorderfortheap-19
12591153 plicationtobeconsideredsubstantially 20
12601154 complete. 21
1261-(iii) M
1262-ATERIAL CHANGE IN CIR -22
1155+(iii)MATERIAL CHANGE INCIR-22
12631156 CUMSTANCES.—Anapplicationconsidered 23
12641157 substantiallycompleteunderthissubpara-24
12651158 graphremainssubstantiallycompleteun-25
1266-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1159+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
12671160 ssavage on LAPJG3WLY3PROD with BILLS 43
1268-•S 919 IS
1161+•S 919 RS
12691162 lessthereisamaterialchangeincir-1
12701163 cumstancesthatrequirestheprimaryFed-2
12711164 eralpaymentstablecoinregulatortotreat 3
12721165 theapplicationasanewapplication. 4
1273-(2) D
1274-ENIAL OF APPLICATION.— 5
1275-(A) G
1276-ROUNDS FOR DENIAL.— 6
1277-(i) I
1278-N GENERAL.—The primary Fed-7
1166+(2)DENIALOFAPPLICATION.— 5
1167+(A)GROUNDSFORDENIAL.— 6
1168+(i)INGENERAL.—TheprimaryFed-7
12791169 eralpaymentstablecoinregulatorshall 8
12801170 onlydenyacompleteapplicationreceived 9
12811171 undersubsection(a)iftheregulatordeter-10
12821172 minesthattheactivitiesoftheapplicant 11
12831173 wouldbeunsafeorunsoundbasedonthe 12
12841174 factorsdescribedinsubsection(c). 13
1285-(ii) I
1286-SSUANCE NOT GROUND FOR DE -14
1175+(ii)ISSUANCENOTGROUNDFORDE-14
12871176 NIAL.—Theissuanceofapayment 15
12881177 stablecoinonanopen,public,ordecentral-16
12891178 izednetworkshallnotbeavalidground 17
12901179 fordenialofanapplication. 18
1291-(B) E
1292-XPLANATION REQUIRED .—If the pri-19
1180+(B)EXPLANATION REQUIRED.—Ifthepri-19
12931181 maryFederalpaymentstablecoinregulatorde-20
12941182 niesacompleteapplicationreceivedundersub-21
12951183 section(a),notlaterthan30daysafterthe 22
12961184 dateofsuchdenial,theregulatorshallprovide 23
12971185 theapplicantwithwrittennoticeexplainingthe 24
12981186 denialwithspecificity,includingallfindings 25
1299-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1187+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
13001188 ssavage on LAPJG3WLY3PROD with BILLS 44
1301-•S 919 IS
1189+•S 919 RS
13021190 madebytheregulatorwithrespecttoallidenti-1
13031191 fiedmaterialshortcomingsintheapplication, 2
13041192 includingactionablerecommendationsonhow 3
13051193 theapplicantcouldaddresstheidentifiedmate-4
13061194 rialshortcomings. 5
1307-(C) O
1308-PPORTUNITY FOR HEARING ; FINAL 6
1195+(C)OPPORTUNITY FORHEARING;FINAL 6
13091196 DETERMINATION.— 7
1310-(i) I
1311-N GENERAL.—Not later than 30 8
1197+(i)INGENERAL.—Notlaterthan30 8
13121198 daysafterthedateofreceiptofanynotice 9
13131199 ofthedenialofanapplicationunderthis 10
13141200 section,theapplicantmayrequest,inwrit-11
13151201 ing,anopportunityforawrittenororal 12
13161202 hearingbeforetheprimaryFederalpay-13
13171203 mentstablecoinregulatortoappealthede-14
13181204 nial. 15
1319-(ii) T
1320-IMING.—Upon receipt of a timely 16
1205+(ii)TIMING.—Uponreceiptofatimely 16
13211206 request,theprimaryFederalpayment 17
13221207 stablecoinregulatorshallnoticeatime 18
13231208 (notlaterthan30daysafterthedateof 19
13241209 receiptoftherequest)andplaceatwhich 20
13251210 theapplicantmayappear,personallyor 21
13261211 throughcounsel,tosubmitwrittenmate-22
13271212 rialsorprovideoraltestimonyandoralar-23
1328-gument. 24
1329-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1213+gument). 24
1214+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
13301215 ssavage on LAPJG3WLY3PROD with BILLS 45
1331-•S 919 IS
1216+•S 919 RS
13321217 (iii)FINALDETERMINATION.—Not 1
13331218 laterthan60daysafterthedateofahear-2
13341219 ingunderthissubparagraph,theprimary 3
13351220 Federalpaymentstablecoinregulatorshall 4
13361221 notifytheapplicantofafinaldetermina-5
13371222 tion,whichshallcontainastatementofthe 6
13381223 basisforthatdetermination,withspecific 7
13391224 findings. 8
1340-(iv) N
1341-OTICE IF NO HEARING .—If an 9
1225+(iv)NOTICEIFNOHEARING.—Ifan 9
13421226 applicantdoesnotmakeatimelyrequest 10
13431227 forahearingunderthissubparagraph,the 11
13441228 primaryFederalpaymentstablecoinregu-12
13451229 latorshallnotifytheapplicant,notlater 13
13461230 than10daysafterthedatebywhichthe 14
13471231 applicantmayrequestahearingunderthis 15
13481232 subparagraph,inwriting,thatthedenial 16
13491233 oftheapplicationisafinaldetermination 17
13501234 oftheprimaryFederalpaymentstablecoin 18
13511235 regulator. 19
1352-(3) F
1353-AILURE TO RENDER A DECISION .—If the 20
1236+(3)FAILURETORENDERADECISION.—Ifthe 20
13541237 primaryFederalpaymentstablecoinregulatorfails 21
13551238 torenderadecisiononacompleteapplicationwithin 22
13561239 thetimeperiodspecifiedinparagraph(1),theappli-23
13571240 cationshallbedeemedapproved. 24
1358-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1241+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
13591242 ssavage on LAPJG3WLY3PROD with BILLS 46
1360-•S 919 IS
1243+•S 919 RS
13611244 (4)RIGHTTOREAPPLY.—Thedenialofanap-1
13621245 plicationunderthissectionshallnotprohibittheap-2
13631246 plicantfromfilingasubsequentapplication. 3
1364-(e) R
1365-EPORT ONPENDINGAPPLICATIONS.—The pri-4
1247+(e)REPORTONPENDINGAPPLICATIONS.—Thepri-4
13661248 maryFederalpaymentstablecoinregulatorsshallannually 5
13671249 reporttoCongressontheapplicationsundersubsection 6
13681250 (a)thathavebeenpendingfor180daysormoresince 7
13691251 thedatetheinitialapplicationwasfiledandforwhichthe 8
13701252 applicanthasbeeninformedthattheapplicationremains 9
13711253 incomplete,includingdocumentationonthestatusofsuch 10
13721254 applicationsandwhysuchapplicationshavenotyetbeen 11
13731255 approved. 12
1374-(f) R
1375-ULEMAKING.—Consistent with section 18, the 13
1256+(f)RULEMAKING.—Consistentwithsection18,the 13
13761257 primaryFederalpaymentstablecoinregulatorsshallrules 14
13771258 necessaryfortheregulationoftheissuanceofpayment 15
13781259 stablecoins,butmaynotimposerequirementsinaddition 16
13791260 totherequirementsspecifiedundersection4. 17
13801261 SEC.6.SUPERVISION ANDENFORCEMENT WITHRESPECT 18
13811262 TOSUBSIDIARIES OFINSURED DEPOSITORY 19
13821263 INSTITUTIONS AND COMPTROLLER-REGU-20
13831264 LATEDENTITIES. 21
1384-(a) S
1385-UPERVISION.— 22
1386-(1) I
1387-N GENERAL.—Each permitted payment 23
1265+(a)SUPERVISION.— 22
1266+(1)INGENERAL.—Eachpermittedpayment 23
13881267 stablecoinissuerthatisnotaStatequalifiedpay-24
13891268 mentstablecoinissuerwithapaymentstablecoin 25
1390-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1269+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
13911270 ssavage on LAPJG3WLY3PROD with BILLS 47
1392-•S 919 IS
1271+•S 919 RS
13931272 withaconsolidatedtotaloutstandingissuanceofless 1
13941273 than$10,000,000,000shallbesubjecttosupervision 2
13951274 bytheappropriateprimaryFederalpayment 3
13961275 stablecoinregulator. 4
1397-(2) S
1398-UBMISSION OF REPORTS .—Each permitted 5
1276+(2)SUBMISSIONOFREPORTS.—Eachpermitted 5
13991277 paymentstablecoinissuerdescribedinparagraph(1) 6
14001278 shall,uponrequest,submittoitsprimaryFederal 7
14011279 paymentstablecoinregulatorareporton— 8
14021280 (A)thefinancialconditionofthepermitted 9
14031281 paymentstablecoinissuer; 10
14041282 (B)thesystemsofthepermittedpayment 11
14051283 stablecoinissuerformonitoringandcontrolling 12
14061284 financialandoperatingrisks;and 13
14071285 (C)compliancebythepermittedpayment 14
14081286 stablecoinissuer(andanysubsidiarythereof) 15
14091287 withthisAct. 16
1410-(3) E
1411-XAMINATIONS.—The primary Federal pay-17
1288+(3)EXAMINATIONS.—TheprimaryFederalpay-17
14121289 mentstablecoinregulatorshallexamineapermitted 18
14131290 paymentstablecoinissuerdescribedinparagraph(1) 19
14141291 inordertoassess— 20
14151292 (A)thenatureoftheoperationsandfinan-21
14161293 cialconditionofthepermittedpayment 22
14171294 stablecoinissuer; 23
14181295 (B)thefinancial,operational,techno-24
14191296 logical,andotherriskswithinthepermitted 25
1420-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1297+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
14211298 ssavage on LAPJG3WLY3PROD with BILLS 48
1422-•S 919 IS
1299+•S 919 RS
14231300 paymentstablecoinissuerthatmayposea 1
14241301 threatto— 2
14251302 (i)thesafetyandsoundnessofthe 3
14261303 permittedpaymentstablecoinissuer;or 4
14271304 (ii)thestabilityofthefinancialsys-5
14281305 temoftheUnitedStates;and 6
14291306 (C)thesystemsofthepermittedpayment 7
14301307 stablecoinissuerformonitoringandcontrolling 8
14311308 therisksdescribedinsubparagraph(B). 9
1432-(4) R
1433-EQUIREMENTS FOR EFFICIENCY .— 10
1434-(A) U
1435-SE OF EXISTING REPORTS .—In su-11
1309+(4)REQUIREMENTS FOREFFICIENCY.— 10
1310+(A)USEOFEXISTINGREPORTS.—Insu-11
14361311 pervisingandexaminingapermittedpayment 12
14371312 stablecoinissuerunderthissubsection,thepri-13
14381313 maryFederalpaymentstablecoinregulator 14
14391314 shall,tothefullestextentpossible,useexisting 15
14401315 reportsandothersupervisoryinformation. 16
1441-(B) A
1442-VOIDANCE OF DUPLICATION .—A pri-17
1316+(B)AVOIDANCEOFDUPLICATION.—Apri-17
14431317 maryFederalpaymentstablecoinregulator 18
14441318 shall,tothefullestextentpossible,avoiddupli-19
14451319 cationofexaminationactivities,reportingre-20
14461320 quirements,andrequestsforinformationin 21
14471321 carryingoutthissubsectionwithrespecttoa 22
14481322 permittedpaymentstablecoinissuer. 23
1449-(C) C
1450-ONSIDERATION OF BURDEN .—A pri-24
1323+(C)CONSIDERATION OFBURDEN.—Apri-24
14511324 maryFederalpaymentstablecoinregulator 25
1452-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1325+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
14531326 ssavage on LAPJG3WLY3PROD with BILLS 49
1454-•S 919 IS
1327+•S 919 RS
14551328 shall,withrespecttoanyexaminationorre-1
14561329 questforthesubmissionofareportunderthis 2
14571330 subsection,onlyrequestexaminationsandre-3
14581331 portsatacadenceandinaformatthatissimi-4
14591332 lartothoserequiredforsimilarlysituatedenti-5
14601333 tiesregulatedbytheprimaryFederalpayment 6
14611334 stablecoinregulator. 7
1462-(b) E
1463-NFORCEMENT.— 8
1464-(1) S
1465-USPENSION OR REVOCATION OF REGISTRA -9
1335+(b)ENFORCEMENT.— 8
1336+(1)SUSPENSIONORREVOCATIONOFREGISTRA-9
14661337 TION.—TheprimaryFederalpaymentstablecoin 10
14671338 regulatorofapermittedpaymentstablecoinissuer 11
14681339 thatisnotaStatequalifiedpaymentstablecoin 12
14691340 issuermayprohibitthepermittedpayment 13
14701341 stablecoinissuerfromissuingpaymentstablecoins,if 14
14711342 theprimaryFederalpaymentstablecoinregulator 15
14721343 determinesthatsuchpermittedpaymentstablecoin 16
14731344 issuer,oraninstitution-affiliatedpartyoftheper-17
14741345 mittedpaymentstablecoinissuer— 18
14751346 (A)isrecklesslyviolatingorhasrecklessly 19
14761347 violatedthisActoranyregulationororder 20
14771348 issuedunderthisAct;or 21
14781349 (B)isrecklesslyviolatingorhasrecklessly 22
14791350 violatedanyconditionimposedinwritingbythe 23
14801351 primaryFederalpaymentstablecoinregulator 24
14811352 inconnectionwithawrittenagreemententered 25
1482-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1353+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
14831354 ssavage on LAPJG3WLY3PROD with BILLS 50
1484-•S 919 IS
1355+•S 919 RS
14851356 intobetweenthepermittedpaymentstablecoin 1
14861357 issuerandtheprimaryFederalpayment 2
14871358 stablecoinregulator. 3
1488-(2) C
1489-EASE AND DESIST PROCEEDINGS .—If the 4
1359+(2)CEASE-AND-DESISTPROCEEDINGS.—Ifthe 4
14901360 primaryFederalpaymentstablecoinregulatorofa 5
14911361 permittedpaymentstablecoinissuerthatisnota 6
14921362 Statequalifiedpaymentstablecoinissuerhasreason-7
14931363 ablecausetobelievethatthepermittedpayment 8
14941364 stablecoinissueroranyinstitution-affiliatedpartyof 9
14951365 thepermittedpaymentstablecoinissuerisviolating, 10
14961366 hasviolated,orisattemptingtoviolatethisAct,any 11
14971367 regulationororderissuedunderthisAct,orany 12
14981368 writtenagreemententeredintowiththeprimary 13
14991369 Federalpaymentstablecoinregulatororcondition 14
15001370 imposedinwritingbytheprimaryFederalpayment 15
15011371 stablecoinregulatorinconnectionwithanyapplica-16
15021372 tionorotherrequest,theprimaryFederalpayment 17
15031373 stablecoinregulatormay,byprovisionsthatare 18
15041374 mandatoryorotherwise,orderthepermittedpay-19
15051375 mentstablecoinissuerorinstitution-affiliatedparty 20
15061376 ofthepermittedpaymentstablecoinissuerto— 21
15071377 (A)ceaseanddesistfromsuchviolationor 22
15081378 practice;or 23
1509-VerDate Sep 11 2014 23:37 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1379+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
15101380 ssavage on LAPJG3WLY3PROD with BILLS 51
1511-•S 919 IS
1381+•S 919 RS
15121382 (B)takeaffirmativeactiontocorrectthe 1
15131383 conditionsresultingfromanysuchviolationor 2
15141384 practice. 3
1515-(3) R
1516-EMOVAL AND PROHIBITION AUTHORITY .— 4
1385+(3)REMOVALANDPROHIBITIONAUTHORITY.— 4
15171386 TheprimaryFederalpaymentstablecoinregulator 5
15181387 ofapermittedpaymentstablecoinissuerthatisnot 6
15191388 aStatequalifiedpaymentstablecoinissuermayre-7
15201389 moveaninstitution-affiliatedpartyofthepermitted 8
15211390 paymentstablecoinissuerfromtheirpositionorof-9
15221391 ficeorprohibitfurtherparticipationintheaffairsof 10
15231392 thepermittedpaymentstablecoinissuerorallsuch 11
15241393 permittedpaymentstablecoinissuersbysuchinsti-12
15251394 tution-affiliatedparty,iftheprimaryFederalpay-13
15261395 mentstablecoinregulatordeterminesthat— 14
15271396 (A)theinstitution-affiliatedpartyhas 15
15281397 knowinglycommittedaviolationorattempted 16
15291398 violationofthisActoranyregulationororder 17
15301399 issuedunderthisAct;or 18
15311400 (B)theinstitution-affiliatedpartyhas 19
15321401 knowinglycommittedaviolationofanyprovi-20
15331402 sionofsubchapterIIofchapter53oftitle31, 21
15341403 UnitedStatesCode. 22
1535-(4) P
1536-ROCEDURES.— 23
1537-(A) I
1538-N GENERAL.—If a primary Federal 24
1404+(4)PROCEDURES.— 23
1405+(A)INGENERAL.—IfaprimaryFederal 24
15391406 paymentstablecoinregulatoridentifiesaviola-25
1540-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1407+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
15411408 ssavage on LAPJG3WLY3PROD with BILLS 52
1542-•S 919 IS
1409+•S 919 RS
15431410 tionorattemptedviolationofthisActormakes 1
15441411 adeterminationunderparagraph(1),(2),or 2
15451412 (3),theprimaryFederalpaymentstablecoin 3
15461413 regulatorshallcomplywiththeproceduresset 4
15471414 forthinsubsections(b)and(e)ofsections8of 5
15481415 theFederalDepositInsuranceAct(12U.S.C. 6
15491416 1818). 7
1550-(B) J
1551-UDICIAL REVIEW.—A person ag-8
1417+(B)JUDICIALREVIEW.—Apersonag-8
15521418 grievedbyafinalactionunderthissubsection 9
15531419 mayobtainjudicialreviewofsuchactionexclu-10
15541420 sivelyasprovidedinsection8(h)oftheFederal 11
15551421 DepositInsuranceAct(12U.S.C.1818(h)). 12
1556-(C) I
1557-NJUNCTION.—The primary Federal 13
1422+(C)INJUNCTION.—TheprimaryFederal 13
15581423 paymentstablecoinregulatormay,inthedis-14
15591424 cretionoftheregulator,followtheprocedures 15
15601425 providedinsection8(i)(1)oftheFederalDe-16
15611426 positInsuranceAct(12U.S.C.1818(i)(1))for 17
15621427 judicialenforcementofanyeffectiveandout-18
15631428 standingnoticeororderissuedunderthissub-19
15641429 section. 20
1565-(D) T
1566-EMPORARY CEASE AND DESIST PRO -21
1430+(D)TEMPORARY CEASE-AND-DESISTPRO-21
15671431 CEEDINGS.—IftheprimaryFederalpayment 22
15681432 stablecoinregulatordeterminesthataviolation 23
15691433 orattemptedviolationofthisActoranaction 24
15701434 withrespecttowhichadeterminationwasmade 25
1571-VerDate Sep 11 2014 23:37 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1435+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
15721436 ssavage on LAPJG3WLY3PROD with BILLS 53
1573-•S 919 IS
1437+•S 919 RS
15741438 underparagraph(1),(2),or(3),orthecon-1
15751439 tinuationthereof,islikelytocauseinsolvencyor 2
15761440 significantdissipationofassetsorearningsofa 3
15771441 permittedpaymentstablecoinissuer,orislikely 4
15781442 toweakentheconditionofthepermittedpay-5
15791443 mentstablecoinissuerorotherwiseprejudice 6
15801444 theinterestsofthecustomersofthepermitted 7
15811445 paymentstablecoinissuerpriortothecomple-8
15821446 tionoftheproceedingsconductedunderthis 9
15831447 paragraph,theprimaryFederalpayment 10
15841448 stablecoinregulatormayfollowtheprocedures 11
15851449 providedinsection8(c)oftheFederalDeposit 12
15861450 InsuranceAct(12U.S.C.1818(c))toissuea 13
1587-temporary cease and desist order. 14
1588-(5) C
1589-IVIL MONEY PENALTIES.— 15
1590-(A) F
1591-AILURE TO BE APPROVED .—Any per-16
1451+temporarycease-and-desistorder. 14
1452+(5)CIVILMONEYPENALTIES.— 15
1453+(A)FAILURETOBEAPPROVED.—Anyper-16
15921454 sonwhoissuesaUnitedStatesdollar-denomi-17
15931455 natedpaymentstablecoininviolationofsection 18
15941456 3,andanyinstitution-affiliatedpartyofsucha 19
15951457 personwhoknowinglyparticipatesinissuing 20
15961458 suchapaymentstablecoin,shallbeliablefora 21
15971459 civilpenaltyofnotmorethan$100,000for 22
15981460 eachdayduringwhichsuchpayment 23
15991461 stablecoinsareissued. 24
1600-VerDate Sep 11 2014 23:37 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1462+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
16011463 ssavage on LAPJG3WLY3PROD with BILLS 54
1602-•S 919 IS
1464+•S 919 RS
16031465 (B)FIRSTTIER.—Exceptasprovidedin 1
16041466 subparagraph(A),apermittedpayment 2
16051467 stablecoinissuerorinstitution-affiliatedparty 3
16061468 ofsuchpermittedpaymentstablecoinissuer 4
16071469 thatmateriallyviolatesthisActoranyregula-5
16081470 tionororderissuedunderthisAct,orthatma-6
16091471 teriallyviolatesanyconditionimposedinwrit-7
16101472 ingbytheprimaryFederalpaymentstablecoin 8
16111473 regulatorinconnectionwithawrittenagree-9
16121474 mententeredintobetweenthepermittedpay-10
16131475 mentstablecoinissuerandtheprimaryFederal 11
16141476 paymentstablecoinregulator,shallbeliablefor 12
16151477 acivilpenaltyofupto$100,000foreachday 13
16161478 duringwhichtheviolationcontinues. 14
1617-(C) S
1618-ECOND TIER.—Except as provided in 15
1479+(C)SECONDTIER.—Exceptasprovidedin 15
16191480 subparagraph(A),andinadditiontothepen-16
16201481 altiesdescribedundersubparagraph(B),aper-17
16211482 mittedpaymentstablecoinissuerorinstitution- 18
16221483 affiliatedpartyofsuchpermittedpayment 19
16231484 stablecoinissuerwhoknowinglyparticipatesin 20
16241485 aviolationofanyprovisionofthisAct,orany 21
16251486 regulationororderissuedthereunder,isliable 22
16261487 foracivilpenaltyofuptoanadditional 23
16271488 $100,000foreachdayduringwhichtheviola-24
16281489 tioncontinues. 25
1629-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1490+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
16301491 ssavage on LAPJG3WLY3PROD with BILLS 55
1631-•S 919 IS
1492+•S 919 RS
16321493 (D)PROCEDURE.—Anypenaltyimposed 1
16331494 underthisparagraphmaybeassessedandcol-2
16341495 lectedbytheprimaryFederalpayment 3
16351496 stablecoinregulatorpursuanttotheprocedures 4
16361497 setforthinsection8(i)(2)oftheFederalDe-5
16371498 positInsuranceAct(12U.S.C.1818(i)(2)). 6
1638-(E) N
1639-OTICE AND ORDERS AFTER SEPARA -7
1499+(E)NOTICEANDORDERSAFTERSEPARA-7
16401500 TIONFROMSERVICE.—Theresignation,termi-8
16411501 nationofemploymentorparticipation,orsepa-9
16421502 rationofaninstitution-affiliatedparty(includ-10
16431503 ingaseparationcausedbytheclosingofaper-11
16441504 mittedpaymentstablecoinissuer)shallnotaf-12
16451505 fectthejurisdictionandauthorityofthepri-13
16461506 maryFederalpaymentstablecoinregulatorto 14
16471507 issueanynoticeororderandproceedunder 15
16481508 thissubsectionagainstanysuchparty,ifsuch 16
16491509 noticeororderisservedbeforetheendofthe 17
16501510 6-yearperiodbeginningonthedatesuchparty 18
16511511 ceasedtobeaninstitution-affiliatedpartywith 19
16521512 respecttosuchpermittedpaymentstablecoin 20
16531513 issuer. 21
1654-(6) N
1655-ON-APPLICABILITY TO A STATE QUALI -22
1514+(6)NON-APPLICABILITY TOASTATEQUALI-22
16561515 FIEDPAYMENT STABLECOIN ISSUER.—Notwith-23
16571516 standinganythinginthissubsectiontothecontrary, 24
1658-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1517+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
16591518 ssavage on LAPJG3WLY3PROD with BILLS 56
1660-•S 919 IS
1519+•S 919 RS
16611520 thissubsectionshallnotapplytoaStatequalified 1
16621521 paymentstablecoinissuer. 2
16631522 SEC.7.STATEQUALIFIED PAYMENT STABLECOIN ISSUERS. 3
1664-(a) I
1665-NGENERAL.—A State payment stablecoin regu-4
1523+(a)INGENERAL.—AStatepaymentstablecoinregu-4
16661524 latorshallhavesupervisory,examination,andenforcement 5
16671525 authorityoverallStatequalifiedpaymentstablecoin 6
16681526 issuersofsuchState. 7
1669-(b) A
1670-UTHORITYTOENTERINTOAGREEMENTS 8
1671-W
1672-ITH THEBOARD.—A State payment stablecoin regu-9
1527+(b)AUTHORITYTOENTERINTOAGREEMENTS 8
1528+WITHTHEBOARD.—AStatepaymentstablecoinregu-9
16731529 latormayenterintoamemorandumofunderstanding 10
16741530 withtheBoard,bymutualagreement,underwhichthe 11
16751531 Boardmayparticipateinthesupervision,examination, 12
16761532 andenforcementofthisActwithrespecttotheState 13
16771533 qualifiedpaymentstablecoinissuersofsuchState. 14
1678-(c) S
1679-HARING OFINFORMATION.—A State payment 15
1534+(c)SHARINGOFINFORMATION.—AStatepayment 15
16801535 stablecoinregulatorandtheBoardshallshareinformation 16
16811536 onanongoingbasiswithrespecttoaStatequalifiedpay-17
16821537 mentstablecoinissuerofsuchState,includingacopyof 18
16831538 theinitialapplicationandanyaccompanyingdocuments. 19
1684-(d) R
1685-ULEMAKING.—A State payment stablecoin regu-20
1539+(d)RULEMAKING.—AStatepaymentstablecoinregu-20
16861540 latormayissueordersandrulesundersection4applicable 21
16871541 toStatequalifiedpaymentstablecoinissuerstothesame 22
16881542 extentastheprimaryFederalpaymentstablecoinregu-23
16891543 latorsissueordersandrulesundersection4applicable 24
1690-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1544+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
16911545 ssavage on LAPJG3WLY3PROD with BILLS 57
1692-•S 919 IS
1693-to permitted payment stablecoin issuers that are not State 1
1694-qualified payment stablecoin issuers. 2
1695-(e) E
1696-NFORCEMENT AUTHORITY INUNUSUAL AND 3
1697-E
1698-XIGENTCIRCUMSTANCES.— 4
1699-(1) B
1700-OARD.— 5
1701-(A) I
1702-N GENERAL.—Subject to subpara-6
1546+•S 919 RS
1547+topermittedpaymentstablecoinissuersthatarenota 1
1548+Statequalifiedpaymentstablecoinissuers. 2
1549+(e)ENFORCEMENT AUTHORITY INUNUSUALAND 3
1550+EXIGENTCIRCUMSTANCES.— 4
1551+(1)BOARD.— 5
1552+(A)INGENERAL.—Subjecttosubpara-6
17031553 graph(C),underunusualandexigentcir-7
17041554 cumstancesthattheBoarddeterminestoexist, 8
17051555 theBoardmay,afternotlessthan48hours 9
17061556 priorwrittennoticetotheapplicableStatepay-10
17071557 mentstablecoinregulator,takeanenforcement 11
17081558 actionagainstaStatequalifiedpayment 12
17091559 stablecoinissueroraninstitution-affiliated 13
17101560 partyofsuchissuerforviolationsofthisAct 14
17111561 duringsuchunusualandexigentcircumstances. 15
1712-(B) R
1713-ULEMAKING.—Consistent with sec-16
1562+(B)RULEMAKING.—Consistentwithsec-16
17141563 tion18,theBoardshallissuerulestosetforth 17
17151564 theunusualandexigentcircumstancesinwhich 18
17161565 theBoardmayactunderthisparagraph. 19
1717-(C) L
1718-IMITATIONS.—If, after unusual and 20
1566+(C)LIMITATIONS.—If,afterunusualand 20
17191567 exigentcircumstancesaredeterminedtoexist 21
17201568 pursuanttosubparagraph(A),theBoarddeter-22
17211569 minesthatthereisreasonablecausetobelieve 23
17221570 thatthecontinuationbyaStatequalifiedpay-24
17231571 mentstablecoinissuerofanyactivitycon-25
1724-VerDate Sep 11 2014 23:37 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1572+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
17251573 ssavage on LAPJG3WLY3PROD with BILLS 58
1726-•S 919 IS
1574+•S 919 RS
17271575 stitutesaseriousrisktothefinancialsafety, 1
17281576 soundness,orstabilityoftheStatequalified 2
17291577 paymentstablecoinissuer,theBoardmayim-3
17301578 posesuchrestrictionsastheBoarddetermines 4
17311579 tobenecessarytoaddresssuchriskduring 5
17321580 suchusualandexigentcircumstances.Suchre-6
17331581 strictionsshallbeissuedintheformofadirec-7
17341582 tive,withtheeffectofaceaseanddesistorder 8
17351583 thathasbecomefinal,totheStatequalified 9
17361584 paymentstablecoinissuerandanyofitsaffili-10
17371585 ates,limiting— 11
17381586 (i)thepaymentofdividendsbythe 12
17391587 Statequalifiedpaymentstablecoinissuer; 13
17401588 (ii)transactionsbetweentheState 14
17411589 qualifiedpaymentstablecoinissuer,ahold-15
17421590 ingcompany,andthesubsidiariesoraffili-16
17431591 atesofeithertheStatequalifiedpayment 17
17441592 stablecoinissuerortheholdingcompany; 18
17451593 and 19
17461594 (iii)anyactivitiesoftheStatequali-20
17471595 fiedpaymentstablecoinissuerthatmight 21
17481596 createaseriousriskthattheliabilitiesof 22
17491597 aholdingcompanyandtheaffiliatesofthe 23
17501598 holdingcompanymaybeimposedonthe 24
17511599 Statequalifiedpaymentstablecoinissuer. 25
1752-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1600+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
17531601 ssavage on LAPJG3WLY3PROD with BILLS 59
1754-•S 919 IS
1602+•S 919 RS
17551603 (D)REVIEWOFDIRECTIVE.— 1
1756-(i) A
1757-DMINISTRATIVE REVIEW.— 2
1758-(I) I
1759-N GENERAL.—After a direc-3
1604+(i)ADMINISTRATIVEREVIEW.— 2
1605+(I)INGENERAL.—Afteradirec-3
17601606 tivedescribedinsubparagraph(C)is 4
17611607 issued,theStatequalifiedpayment 5
17621608 stablecoinissuer,oranyinstitution-af-6
17631609 filiatedpartyoftheStatequalified 7
17641610 paymentstablecoinissuersubjectto 8
17651611 thedirective,mayobjectandpresent 9
17661612 totheBoard,inwriting,thereasons 10
17671613 whythedirectiveshouldbemodified 11
17681614 orrescinded. 12
1769-(II) A
1770-UTOMATIC LAPSE OF DI -13
1615+(II)AUTOMATIC LAPSEOFDI-13
17711616 RECTIVE.—If,after10daysafterthe 14
17721617 receiptofaresponsedescribedinsub-15
17731618 clause(I),theBoarddoesnotaffirm, 16
17741619 modify,orrescindthedirective,the 17
17751620 directiveshallautomaticallylapse. 18
1776-(ii) J
1777-UDICIAL REVIEW.— 19
1778-(I) I
1779-N GENERAL.—If the Board 20
1621+(ii)JUDICIALREVIEW.— 19
1622+(I)INGENERAL.—IftheBoard 20
17801623 affirmsormodifiesadirectivepursu-21
17811624 anttoclause(i),anyaffectedparty 22
17821625 mayimmediatelythereafterpetition 23
17831626 theUnitedStatesdistrictcourtfor 24
17841627 thedistrictinwhichthemainofficeof 25
1785-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1628+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
17861629 ssavage on LAPJG3WLY3PROD with BILLS 60
1787-•S 919 IS
1630+•S 919 RS
17881631 theaffectedpartyislocatedorinthe 1
17891632 UnitedStatesDistrictCourtforthe 2
17901633 DistrictofColumbiatostay,modify, 3
17911634 terminate,orsetasidethedirective. 4
1792-(II) R
1793-ELIEF FOR EXTRAOR -5
1635+(II)RELIEF FOR EXTRAOR-5
17941636 DINARYCAUSE.—Uponashowingof 6
17951637 extraordinarycause,anaffectedparty 7
17961638 maypetitionforreliefundersubclause 8
17971639 (I)withoutfirstpursuingorexhaust-9
17981640 ingtheadministrativeremediesunder 10
17991641 clause(i). 11
1800-(2) C
1801-OMPTROLLER.— 12
1802-(A) I
1803-N GENERAL.—Subject to subpara-13
1642+(2)COMPTROLLER.— 12
1643+(A)INGENERAL.—Subjecttosubpara-13
18041644 graph(C),underunusualandexigentcir-14
18051645 cumstancesdeterminedtoexistbytheComp-15
18061646 troller,theComptrollershall,afternotless 16
18071647 than48hourspriorwrittennoticetotheappli-17
18081648 cableStatepaymentstablecoinregulator,take 18
18091649 anenforcementactionagainstaStatequalified 19
18101650 paymentstablecoinissuerthatisanonbanken-20
18111651 tityforviolationsofthisAct. 21
1812-(B) R
1813-ULEMAKING.—Consistent with sec-22
1652+(B)RULEMAKING.—Consistentwithsec-22
18141653 tion18,theComptrollershallissuerulestoset 23
18151654 forththeunusualandexigentcircumstancesin 24
1816-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1655+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
18171656 ssavage on LAPJG3WLY3PROD with BILLS 61
1818-•S 919 IS
1657+•S 919 RS
18191658 whichtheComptrollermayactunderthispara-1
18201659 graph. 2
1821-(C) L
1822-IMITATIONS.—If, after unusual and 3
1660+(C)LIMITATIONS.—If,afterunusualand 3
18231661 exigentcircumstancesaredeterminedtoexist 4
18241662 undersubparagraph(A),theComptrollerdeter-5
18251663 minesthatthereisreasonablecausetobelieve 6
18261664 thatthecontinuationbyaStatequalifiedpay-7
18271665 mentstablecoinissuerthatisanonbankentity 8
18281666 ofanyactivityconstitutesaseriousrisktothe 9
18291667 financialsafety,soundness,orstabilityofthe 10
18301668 Statequalifiedpaymentstablecoinissuerthatis 11
18311669 anonbankentity,theComptrollershallimpose 12
18321670 suchrestrictionsastheComptrollerdetermines 13
18331671 tobenecessarytoaddresssuchriskduring 14
18341672 suchunusualandexigentcircumstances.Such 15
18351673 restrictionsshallbeissuedintheformofadi-16
18361674 rective,withtheeffectofaceaseanddesist 17
18371675 orderthathasbecomefinal,totheStatequali-18
18381676 fiedpaymentstablecoinissuerthatisa 19
18391677 nonbankentityandanyofitsaffiliates,lim-20
18401678 iting— 21
18411679 (i)thepaymentofdividendsbythe 22
18421680 Statequalifiedpaymentstablecoinissuer; 23
18431681 (ii)transactionsbetweentheState 24
18441682 qualifiedpaymentstablecoinissuer,ahold-25
1845-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1683+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
18461684 ssavage on LAPJG3WLY3PROD with BILLS 62
1847-•S 919 IS
1685+•S 919 RS
18481686 ingcompany,andthesubsidiariesoraffili-1
18491687 atesofeithertheStatequalifiedpayment 2
18501688 stablecoinissuerortheholdingcompany; 3
18511689 and 4
18521690 (iii)anyactivitiesoftheStatequali-5
18531691 fiedpaymentstablecoinissuerthatmight 6
18541692 createaseriousriskthattheliabilitiesof 7
18551693 aholdingcompanyandtheaffiliatesofthe 8
18561694 holdingcompanymaybeimposedonthe 9
18571695 Statequalifiedpaymentstablecoinissuer. 10
1858-(D) R
1859-EVIEW OF DIRECTIVE.— 11
1860-(i) A
1861-DMINISTRATIVE REVIEW.— 12
1862-(I) I
1863-N GENERAL.—After a direc-13
1696+(D)REVIEWOFDIRECTIVE.— 11
1697+(i)ADMINISTRATIVEREVIEW.— 12
1698+(I)INGENERAL.—Afteradirec-13
18641699 tivedescribedinsubparagraph(C)is 14
18651700 issued,theComptroller-regulatedenti-15
18661701 ty,oranyinstitution-affiliatedparty 16
18671702 oftheComptroller-regulatedentity 17
18681703 subjecttothedirective,mayobject 18
18691704 andpresenttotheComptroller,in 19
18701705 writing,thereasonswhythedirective 20
18711706 shouldbemodifiedorrescinded. 21
1872-(II) A
1873-UTOMATIC LAPSE OF DI -22
1707+(II)AUTOMATIC LAPSEOFDI-22
18741708 RECTIVE.—If,after10daysafterthe 23
18751709 receiptofaresponsedescribedinsub-24
18761710 clause(I),theComptrollerdoesnot 25
1877-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1711+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
18781712 ssavage on LAPJG3WLY3PROD with BILLS 63
1879-•S 919 IS
1713+•S 919 RS
18801714 affirm,modify,orrescindthedirec-1
18811715 tive,thedirectiveshallautomatically 2
18821716 lapse. 3
1883-(ii) J
1884-UDICIAL REVIEW.— 4
1885-(I) I
1886-N GENERAL.—If the Comp-5
1717+(ii)JUDICIALREVIEW.— 4
1718+(I)INGENERAL.—IftheComp-5
18871719 trolleraffirmsormodifiesadirective 6
18881720 pursuanttoclause(i),anyaffected 7
18891721 partymayimmediatelythereafterpe-8
18901722 titiontheUnitedStatesdistrictcourt 9
18911723 forthedistrictinwhichthemainof-10
18921724 ficeoftheaffectedpartyislocatedor 11
18931725 intheUnitedStatesDistrictCourt 12
18941726 fortheDistrictofColumbiatostay, 13
18951727 modify,terminate,orsetasidethedi-14
18961728 rective. 15
1897-(II) R
1898-ELIEF FOR EXTRAOR -16
1729+(II)RELIEF FOR EXTRAOR-16
18991730 DINARYCAUSE.—Uponashowingof 17
19001731 extraordinarycause,anaffectedparty 18
19011732 maypetitionforreliefundersubclause 19
19021733 (I)withoutfirstpursuingorexhaust-20
19031734 ingtheadministrativeremediesunder 21
19041735 clause(i). 22
1905-(f) E
1906-FFECT ONSTATELAW.— 23
1907-(1) H
1908-OST STATE LAW.—The laws of a host 24
1736+(f)EFFECTONSTATELAW.— 23
1737+(1)HOSTSTATELAW.—Thelawsofahost 24
19091738 State,includinggenerallyapplicablelawsrelatingto 25
1910-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1739+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
19111740 ssavage on LAPJG3WLY3PROD with BILLS 64
1912-•S 919 IS
1741+•S 919 RS
19131742 consumerprotection,shallonlyapplytotheactivi-1
19141743 tiesconductedinthehostStatebyanout-of-State 2
19151744 Statequalifiedpaymentstablecoinissuertothe 3
19161745 sameextentassuchlawsapplytotheactivitiescon-4
19171746 ductedinthehostStatebyanout-of-StateFederal 5
19181747 qualifiednonbankpaymentstablecoinissuer. 6
1919-(2) H
1920-OME STATE LAW.—If any host State law 7
1748+(2)HOMESTATELAW.—IfanyhostStatelaw 7
19211749 isdeterminednottoapplyunderparagraph(1),the 8
19221750 lawsofthehomeStateoftheStatequalifiedpay-9
19231751 mentstablecoinissuershallgoverntheactivitiesof 10
19241752 thepermittedpaymentstablecoinissuerconducted 11
19251753 inthehostState. 12
1926-(3) A
1927-PPLICABILITY.—The laws applicable under 13
1754+(3)APPLICABILITY.—Thelawsapplicableunder 13
19281755 paragraph(1)excludehostStatelawsgoverningthe 14
19291756 chartering,licensure,orotherauthorizationtodo 15
19301757 businessinthehostStateasapermittedpayment 16
19311758 stablecoinissuerpursuanttothisAct. 17
19321759 SEC.8.ANTI-MONEY LAUNDERING PROTECTIONS. 18
1933-(a) D
1934-EFINITIONS.—In this subsection: 19
1935-(1) D
1936-IGITAL ASSET SERVICE PROVIDER .—The 20
1760+(a)DEFINITIONS.—Inthissubsection: 19
1761+(1)DIGITALASSETSERVICEPROVIDER.—The 20
19371762 term‘‘digitalassetserviceprovider’’— 21
19381763 (A)meansapersonthat,forcompensation 22
19391764 orprofit,engagesinthebusinessintheUnited 23
19401765 StatesorforcustomersorusersintheUnited 24
19411766 States,of— 25
1942-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1767+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
19431768 ssavage on LAPJG3WLY3PROD with BILLS 65
1944-•S 919 IS
1769+•S 919 RS
19451770 (i)exchangingdigitalassetsformone-1
19461771 taryvalue; 2
19471772 (ii)exchangingdigitalassetsforother 3
19481773 digitalassets; 4
19491774 (iii)transferringdigitalassetstoa 5
19501775 thirdparty; 6
19511776 (iv)actingasadigitalassetcusto-7
19521777 dian;or 8
19531778 (v)participatinginfinancialservices 9
19541779 relatedtoadigitalassetissuance;and 10
19551780 (B)doesnotinclude— 11
19561781 (i)adistributedledgerprotocolora 12
19571782 personsolelydevelopingsuchaprotocol;or 13
19581783 (ii)apersonsolelyvalidatingtrans-14
19591784 actionsoroperatingadistributedledger 15
19601785 node. 16
1961-(2) O
1962-FFERING.—The term ‘‘offering’’ means 17
1786+(2)OFFERING.—Theterm‘‘offering’’means 17
19631787 makingavailableforpurchase,sale,orexchange. 18
1964-(3) D
1965-ISTRIBUTED LEDGER PROTOCOL .—The 19
1788+(3)DISTRIBUTED LEDGER PROTOCOL.—The 19
19661789 term‘‘distributedledgerprotocol’’meanspublicly 20
19671790 availableandaccessibleexecutablesoftwaredeployed 21
19681791 toadistributedledger,includingsmartcontractsor 22
19691792 networksofsmartcontracts. 23
1970-(4) L
1971-AWFUL ORDER.—The term ‘‘lawful order’’ 24
1793+(4)LAWFULORDER.—Theterm‘‘lawfulorder’’ 24
19721794 meansanyfinalandvalidwrit,process,order,rule, 25
1973-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1795+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
19741796 ssavage on LAPJG3WLY3PROD with BILLS 66
1975-•S 919 IS
1797+•S 919 RS
19761798 decree,command,orotherrequirementissuedor 1
19771799 promulgatedunderFederallaw,issuedbyacourtof 2
19781800 competentjurisdictionorbyanauthorizedFederal 3
19791801 agencypursuanttoitsstatutoryauthority,that— 4
19801802 (A)requiresapermittedpayment 5
19811803 stablecoinissuertoseize,freeze,burn,orpre-6
19821804 ventthetransferofpaymentstablecoinsissued 7
19831805 bythepermittedpaymentstablecoinissuer; 8
19841806 (B)specifiesthedigitalassetsoraccounts 9
19851807 subjecttoblockingwithreasonableparticu-10
19861808 larity;and 11
19871809 (C)issubjecttojudicialoradministrative 12
19881810 revieworappealasprovidedbylaw. 13
1989-(b) T
1990-REASURYAUTHORITYTODESIGNATENON-14
1811+(b)TREASURYAUTHORITY TODESIGNATENON-14
19911812 COMPLIANTISSUERS.—Notlaterthan30daysafterthe 15
19921813 DepartmentoftheTreasuryhasidentifiedthefailureof 16
19931814 aforeignissuerofanypaymentstablecoinstradinginthe 17
19941815 UnitedStatesthatisnotapermittedpaymentstablecoin 18
19951816 issuertocomplywiththetermsofanylawfulorder,the 19
19961817 SecretaryoftheTreasury,incoordinationwithrelevant 20
19971818 Federalagencies,shalldesignatetheforeignissuerasnon-21
19981819 compliantandnotifytheforeignissuerinwritingofthe 22
19991820 designation. 23
2000-(c) P
2001-UBLICATION OFDESIGNATION; PROHIBITION ON 24
2002-S
2003-ECONDARYTRADING.— 25
2004-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1821+(c)PUBLICATIONOFDESIGNATION;PROHIBITIONON 24
1822+SECONDARYTRADING.— 25
1823+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
20051824 ssavage on LAPJG3WLY3PROD with BILLS 67
2006-•S 919 IS
1825+•S 919 RS
20071826 (1)INGENERAL.—Ifaforeignissuerdescribed 1
20081827 insubsection(b)doesnotcomeintocompliancewith 2
20091828 thelawfulorderwithin30daysofreceivingthewrit-3
20101829 tennoticedescribedinthatsubsection,theSecretary 4
20111830 oftheTreasuryshall— 5
20121831 (A)publishthedeterminationofnon-6
20131832 complianceintheFederalRegister,includinga 7
20141833 statementonthefailureoftheforeignissuerto 8
20151834 complywiththelawfulorderafterthewritten 9
20161835 notice;and 10
20171836 (B)issueanotificationintheFederalReg-11
20181837 isterprohibitingdigitalassetserviceproviders 12
20191838 fromfacilitatingsecondarytradingofpayment 13
20201839 stablecoinsissuedbytheforeignissuerinthe 14
20211840 UnitedStates. 15
2022-(2) E
2023-FFECTIVE DATE OF PROHIBITION .—The 16
1841+(2)EFFECTIVEDATEOFPROHIBITION.—The 16
20241842 prohibitiononfacilitationofsecondarytradingde-17
20251843 scribedinparagraph(1)shallbecomeeffectiveon 18
20261844 thedatethatis30daysafterthedateofissueof 19
20271845 notificationoftheprohibitionintheFederalReg-20
20281846 ister. 21
2029-(3) W
2030-AIVERS AND EXTENSIONS .—With respect 22
1847+(3)WAIVERSANDEXTENSIONS.—Withrespect 22
20311848 totheprohibitiononfacilitationofsecondarytrad-23
20321849 ingdescribedinparagraph(1),theSecretaryofthe 24
20331850 Treasurymayissuewaiversandtimeextensionsto 25
2034-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1851+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
20351852 ssavage on LAPJG3WLY3PROD with BILLS 68
2036-•S 919 IS
1853+•S 919 RS
20371854 digitalassetserviceprovidersonacasebycase 1
20381855 basis. 2
2039-(4) C
2040-IVIL MONETARY PENALTIES .— 3
2041-(A) D
2042-IGITAL ASSET SERVICE PRO -4
1856+(4)CIVILMONETARY PENALTIES.— 3
1857+(A)DIGITAL ASSET SERVICE PRO-4
20431858 VIDERS.—Anydigitalassetserviceproviderthat 5
20441859 knowinglyviolatesaprohibitionunderpara-6
20451860 graph(1)(B)shallbesubjecttoacivilmone-7
20461861 tarypenaltyofnotmorethan$100,000pervio-8
20471862 lationperday. 9
2048-(B) F
2049-OREIGN PAYMENT STABLECOIN 10
1863+(B)FOREIGN PAYMENT STABLECOIN 10
20501864 ISSUERS.—Anyforeignissuerofpayment 11
20511865 stablecointhatknowinglycontinuestopublicly 12
20521866 offerapaymentstablecoinintheUnitedStates 13
20531867 afterpublicationofthedeterminationofnon-14
20541868 complianceunderparagraph(1)(A)shallbe 15
20551869 subjecttoacivilmonetarypenaltyofnotmore 16
20561870 than$1,000,000perviolationperday,andthe 17
20571871 SecretaryoftheTreasurymayseekaninjunc-18
20581872 tioninaUnitedStatesDistrictCourttobar 19
20591873 theforeignissuerfromengaginginfinancial 20
20601874 transactionsintheUnitedStatesorwith 21
20611875 UnitedStatespersons. 22
2062-(d) A
2063-PPEAL.—A determination of noncompliance 23
1876+(d)APPEAL.—Adeterminationofnoncompliance 23
20641877 undersubsection(b)issubjecttojudicialreviewinthe 24
2065-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1878+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
20661879 ssavage on LAPJG3WLY3PROD with BILLS 69
2067-•S 919 IS
1880+•S 919 RS
20681881 UnitedStatesCourtofAppealsfortheDistrictofColum-1
20691882 biaCircuit. 2
2070-(e) W
2071-AIVER, LICENSINGAUTHORITY, ANDEXCEP-3
1883+(e)WAIVER,LICENSINGAUTHORITY,ANDEXCEP-3
20721884 TIONS.— 4
2073-(1) I
2074-N GENERAL.—The Secretary of the Treas-5
1885+(1)INGENERAL.—TheSecretaryoftheTreas-5
20751886 urymayofferawaiver,generallicense,orspecific 6
20761887 licensetoanyUnitedStatespersonsengagingin 7
20771888 secondarytradingdescribedinsubsection(c)ona 8
20781889 casebycasebasisiftheSecretarydeterminesthat— 9
20791890 (A)prohibitingsecondarytradingwould 10
20801891 adverselyaffectthefinancialsystemofthe 11
20811892 UnitedStates;or 12
20821893 (B)theforeignissuerofthepayment 13
20831894 stablecoinistakingtangiblestepstoremedythe 14
20841895 failuretocomplywiththelawfulorderthatre-15
20851896 sultedinthenoncompliancedetermination 16
20861897 undersubsection(b). 17
2087-(2) N
2088-ATIONAL SECURITY WAIVER .—The Presi-18
1898+(2)NATIONALSECURITYWAIVER.—ThePresi-18
20891899 dentmaywaivetheapplicationofthesecondary 19
20901900 tradingrestrictionsundersubsection(c)ifthePresi-20
20911901 dentdeterminesthatthewaiverisinthenationalse-21
20921902 curityinterestoftheUnitedStates. 22
2093-(3) E
2094-XCEPTIONS FOR INTELLIGENCE AND LAW 23
1903+(3)EXCEPTIONSFORINTELLIGENCE ANDLAW 23
20951904 ENFORCEMENT ACTIVITIES.—ThisActshallnot 24
20961905 applywithrespectto— 25
2097-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1906+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
20981907 ssavage on LAPJG3WLY3PROD with BILLS 70
2099-•S 919 IS
1908+•S 919 RS
21001909 (A)activitiessubjecttothereportingre-1
21011910 quirementsundertitleVoftheNationalSecu-2
21021911 rityActof1947(50U.S.C.3091etseq.)or 3
21031912 anyauthorizedintelligenceactivitiesofthe 4
21041913 UnitedStates;or 5
21051914 (B)activitiesnecessarytocarryoutoras-6
21061915 sistlawenforcementactivityoftheUnited 7
21071916 States. 8
2108-(4) R
2109-EPORT REQUIRED.—Not later than 7 days 9
1917+(4)REPORTREQUIRED.—Notlaterthan7days 9
21101918 afterissuingawaiveroralicenseunderparagraph 10
21111919 (1),theSecretaryoftheTreasuryshallsubmitare-11
21121920 porttotheChairmenandRankingmembersofthe 12
21131921 CommitteeonBanking,Housing,andUrbanAffairs 13
21141922 oftheSenateandtheCommitteeonFinancialServ-14
21151923 icesoftheHouseofRepresentatives,includingthe 15
21161924 textofthewaiverorlicense,aswellasthefactsand 16
21171925 circumstancesjustifyingthewaiverdetermination, 17
21181926 andprovideabriefingonthereport. 18
21191927 SEC.9.CUSTODY OFPAYMENT STABLECOIN RESERVE AND 19
21201928 COLLATERAL. 20
2121-(a) I
2122-NGENERAL.—A person may only engage in the 21
1929+(a)INGENERAL.—Apersonmayonlyengageinthe 21
21231930 businessofprovidingcustodialorsafekeepingservicesfor 22
21241931 thepaymentstablecoinreserve,thepaymentstablecoins 23
21251932 usedascollateral,ortheprivatekeysofpermittedpay-24
21261933 mentstablecoinsiftheperson— 25
2127-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1934+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
21281935 ssavage on LAPJG3WLY3PROD with BILLS 71
2129-•S 919 IS
1936+•S 919 RS
21301937 (1)issubjectto— 1
21311938 (A)supervisionorregulationbyaprimary 2
21321939 Federalpaymentstablecoinregulatororapri-3
21331940 maryfinancialregulatoryagencydescribed 4
21341941 undersubparagraph(B)or(C)ofsection2(12) 5
21351942 oftheDodd-FrankWallStreetReformand 6
21361943 ConsumerProtectionAct(12U.S.C. 7
21371944 5301(12));or 8
21381945 (B)supervisionbyaStatebanksuper-9
21391946 visor,asdefinedundersection3oftheFederal 10
21401947 DepositInsuranceAct(12U.S.C.1813)ora 11
21411948 Statecreditunionsupervisor,asdefinedunder 12
21421949 section6003oftheAnti-MoneyLaunderingAct 13
21431950 of2020,andsuchstatebanksupervisoror 14
21441951 statecreditunionsupervisormakesavailableto 15
21451952 theBoardsuchinformationastheBoarddeter-16
21461953 minesnecessaryandrelevanttothecategories 17
21471954 ofinformationundersubsection(d);and 18
21481955 (2)complieswiththerequirementsundersub-19
21491956 section(b),unlesssuchpersoncomplieswithsimilar 20
21501957 requirementsasrequiredbyaprimaryFederalpay-21
21511958 mentstablecoinregulator,theSecuritiesandEx-22
21521959 changeCommission,ortheCommodityFutures 23
21531960 TradingCommission. 24
2154-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1961+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
21551962 ssavage on LAPJG3WLY3PROD with BILLS 72
2156-•S 919 IS
1963+•S 919 RS
21571964 (b)CUSTOMERPROPERTYREQUIREMENT.—Aper-1
21581965 sondescribedinsubsection(a)shall— 2
21591966 (1)treatanddealwiththepaymentstablecoins, 3
21601967 privatekeys,cash,andotherpropertyofaperson 4
21611968 forwhomoronwhosebehalfthepersonreceives,ac-5
21621969 quires,orholdspaymentstablecoins,privatekeys, 6
21631970 cash,andotherproperty(hereinafterinthissection 7
21641971 referredtoasthe‘‘customer’’)asbelongingtosuch 8
21651972 customerandisnotthepropertyofsuchperson; 9
21661973 and 10
21671974 (2)takesuchstepsasareappropriatetopro-11
21681975 tectthepaymentstablecoins,privatekeys,cash,and 12
21691976 otherpropertyofacustomerfromtheclaimsof 13
21701977 creditorsoftheperson. 14
2171-(c) C
2172-OMMINGLINGPROHIBITED.— 15
2173-(1) I
2174-N GENERAL.—Payment stablecoins, cash, 16
1978+(c)COMMINGLINGPROHIBITED.— 15
1979+(1)INGENERAL.—Paymentstablecoins,cash, 16
21751980 andotherpropertyofacustomershallbeseparately 17
21761981 accountedforbyapersondescribedinsubsection 18
21771982 (a)andshallbesegregatedfromandnotbecom-19
21781983 mingledwiththefundsoftheperson. 20
2179-(2) E
2180-XCEPTION.—Notwithstanding paragraph 21
1984+(2)EXCEPTION.—Notwithstandingparagraph 21
21811985 (1)— 22
21821986 (A)thepaymentstablecoins,cash,and 23
21831987 otherpropertyofacustomermay,forconven-24
21841988 ience,becommingledanddepositedinanomni-25
2185-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
1989+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
21861990 ssavage on LAPJG3WLY3PROD with BILLS 73
2187-•S 919 IS
1991+•S 919 RS
21881992 busaccountholdingthepaymentstablecoins, 1
21891993 cash,andotherpropertyofmorethan1cus-2
21901994 tomerataStatechartereddepositoryinstitu-3
21911995 tion,aninsureddepositoryinstitution,national 4
21921996 bank,ortrustcompany; 5
21931997 (B)suchshareofthepaymentstablecoins, 6
21941998 cash,andotherpropertyofthecustomerthat 7
21951999 shallbenecessarytotransfer,adjust,orsettle 8
21962000 atransactionortransferofassetsmaybewith-9
21972001 drawnandappliedtosuchpurposes,including 10
21982002 thepaymentofcommissions,taxes,storage, 11
21992003 andotherchargeslawfullyaccruinginconnec-12
22002004 tionwiththeprovisionofservicesbyaperson 13
22012005 describedinsubsection(a);or 14
22022006 (C)inaccordancewithsuchtermsand 15
22032007 conditionsasaprimaryFederalpayment 16
22042008 stablecoinregulatormayprescribebyrule,reg-17
22052009 ulation,ororder,anycustomerpayment 18
22062010 stablecoin,cash,andotherpropertydescribed 19
22072011 inthissubsectionmaybecommingledandde-20
22082012 positedincustomeraccountswithpayment 21
22092013 stablecoins,cash,andotherpropertyreceived 22
22102014 bythepersonandrequiredbytheprimaryFed-23
22112015 eralpaymentstablecoinregulatortobesepa-24
2212-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
2016+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
22132017 ssavage on LAPJG3WLY3PROD with BILLS 74
2214-•S 919 IS
2018+•S 919 RS
22152019 ratelyaccountedfor,treated,anddealtwithas 1
22162020 belongingtocustomers. 2
2217-(d) R
2218-EGULATORY INFORMATION.—A person de-3
2021+(d)REGULATORY INFORMATION.—Apersonde-3
22192022 scribedundersubsection(a)shallsubmittotheapplicable 4
22202023 primaryFederalpaymentstablecoinregulatorinformation 5
22212024 concerningtheperson’sbusinessoperationsandprocesses 6
22222025 toprotectcustomerassets,insuchformandmanneras 7
22232026 theprimaryregulatorshalldetermine. 8
2224-(e) E
2225-XCLUSION.—The requirements of this section 9
2027+(e)EXCLUSION.—Therequirementsofthissection 9
22262028 shallnotapplytoanypersonsolelyonthebasisthatsuch 10
22272029 personengagesinthebusinessofprovidinghardwareor 11
22282030 softwaretofacilitateacustomer’sowncustodyorsafe-12
22292031 keepingofthecustomer’spaymentstablecoinsorprivate 13
22302032 keys. 14
22312033 SEC.10.TREATMENT OFPAYMENT STABLECOIN ISSUERS 15
22322034 ININSOLVENCY PROCEEDINGS. 16
2233-(a) I
2234-NGENERAL.—In any insolvency proceeding of 17
2035+(a)INGENERAL.—Inanyinsolvencyproceedingof 17
22352036 apermittedpaymentstablecoinissuerunderFederalor 18
22362037 Statelaw,includinganyproceedingundertitle11,United 19
22372038 StatesCode,andanyinsolvencyproceedingadministered 20
22382039 byaStatepaymentstablecoinregulatorwithrespectto 21
22392040 apermittedpaymentstablecoinissuer,theclaimofaper-22
22402041 sonholdingpaymentstablecoinsissuedbythepermitted 23
22412042 paymentstablecoinissuershallhavepriorityoverthe 24
22422043 claimsofthepermittedpaymentstablecoinissuerandany 25
2243-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
2044+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
22442045 ssavage on LAPJG3WLY3PROD with BILLS 75
2245-•S 919 IS
2046+•S 919 RS
22462047 othercreditorofthepermittedpaymentstablecoinissuer, 1
22472048 withrespecttorequiredpaymentstablecoinreserves,sub-2
22482049 jecttosection507(e)oftitle11,UnitedStatesCode. 3
2249-(b) D
2250-EFINITIONS.—Section 101 of title 11, United 4
2050+(b)DEFINITIONS.—Section101oftitle11,United 4
22512051 StatesCode,isamendedbyaddingafterparagraph(40B) 5
22522052 thefollowing: 6
22532053 ‘‘(40C)Theterms‘paymentstablecoin’and 7
22542054 ‘permittedpaymentstablecoinissuer’havethe 8
22552055 meaningsgiventhosetermsinsection2oftheGuid-9
22562056 ingandEstablishingNationalInnovationforU.S. 10
22572057 StablecoinsActof2025.’’. 11
2258-(c) A
2259-UTOMATICSTAY.—Section 362 of title 11, 12
2058+(c)AUTOMATICSTAY.—Section362oftitle11, 12
22602059 UnitedStatesCodeisamended— 13
22612060 (1)insubsection(a)— 14
22622061 (A)inparagraph(7),bystriking‘‘and’’; 15
22632062 (B)inparagraph(8),bystrikingthepe-16
22642063 riodandinserting‘‘;and’’;and 17
22652064 (C)byaddingattheendthefollowing: 18
22662065 ‘‘(9)theredemptionofpaymentstablecoins 19
22672066 issuedbythedebtor,frompaymentstablecoinre-20
22682067 servesrequiredtobemaintainedundersection4of 21
22692068 theGuidingandEstablishingNationalInnovation 22
22702069 forU.S.StablecoinsActof2025.’’;and 23
22712070 (2)insubsection(d)— 24
2272-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
2071+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
22732072 ssavage on LAPJG3WLY3PROD with BILLS 76
2274-•S 919 IS
2073+•S 919 RS
22752074 (A)inparagraph(3)(B)(ii),bystriking 1
22762075 ‘‘or’’attheend; 2
22772076 (B)inparagraph(4)(B),bystrikingthe 3
22782077 periodattheendandinserting‘‘;or’’;and 4
22792078 (C)byinsertingafterparagraph(4)the 5
22802079 following: 6
22812080 ‘‘(5)withrespecttotheredemptionofpayment 7
22822081 stablecoinsheldbyaperson,ifthecourtfinds,sub-8
22832082 jecttothemotionandattestationofthedebtoron 9
22842083 thepetitiondate,therearepaymentstablecoinre-10
22852084 servesavailablefordistributiononaratablebasisto 11
22862085 similarlysituatedpaymentstablecoinholders,pro-12
22872086 videdthatthecourtshallusebesteffortstoenter 13
22882087 afinalordertobegindistributionsunderthispara-14
22892088 graphnotlaterthan14daysafterthedateofthe 15
22902089 requiredhearing.’’. 16
2291-(d) P
2292-RIORITY INBANKRUPTCYPROCEEDINGS.—Sec-17
2090+(d)PRIORITYINBANKRUPTCYPROCEEDINGS.—Sec-17
22932091 tion507oftitle11,UnitedStatesCode,isamended— 18
22942092 (1)insubsection(a),bystriking‘‘Thefol-19
22952093 lowing’’andinserting‘‘Subjecttosubsection(e),the 20
22962094 following’’;and 21
22972095 (2)byaddingattheendthefollowing: 22
22982096 ‘‘(e)Notwithstandingsubsection(a),ifapayment 23
22992097 stablecoinholderisnotabletoredeemalloutstandingpay-24
23002098 mentstablecoinclaimsfromrequiredpaymentstablecoin 25
2301-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
2099+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
23022100 ssavage on LAPJG3WLY3PROD with BILLS 77
2303-•S 919 IS
2101+•S 919 RS
23042102 reservesmaintainedbythedebtor,anyremainingclaim 1
23052103 ofapersonholdingapaymentstablecoinissuedbythe 2
23062104 debtorshallhavefirstpriorityoveranyotherclaim,in-3
23072105 cludingoveranyexpensesandclaimsthathavepriority 4
23082106 underthatsubsection,totheextentcompliancewithsec-5
23092107 tion4oftheGuidingandEstablishingNationalInnova-6
23102108 tionforU.S.StablecoinsActof2025wouldhaverequired 7
23112109 additionalreservestobemaintainedbythedebtorforpay-8
23122110 mentstablecoinholders.’’. 9
2313-(e) P
2314-AYMENTSTABLECOIN RESERVES.—Section 10
2111+(e)PAYMENTSTABLECOIN RESERVES.—Section 10
23152112 541(b)oftitle11,UnitedStatesCode,isamended— 11
23162113 (1)inparagraph(9),intheflushtextfollowing 12
23172114 subparagraph(B),bystriking‘‘or’’attheend; 13
23182115 (2)inparagraph(10)(C),bystrikingtheperiod 14
23192116 andinserting‘‘;or’’;and 15
23202117 (3)byinsertingafterparagraph(10)thefol-16
23212118 lowing: 17
23222119 ‘‘(11)requiredpaymentstablecoinreserves 18
23232120 undersection4oftheGuidingandEstablishingNa-19
23242121 tionalInnovationforU.S.StablecoinsActof2025.’’. 20
2325-(f) I
2326-NTERVENTION.—Section 1109 of title 11, United 21
2122+(f)INTERVENTION.—Section1109oftitle11,United 21
23272123 StatesCode,isamendedbyaddingattheendthefol-22
23282124 lowing: 23
23292125 ‘‘(c)TheComptrolleroftheCurrencyorStatepay-24
23302126 mentstablecoinregulator(asdefinedinsection2ofthe 25
2331-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
2127+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
23322128 ssavage on LAPJG3WLY3PROD with BILLS 78
2333-•S 919 IS
2129+•S 919 RS
23342130 GuidingandEstablishingNationalInnovationforU.S. 1
23352131 StablecoinsActof2025)shallraiseandshallappearand 2
23362132 beheardonanyissue,includingtheprotectionofcus-3
23372133 tomers,inacaseunderthischapterinwhichthedebtor 4
23382134 isapermittedpaymentstablecoinissuer.’’. 5
2339-(g) A
2340-PPLICATION OFEXISTINGINSOLVENCYLAW.— 6
2135+(g)APPLICATIONOFEXISTINGINSOLVENCYLAW.— 6
23412136 Inaccordancewithotherwiseapplicablelaw,aninsolvency 7
23422137 proceedingwithrespecttoapermittedpaymentstablecoin 8
23432138 issuershalloccurasfollows: 9
23442139 (1)Adepositoryinstitution(asdefinedinsec-10
23452140 tion3oftheFederalDepositInsuranceAct(12 11
23462141 U.S.C.1813))shallberesolvedbytheFederalDe-12
23472142 positInsuranceCorporation,NationalCreditUnion 13
23482143 Administration,orStatepaymentstablecoinregu-14
23492144 lator,asapplicable. 15
23502145 (2)Asubsidiaryofadepositoryinstitution(as 16
23512146 definedinsection3oftheFederalDepositInsur-17
23522147 anceAct(12U.S.C.1813))oranonbankentity 18
23532148 maybeconsideredadebtorundertitle11,United 19
23542149 StatesCode. 20
23552150 SEC.11.INTEROPERABILITY STANDARDS. 21
23562151 TheprimaryFederalpaymentstablecoinregulators, 22
23572152 inconsultationwiththeNationalInstituteofStandards 23
23582153 andTechnology,otherrelevantstandardsettingorganiza-24
23592154 tions,andStatebankandcreditunionregulators,shall 25
2360-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 E:\BILLS\S919.IS S919
2155+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
23612156 ssavage on LAPJG3WLY3PROD with BILLS 79
2362-•S 919 IS
2157+•S 919 RS
23632158 assessand,ifnecessary,may,pursuanttosection553of 1
23642159 title5andinamannerconsistentwiththeNationalTech-2
23652160 nologyTransferandAdvancementActof1995(Public 3
23662161 Law104–113),prescribestandardsforpermittedpay-4
23672162 mentstablecoinissuerstopromotecompatibilityand 5
23682163 interoperabilitywith— 6
23692164 (1)otherpermittedpaymentstablecoinissuers; 7
23702165 and 8
23712166 (2)thebroaderdigitalfinanceecosystem,in-9
23722167 cludingacceptedcommunicationsprotocolsand 10
23732168 blockchains,permissionedorpublic. 11
23742169 SEC.12.STUDYONNON-PAYMENT STABLECOINS. 12
2375-(a) S
2376-TUDY BYTREASURY.— 13
2377-(1) S
2378-TUDY.—The Secretary of the Treasury, in 14
2170+(a)STUDYBYTREASURY.— 13
2171+(1)STUDY.—TheSecretaryoftheTreasury,in 14
23792172 consultationwiththeBoard,theComptroller,the 15
23802173 Corporation,theSecuritiesandExchangeCommis-16
23812174 sion,andtheCommodityFuturesTradingCommis-17
23822175 sionshallcarryoutastudyofnon-payment 18
23832176 stablecoins,includingendogenouslycollateralized 19
23842177 paymentstablecoins. 20
2385-(2) R
2386-EPORT.—Not later than 365 days after 21
2178+(2)REPORT.—Notlaterthan365daysafter 21
23872179 thedateoftheenactmentofthisAct,theSecretary 22
23882180 shallprovidetotheCommitteeonFinancialServices 23
23892181 oftheHouseofRepresentativesandtheCommittee 24
23902182 onBanking,Housing,andUrbanAffairsoftheSen-25
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23922184 ssavage on LAPJG3WLY3PROD with BILLS 80
2393-•S 919 IS
2185+•S 919 RS
23942186 ateareportthatcontainsallfindingsmadeincar-1
23952187 ryingoutthestudyunderparagraph(1),including 2
23962188 ananalysisof— 3
23972189 (A)thecategoriesofnon-payment 4
23982190 stablecoins,includingthebenefitsandrisksof 5
23992191 technologicaldesignfeatures; 6
24002192 (B)theparticipantsinnon-payment 7
24012193 stablecoinarrangements; 8
24022194 (C)utilizationandpotentialutilizationof 9
24032195 non-paymentstablecoins; 10
24042196 (D)natureofreservecompositions; 11
24052197 (E)typesofalgorithmsbeingemployed; 12
24062198 (F)governancestructure,includingaspects 13
24072199 ofdecentralization; 14
24082200 (G)natureofpublicpromotionandadver-15
24092201 tising;and 16
24102202 (H)clarityandavailabilityofconsumer 17
24112203 noticesdisclosures. 18
2412-(b) E
2413-NDOGENOUSLY COLLATERALIZED PAYMENT 19
2414-S
2415-TABLECOIN DEFINED.—In this section, the term 20
2204+(b)ENDOGENOUSLY COLLATERALIZED PAYMENT 19
2205+STABLECOIN DEFINED.—Inthissection,theterm 20
24162206 ‘‘endogenouslycollateralizedpaymentstablecoin’’means 21
24172207 anydigitalasset— 22
24182208 (1)inwhichitsoriginatorhasrepresentedwill 23
24192209 beconverted,redeemed,orrepurchasedforafixed 24
24202210 amountofmonetaryvalue;and 25
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2423-•S 919 IS
2213+•S 919 RS
24242214 (2)thatreliessolelyonthevalueofanother 1
24252215 digitalassetcreatedormaintainedbythesame 2
24262216 originatortomaintainthefixedprice. 3
24272217 SEC.13.REPORTS. 4
2428-(a) A
2429-NNUALREPORTINGREQUIREMENT.—Beginning 5
2218+(a)ANNUALREPORTINGREQUIREMENT.—Beginning 5
24302219 onthedatethatis1yearafterthedateofenactment 6
24312220 ofthisAct,andannuallythereafter,theprimaryFederal 7
24322221 paymentstablecoinregulatorsshallsubmittotheCom-8
24332222 mitteeonBanking,Housing,andUrbanAffairsofthe 9
24342223 Senate,theCommitteeonFinancialServicesoftheHouse 10
24352224 ofRepresentatives,andtheDirectoroftheOfficeofFi-11
24362225 nancialResearchareportonthestatusofthepayment 12
24372226 stablecoinindustry,including— 13
24382227 (1)anoverviewoftrendsinpaymentstablecoin 14
24392228 activities; 15
24402229 (2)asummaryofthenumberofapplications 16
24412230 forpermittedpaymentstablecoinissuerundersec-17
24422231 tion5,includingaggregateapprovalsandrejections 18
24432232 ofapplications;and 19
24442233 (3)adescriptionofthepotentialfinancialsta-20
24452234 bilityrisksposedtothesafetyandsoundnessofthe 21
24462235 broaderfinancialsystembypaymentstablecoinac-22
24472236 tivities. 23
2448-(b) FSOC R
2449-EPORT.—The Financial Stability Over-24
2237+(b)FSOCREPORT.—TheFinancialStabilityOver-24
24502238 sightCouncilshallincorporatethefindingsinthereport 25
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24522240 ssavage on LAPJG3WLY3PROD with BILLS 82
2453-•S 919 IS
2241+•S 919 RS
24542242 undersubsection(a)intotheannualreportoftheCouncil 1
24552243 requiredundersection112(a)(2)(N)oftheDodd-Frank 2
24562244 WallStreetReformandConsumerProtectionAct(12 3
24572245 U.S.C.5322). 4
24582246 SEC.14.AUTHORITY OFBANKING INSTITUTIONS. 5
2459-(a) R
2460-ULE OFCONSTRUCTION.—Nothing in this Act 6
2247+(a)RULEOFCONSTRUCTION.—NothinginthisAct 6
24612248 maybeconstruedtolimittheauthorityofadepository 7
24622249 institution,Federalcreditunion,Statecreditunion,na-8
24632250 tionalbank,ortrustcompanytoengageinactivitiesper-9
24642251 missiblepursuanttoapplicableStateandFederallaw,in-10
24652252 cluding— 11
24662253 (1)acceptingorreceivingdepositsandissuing 12
24672254 digitalassetsthatrepresentdeposits; 13
24682255 (2)utilizingadistributedledgerforthebooks 14
24692256 andrecordsoftheentityandtoaffectintrabank 15
24702257 transfers;and 16
24712258 (3)providingcustodialservicesforpayment 17
24722259 stablecoins,privatekeysofpaymentstablecoins,or 18
24732260 reservesbackingpaymentstablecoins. 19
2474-(b) R
2475-EGULATORYREVIEW.—The primary Federal 20
2261+(b)REGULATORYREVIEW.—TheprimaryFederal 20
24762262 paymentstablecoinregulatorsshallreviewallexisting 21
24772263 guidanceandregulations,andifnecessary,amendorpro-22
24782264 mulgatenewregulationsandguidance,toclarifythatreg-23
24792265 ulatedentitiescanengageinthepaymentstablecoinac-24
24802266 tivitiescontemplatedin,andinaccordancewith,thisAct. 25
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24822268 ssavage on LAPJG3WLY3PROD with BILLS 83
2483-•S 919 IS
2269+•S 919 RS
24842270 (c)TREATMENT OFCUSTODYACTIVITIES.—Theap-1
24852271 propriateFederalbankingagency(asdefinedundersec-2
24862272 tion3oftheFederalDepositInsuranceAct(12U.S.C. 3
24872273 1813)),theNationalCreditUnionAdministration(inthe 4
24882274 caseofacreditunion),andtheSecuritiesandExchange 5
24892275 Commissionmaynotrequireadepositoryinstitution,na-6
24902276 tionalbank,Federalcreditunion,Statecreditunion,or 7
24912277 trustcompany,oranyinstitution-affiliatedpartythere-8
24922278 of— 9
24932279 (1)toincludeassetsheldincustodythatare 10
24942280 notownedbytheentityasaliabilityonthefinancial 11
24952281 statementorbalancesheetoftheentity,including 12
24962282 paymentstablecoincustodyorsafekeepingactivities; 13
24972283 (2)toholdregulatorycapitalagainstassets,in-14
24982284 cludingreservesbackingsuchassetsdescribedin 15
24992285 section4(a)(1)(A),incustodyorsafekeeping,except 16
25002286 asnecessarytomitigateagainstoperationalrisksin-17
25012287 herentwiththecustodyorsafekeepingservices,as 18
25022288 determinedby— 19
25032289 (A)theappropriateFederalbankingagen-20
25042290 cy; 21
25052291 (B)theNationalCreditUnionAdministra-22
25062292 tion(inthecaseofacreditunion); 23
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25082294 ssavage on LAPJG3WLY3PROD with BILLS 84
2509-•S 919 IS
2295+•S 919 RS
25102296 (C)aStatebanksupervisor(asdefined 1
25112297 undersection3oftheFederalDepositInsur-2
25122298 anceAct(12U.S.C.1813));or 3
25132299 (D)aStatecreditunionsupervisor(asde-4
25142300 finedundersection6003oftheAnti-Money 5
25152301 LaunderingActof2020); 6
25162302 (3)torecognizealiabilityforanyobligations 7
25172303 relatedtoactivitiesorservicesperformedfordigital 8
25182304 assetsthattheentitydoesnotowninanyamount 9
25192305 greaterthantheexpenserecognizedintheincome 10
25202306 statementortheconsiderationreceivedasaresult 11
25212307 ofthecorrespondingobligation. 12
2522-(d) D
2523-EFINITIONS.—In this section: 13
2524-(1) D
2525-EPOSITORY INSTITUTION.—The term ‘‘de-14
2308+(d)DEFINITIONS.—Inthissection: 13
2309+(1)DEPOSITORYINSTITUTION.—Theterm‘‘de-14
25262310 positoryinstitution’’hasthemeaninggiventhat 15
25272311 termundersection3oftheFederalDepositInsur-16
25282312 anceAct(12U.S.C.1813). 17
2529-(2) C
2530-REDIT UNION TERMS .—The terms ‘‘Fed-18
2313+(2)CREDITUNIONTERMS.—Theterms‘‘Fed-18
25312314 eralcreditunion’’and‘‘Statecreditunion’’havethe 19
25322315 meaninggiventhoseterms,respectively,undersec-20
25332316 tion101oftheFederalCreditUnionAct. 21
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25352318 ssavage on LAPJG3WLY3PROD with BILLS 85
2536-•S 919 IS
2319+•S 919 RS
25372320 SEC.15.AMENDMENTS TOCLARIFY THAT PAYMENT 1
25382321 STABLECOINS ARENOTSECURITIES ORCOM-2
25392322 MODITIES AND PERMITTED PAYMENT 3
25402323 STABLECOIN ISSUERSARENOTINVESTMENT 4
25412324 COMPANIES. 5
2542-(a) I
2543-NVESTMENTADVISERSACT OF1940.—Section 6
2325+(a)INVESTMENTADVISERSACTOF1940.—Section 6
25442326 202(a)(18)oftheInvestmentAdvisersActof1940(15 7
25452327 U.S.C.80b–2(a)(18))isamendedbyaddingattheend 8
25462328 thefollowing:‘‘Theterm‘security’doesnotincludeapay-9
25472329 mentstablecoinissuedbyapermittedpaymentstablecoin 10
25482330 issuer,assuchtermsaredefinedinsection2oftheGuid-11
25492331 ingandEstablishingNationalInnovationforU.S. 12
25502332 StablecoinsActof2025.’’. 13
2551-(b) I
2552-NVESTMENTCOMPANYACT OF1940.—The In-14
2333+(b)INVESTMENTCOMPANYACTOF1940.—TheIn-14
25532334 vestmentCompanyActof1940isamended— 15
25542335 (1)insection2(a)(36)(15U.S.C.80a– 16
25552336 2(a)(36))(15U.S.C.80a–2(a)(36)),byaddingatthe 17
25562337 endthefollowing:‘‘Theterm‘security’doesnotin-18
25572338 cludeapaymentstablecoinissuedbyapermitted 19
25582339 paymentstablecoinissuer,assuchtermsaredefined 20
25592340 insection2oftheGuidingandEstablishingNa-21
25602341 tionalInnovationforU.S.StablecoinsActof2025.’’; 22
25612342 and 23
25622343 (2)insection3(c)(3)(15U.S.C.80a–3(c)(3)), 24
25632344 byinserting‘‘anypermittedpaymentstablecoin 25
25642345 issuer,assuchtermisdefinedinsection2ofthe 26
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25662347 ssavage on LAPJG3WLY3PROD with BILLS 86
2567-•S 919 IS
2348+•S 919 RS
25682349 GuidingandEstablishingNationalInnovationfor 1
25692350 U.S.StablecoinsActof2025;’’after‘‘therefor;’’. 2
2570-(c) S
2571-ECURITIESACT OF1933.—Section 2(a)(1) of 3
2351+(c)SECURITIESACTOF1933.—Section2(a)(1)of 3
25722352 theSecuritiesActof1933(15U.S.C.77b(a)(1))is 4
25732353 amendedbyaddingattheendthefollowing:‘‘Theterm 5
25742354 ‘security’doesnotincludeapaymentstablecoinissuedby 6
25752355 apermittedpaymentstablecoinissuer,assuchtermsare 7
25762356 definedinsection2oftheGuidingandEstablishingNa-8
25772357 tionalInnovationforU.S.StablecoinsActof2025.’’. 9
2578-(d) S
2579-ECURITIESEXCHANGEACT OF1934.—Section 10
2358+(d)SECURITIESEXCHANGEACTOF1934.—Section 10
25802359 3(a)(10)oftheSecuritiesExchangeActof1934(15 11
25812360 U.S.C.78c(a)(10))isamendedbyaddingattheendthe 12
25822361 following:‘‘Theterm‘security’doesnotincludeapayment 13
25832362 stablecoinissuedbyapermittedpaymentstablecoin 14
25842363 issuer,assuchtermsaredefinedinsection2oftheGuid-15
25852364 ingandEstablishingNationalInnovationforU.S. 16
25862365 StablecoinsActof2025.’’. 17
2587-(e) S
2588-ECURITIESINVESTORPROTECTIONACT OF 18
2366+(e)SECURITIESINVESTORPROTECTIONACTOF 18
25892367 1970.—Section16(14)oftheSecuritiesInvestorProtec-19
25902368 tionActof1970(15U.S.C.78lll(14))isamendedbyadd-20
25912369 ingattheendthefollowing:‘‘Theterm‘security’does 21
25922370 notincludeapaymentstablecoinissuedbyapermitted 22
25932371 paymentstablecoinissuer,assuchtermsaredefinedin 23
25942372 section2oftheGuidingandEstablishingNationalInno-24
25952373 vationforU.S.StablecoinsActof2025.’’. 25
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2374+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6401 E:\BILLS\S919.RS S919
25972375 ssavage on LAPJG3WLY3PROD with BILLS 87
2598-•S 919 IS
2376+•S 919 RS
25992377 (f)COMMODITYEXCHANGEACT.—Section1aofthe 1
26002378 CommodityExchangeAct(7U.S.C.1a)isamendedby 2
26012379 addingattheendthefollowing:‘‘Theterm‘commodity’ 3
26022380 doesnotincludeapaymentstablecoinissuedbyaper-4
26032381 mittedpaymentstablecoinissuer,assuchtermsarede-5
26042382 finedinsection2oftheGuidingandEstablishingNa-6
26052383 tionalInnovationforU.S.paymentstablecoinsActof 7
26062384 2025.’’ 8
26072385 SEC.16.RECIPROCITY FOR PAYMENT STABLECOINS 9
26082386 ISSUEDINOVERSEAS JURISDICTIONS. 10
26092387 TheSecretaryoftheTreasuryshallcreateandimple-11
26102388 mentreciprocalarrangementsorotherbilateralagree-12
26112389 mentsbetweentheUnitedStatesandjurisdictionswith 13
26122390 substantiallysimilarpaymentstablecoinregulatoryre-14
26132391 gimestotherequirementsunderthisAct,includingre-15
26142392 serverequirements,supervision,anti-moneylaundering 16
26152393 andcounter-terrorismfeatures,sanctionscompliance 17
26162394 standards,liquidityrequirements,andriskmanagement 18
26172395 standards,tofacilitateinternationaltransactionsand 19
26182396 interoperabilitywithUnitedStatesdollar-denominated 20
26192397 paymentstablecoinsissuedoverseas.TheSecretaryofthe 21
26202398 Treasuryshallaimtocompletesucharrangementsnot 22
26212399 laterthanthedatethatis2yearsafterthedateofenact-23
26222400 mentofthisAct. 24
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26242402 ssavage on LAPJG3WLY3PROD with BILLS 88
2625-•S 919 IS
2403+•S 919 RS
26262404 SEC.17.EFFECTIVE DATE. 1
2627-(a) I
2628-NGENERAL.—This Act, and the amendments 2
2405+(a)INGENERAL.—ThisAct,andtheamendments 2
26292406 madebythisAct,shalltakeeffectontheearlierof— 3
26302407 (1)18monthsafterthedateofenactmentof 4
26312408 thisAct;or 5
26322409 (2)thedatethatis120daysafterthedateon 6
26332410 whichtheprimaryFederalpaymentstablecoinregu-7
26342411 latorsissueanyfinalregulationsimplementingthis 8
26352412 Act. 9
2636-(b) N
2637-OTICE TOCONGRESS.—The primary Federal 10
2413+(b)NOTICETOCONGRESS.—TheprimaryFederal 10
26382414 paymentstablecoinregulatorsshallnotifyCongressupon 11
26392415 beginningtoprocessapplicationsunderthisAct. 12
2640-(c) S
2641-AFEHARBOR FORPENDINGAPPLICATIONS.— 13
2416+(c)SAFEHARBORFORPENDINGAPPLICATIONS.— 13
26422417 TheprimaryFederalpaymentstablecoinregulatorsmay 14
26432418 waivetheapplicationoftherequirementsofthisActfor 15
26442419 aperiodnottoexceed12monthsbeginningontheeffec-16
26452420 tivedatedescribedundersubsection(a),withrespectto— 17
26462421 (1)asubsidiaryofaninsureddepositoryinsti-18
26472422 tution,iftheinsureddepositoryinstitutionhasan 19
26482423 applicationpendingforthesubsidiarytobecomea 20
26492424 permittedpaymentstablecoinissueronthateffective 21
26502425 date;or 22
26512426 (2)anonbankentitywithanapplicationpend-23
26522427 ingtobecomeaComptroller-regulatedentityonthat 24
26532428 effectivedate. 25
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26552430 ssavage on LAPJG3WLY3PROD with BILLS 89
2656-•S 919 IS
2431+•S 919 RS
26572432 SEC.18.RULEMAKING. 1
2658-(a) I
2659-NGENERAL.—Not later than 1 year after the 2
2433+(a)INGENERAL.—Notlaterthan1yearafterthe 2
26602434 dateofenactmentofthisAct,eachprimaryFederalpay-3
26612435 mentstablecoinregulator,theSecretaryoftheTreasury, 4
26622436 andeachStatepaymentstablecoinregulatorshallimple-5
26632437 mentthisActthroughappropriatenoticeandcomment 6
26642438 rulemaking,includingpromulgatingregulationsasde-7
26652439 scribedinthisActasnecessary. 8
2666-(b) C
2667-OORDINATION.—Federal payment stablecoin 9
2440+(b)COORDINATION.—Federalpaymentstablecoin 9
26682441 regulatorsandStatepaymentstablecoinregulatorsshould 10
26692442 coordinateontheissuanceofanyregulationstoimplement 11
26702443 thisAct. 12
2671-(c) R
2672-EPORTREQUIRED.—Not later than 180 days 13
2444+(c)REPORTREQUIRED.—Notlaterthan180days 13
26732445 afterthedateofenactmentofthisAct,eachFederal 14
26742446 bankingagencyshallsubmittotheCommitteeonBank-15
26752447 ing,Housing,andUrbanAffairsoftheSenateandthe 16
26762448 CommitteeonFinancialServicesoftheHouseofRep-17
26772449 resentativesareportthatconfirmsanddescribestherules 18
26782450 promulgatedtoimplementthisAct. 19
2679-Æ
2680-VerDate Sep 11 2014 17:09 Mar 20, 2025 Jkt 059200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6301 E:\BILLS\S919.IS S919
2451+SECTION 1. SHORT TITLE. 20
2452+This Act may be cited as the ‘‘Guiding and Estab-21
2453+lishing National Innovation for U.S. Stablecoins Act of 22
2454+2025’’ or the ‘‘GENIUS Act of 2025’’. 23
2455+SEC. 2. DEFINITIONS. 24
2456+In this Act: 25
2457+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2458+ssavage on LAPJG3WLY3PROD with BILLS 90
2459+•S 919 RS
2460+(1) BANK SECRECY ACT.—The term ‘‘Bank Se-1
2461+crecy Act’’ means— 2
2462+(A) section 21 of the Federal Deposit Insur-3
2463+ance Act (12 U.S.C. 1829b); 4
2464+(B) chapter 2 of title I of Public Law 91– 5
2465+508 (12 U.S.C. 1951 et seq.); and 6
2466+(C) subchapter II of chapter 53 of title 31, 7
2467+United States Code. 8
2468+(2) B
2469+OARD.—The term ‘‘Board’’ means the 9
2470+Board of Governors of the Federal Reserve System. 10
2471+(3) C
2472+OMPTROLLER.—The term ‘‘Comptroller’’ 11
2473+means the Office of the Comptroller of the Currency. 12
2474+(4) C
2475+OMPTROLLER-REGULATED ENTITY .—The 13
2476+term ‘‘Comptroller-regulated entity’’ means— 14
2477+(A) any Federal qualified nonbank payment 15
2478+stablecoin issuer that is subject to regulation and 16
2479+supervision exclusively by the Comptroller, pur-17
2480+suant to section 4(a)(7); and 18
2481+(B) any entity chartered by the Comp-19
2482+troller. 20
2483+(5) C
2484+ORPORATION.—The term ‘‘Corporation’’ 21
2485+means the Federal Deposit Insurance Corporation. 22
2486+(6) D
2487+IGITAL ASSET.—The term ‘‘digital asset’’ 23
2488+means any digital representation of value which is re-24
2489+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2490+ssavage on LAPJG3WLY3PROD with BILLS 91
2491+•S 919 RS
2492+corded on a cryptographically-secured distributed 1
2493+ledger. 2
2494+(7) D
2495+ISTRIBUTED LEDGER.—The term ‘‘distrib-3
2496+uted ledger’’ means technology in which data is 4
2497+shared across a network that creates a public digital 5
2498+ledger of verified transactions or information among 6
2499+network participants and cryptography is used to 7
2500+link the data to maintain the integrity of the public 8
2501+ledger and execute other functions. 9
2502+(8) F
2503+EDERAL QUALIFIED NONBANK PAYMENT 10
2504+STABLECOIN ISSUER.—The term ‘‘Federal qualified 11
2505+nonbank payment stablecoin issuer’’ means a 12
2506+nonbank entity, other than a State qualified payment 13
2507+stablecoin issuer, approved by the Comptroller, pursu-14
2508+ant to section 5, to issue payment stablecoins. 15
2509+(9) I
2510+NSTITUTION-AFFILIATED PARTY.—With re-16
2511+spect to a permitted payment stablecoin issuer, the 17
2512+term ‘‘institution-affiliated party’’ means any direc-18
2513+tor, officer, employee, or controlling stockholder of the 19
2514+permitted payment stablecoin issuer. 20
2515+(10) I
2516+NSURED DEPOSITORY INSTITUTION .—The 21
2517+term ‘‘insured depository institution’’ means— 22
2518+(A) an insured depository institution, as 23
2519+defined in section 3 of the Federal Deposit Insur-24
2520+ance Act (12 U.S.C. 1813); and 25
2521+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00091 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2522+ssavage on LAPJG3WLY3PROD with BILLS 92
2523+•S 919 RS
2524+(B) an insured credit union, as defined in 1
2525+section 101 of the Federal Credit Union Act (12 2
2526+U.S.C. 1752). 3
2527+(11) M
2528+ONETARY VALUE.—The term ‘‘monetary 4
2529+value’’ means a national currency or deposit (as de-5
2530+fined in section 3 of the Federal Deposit Insurance 6
2531+Act) denominated in a national currency. 7
2532+(12) M
2533+ONEY.—The term ‘‘money’’ means any fi-8
2534+nancial instrument that is— 9
2535+(A) legal tender; 10
2536+(B) required to be received by a taxing au-11
2537+thority in satisfaction of tax obligations; or 12
2538+(C) widely accepted in an economy for the 13
2539+payment of goods or services. 14
2540+(13) N
2541+ATIONAL CURRENCY.—The term ‘‘national 15
2542+currency’’ means each of the following: 16
2543+(A) A Federal Reserve note (as the term is 17
2544+used in the first undesignated paragraph of sec-18
2545+tion 16 of the Federal Reserve Act (12 U.S.C. 19
2546+411)). 20
2547+(B) Money standing to the credit of an ac-21
2548+count with a Federal Reserve Bank. 22
2549+(C) Money issued by a foreign central bank. 23
2550+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00092 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2551+ssavage on LAPJG3WLY3PROD with BILLS 93
2552+•S 919 RS
2553+(D) Money issued by an intergovernmental 1
2554+organization pursuant to an agreement by 1 or 2
2555+more governments. 3
2556+(14) N
2557+ONBANK ENTITY.—The term ‘‘nonbank en-4
2558+tity’’ means a person that is not a depository institu-5
2559+tion or subsidiary of a depository institution. 6
2560+(15) P
2561+AYMENT STABLECOIN.—The term ‘‘pay-7
2562+ment stablecoin’’— 8
2563+(A) means a digital asset— 9
2564+(i) that is or is designed to be used as 10
2565+a means of payment or settlement; and 11
2566+(ii) the issuer of which— 12
2567+(I) is obligated to convert, redeem, 13
2568+or repurchase for a fixed amount of 14
2569+monetary value, not including a dig-15
2570+ital asset denominated in a fixed 16
2571+amount of monetary value; 17
2572+(II) represents that such issuer 18
2573+will maintain or creates the reasonable 19
2574+expectation that it will maintain a 20
2575+stable value relative to the value of a 21
2576+fixed amount of monetary value; or 22
2577+(III) has complied with the au-23
2578+thorization requirements of this Act; 24
2579+and 25
2580+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2581+ssavage on LAPJG3WLY3PROD with BILLS 94
2582+•S 919 RS
2583+(B) that— 1
2584+(i) is not a national currency; 2
2585+(ii) is not a deposit (as defined in sec-3
2586+tion 3 of the Federal Deposit Insurance 4
2587+Act), including a deposit recorded using 5
2588+distributed ledger technology; 6
2589+(iii) does not offer a payment of yield 7
2590+or interest; and 8
2591+(iv) is not a security, as defined in sec-9
2592+tion 2 of the Securities Act of 1933 (15 10
2593+U.S.C. 77b), section 3 of the Securities Ex-11
2594+change Act of 1934 (15 U.S.C. 78c), or sec-12
2595+tion 2 of the Investment Company Act of 13
2596+1940 (15 U.S.C. 80a–2), other than a bond, 14
2597+note, evidence of indebtedness, or investment 15
2598+contract satisfying the conditions described 16
2599+in subparagraph (A). 17
2600+(16) P
2601+ERMITTED PAYMENT STABLECOIN 18
2602+ISSUER.—The term ‘‘permitted payment stablecoin 19
2603+issuer’’ means a person incorporated in the United 20
2604+States that is— 21
2605+(A) a subsidiary of an insured depository 22
2606+institution that has been approved to issue pay-23
2607+ment stablecoins under section 5; 24
2608+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2609+ssavage on LAPJG3WLY3PROD with BILLS 95
2610+•S 919 RS
2611+(B) a Federal qualified nonbank payment 1
2612+stablecoin issuer that has been approved to issue 2
2613+payment stablecoins under section 5; or 3
2614+(C) a State qualified payment stablecoin 4
2615+issuer. 5
2616+(17) P
2617+ERSON.—The term ‘‘person’’ means an in-6
2618+dividual, partnership, company, corporation, associa-7
2619+tion, trust, estate, cooperative organization, or other 8
2620+business entity, incorporated or unincorporated. 9
2621+(18) P
2622+RIMARY FEDERAL PAYMENT STABLECOIN 10
2623+REGULATOR.—The term ‘‘primary Federal payment 11
2624+stablecoin regulator’’ means— 12
2625+(A) with respect to a subsidiary of an in-13
2626+sured depository institution (other than an in-14
2627+sured credit union), the appropriate Federal 15
2628+banking agency (as defined under section 3 of the 16
2629+Federal Deposit Insurance Act (12 U.S.C. 1813)) 17
2630+of such insured depository institution; 18
2631+(B) with respect to an insured credit union 19
2632+or a subsidiary of an insured credit union, the 20
2633+National Credit Union Administration; 21
2634+(C) with respect to a State chartered deposi-22
2635+tory institution not specified under subpara-23
2636+graph (A), the Corporation, the Comptroller, or 24
2637+the Board; and 25
2638+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2639+ssavage on LAPJG3WLY3PROD with BILLS 96
2640+•S 919 RS
2641+(D) with respect to a Federal qualified 1
2642+nonbank payment stablecoin issuer or any entity 2
2643+chartered by the Comptroller, the Comptroller. 3
2644+(19) R
2645+EGISTERED PUBLIC ACCOUNTING FIRM .— 4
2646+The term ‘‘registered public accounting firm’’ has the 5
2647+meaning given that term under section 2 of the Sar-6
2648+banes-Oxley Act of 2002 (15 U.S.C. 7201). 7
2649+(20) S
2650+TATE.—The term ‘‘State’’ means each of 8
2651+the several States of the United States, the District of 9
2652+Columbia, and each territory of the United States. 10
2653+(21) S
2654+TATE QUALIFIED PAYMENT STABLECOIN 11
2655+ISSUER.—The term ‘‘State qualified payment 12
2656+stablecoin issuer’’ means an entity that is legally es-13
2657+tablished under the laws of a State and approved to 14
2658+issue payment stablecoins by a State payment 15
2659+stablecoin regulator. 16
2660+(22) S
2661+TATE PAYMENT STABLECOIN REGU -17
2662+LATOR.—The term ‘‘State payment stablecoin regu-18
2663+lator’’ means a State agency that has primary regu-19
2664+latory and supervisory authority in such State over 20
2665+entities that issue payment stablecoins. 21
2666+(23) S
2667+TATE CHARTERED DEPOSITORY INSTITU -22
2668+TION.—The term ‘‘State chartered depository institu-23
2669+tion’’ has the meaning given the term ‘‘State deposi-24
2670+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2671+ssavage on LAPJG3WLY3PROD with BILLS 97
2672+•S 919 RS
2673+tory institution’’ in section 3(c) of the Federal De-1
2674+posit Insurance Act (12 U.S.C. 1813(c)). 2
2675+(24) S
2676+UBSIDIARY OF AN INSURED CREDIT 3
2677+UNION.—With respect to an insured credit union, the 4
2678+term ‘‘subsidiary of an insured credit union’’ 5
2679+means— 6
2680+(A) an organization providing services to 7
2681+the insured credit union that are associated with 8
2682+the routine operations of credit unions, as de-9
2683+scribed under section 107(7)(I) of the Federal 10
2684+Credit Union Act (12 U.S.C. 1757(7)(I)); and 11
2685+(B) a credit union service organization, as 12
2686+such term is used under part 712 of title 12, 13
2687+Code of Federal Regulations, with respect to 14
2688+which the insured credit union has an ownership 15
2689+interest or to which the insured credit union has 16
2690+extended a loan. 17
2691+SEC. 3. ISSUANCE AND TREATMENT OF PAYMENT 18
2692+STABLECOINS. 19
2693+(a) I
2694+SSUE.—It shall be unlawful for any person other 20
2695+than a permitted payment stablecoin issuer to issue a pay-21
2696+ment stablecoin in the United States. 22
2697+(b) T
2698+REATMENT.—A payment stablecoin that is not 23
2699+issued by a permitted payment stablecoin issuer shall not 24
2700+be— 25
2701+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2702+ssavage on LAPJG3WLY3PROD with BILLS 98
2703+•S 919 RS
2704+(1) treated as cash or a cash equivalent for ac-1
2705+counting purposes; 2
2706+(2) eligible as cash or a cash equivalent margin 3
2707+and collateral for futures commission merchants, de-4
2708+rivative clearing organizations, broker-dealers, reg-5
2709+istered clearing agencies, and swap dealers; or 6
2710+(3) acceptable as a settlement asset to facilitate 7
2711+wholesale payments between banking organizations or 8
2712+by a payment infrastructure to facilitate exchange 9
2713+and settlement among banking organizations. 10
2714+(c) P
2715+ENALTY FORVIOLATION.— 11
2716+(1) I
2717+N GENERAL.—Whoever knowingly partici-12
2718+pates in a violation of subsection (a) shall be fined 13
2719+not more than $1,000,000 for each such violation, im-14
2720+prisoned for not more than 5 years, or both. 15
2721+(2) R
2722+EFERRAL TO ATTORNEY GENERAL .—If a 16
2723+primary Federal payment stablecoin regulator has 17
2724+reason to believe that any person has knowingly vio-18
2725+lated subsection (a), the primary Federal payment 19
2726+stablecoin regulator shall refer the matter to the Attor-20
2727+ney General. 21
2728+SEC. 4. REQUIREMENTS FOR ISSUING PAYMENT 22
2729+STABLECOINS. 23
2730+(a) S
2731+TANDARDS FOR THE ISSUANCE OFPAYMENT 24
2732+S
2733+TABLECOINS.— 25
2734+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2735+ssavage on LAPJG3WLY3PROD with BILLS 99
2736+•S 919 RS
2737+(1) IN GENERAL.—Permitted payment stablecoin 1
2738+issuers shall— 2
2739+(A) maintain reserves backing the out-3
2740+standing payment stablecoins of the permitted 4
2741+payment stablecoin issuer on an at least 1 to 1 5
2742+basis, with reserves comprising— 6
2743+(i) United States coins and currency 7
2744+(including Federal reserve notes) or money 8
2745+standing to the credit of an account with a 9
2746+Federal Reserve Bank; 10
2747+(ii) funds held as demand deposits (or 11
2748+other deposits that may be withdrawn upon 12
2749+request at any time) or insured shares at an 13
2750+insured depository institution (including 14
2751+any foreign branches and agencies of an in-15
2752+sured depository institution), subject to lim-16
2753+itations established by the Corporation and 17
2754+the National Credit Union Administration, 18
2755+as applicable, to address safety and sound-19
2756+ness risks of such insured depository insti-20
2757+tution; 21
2758+(iii) Treasury bills, notes, or bonds— 22
2759+(I) with a remaining maturity of 23
2760+93 days or less; or 24
2761+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2762+ssavage on LAPJG3WLY3PROD with BILLS 100
2763+•S 919 RS
2764+(II) issued with a maturity of 93 1
2765+days or less; 2
2766+(iv) repurchase agreements with the 3
2767+permitted payment stablecoin issuer acting 4
2768+as a seller of securities and with an over-5
2769+night maturity that are backed by Treasury 6
2770+bills with a maturity of 93 days or less; 7
2771+(v) reverse repurchase agreements with 8
2772+the permitted payment stablecoin issuer act-9
2773+ing as a purchaser of securities and with an 10
2774+overnight maturity that are collateralized 11
2775+by Treasury notes, bills, or bonds on an 12
2776+overnight basis, subject to 13
2777+overcollateralization in line with standard 14
2778+market terms, that are— 15
2779+(I) tri-party; 16
2780+(II) centrally cleared through a 17
2781+clearing house registered with the Secu-18
2782+rities and Exchange Commission; or 19
2783+(III) bilateral with a 20
2784+counterparty that the issuer has deter-21
2785+mined to be adequately creditworthy 22
2786+even in the event of severe market 23
2787+stress; 24
2788+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2789+ssavage on LAPJG3WLY3PROD with BILLS 101
2790+•S 919 RS
2791+(vi) securities issued by an investment 1
2792+company registered under section 8(a) of the 2
2793+Investment Company Act of 1940 (15 3
2794+U.S.C. 80a–8(a)) that operates as a money 4
2795+market fund in compliance with rule 2a–7 5
2796+issued under that Act (or any successor 6
2797+rule) and that are invested solely in under-7
2798+lying assets described in clauses (i) through 8
2799+(v) of subparagraph (A); 9
2800+(vii) any other similarly liquid federal 10
2801+government issued asset approved by the 11
2802+primary Federal payment stablecoin regu-12
2803+lator, in consultation with the State pay-13
2804+ment stablecoin regulator, if applicable, of 14
2805+the permitted payment stablecoin issuer; or 15
2806+(viii) any reserve described in clauses 16
2807+(i) through (vii) in tokenized form, provided 17
2808+that such reserves comply with all applica-18
2809+ble laws and regulations; 19
2810+(B) publicly disclose the issuer’s redemption 20
2811+policy; 21
2812+(C) establish procedures for timely redemp-22
2813+tion of outstanding payment stablecoins; and 23
2814+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00101 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2815+ssavage on LAPJG3WLY3PROD with BILLS 102
2816+•S 919 RS
2817+(D) publish the monthly composition of the 1
2818+issuer’s reserves on the website of the issuer, con-2
2819+taining— 3
2820+(i) the total number of outstanding 4
2821+payment stablecoins issued by the issuer; 5
2822+and 6
2823+(ii) the amount and composition of the 7
2824+reserves described under subparagraph (A). 8
2825+(2) P
2826+ROHIBITION ON REHYPOTHECATION .—Re-9
2827+serves required under paragraph (1)(A) may not be 10
2828+pledged, rehypothecated, or reused by the permitted 11
2829+payment stablecoin issuer, either directly or indi-12
2830+rectly, except for the purpose of— 13
2831+(A) satisfying margin obligations in connec-14
2832+tion with investments in permitted reserves 15
2833+under clauses (iv) and (v) of paragraph (1)(A); 16
2834+(B) satisfying obligations associated with 17
2835+the use or receipt of provision of standard custo-18
2836+dial services; or 19
2837+(C) creating liquidity to meet reasonable ex-20
2838+pectations of requests to redeem payment 21
2839+stablecoins, such that reserves in the form of 22
2840+Treasury bills may be sold as purchased securi-23
2841+ties for repurchase agreements with a maturity 24
2842+of 93 days or less, provided that either— 25
2843+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2844+ssavage on LAPJG3WLY3PROD with BILLS 103
2845+•S 919 RS
2846+(i) the repurchase agreements are 1
2847+cleared by a clearing agency registered with 2
2848+the Securities and Exchange Commission; 3
2849+or 4
2850+(ii) the permitted payment stablecoin 5
2851+issuer receives the prior approval of its pri-6
2852+mary Federal payment stablecoin regulator 7
2853+or State payment stablecoin regulator, as 8
2854+applicable. 9
2855+(3) M
2856+ONTHLY CERTIFICATION; EXAMINATION OF 10
2857+REPORTS BY REGISTERED PUBLIC ACCOUNTING 11
2858+FIRM.— 12
2859+(A) I
2860+N GENERAL.—A permitted payment 13
2861+stablecoin issuer shall, each month, have the in-14
2862+formation disclosed in the previous month-end 15
2863+report required under paragraph (1)(D) exam-16
2864+ined by a registered public accounting firm. 17
2865+(B) C
2866+ERTIFICATION.—Each month, the 18
2867+Chief Executive Officer and Chief Financial Of-19
2868+ficer of a permitted payment stablecoin issuer 20
2869+shall submit a certification as to the accuracy of 21
2870+the monthly report to, as applicable— 22
2871+(i) the primary Federal payment 23
2872+stablecoin regulator of the permitted pay-24
2873+ment stablecoin issuer; or 25
2874+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00103 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2875+ssavage on LAPJG3WLY3PROD with BILLS 104
2876+•S 919 RS
2877+(ii) the State payment stablecoin regu-1
2878+lator of the permitted payment stablecoin 2
2879+issuer. 3
2880+(C) C
2881+RIMINAL PENALTY.—Any person who 4
2882+submits a certification required under subpara-5
2883+graph (B) knowing that such certification is 6
2884+false shall be subject to the criminal penalties set 7
2885+forth under section 1350(c) of title 18, United 8
2886+States Code. 9
2887+(4) C
2888+APITAL, LIQUIDITY, AND RISK MANAGEMENT 10
2889+REQUIREMENTS.— 11
2890+(A) I
2891+N GENERAL.—The primary Federal 12
2892+payment stablecoin regulators shall, jointly, or 13
2893+in the case of a State qualified payment 14
2894+stablecoin issuer, the State payment stablecoin 15
2895+regulator shall, consistent with section 18, 16
2896+issue— 17
2897+(i) capital requirements applicable to 18
2898+permitted payment stablecoin issuers that— 19
2899+(I) are tailored to the business 20
2900+model and risk profile of permitted 21
2901+payment stablecoin issuers; 22
2902+(II) do not exceed requirements 23
2903+which are sufficient to ensure the ongo-24
2904+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2905+ssavage on LAPJG3WLY3PROD with BILLS 105
2906+•S 919 RS
2907+ing operations of permitted payment 1
2908+stablecoin issuers; and 2
2909+(III) in the case of the primary 3
2910+Federal payment stablecoin regulators, 4
2911+if the primary Federal payment 5
2912+stablecoin regulators determine that a 6
2913+capital buffer is necessary to ensure the 7
2914+ongoing operations of permitted pay-8
2915+ment stablecoin issuers, may include 9
2916+capital buffers that are tailored to the 10
2917+business model and risk profile of per-11
2918+mitted payment stablecoin issuers; 12
2919+(ii) regulations implementing the li-13
2920+quidity standard under clause (i); 14
2921+(iii) reserve asset diversification and 15
2922+interest rate risk management standards 16
2923+applicable to permitted payment stablecoin 17
2924+issuers that— 18
2925+(I) are tailored to the business 19
2926+model and risk profile of permitted 20
2927+payment stablecoin issuers; and 21
2928+(II) do not exceed standards 22
2929+which are sufficient to ensure the ongo-23
2930+ing operations of permitted payment 24
2931+stablecoin issuers; and 25
2932+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2933+ssavage on LAPJG3WLY3PROD with BILLS 106
2934+•S 919 RS
2935+(iv) appropriate operational, compli-1
2936+ance, and information technology risk man-2
2937+agement standards, including Bank Secrecy 3
2938+Act and sanctions compliance, that— 4
2939+(I) are tailored to the business 5
2940+model and risk profile of permitted 6
2941+payment stablecoin issuers; and 7
2942+(II) are consistent with applicable 8
2943+law. 9
2944+(B) R
2945+ULE OF CONSTRUCTION .—Nothing in 10
2946+this paragraph shall be construed to limit— 11
2947+(i) the authority of the primary Fed-12
2948+eral regulators, in prescribing standards 13
2949+under this paragraph, to tailor or differen-14
2950+tiate among issuers on an individual basis 15
2951+or by category, taking into consideration 16
2952+the capital structure, business model risk 17
2953+profile, complexity, financial activities (in-18
2954+cluding financial activities of subsidiaries), 19
2955+size, and any other risk related factors of 20
2956+permitted payment stablecoin issuers that 21
2957+the primary Federal regulator determines 22
2958+appropriate, provided that such tailoring or 23
2959+differentiation occurs without respect to 24
2960+whether a permitted payment stablecoin 25
2961+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2962+ssavage on LAPJG3WLY3PROD with BILLS 107
2963+•S 919 RS
2964+issuer is regulated by a State payment 1
2965+stablecoin regulator; or 2
2966+(ii) the supervisory, regulatory, or en-3
2967+forcement authority of a Federal banking 4
2968+agency to further the safe and sound oper-5
2969+ation of an institution for which the Fed-6
2970+eral banking agency is the appropriate Fed-7
2971+eral banking agency (as defined under sec-8
2972+tion 3 of the Federal Deposit Insurance Act 9
2973+(12 U.S.C. 1813)). 10
2974+(C) A
2975+PPLICABILITY OF EXISTING CAPITAL 11
2976+STANDARDS.— 12
2977+(i) D
2978+EFINITIONS.—In this subpara-13
2979+graph— 14
2980+(I) ‘‘appropriate Federal banking 15
2981+agency’’ has the meaning given that 16
2982+term in section 3(q) of the Federal De-17
2983+posit Insurance Act (12 U.S.C. 18
2984+1813(q); and 19
2985+(II) ‘‘depository institution hold-20
2986+ing company’’ has the meaning given 21
2987+that term under section 171(a)(3) of 22
2988+the Financial Stability Act of 2010 (12 23
2989+U.S.C. 5371(a)(3)). 24
2990+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00107 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
2991+ssavage on LAPJG3WLY3PROD with BILLS 108
2992+•S 919 RS
2993+(ii) APPLICABILITY OF FINANCIAL STA-1
2994+BILITY ACT.—With respect to the promulga-2
2995+tion of rules under subparagraph (A) and 3
2996+clauses (iii) and (iv) of this subparagraph, 4
2997+section 171 of the Financial Stability Act of 5
2998+2010 (12 U.S.C. 5371) shall not apply. 6
2999+(iii) R
3000+ULES RELATING TO LEVERAGE 7
3001+CAPITAL REQUIREMENTS OR RISK -BASED 8
3002+CAPITAL REQUIREMENTS .—Any rule issued 9
3003+by an appropriate Federal banking agency 10
3004+that imposes, on a consolidated basis, a le-11
3005+verage capital requirement or risk-based 12
3006+capital requirement with respect to an in-13
3007+sured depository institution or depository 14
3008+institution holding company shall provide 15
3009+that, for purposes of such leverage capital 16
3010+requirement or risk-based capital require-17
3011+ment, any insured depository institution or 18
3012+depository institution holding company that 19
3013+includes, on a consolidated basis, a per-20
3014+mitted payment stablecoin issuer shall not 21
3015+be required to hold, with respect to such 22
3016+permitted payment stablecoin issuer and its 23
3017+assets and operations, any amount of regu-24
3018+latory capital in excess of the capital that 25
3019+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3020+ssavage on LAPJG3WLY3PROD with BILLS 109
3021+•S 919 RS
3022+such permitted payment stablecoin issuer 1
3023+must maintain under the capital require-2
3024+ments promulgated pursuant to paragraph 3
3025+(1)(A)(i). 4
3026+(iv) M
3027+ODIFICATIONS.—Not later than 5
3028+the earlier of the rulemaking deadline under 6
3029+section 18 or the date the Federal payment 7
3030+stablecoin regulators issue regulations to 8
3031+carry out this section, each appropriate 9
3032+Federal banking agency shall amend or oth-10
3033+erwise modify any regulation of the Federal 11
3034+banking agency described in clause (iii) so 12
3035+that such regulation, as amended or other-13
3036+wise modified, complies with clause (iii) of 14
3037+this subparagraph. 15
3038+(5) T
3039+REATMENT UNDER THE BANK SECRECY ACT 16
3040+AND SANCTIONS LAWS.— 17
3041+(A) I
3042+N GENERAL.—A permitted payment 18
3043+stablecoin issuer shall be treated as a financial 19
3044+institution for purposes of the Bank Secrecy Act, 20
3045+and as such, shall be subject to all Federal laws 21
3046+applicable to a financial institution located in 22
3047+the United States relating to economic sanctions, 23
3048+prevention of money laundering, customer iden-24
3049+tification, and due diligence, including— 25
3050+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00109 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3051+ssavage on LAPJG3WLY3PROD with BILLS 110
3052+•S 919 RS
3053+(i) maintenance of an effective anti- 1
3054+money laundering and economic sanctions 2
3055+compliance program, which shall include 3
3056+appropriate risk assessments, verification of 4
3057+sanctions lists and designation of an officer 5
3058+to supervise the programs; 6
3059+(ii) retention of appropriate records of 7
3060+payment stablecoin transactions; 8
3061+(iii) monitoring and reporting sus-9
3062+picious activity; 10
3063+(iv) policies and procedures to block, 11
3064+freeze, and reject specific or impermissible 12
3065+transactions that violate Federal or State 13
3066+laws, rules, or regulations; and 14
3067+(v) maintenance of an effective cus-15
3068+tomer identification program, including 16
3069+identification and verification of account 17
3070+holders with the permitted payment 18
3071+stablecoin issuer, high value transactions 19
3072+and appropriate enhanced due diligence. 20
3073+(B) R
3074+ULEMAKING.—The Financial Crimes 21
3075+Enforcement Network shall adopt rules, tailored 22
3076+to the size and complexity of the permitted pay-23
3077+ment stablecoin issuer, to implement subpara-24
3078+graph (A). 25
3079+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00110 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3080+ssavage on LAPJG3WLY3PROD with BILLS 111
3081+•S 919 RS
3082+(6) COORDINATION WITH PERMITTED PAYMENT 1
3083+STABLECOIN ISSUERS WITH RESPECT TO BLOCKING 2
3084+OF PROPERTY AND TECHNOLOGICAL CAPABILITIES TO 3
3085+COMPLY WITH LAWFUL ORDERS .— 4
3086+(A) I
3087+N GENERAL.—The Secretary of the 5
3088+Treasury— 6
3089+(i) shall, to the best of the Secretary’s 7
3090+ability, coordinate with a permitted pay-8
3091+ment stablecoin issuer before taking any ac-9
3092+tion to block and prohibit transactions in 10
3093+property and interests in property of a for-11
3094+eign person to ensure that the permitted 12
3095+payment stablecoin issuer is able to effec-13
3096+tively block a digital asset of the foreign 14
3097+person upon issue of the digital asset; and 15
3098+(ii) is not required to notify any per-16
3099+mitted payment stablecoin issuer of any in-17
3100+tended action described in clause (i) prior 18
3101+to taking such action. 19
3102+(B) C
3103+OMPLIANCE WITH LAWFUL ORDERS .— 20
3104+(i) I
3105+N GENERAL.— 21
3106+(I) P
3107+ERMITTED PAYMENT 22
3108+STABLECOIN ISSUERS .—A permitted 23
3109+payment stablecoin issuer may issue 24
3110+payment stablecoins only if the issuer 25
3111+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00111 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3112+ssavage on LAPJG3WLY3PROD with BILLS 112
3113+•S 919 RS
3114+has the technological capability to com-1
3115+ply and will comply with the terms of 2
3116+any lawful order. 3
3117+(II) F
3118+OREIGN PAYMENT 4
3119+STABLECOINS.—A foreign payment 5
3120+stablecoin that is not licensed under 6
3121+this Act may not be publicly offered, 7
3122+sold, or otherwise made available for 8
3123+trading in the United States unless the 9
3124+payment stablecoin issuer has the tech-10
3125+nological capability to comply and 11
3126+complies with the terms of any lawful 12
3127+order. 13
3128+(ii) L
3129+AWFUL ORDER DEFINED .—In this 14
3130+paragraph, the term ‘‘lawful order’’ means 15
3131+any final and valid writ, process, order, 16
3132+rule, decree, command, or other requirement 17
3133+issued or promulgated under Federal law, 18
3134+issued by a court of competent jurisdiction 19
3135+or by an authorized Federal agency pursu-20
3136+ant to its statutory authority, that— 21
3137+(I) requires the permitted pay-22
3138+ment stablecoin issuer to seize, freeze, 23
3139+burn, or prevent the transfer of pay-24
3140+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00112 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3141+ssavage on LAPJG3WLY3PROD with BILLS 113
3142+•S 919 RS
3143+ment stablecoins issued by the per-1
3144+mitted payment stablecoin issuer; 2
3145+(II) specifies the digital assets or 3
3146+accounts subject to blocking with rea-4
3147+sonable particularity; and 5
3148+(III) is subject to judicial or ad-6
3149+ministrative review or appeal as pro-7
3150+vided by law. 8
3151+(C) R
3152+EPORT REQUIRED.—Not later than 1 9
3153+year after the date of enactment of this Act, the 10
3154+Secretary of the Treasury shall submit to the 11
3155+Committee on Banking, Housing, and Urban Af-12
3156+fairs of the Senate and the Committee on Finan-13
3157+cial Services of the House of Representatives a 14
3158+report on the coordination with permitted pay-15
3159+ment stablecoin issuers required under subpara-16
3160+graph (A). 17
3161+(7) L
3162+IMITATION ON PAYMENT STABLECOIN AC -18
3163+TIVITIES.— 19
3164+(A) I
3165+N GENERAL.—A permitted payment 20
3166+stablecoin issuer may only— 21
3167+(i) issue payment stablecoins; 22
3168+(ii) redeem payment stablecoins; 23
3169+(iii) manage related reserves, including 24
3170+purchasing, selling, and holding reserve as-25
3171+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00113 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3172+ssavage on LAPJG3WLY3PROD with BILLS 114
3173+•S 919 RS
3174+sets or providing custodial services for re-1
3175+serve assets, consistent with State and Fed-2
3176+eral law; 3
3177+(iv) provide custodial or safekeeping 4
3178+services for payment stablecoins, required 5
3179+reserves, or private keys of payment 6
3180+stablecoins, consistent with this Act; and 7
3181+(v) undertake other activities that di-8
3182+rectly support any of the activities described 9
3183+in clauses (i) through (iv). 10
3184+(B) R
3185+ULE OF CONSTRUCTION .—Nothing in 11
3186+subparagraph (A) shall prevent a permitted pay-12
3187+ment stablecoin issuer from engaging in non- 13
3188+payment stablecoin activities that are allowed by 14
3189+the primary Federal payment stablecoin regu-15
3190+lator or the State payment stablecoin regulator, 16
3191+as applicable. 17
3192+(8) P
3193+ROHIBITION ON TYING.— 18
3194+(A) I
3195+N GENERAL.—A permitted payment 19
3196+stablecoin issuer may not provide services to a 20
3197+customer on the condition that the customer ob-21
3198+tain an additional paid product or service from 22
3199+the permitted payment stablecoin issuer, or any 23
3200+of its subsidiaries, or agree to not obtain an ad-24
3201+ditional product or service from a competitor. 25
3202+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00114 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3203+ssavage on LAPJG3WLY3PROD with BILLS 115
3204+•S 919 RS
3205+(B) REGULATIONS.—The Board may issue 1
3206+such regulations as are necessary to carry out 2
3207+this subparagraph, and, in consultation with the 3
3208+Comptroller and the Corporation, may by regu-4
3209+lation or order, permit such exceptions to clause 5
3210+(i) as the Board considers will not be contrary 6
3211+to the purpose of this Act. 7
3212+(9) P
3213+ROHIBITION ON THE USE OF DECEPTIVE 8
3214+NAMES.—A permitted payment stablecoin issuer may 9
3215+not market a payment stablecoin in such a way that 10
3216+a reasonable person would perceive the payment 11
3217+stablecoin to be— 12
3218+(A) legal tender, as described in section 13
3219+5103 of title 31, United States Code; 14
3220+(B) issued by the United States; or 15
3221+(C) guaranteed or approved by the Govern-16
3222+ment of the United States. 17
3223+(10) R
3224+EGULATION BY THE COMPTROLLER .— 18
3225+(A) I
3226+N GENERAL.—A Federal qualified 19
3227+nonbank payment stablecoin issuer shall be regu-20
3228+lated and supervised exclusively by the Comp-21
3229+troller, which shall have authority, in coordina-22
3230+tion with other relevant primary Federal pay-23
3231+ment stablecoin regulators and State payment 24
3232+stablecoin regulators, to issue such regulations 25
3233+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00115 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3234+ssavage on LAPJG3WLY3PROD with BILLS 116
3235+•S 919 RS
3236+and orders as necessary to ensure financial sta-1
3237+bility and implement this subsection. 2
3238+(B) C
3239+ONFORMING AMENDMENT .—Section 3
3240+324(b) of the Revised Statutes (12 U.S.C. 1(b)) 4
3241+is amended by adding at the end the following: 5
3242+‘‘(3) R
3243+EGULATION OF FEDERAL QUALIFIED 6
3244+NONBANK PAYMENT STABLECOIN ISSUERS .—The 7
3245+Comptroller of the Currency shall, in coordination 8
3246+with other relevant regulators and consistent with sec-9
3247+tion 18 of the Guiding and Establishing National In-10
3248+novation for U.S. Stablecoins Act of 2025, issue such 11
3249+regulations and orders as necessary to ensure finan-12
3250+cial stability and implement section 4(a) of that 13
3251+Act.’’. 14
3252+(11) A
3253+UDITS AND REPORTS.— 15
3254+(A) A
3255+NNUAL FINANCIAL STATEMENT .— 16
3256+(i) I
3257+N GENERAL.—A permitted pay-17
3258+ment stablecoin issuer with more than 18
3259+$50,000,000,000 in consolidated total out-19
3260+standing issuance, that is not subject to the 20
3261+reporting requirements under sections 13(a) 21
3262+or 15(d) of the Securities and Exchange Act 22
3263+of 1934 (15 U.S.C. 78m, 78o(d)), shall pre-23
3264+pare, in accordance with generally accepted 24
3265+accounting principles, an annual financial 25
3266+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00116 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3267+ssavage on LAPJG3WLY3PROD with BILLS 117
3268+•S 919 RS
3269+statement, which shall include the disclosure 1
3270+of any related party transactions, as de-2
3271+fined by such generally accepted accounting 3
3272+principles. 4
3273+(ii) A
3274+UDITOR.—A registered public ac-5
3275+counting firm shall perform an audit of the 6
3276+annual financial statements described in 7
3277+clause (i). 8
3278+(iii) S
3279+TANDARDS.—An audit described 9
3280+in clause (ii) shall be conducted in accord-10
3281+ance with all applicable auditing standards 11
3282+established by the Public Company Account-12
3283+ing Oversight Board, including those relat-13
3284+ing to auditor independence, internal con-14
3285+trols, and related party transactions. 15
3286+(iv) R
3287+ULE OF CONSTRUCTION .—Noth-16
3288+ing in this subparagraph shall be construed 17
3289+to limit, alter, or expand the jurisdiction of 18
3290+the Public Company Accounting Oversight 19
3291+Board over permitted payment stablecoin 20
3292+issuers or registered public accounting 21
3293+firms. 22
3294+(B) P
3295+UBLIC DISCLOSURE AND SUBMISSION 23
3296+TO FEDERAL REGULATORS .—Each permitted 24
3297+payment stablecoin issuer required to prepare an 25
3298+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00117 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3299+ssavage on LAPJG3WLY3PROD with BILLS 118
3300+•S 919 RS
3301+audited annual financial statement under sub-1
3302+paragraph (A) shall: 2
3303+(i) make such audited financial state-3
3304+ments publicly available on the website of 4
3305+the permitted payment stablecoin issuer; 5
3306+and 6
3307+(ii) submit such audited financial 7
3308+statements annually to their primary Fed-8
3309+eral payment stablecoin regulator. 9
3310+(C) C
3311+ONSULTATION.—The primary Federal 10
3312+payment stablecoin regulators may consult with 11
3313+the Public Company Accounting Oversight 12
3314+Board to determine best practices for deter-13
3315+mining audit oversight and to detect fraud, ma-14
3316+terial misstatements, and other financial mis-15
3317+representations that could mislead permitted 16
3318+payment stablecoin holders. 17
3319+(12) E
3320+LIGIBILITY.—The requirement to main-18
3321+tain reserves under paragraph (1)(A) may not be con-19
3322+strued as expanding or contracting eligibility to qual-20
3323+ify as a depository institution under section 21
3324+19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 22
3325+461(b)(1)(A)). 23
3326+(b) S
3327+TATE-LEVELREGULATORYREGIMES.— 24
3328+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00118 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3329+ssavage on LAPJG3WLY3PROD with BILLS 119
3330+•S 919 RS
3331+(1) OPTION FOR STATE-LEVEL REGULATORY RE -1
3332+GIME.—Notwithstanding the Federal regulatory 2
3333+framework established under subsection (a), a State 3
3334+qualified payment stablecoin issuer with a consoli-4
3335+dated total outstanding issuance of not more than 5
3336+$10,000,000,000 may opt for regulation under a 6
3337+State-level regulatory regime, provided that the State- 7
3338+level regulatory regime is substantially similar to the 8
3339+Federal regulatory framework under that subsection. 9
3340+(2) P
3341+RINCIPLES.—The Secretary of the Treasury 10
3342+shall, through notice and comment rulemaking, estab-11
3343+lish broad based principles for determining whether a 12
3344+State-level regulatory regime is substantially similar 13
3345+to the Federal regulatory framework under subsection 14
3346+(a). 15
3347+(3) R
3348+EVIEW.—State payment stablecoin regu-16
3349+lators shall review State-level regulatory regimes ac-17
3350+cording to the principles established by the Secretary 18
3351+of the Treasury under paragraph (2) and for the pur-19
3352+poses of establishing any necessary cooperative agree-20
3353+ments to implement section 7(f). 21
3354+(4) C
3355+ERTIFICATION.— 22
3356+(A) I
3357+NITIAL CERTIFICATION.—Subject to 23
3358+subparagraph (B), not later than 1 year after 24
3359+the effective date of this Act, a State payment 25
3360+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00119 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3361+ssavage on LAPJG3WLY3PROD with BILLS 120
3362+•S 919 RS
3363+stablecoin regulator shall submit to the Secretary 1
3364+of the Treasury an initial certification that the 2
3365+State-level regulatory regime meets the criteria 3
3366+for substantial similarity established pursuant to 4
3367+paragraph (2). 5
3368+(B) F
3369+ORM OF CERTIFICATION.—The initial 6
3370+certification required under subparagraph (A) 7
3371+shall contain, in a form prescribed by the Sec-8
3372+retary of the Treasury, an attestation that the 9
3373+State-level regulatory regime meets the criteria 10
3374+for substantial similarity established pursuant to 11
3375+paragraph (2). 12
3376+(C) A
3377+NNUAL RECERTIFICATION.—Not later 13
3378+than a date to be determined by the Secretary 14
3379+each year, a State payment stablecoin regulator 15
3380+shall submit to the Secretary of the Treasury an 16
3381+additional certification that confirms the accu-17
3382+racy of initial certification submitted under sub-18
3383+paragraph (A). 19
3384+(5) N
3385+OT SUBSTANTIALLY SIMILAR.— 20
3386+(A) I
3387+N GENERAL.—If a State payment 21
3388+stablecoin regulator determines that the criteria 22
3389+established under paragraph (2) are not met and 23
3390+the State payment stablecoin regulator does not 24
3391+submit a certification under paragraph (4), then 25
3392+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00120 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3393+ssavage on LAPJG3WLY3PROD with BILLS 121
3394+•S 919 RS
3395+a permitted payment stablecoin issuer operating 1
3396+under this subsection shall be subject to the Fed-2
3397+eral regulatory framework as described in sub-3
3398+section (c), notwithstanding the total issuance 4
3399+threshold therein. 5
3400+(B) T
3401+REASURY REVIEW.—Not later than 30 6
3402+days after the date of receipt of a certification 7
3403+under paragraph (4), the Secretary may reject 8
3404+the certification if the Secretary determines that 9
3405+the State-level regulatory regime is not substan-10
3406+tially similar to the Federal regulatory frame-11
3407+work under subsection (a), and the permitted 12
3408+payment stablecoin issuer shall be subject to the 13
3409+Federal regulatory framework as described in 14
3410+subsection (c), notwithstanding the total issuance 15
3411+threshold therein. 16
3412+(C) A
3413+PPELLATE REVIEW.—A State payment 17
3414+stablecoin regulator may challenge the deter-18
3415+mination of the Secretary of the Treasury under 19
3416+this paragraph in the United States Court of 20
3417+Appeals for the District of Columbia Circuit. 21
3418+(6) L
3419+IST.—The Secretary of the Treasury shall 22
3420+publish and maintain in the Federal Register and on 23
3421+the website of the Department of the Treasury a list 24
3422+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00121 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3423+ssavage on LAPJG3WLY3PROD with BILLS 122
3424+•S 919 RS
3425+of States that have submitted initial certifications 1
3426+and recertifications under paragraph (4). 2
3427+(c) T
3428+RANSITION TOFEDERALOVERSIGHT.— 3
3429+(1) D
3430+EPOSITORY INSTITUTION.—A State char-4
3431+tered depository institution that is a State qualified 5
3432+payment stablecoin issuer with a payment stablecoin 6
3433+with a consolidated total outstanding issuance of 7
3434+more than $10,000,000,000 shall— 8
3435+(A) not later than 360 days after the pay-9
3436+ment stablecoin reaches such threshold, transition 10
3437+to the Federal regulatory framework of the pri-11
3438+mary Federal payment stablecoin regulator of 12
3439+the State chartered depository institution, which 13
3440+shall be administered by the State payment 14
3441+stablecoin regulator of the State chartered deposi-15
3442+tory institution and the primary Federal pay-16
3443+ment stablecoin regulator acting jointly; or 17
3444+(B) beginning on the date the payment 18
3445+stablecoin reaches such threshold, cease issuing 19
3446+new payment stablecoins until the payment 20
3447+stablecoin is under the $10,000,000,000 consoli-21
3448+dated total outstanding issuance threshold. 22
3449+(2) O
3450+THER INSTITUTIONS.—A State qualified 23
3451+payment stablecoin issuer not described in paragraph 24
3452+(1) with a payment stablecoin with a consolidated 25
3453+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00122 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3454+ssavage on LAPJG3WLY3PROD with BILLS 123
3455+•S 919 RS
3456+total outstanding issuance of more than 1
3457+$10,000,000,000 shall— 2
3458+(A) not later than 360 days after the pay-3
3459+ment stablecoin reaches such threshold, transition 4
3460+to the Federal regulatory framework under sub-5
3461+section (a) administered by the State payment 6
3462+stablecoin regulator of the State qualified pay-7
3463+ment stablecoin issuer; or 8
3464+(B) beginning on the date the payment 9
3465+stablecoin reaches such threshold, cease issuing 10
3466+new payment stablecoins until the payment 11
3467+stablecoin is under the $10,000,000,000 consoli-12
3468+dated total outstanding issuance threshold. 13
3469+(3) W
3470+AIVER.— 14
3471+(A) I
3472+N GENERAL.—Notwithstanding para-15
3473+graphs (1) and (2), the applicable primary Fed-16
3474+eral payment stablecoin regulator may permit a 17
3475+State qualified payment stablecoin issuer with a 18
3476+payment stablecoin with a consolidated total out-19
3477+standing issuance of more than $10,000,000,000 20
3478+to remain solely supervised by a State payment 21
3479+stablecoin regulator. 22
3480+(B) C
3481+RITERIA FOR WAIVER.—The primary 23
3482+Federal payment stablecoin regulator shall con-24
3483+sider the following exclusive criteria in deter-25
3484+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00123 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3485+ssavage on LAPJG3WLY3PROD with BILLS 124
3486+•S 919 RS
3487+mining whether to issue a waiver under this 1
3488+paragraph: 2
3489+(i) The capital maintained by the 3
3490+State qualified payment stablecoin issuer. 4
3491+(ii) The past operations and examina-5
3492+tion history of the State qualified payment 6
3493+stablecoin issuer. 7
3494+(iii) The experience of the State pay-8
3495+ment stablecoin regulator in supervising 9
3496+payment stablecoin and digital asset activi-10
3497+ties. 11
3498+(iv) The laws and rules applicable to, 12
3499+and the supervisory framework of, the State 13
3500+qualified payment stablecoin issuer with re-14
3501+spect to payment stablecoins and digital as-15
3502+sets. 16
3503+(C) R
3504+ULE OF CONSTRUCTION .—A State 17
3505+qualified payment stablecoin issuer subject to 18
3506+Federal oversight under paragraph (1) or (2) of 19
3507+this subsection that does not receive a waiver 20
3508+under this paragraph shall continue to be super-21
3509+vised by the State payment stablecoin regulator 22
3510+of the State qualified payment stablecoin issuer 23
3511+along jointly with the primary Federal payment 24
3512+stablecoin regulator. Nothing in this subsection 25
3513+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00124 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3514+ssavage on LAPJG3WLY3PROD with BILLS 125
3515+•S 919 RS
3516+shall require the State qualified payment 1
3517+stablecoin issuer to convert to a Federal charter. 2
3518+(d) M
3519+ISREPRESENTATION OF INSUREDSTATUS; MAR-3
3520+KETING.— 4
3521+(1) I
3522+N GENERAL.—Payment stablecoins shall not 5
3523+be backed by the full faith and credit of the United 6
3524+States, guaranteed by the United States Government, 7
3525+subject to deposit insurance by the Federal Deposit 8
3526+Insurance Corporation, or subject to share insurance 9
3527+by the National Credit Union Administration. 10
3528+(2) M
3529+ISREPRESENTATION OF INSURED STA -11
3530+TUS.— 12
3531+(A) I
3532+N GENERAL.—It shall be unlawful to 13
3533+represent that payment stablecoins are backed by 14
3534+the full faith and credit of the United States, 15
3535+guaranteed by the United States Government, or 16
3536+subject to Federal deposit insurance or Federal 17
3537+share insurance. 18
3538+(B) P
3539+ENALTY.—A violation of subpara-19
3540+graph (A) shall be considered a violation of sec-20
3541+tion 18(a)(4) of the Federal Deposit Insurance 21
3542+Act (12 U.S.C. 1828(a)(4)) or section 709 of title 22
3543+18, United States Code, as applicable. 23
3544+(3) M
3545+ARKETING.—It shall be unlawful to market 24
3546+a digital asset in the United States as a payment 25
3547+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00125 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3548+ssavage on LAPJG3WLY3PROD with BILLS 126
3549+•S 919 RS
3550+stablecoin unless the digital asset is issued pursuant 1
3551+to this Act. 2
3552+(e) O
3553+FFICERS ORDIRECTORSCONVICTED OFCERTAIN 3
3554+F
3555+ELONIES.— 4
3556+(1) I
3557+N GENERAL.—No individual who has been 5
3558+convicted of a felony offense involving insider trading, 6
3559+embezzlement, cybercrime, money laundering, financ-7
3560+ing of terrorism, or financial fraud may serve as— 8
3561+(A) an officer of a payment stablecoin 9
3562+issuer; or 10
3563+(B) a director of a payment stablecoin 11
3564+issuer. 12
3565+(2) P
3566+ENALTY.— 13
3567+(A) I
3568+N GENERAL.—Whoever knowingly par-14
3569+ticipates in a violation of paragraph (1) or sub-15
3570+section (d)(3) shall be fined not more than 16
3571+$1,000,000 for each such violation, imprisoned 17
3572+for not more than 5 years; or both. 18
3573+(B) R
3574+EFERRAL TO ATTORNEY GENERAL .—If 19
3575+a Federal payment stablecoin regulator has rea-20
3576+son to believe that any person has knowingly vio-21
3577+lated paragraph (1) or subsection (d)(3), the 22
3578+Federal payment stablecoin regulator shall refer 23
3579+the matter to the Attorney General. 24
3580+(f) R
3581+ULEMAKING.— 25
3582+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00126 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3583+ssavage on LAPJG3WLY3PROD with BILLS 127
3584+•S 919 RS
3585+(1) IN GENERAL.—Consistent with section 18, 1
3586+the primary Federal payment stablecoin regulators 2
3587+and State payment stablecoin regulators shall issue 3
3588+such regulations as may be necessary to establish a 4
3589+payment stablecoin regulatory framework necessary to 5
3590+administer and carry out the requirements of this sec-6
3591+tion, including to establish conditions, and to prevent 7
3592+evasions thereof. 8
3593+(2) J
3594+OINT ISSUANCE OF REGULATION .—All regu-9
3595+lations issued to carry out this section shall be issued 10
3596+jointly by the primary Federal payment stablecoin 11
3597+regulators, if not issued by a State payment 12
3598+stablecoin regulator. 13
3599+SEC. 5. APPROVAL OF SUBSIDIARIES OF INSURED DEPOSI-14
3600+TORY INSTITUTIONS AND FEDERAL QUALI-15
3601+FIED NONBANK PAYMENT STABLECOIN 16
3602+ISSUERS. 17
3603+(a) A
3604+PPLICATION.— 18
3605+(1) I
3606+N GENERAL.—Each primary Federal pay-19
3607+ment stablecoin regulator shall receive, review, and 20
3608+consider for approval applications from any insured 21
3609+depository institution that seeks to issue payment 22
3610+stablecoins through a subsidiary and any nonbank 23
3611+entity that seeks to issue payment stablecoins as a 24
3612+Federal qualified nonbank payment stablecoin issuer. 25
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3614+ssavage on LAPJG3WLY3PROD with BILLS 128
3615+•S 919 RS
3616+Each primary Federal payment stablecoin regulator 1
3617+shall establish a process and framework for the licens-2
3618+ing, regulation, examination, and supervision of such 3
3619+entities that prioritizes the safety and soundness of 4
3620+such entities. 5
3621+(2) A
3622+UTHORITY TO ISSUE REGULATIONS AND 6
3623+PROCESS APPLICATIONS.—The primary Federal pay-7
3624+ment stablecoin regulators shall, before the date de-8
3625+scribed in section 18— 9
3626+(A) issue regulations consistent with that 10
3627+section to carry out this section; and 11
3628+(B) pursuant to the regulations described in 12
3629+subparagraph (A), accept and process applica-13
3630+tions under this Act. 14
3631+(3) M
3632+ANDATORY APPROVAL PROCESS .—The pri-15
3633+mary Federal payment stablecoin regulator shall, 16
3634+upon receipt of a substantially complete application, 17
3635+evaluate and make a determination on each applica-18
3636+tion based on the criteria established under this Act. 19
3637+(b) E
3638+VALUATION OFAPPLICATIONS.—A substantially 20
3639+complete application received under subsection (a) shall be 21
3640+evaluated by the primary Federal payment stablecoin regu-22
3641+lator using the factors described in subsection (c). 23
3642+(c) F
3643+ACTORS TOBECONSIDERED.—The factors de-24
3644+scribed in this subsection are the following: 25
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3646+ssavage on LAPJG3WLY3PROD with BILLS 129
3647+•S 919 RS
3648+(1) The ability of the applicant (or, in the case 1
3649+of an applicant that is an insured depository institu-2
3650+tion, the subsidiary of the applicant), based on finan-3
3651+cial condition and resources, to meet the requirements 4
3652+set forth under section 4. 5
3653+(2) Whether an individual who has been con-6
3654+victed of a felony offense involving insider trading, 7
3655+embezzlement, cybercrime, money laundering, financ-8
3656+ing of terrorism, or financial fraud is serving as an 9
3657+officer or director of the applicant. 10
3658+(3) Any other factors established by the primary 11
3659+Federal payment stablecoin regulator that are nec-12
3660+essary to ensure the safety and soundness of the per-13
3661+mitted payment stablecoin issuer. 14
3662+(4) The competence, experience, and integrity of 15
3663+the officers, directors, and principal shareholders of 16
3664+the applicant, its subsidiaries, and parent company, 17
3665+including— 18
3666+(A) the record of those officers, directors, 19
3667+and principal shareholders of compliance with 20
3668+laws and regulations; and 21
3669+(B) the ability of those officers, directors, 22
3670+and principal shareholders to fulfill any commit-23
3671+ments to, and any conditions imposed by, their 24
3672+primary Federal payment stablecoin regulator in 25
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3674+ssavage on LAPJG3WLY3PROD with BILLS 130
3675+•S 919 RS
3676+connection with the application at issue and any 1
3677+prior applications. 2
3678+(d) T
3679+IMING FORDECISION; GROUNDS FORDENIAL.— 3
3680+(1) T
3681+IMING FOR DECISIONS ON APPLICATIONS .— 4
3682+(A) I
3683+N GENERAL.—Not later than 120 days 5
3684+after receiving a substantially complete applica-6
3685+tion under subsection (a), a primary Federal 7
3686+payment stablecoin regulator shall render a deci-8
3687+sion on the application. 9
3688+(B) S
3689+UBSTANTIALLY COMPLETE .— 10
3690+(i) I
3691+N GENERAL.—For purposes of sub-11
3692+paragraph (A), an application shall be con-12
3693+sidered substantially complete if the appli-13
3694+cation contains sufficient information for 14
3695+the primary Federal payment stablecoin 15
3696+regulator to render a decision on whether 16
3697+the applicant satisfies the criteria under 17
3698+subsection (c). 18
3699+(ii) N
3700+OTIFICATION.—Not later than 30 19
3701+days after receiving an application under 20
3702+subsection (a), a primary Federal payment 21
3703+stablecoin regulator shall notify the appli-22
3704+cant whether the primary Federal payment 23
3705+stablecoin regulator considers the applica-24
3706+tion to be substantially complete and, if the 25
3707+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00130 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3708+ssavage on LAPJG3WLY3PROD with BILLS 131
3709+•S 919 RS
3710+application is not substantially complete, 1
3711+the additional information the applicant 2
3712+must provide in order for the application to 3
3713+be considered substantially complete. 4
3714+(iii) M
3715+ATERIAL CHANGE IN CIR -5
3716+CUMSTANCES.—An application considered 6
3717+substantially complete under this subpara-7
3718+graph remains substantially complete unless 8
3719+there is a material change in circumstances 9
3720+that requires the primary Federal payment 10
3721+stablecoin regulator to treat the application 11
3722+as a new application. 12
3723+(2) D
3724+ENIAL OF APPLICATION.— 13
3725+(A) G
3726+ROUNDS FOR DENIAL.— 14
3727+(i) I
3728+N GENERAL.—The primary Fed-15
3729+eral payment stablecoin regulator shall only 16
3730+deny a complete application received under 17
3731+subsection (a) if the regulator determines 18
3732+that the activities of the applicant would be 19
3733+unsafe or unsound based on the factors de-20
3734+scribed in subsection (c). 21
3735+(ii) I
3736+SSUANCE NOT GROUND FOR DE -22
3737+NIAL.—The issuance of a payment 23
3738+stablecoin on an open, public, or decentral-24
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3740+ssavage on LAPJG3WLY3PROD with BILLS 132
3741+•S 919 RS
3742+ized network shall not be a valid ground for 1
3743+denial of an application. 2
3744+(B) E
3745+XPLANATION REQUIRED .—If the pri-3
3746+mary Federal payment stablecoin regulator de-4
3747+nies a complete application received under sub-5
3748+section (a), not later than 30 days after the date 6
3749+of such denial, the regulator shall provide the ap-7
3750+plicant with written notice explaining the denial 8
3751+with specificity, including all findings made by 9
3752+the regulator with respect to all identified mate-10
3753+rial shortcomings in the application, including 11
3754+actionable recommendations on how the appli-12
3755+cant could address the identified material short-13
3756+comings. 14
3757+(C) O
3758+PPORTUNITY FOR HEARING ; FINAL DE-15
3759+TERMINATION.— 16
3760+(i) I
3761+N GENERAL.—Not later than 30 17
3762+days after the date of receipt of any notice 18
3763+of the denial of an application under this 19
3764+section, the applicant may request, in writ-20
3765+ing, an opportunity for a written or oral 21
3766+hearing before the primary Federal pay-22
3767+ment stablecoin regulator to appeal the de-23
3768+nial. 24
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3770+ssavage on LAPJG3WLY3PROD with BILLS 133
3771+•S 919 RS
3772+(ii) TIMING.—Upon receipt of a timely 1
3773+request, the primary Federal payment 2
3774+stablecoin regulator shall notice a time (not 3
3775+later than 30 days after the date of receipt 4
3776+of the request) and place at which the appli-5
3777+cant may appear, personally or through 6
3778+counsel, to submit written materials or pro-7
3779+vide oral testimony and oral argument). 8
3780+(iii) F
3781+INAL DETERMINATION .—Not 9
3782+later than 60 days after the date of a hear-10
3783+ing under this subparagraph, the primary 11
3784+Federal payment stablecoin regulator shall 12
3785+notify the applicant of a final determina-13
3786+tion, which shall contain a statement of the 14
3787+basis for that determination, with specific 15
3788+findings. 16
3789+(iv) N
3790+OTICE IF NO HEARING .—If an 17
3791+applicant does not make a timely request 18
3792+for a hearing under this subparagraph, the 19
3793+primary Federal payment stablecoin regu-20
3794+lator shall notify the applicant, not later 21
3795+than 10 days after the date by which the 22
3796+applicant may request a hearing under this 23
3797+subparagraph, in writing, that the denial of 24
3798+the application is a final determination of 25
3799+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00133 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3800+ssavage on LAPJG3WLY3PROD with BILLS 134
3801+•S 919 RS
3802+the primary Federal payment stablecoin 1
3803+regulator. 2
3804+(3) F
3805+AILURE TO RENDER A DECISION .—If the 3
3806+primary Federal payment stablecoin regulator fails to 4
3807+render a decision on a complete application within 5
3808+the time period specified in paragraph (1), the appli-6
3809+cation shall be deemed approved. 7
3810+(4) R
3811+IGHT TO REAPPLY.—The denial of an ap-8
3812+plication under this section shall not prohibit the ap-9
3813+plicant from filing a subsequent application. 10
3814+(e) R
3815+EPORT ONPENDINGAPPLICATIONS.—The pri-11
3816+mary Federal payment stablecoin regulators shall annually 12
3817+report to Congress on the applications under subsection (a) 13
3818+that have been pending for 180 days or more since the date 14
3819+the initial application was filed and for which the appli-15
3820+cant has been informed that the application remains incom-16
3821+plete, including documentation on the status of such appli-17
3822+cations and why such applications have not yet been ap-18
3823+proved. 19
3824+(f) R
3825+ULEMAKING.—Consistent with section 18, the pri-20
3826+mary Federal payment stablecoin regulators shall issue 21
3827+rules necessary for the regulation of the issuance of payment 22
3828+stablecoins, but may not impose requirements in addition 23
3829+to the requirements specified under section 4. 24
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3832+•S 919 RS
3833+SEC. 6. SUPERVISION AND ENFORCEMENT WITH RESPECT 1
3834+TO SUBSIDIARIES OF INSURED DEPOSITORY 2
3835+INSTITUTIONS AND COMPTROLLER-REGU-3
3836+LATED ENTITIES. 4
3837+(a) S
3838+UPERVISION.— 5
3839+(1) I
3840+N GENERAL.—Each permitted payment 6
3841+stablecoin issuer that is not a State qualified pay-7
3842+ment stablecoin issuer with a payment stablecoin 8
3843+with a consolidated total outstanding issuance of less 9
3844+than $10,000,000,000 shall be subject to supervision 10
3845+by the appropriate primary Federal payment 11
3846+stablecoin regulator. 12
3847+(2) S
3848+UBMISSION OF REPORTS .—Each permitted 13
3849+payment stablecoin issuer described in paragraph (1) 14
3850+shall, upon request, submit to its primary Federal 15
3851+payment stablecoin regulator a report on— 16
3852+(A) the financial condition of the permitted 17
3853+payment stablecoin issuer; 18
3854+(B) the systems of the permitted payment 19
3855+stablecoin issuer for monitoring and controlling 20
3856+financial and operating risks; and 21
3857+(C) compliance by the permitted payment 22
3858+stablecoin issuer (and any subsidiary thereof) 23
3859+with this Act. 24
3860+(3) E
3861+XAMINATIONS.—The primary Federal pay-25
3862+ment stablecoin regulator shall examine a permitted 26
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3864+ssavage on LAPJG3WLY3PROD with BILLS 136
3865+•S 919 RS
3866+payment stablecoin issuer described in paragraph (1) 1
3867+in order to assess— 2
3868+(A) the nature of the operations and finan-3
3869+cial condition of the permitted payment 4
3870+stablecoin issuer; 5
3871+(B) the financial, operational, technological, 6
3872+and other risks within the permitted payment 7
3873+stablecoin issuer that may pose a threat to— 8
3874+(i) the safety and soundness of the per-9
3875+mitted payment stablecoin issuer; or 10
3876+(ii) the stability of the financial system 11
3877+of the United States; and 12
3878+(C) the systems of the permitted payment 13
3879+stablecoin issuer for monitoring and controlling 14
3880+the risks described in subparagraph (B). 15
3881+(4) R
3882+EQUIREMENTS FOR EFFICIENCY .— 16
3883+(A) U
3884+SE OF EXISTING REPORTS.—In super-17
3885+vising and examining a permitted payment 18
3886+stablecoin issuer under this subsection, the pri-19
3887+mary Federal payment stablecoin regulator shall, 20
3888+to the fullest extent possible, use existing reports 21
3889+and other supervisory information. 22
3890+(B) A
3891+VOIDANCE OF DUPLICATION .—A pri-23
3892+mary Federal payment stablecoin regulator shall, 24
3893+to the fullest extent possible, avoid duplication of 25
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3895+ssavage on LAPJG3WLY3PROD with BILLS 137
3896+•S 919 RS
3897+examination activities, reporting requirements, 1
3898+and requests for information in carrying out this 2
3899+subsection with respect to a permitted payment 3
3900+stablecoin issuer. 4
3901+(C) C
3902+ONSIDERATION OF BURDEN .—A pri-5
3903+mary Federal payment stablecoin regulator shall, 6
3904+with respect to any examination or request for 7
3905+the submission of a report under this subsection, 8
3906+only request examinations and reports at a ca-9
3907+dence and in a format that is similar to those 10
3908+required for similarly situated entities regulated 11
3909+by the primary Federal payment stablecoin regu-12
3910+lator. 13
3911+(b) E
3912+NFORCEMENT.— 14
3913+(1) S
3914+USPENSION OR REVOCATION OF REGISTRA -15
3915+TION.—The primary Federal payment stablecoin reg-16
3916+ulator of a permitted payment stablecoin issuer that 17
3917+is not a State qualified payment stablecoin issuer 18
3918+may prohibit the permitted payment stablecoin issuer 19
3919+from issuing payment stablecoins, if the primary 20
3920+Federal payment stablecoin regulator determines that 21
3921+such permitted payment stablecoin issuer, or an insti-22
3922+tution-affiliated party of the permitted payment 23
3923+stablecoin issuer— 24
3924+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00137 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3925+ssavage on LAPJG3WLY3PROD with BILLS 138
3926+•S 919 RS
3927+(A) is recklessly violating or has recklessly 1
3928+violated this Act or any regulation or order 2
3929+issued under this Act; or 3
3930+(B) is recklessly violating or has recklessly 4
3931+violated any condition imposed in writing by the 5
3932+primary Federal payment stablecoin regulator in 6
3933+connection with a written agreement entered into 7
3934+between the permitted payment stablecoin issuer 8
3935+and the primary Federal payment stablecoin 9
3936+regulator. 10
3937+(2) C
3938+EASE-AND-DESIST PROCEEDINGS .—If the 11
3939+primary Federal payment stablecoin regulator of a 12
3940+permitted payment stablecoin issuer that is not a 13
3941+State qualified payment stablecoin issuer has reason-14
3942+able cause to believe that the permitted payment 15
3943+stablecoin issuer or any institution-affiliated party of 16
3944+the permitted payment stablecoin issuer is violating, 17
3945+has violated, or is attempting to violate this Act, any 18
3946+regulation or order issued under this Act, or any 19
3947+written agreement entered into with the primary Fed-20
3948+eral payment stablecoin regulator or condition im-21
3949+posed in writing by the primary Federal payment 22
3950+stablecoin regulator in connection with any applica-23
3951+tion or other request, the primary Federal payment 24
3952+stablecoin regulator may, by provisions that are man-25
3953+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00138 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
3954+ssavage on LAPJG3WLY3PROD with BILLS 139
3955+•S 919 RS
3956+datory or otherwise, order the permitted payment 1
3957+stablecoin issuer or institution-affiliated party of the 2
3958+permitted payment stablecoin issuer to— 3
3959+(A) cease and desist from such violation or 4
3960+practice; or 5
3961+(B) take affirmative action to correct the 6
3962+conditions resulting from any such violation or 7
3963+practice. 8
3964+(3) R
3965+EMOVAL AND PROHIBITION AUTHORITY .— 9
3966+The primary Federal payment stablecoin regulator of 10
3967+a permitted payment stablecoin issuer that is not a 11
3968+State qualified payment stablecoin issuer may remove 12
3969+an institution-affiliated party of the permitted pay-13
3970+ment stablecoin issuer from their position or office or 14
3971+prohibit further participation in the affairs of the 15
3972+permitted payment stablecoin issuer or all such per-16
3973+mitted payment stablecoin issuers by such institution- 17
3974+affiliated party, if the primary Federal payment 18
3975+stablecoin regulator determines that— 19
3976+(A) the institution-affiliated party has 20
3977+knowingly committed a violation or attempted 21
3978+violation of this Act or any regulation or order 22
3979+issued under this Act; or 23
3980+(B) the institution-affiliated party has 24
3981+knowingly committed a violation of any provi-25
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3983+ssavage on LAPJG3WLY3PROD with BILLS 140
3984+•S 919 RS
3985+sion of subchapter II of chapter 53 of title 31, 1
3986+United States Code. 2
3987+(4) P
3988+ROCEDURES.— 3
3989+(A) I
3990+N GENERAL.—If a primary Federal 4
3991+payment stablecoin regulator identifies a viola-5
3992+tion or attempted violation of this Act or makes 6
3993+a determination under paragraph (1), (2), or 7
3994+(3), the primary Federal payment stablecoin reg-8
3995+ulator shall comply with the procedures set forth 9
3996+in subsections (b) and (e) of sections 8 of the 10
3997+Federal Deposit Insurance Act (12 U.S.C. 1818). 11
3998+(B) J
3999+UDICIAL REVIEW.—A person aggrieved 12
4000+by a final action under this subsection may ob-13
4001+tain judicial review of such action exclusively as 14
4002+provided in section 8(h) of the Federal Deposit 15
4003+Insurance Act (12 U.S.C. 1818(h)). 16
4004+(C) I
4005+NJUNCTION.—The primary Federal 17
4006+payment stablecoin regulator may, in the discre-18
4007+tion of the regulator, follow the procedures pro-19
4008+vided in section 8(i)(1) of the Federal Deposit 20
4009+Insurance Act (12 U.S.C. 1818(i)(1)) for judicial 21
4010+enforcement of any effective and outstanding no-22
4011+tice or order issued under this subsection. 23
4012+(D) T
4013+EMPORARY CEASE-AND-DESIST PRO-24
4014+CEEDINGS.—If the primary Federal payment 25
4015+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00140 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4016+ssavage on LAPJG3WLY3PROD with BILLS 141
4017+•S 919 RS
4018+stablecoin regulator determines that a violation 1
4019+or attempted violation of this Act or an action 2
4020+with respect to which a determination was made 3
4021+under paragraph (1), (2), or (3), or the continu-4
4022+ation thereof, is likely to cause insolvency or sig-5
4023+nificant dissipation of assets or earnings of a 6
4024+permitted payment stablecoin issuer, or is likely 7
4025+to weaken the condition of the permitted pay-8
4026+ment stablecoin issuer or otherwise prejudice the 9
4027+interests of the customers of the permitted pay-10
4028+ment stablecoin issuer prior to the completion of 11
4029+the proceedings conducted under this paragraph, 12
4030+the primary Federal payment stablecoin regu-13
4031+lator may follow the procedures provided in sec-14
4032+tion 8(c) of the Federal Deposit Insurance Act 15
4033+(12 U.S.C. 1818(c)) to issue a temporary cease- 16
4034+and-desist order. 17
4035+(5) C
4036+IVIL MONEY PENALTIES.— 18
4037+(A) F
4038+AILURE TO BE APPROVED .—Any per-19
4039+son who issues a United States dollar-denomi-20
4040+nated payment stablecoin in violation of section 21
4041+3, and any institution-affiliated party of such a 22
4042+person who knowingly participates in issuing 23
4043+such a payment stablecoin, shall be liable for a 24
4044+civil penalty of not more than $100,000 for each 25
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4046+ssavage on LAPJG3WLY3PROD with BILLS 142
4047+•S 919 RS
4048+day during which such payment stablecoins are 1
4049+issued. 2
4050+(B) F
4051+IRST TIER.—Except as provided in 3
4052+subparagraph (A), a permitted payment 4
4053+stablecoin issuer or institution-affiliated party of 5
4054+such permitted payment stablecoin issuer that 6
4055+materially violates this Act or any regulation or 7
4056+order issued under this Act, or that materially 8
4057+violates any condition imposed in writing by the 9
4058+primary Federal payment stablecoin regulator in 10
4059+connection with a written agreement entered into 11
4060+between the permitted payment stablecoin issuer 12
4061+and the primary Federal payment stablecoin 13
4062+regulator, shall be liable for a civil penalty of up 14
4063+to $100,000 for each day during which the viola-15
4064+tion continues. 16
4065+(C) S
4066+ECOND TIER.—Except as provided in 17
4067+subparagraph (A), and in addition to the pen-18
4068+alties described under subparagraph (B), a per-19
4069+mitted payment stablecoin issuer or institution- 20
4070+affiliated party of such permitted payment 21
4071+stablecoin issuer who knowingly participates in 22
4072+a violation of any provision of this Act, or any 23
4073+regulation or order issued thereunder, is liable 24
4074+for a civil penalty of up to an additional 25
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4076+ssavage on LAPJG3WLY3PROD with BILLS 143
4077+•S 919 RS
4078+$100,000 for each day during which the viola-1
4079+tion continues. 2
4080+(D) P
4081+ROCEDURE.—Any penalty imposed 3
4082+under this paragraph may be assessed and col-4
4083+lected by the primary Federal payment 5
4084+stablecoin regulator pursuant to the procedures 6
4085+set forth in section 8(i)(2) of the Federal Deposit 7
4086+Insurance Act (12 U.S.C. 1818(i)(2)). 8
4087+(E) N
4088+OTICE AND ORDERS AFTER SEPARA -9
4089+TION FROM SERVICE.—The resignation, termi-10
4090+nation of employment or participation, or sepa-11
4091+ration of an institution-affiliated party (includ-12
4092+ing a separation caused by the closing of a per-13
4093+mitted payment stablecoin issuer) shall not affect 14
4094+the jurisdiction and authority of the primary 15
4095+Federal payment stablecoin regulator to issue 16
4096+any notice or order and proceed under this sub-17
4097+section against any such party, if such notice or 18
4098+order is served before the end of the 6-year period 19
4099+beginning on the date such party ceased to be an 20
4100+institution-affiliated party with respect to such 21
4101+permitted payment stablecoin issuer. 22
4102+(6) N
4103+ON-APPLICABILITY TO A STATE QUALIFIED 23
4104+PAYMENT STABLECOIN ISSUER .—Notwithstanding 24
4105+anything in this subsection to the contrary, this sub-25
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4107+ssavage on LAPJG3WLY3PROD with BILLS 144
4108+•S 919 RS
4109+section shall not apply to a State qualified payment 1
4110+stablecoin issuer. 2
4111+SEC. 7. STATE QUALIFIED PAYMENT STABLECOIN ISSUERS. 3
4112+(a) I
4113+NGENERAL.—A State payment stablecoin regu-4
4114+lator shall have supervisory, examination, and enforcement 5
4115+authority over all State qualified payment stablecoin 6
4116+issuers of such State. 7
4117+(b) A
4118+UTHORITYTOENTERINTOAGREEMENTSWITH 8
4119+THEBOARD.—A State payment stablecoin regulator may 9
4120+enter into a memorandum of understanding with the 10
4121+Board, by mutual agreement, under which the Board may 11
4122+participate in the supervision, examination, and enforce-12
4123+ment of this Act with respect to the State qualified payment 13
4124+stablecoin issuers of such State. 14
4125+(c) S
4126+HARING OFINFORMATION.—A State payment 15
4127+stablecoin regulator and the Board shall share information 16
4128+on an ongoing basis with respect to a State qualified pay-17
4129+ment stablecoin issuer of such State, including a copy of 18
4130+the initial application and any accompanying documents. 19
4131+(d) R
4132+ULEMAKING.—A State payment stablecoin regu-20
4133+lator may issue orders and rules under section 4 applicable 21
4134+to State qualified payment stablecoin issuers to the same 22
4135+extent as the primary Federal payment stablecoin regu-23
4136+lators issue orders and rules under section 4 applicable to 24
4137+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00144 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4138+ssavage on LAPJG3WLY3PROD with BILLS 145
4139+•S 919 RS
4140+permitted payment stablecoin issuers that are not a State 1
4141+qualified payment stablecoin issuers. 2
4142+(e) E
4143+NFORCEMENTAUTHORITY INUNUSUAL ANDEXI-3
4144+GENTCIRCUMSTANCES.— 4
4145+(1) B
4146+OARD.— 5
4147+(A) I
4148+N GENERAL.—Subject to subparagraph 6
4149+(C), under unusual and exigent circumstances 7
4150+that the Board determines to exist, the Board 8
4151+may, after not less than 48 hours prior written 9
4152+notice to the applicable State payment stablecoin 10
4153+regulator, take an enforcement action against a 11
4154+State qualified payment stablecoin issuer or an 12
4155+institution-affiliated party of such issuer for vio-13
4156+lations of this Act during such unusual and exi-14
4157+gent circumstances. 15
4158+(B) R
4159+ULEMAKING.—Consistent with section 16
4160+18, the Board shall issue rules to set forth the 17
4161+unusual and exigent circumstances in which the 18
4162+Board may act under this paragraph. 19
4163+(C) L
4164+IMITATIONS.—If, after unusual and 20
4165+exigent circumstances are determined to exist 21
4166+pursuant to subparagraph (A), the Board deter-22
4167+mines that there is reasonable cause to believe 23
4168+that the continuation by a State qualified pay-24
4169+ment stablecoin issuer of any activity constitutes 25
4170+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00145 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4171+ssavage on LAPJG3WLY3PROD with BILLS 146
4172+•S 919 RS
4173+a serious risk to the financial safety, soundness, 1
4174+or stability of the State qualified payment 2
4175+stablecoin issuer, the Board may impose such re-3
4176+strictions as the Board determines to be nec-4
4177+essary to address such risk during such usual 5
4178+and exigent circumstances. Such restrictions 6
4179+shall be issued in the form of a directive, with 7
4180+the effect of a cease and desist order that has be-8
4181+come final, to the State qualified payment 9
4182+stablecoin issuer and any of its affiliates, lim-10
4183+iting— 11
4184+(i) the payment of dividends by the 12
4185+State qualified payment stablecoin issuer; 13
4186+(ii) transactions between the State 14
4187+qualified payment stablecoin issuer, a hold-15
4188+ing company, and the subsidiaries or affili-16
4189+ates of either the State qualified payment 17
4190+stablecoin issuer or the holding company; 18
4191+and 19
4192+(iii) any activities of the State quali-20
4193+fied payment stablecoin issuer that might 21
4194+create a serious risk that the liabilities of a 22
4195+holding company and the affiliates of the 23
4196+holding company may be imposed on the 24
4197+State qualified payment stablecoin issuer. 25
4198+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00146 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4199+ssavage on LAPJG3WLY3PROD with BILLS 147
4200+•S 919 RS
4201+(D) REVIEW OF DIRECTIVE.— 1
4202+(i) A
4203+DMINISTRATIVE REVIEW.— 2
4204+(I) I
4205+N GENERAL.—After a direc-3
4206+tive described in subparagraph (C) is 4
4207+issued, the State qualified payment 5
4208+stablecoin issuer, or any institution-af-6
4209+filiated party of the State qualified 7
4210+payment stablecoin issuer subject to the 8
4211+directive, may object and present to the 9
4212+Board, in writing, the reasons why the 10
4213+directive should be modified or re-11
4214+scinded. 12
4215+(II) A
4216+UTOMATIC LAPSE OF DIREC-13
4217+TIVE.—If, after 10 days after the re-14
4218+ceipt of a response described in sub-15
4219+clause (I), the Board does not affirm, 16
4220+modify, or rescind the directive, the di-17
4221+rective shall automatically lapse. 18
4222+(ii) J
4223+UDICIAL REVIEW.— 19
4224+(I) I
4225+N GENERAL.—If the Board 20
4226+affirms or modifies a directive pursu-21
4227+ant to clause (i), any affected party 22
4228+may immediately thereafter petition 23
4229+the United States district court for the 24
4230+district in which the main office of the 25
4231+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4232+ssavage on LAPJG3WLY3PROD with BILLS 148
4233+•S 919 RS
4234+affected party is located or in the 1
4235+United States District Court for the 2
4236+District of Columbia to stay, modify, 3
4237+terminate, or set aside the directive. 4
4238+(II) R
4239+ELIEF FOR EXTRAORDINARY 5
4240+CAUSE.—Upon a showing of extraor-6
4241+dinary cause, an affected party may 7
4242+petition for relief under subclause (I) 8
4243+without first pursuing or exhausting 9
4244+the administrative remedies under 10
4245+clause (i). 11
4246+(2) C
4247+OMPTROLLER.— 12
4248+(A) I
4249+N GENERAL.—Subject to subparagraph 13
4250+(C), under unusual and exigent circumstances 14
4251+determined to exist by the Comptroller, the 15
4252+Comptroller shall, after not less than 48 hours 16
4253+prior written notice to the applicable State pay-17
4254+ment stablecoin regulator, take an enforcement 18
4255+action against a State qualified payment 19
4256+stablecoin issuer that is a nonbank entity for 20
4257+violations of this Act. 21
4258+(B) R
4259+ULEMAKING.—Consistent with section 22
4260+18, the Comptroller shall issue rules to set forth 23
4261+the unusual and exigent circumstances in which 24
4262+the Comptroller may act under this paragraph. 25
4263+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00148 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4264+ssavage on LAPJG3WLY3PROD with BILLS 149
4265+•S 919 RS
4266+(C) LIMITATIONS.—If, after unusual and 1
4267+exigent circumstances are determined to exist 2
4268+under subparagraph (A), the Comptroller deter-3
4269+mines that there is reasonable cause to believe 4
4270+that the continuation by a State qualified pay-5
4271+ment stablecoin issuer that is a nonbank entity 6
4272+of any activity constitutes a serious risk to the 7
4273+financial safety, soundness, or stability of the 8
4274+State qualified payment stablecoin issuer that is 9
4275+a nonbank entity, the Comptroller shall impose 10
4276+such restrictions as the Comptroller determines 11
4277+to be necessary to address such risk during such 12
4278+unusual and exigent circumstances. Such restric-13
4279+tions shall be issued in the form of a directive, 14
4280+with the effect of a cease and desist order that 15
4281+has become final, to the State qualified payment 16
4282+stablecoin issuer that is a nonbank entity and 17
4283+any of its affiliates, limiting— 18
4284+(i) the payment of dividends by the 19
4285+State qualified payment stablecoin issuer; 20
4286+(ii) transactions between the State 21
4287+qualified payment stablecoin issuer, a hold-22
4288+ing company, and the subsidiaries or affili-23
4289+ates of either the State qualified payment 24
4290+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00149 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4291+ssavage on LAPJG3WLY3PROD with BILLS 150
4292+•S 919 RS
4293+stablecoin issuer or the holding company; 1
4294+and 2
4295+(iii) any activities of the State quali-3
4296+fied payment stablecoin issuer that might 4
4297+create a serious risk that the liabilities of a 5
4298+holding company and the affiliates of the 6
4299+holding company may be imposed on the 7
4300+State qualified payment stablecoin issuer. 8
4301+(D) R
4302+EVIEW OF DIRECTIVE.— 9
4303+(i) A
4304+DMINISTRATIVE REVIEW.— 10
4305+(I) I
4306+N GENERAL.—After a direc-11
4307+tive described in subparagraph (C) is 12
4308+issued, the Comptroller-regulated enti-13
4309+ty, or any institution-affiliated party 14
4310+of the Comptroller-regulated entity sub-15
4311+ject to the directive, may object and 16
4312+present to the Comptroller, in writing, 17
4313+the reasons why the directive should be 18
4314+modified or rescinded. 19
4315+(II) A
4316+UTOMATIC LAPSE OF DIREC-20
4317+TIVE.—If, after 10 days after the re-21
4318+ceipt of a response described in sub-22
4319+clause (I), the Comptroller does not af-23
4320+firm, modify, or rescind the directive, 24
4321+the directive shall automatically lapse. 25
4322+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00150 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4323+ssavage on LAPJG3WLY3PROD with BILLS 151
4324+•S 919 RS
4325+(ii) JUDICIAL REVIEW.— 1
4326+(I) I
4327+N GENERAL.—If the Comp-2
4328+troller affirms or modifies a directive 3
4329+pursuant to clause (i), any affected 4
4330+party may immediately thereafter peti-5
4331+tion the United States district court 6
4332+for the district in which the main of-7
4333+fice of the affected party is located or 8
4334+in the United States District Court for 9
4335+the District of Columbia to stay, mod-10
4336+ify, terminate, or set aside the direc-11
4337+tive. 12
4338+(II) R
4339+ELIEF FOR EXTRAORDINARY 13
4340+CAUSE.—Upon a showing of extraor-14
4341+dinary cause, an affected party may 15
4342+petition for relief under subclause (I) 16
4343+without first pursuing or exhausting 17
4344+the administrative remedies under 18
4345+clause (i). 19
4346+(f) E
4347+FFECT ONSTATELAW.— 20
4348+(1) H
4349+OST STATE LAW.—The laws of a host State, 21
4350+including generally applicable laws relating to con-22
4351+sumer protection, shall only apply to the activities 23
4352+conducted in the host State by an out-of-State State 24
4353+qualified payment stablecoin issuer to the same extent 25
4354+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00151 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4355+ssavage on LAPJG3WLY3PROD with BILLS 152
4356+•S 919 RS
4357+as such laws apply to the activities conducted in the 1
4358+host State by an out-of-State Federal qualified 2
4359+nonbank payment stablecoin issuer. 3
4360+(2) H
4361+OME STATE LAW.—If any host State law is 4
4362+determined not to apply under paragraph (1), the 5
4363+laws of the home State of the State qualified payment 6
4364+stablecoin issuer shall govern the activities of the per-7
4365+mitted payment stablecoin issuer conducted in the 8
4366+host State. 9
4367+(3) A
4368+PPLICABILITY.—The laws applicable under 10
4369+paragraph (1) exclude host State laws governing the 11
4370+chartering, licensure, or other authorization to do 12
4371+business in the host State as a permitted payment 13
4372+stablecoin issuer pursuant to this Act. 14
4373+SEC. 8. ANTI-MONEY LAUNDERING PROTECTIONS. 15
4374+(a) D
4375+EFINITIONS.—In this subsection: 16
4376+(1) D
4377+IGITAL ASSET SERVICE PROVIDER .—The 17
4378+term ‘‘digital asset service provider’’— 18
4379+(A) means a person that, for compensation 19
4380+or profit, engages in the business in the United 20
4381+States or for customers or users in the United 21
4382+States, of— 22
4383+(i) exchanging digital assets for mone-23
4384+tary value; 24
4385+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00152 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4386+ssavage on LAPJG3WLY3PROD with BILLS 153
4387+•S 919 RS
4388+(ii) exchanging digital assets for other 1
4389+digital assets; 2
4390+(iii) transferring digital assets to a 3
4391+third party; 4
4392+(iv) acting as a digital asset custodian; 5
4393+or 6
4394+(v) participating in financial services 7
4395+related to a digital asset issuance; and 8
4396+(B) does not include— 9
4397+(i) a distributed ledger protocol or a 10
4398+person solely developing such a protocol; or 11
4399+(ii) a person solely validating trans-12
4400+actions or operating a distributed ledger 13
4401+node. 14
4402+(2) O
4403+FFERING.—The term ‘‘offering’’ means 15
4404+making available for purchase, sale, or exchange. 16
4405+(3) D
4406+ISTRIBUTED LEDGER PROTOCOL .—The term 17
4407+‘‘distributed ledger protocol’’ means publicly available 18
4408+and accessible executable software deployed to a dis-19
4409+tributed ledger, including smart contracts or networks 20
4410+of smart contracts. 21
4411+(4) L
4412+AWFUL ORDER.—The term ‘‘lawful order’’ 22
4413+means any final and valid writ, process, order, rule, 23
4414+decree, command, or other requirement issued or pro-24
4415+mulgated under Federal law, issued by a court of 25
4416+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00153 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4417+ssavage on LAPJG3WLY3PROD with BILLS 154
4418+•S 919 RS
4419+competent jurisdiction or by an authorized Federal 1
4420+agency pursuant to its statutory authority, that— 2
4421+(A) requires a permitted payment stablecoin 3
4422+issuer to seize, freeze, burn, or prevent the trans-4
4423+fer of payment stablecoins issued by the per-5
4424+mitted payment stablecoin issuer; 6
4425+(B) specifies the digital assets or accounts 7
4426+subject to blocking with reasonable particularity; 8
4427+and 9
4428+(C) is subject to judicial or administrative 10
4429+review or appeal as provided by law. 11
4430+(b) T
4431+REASURYAUTHORITY TO DESIGNATENON-12
4432+COMPLIANTISSUERS.—Not later than 30 days after the De-13
4433+partment of the Treasury has, pursuant to section 14
4434+4(a)(6)(B)(i)(II), identified the failure of a foreign issuer 15
4435+of any payment stablecoins trading in the United States 16
4436+that is not a permitted payment stablecoin issuer to comply 17
4437+with the terms of any lawful order, the Secretary of the 18
4438+Treasury, in coordination with relevant Federal agencies, 19
4439+shall designate the foreign issuer as noncompliant and no-20
4440+tify the foreign issuer in writing of the designation. 21
4441+(c) P
4442+UBLICATION OFDESIGNATION; PROHIBITION ON 22
4443+S
4444+ECONDARYTRADING.— 23
4445+(1) I
4446+N GENERAL.—If a foreign issuer described 24
4447+in subsection (b) does not come into compliance with 25
4448+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00154 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4449+ssavage on LAPJG3WLY3PROD with BILLS 155
4450+•S 919 RS
4451+the lawful order within 30 days from the date of 1
4452+issuance of the written notice described in that sub-2
4453+section, the Secretary of the Treasury shall— 3
4454+(A) publish the determination of noncompli-4
4455+ance in the Federal Register, including a state-5
4456+ment on the failure of the foreign issuer to com-6
4457+ply with the lawful order after the written no-7
4458+tice; and 8
4459+(B) issue a notification in the Federal Reg-9
4460+ister prohibiting digital asset service providers 10
4461+from facilitating secondary trading of payment 11
4462+stablecoins issued by the foreign issuer in the 12
4463+United States. 13
4464+(2) E
4465+FFECTIVE DATE OF PROHIBITION .—The 14
4466+prohibition on facilitation of secondary trading de-15
4467+scribed in paragraph (1) shall become effective on the 16
4468+date that is 30 days after the date of issue of notifica-17
4469+tion of the prohibition in the Federal Register. 18
4470+(3) W
4471+AIVERS AND EXTENSIONS.—With respect to 19
4472+the prohibition on facilitation of secondary trading 20
4473+described in paragraph (1), the Secretary of the 21
4474+Treasury may issue waivers and time extensions to 22
4475+digital asset service providers on a case by case basis. 23
4476+(4) C
4477+IVIL MONETARY PENALTIES.— 24
4478+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00155 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4479+ssavage on LAPJG3WLY3PROD with BILLS 156
4480+•S 919 RS
4481+(A) DIGITAL ASSET SERVICE PROVIDERS .— 1
4482+Any digital asset service provider that knowingly 2
4483+violates a prohibition under paragraph (1)(B) 3
4484+shall be subject to a civil monetary penalty of 4
4485+not more than $100,000 per violation per day. 5
4486+(B) F
4487+OREIGN PAYMENT STABLECOIN 6
4488+ISSUERS.—Any foreign issuer of payment 7
4489+stablecoin that knowingly continues to publicly 8
4490+offer a payment stablecoin in the United States 9
4491+after publication of the determination of non-10
4492+compliance under paragraph (1)(A) shall be sub-11
4493+ject to a civil monetary penalty of not more than 12
4494+$1,000,000 per violation per day, and the Sec-13
4495+retary of the Treasury may seek an injunction in 14
4496+a United States District Court to bar the foreign 15
4497+issuer from engaging in financial transactions 16
4498+in the United States or with United States per-17
4499+sons. 18
4500+(d) A
4501+PPEAL.—A determination of noncompliance 19
4502+under subsection (b) is subject to judicial review in the 20
4503+United States Court of Appeals for the District of Columbia 21
4504+Circuit. 22
4505+(e) W
4506+AIVER, LICENSINGAUTHORITY, ANDEXCEP-23
4507+TIONS.— 24
4508+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00156 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4509+ssavage on LAPJG3WLY3PROD with BILLS 157
4510+•S 919 RS
4511+(1) IN GENERAL.—The Secretary of the Treasury 1
4512+may offer a waiver, general license, or specific license 2
4513+to any United States persons engaging in secondary 3
4514+trading described in subsection (c) on a case by case 4
4515+basis if the Secretary determines that— 5
4516+(A) prohibiting secondary trading would 6
4517+adversely affect the financial system of the 7
4518+United States; or 8
4519+(B) the foreign issuer of the payment 9
4520+stablecoin is taking tangible steps to remedy the 10
4521+failure to comply with the lawful order that re-11
4522+sulted in the noncompliance determination under 12
4523+subsection (b). 13
4524+(2) N
4525+ATIONAL SECURITY WAIVER.—The President 14
4526+may waive the application of the secondary trading 15
4527+restrictions under subsection (c) if the President de-16
4528+termines that the waiver is in the national security 17
4529+interest of the United States. 18
4530+(3) E
4531+XCEPTIONS FOR INTELLIGENCE AND LAW 19
4532+ENFORCEMENT ACTIVITIES.—This Act shall not apply 20
4533+with respect to— 21
4534+(A) activities subject to the reporting re-22
4535+quirements under title V of the National Secu-23
4536+rity Act of 1947 (50 U.S.C. 3091 et seq.) or any 24
4537+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00157 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4538+ssavage on LAPJG3WLY3PROD with BILLS 158
4539+•S 919 RS
4540+authorized intelligence activities of the United 1
4541+States; or 2
4542+(B) activities necessary to carry out or as-3
4543+sist law enforcement activity of the United 4
4544+States. 5
4545+(4) R
4546+EPORT REQUIRED.—Not later than 7 days 6
4547+after issuing a waiver or a license under paragraph 7
4548+(1), the Secretary of the Treasury shall submit a re-8
4549+port to the Chairmen and Ranking members of the 9
4550+Committee on Banking, Housing, and Urban Affairs 10
4551+of the Senate and the Committee on Financial Serv-11
4552+ices of the House of Representatives, including the 12
4553+text of the waiver or license, as well as the facts and 13
4554+circumstances justifying the waiver determination, 14
4555+and provide a briefing on the report. 15
4556+SEC. 9. CUSTODY OF PAYMENT STABLECOIN RESERVE AND 16
4557+COLLATERAL. 17
4558+(a) I
4559+NGENERAL.—A person may only engage in the 18
4560+business of providing custodial or safekeeping services for 19
4561+the payment stablecoin reserve, the payment stablecoins 20
4562+used as collateral, or the private keys of permitted payment 21
4563+stablecoins if the person— 22
4564+(1) is subject to— 23
4565+(A) supervision or regulation by a primary 24
4566+Federal payment stablecoin regulator or a pri-25
4567+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00158 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4568+ssavage on LAPJG3WLY3PROD with BILLS 159
4569+•S 919 RS
4570+mary financial regulatory agency described 1
4571+under subparagraph (B) or (C) of section 2(12) 2
4572+of the Dodd-Frank Wall Street Reform and Con-3
4573+sumer Protection Act (12 U.S.C. 5301(12)); or 4
4574+(B) supervision by a State bank supervisor, 5
4575+as defined under section 3 of the Federal Deposit 6
4576+Insurance Act (12 U.S.C. 1813) or a State credit 7
4577+union supervisor, as defined under section 6003 8
4578+of the Anti-Money Laundering Act of 2020, and 9
4579+such state bank supervisor or state credit union 10
4580+supervisor makes available to the Board such in-11
4581+formation as the Board determines necessary and 12
4582+relevant to the categories of information under 13
4583+subsection (d); and 14
4584+(2) complies with the requirements under sub-15
4585+section (b), unless such person complies with similar 16
4586+requirements as required by a primary Federal pay-17
4587+ment stablecoin regulator, the Securities and Ex-18
4588+change Commission, or the Commodity Futures Trad-19
4589+ing Commission. 20
4590+(b) C
4591+USTOMERPROPERTYREQUIREMENT.—A person 21
4592+described in subsection (a) shall— 22
4593+(1) treat and deal with the payment stablecoins, 23
4594+private keys, cash, and other property of a person for 24
4595+whom or on whose behalf the person receives, acquires, 25
4596+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00159 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4597+ssavage on LAPJG3WLY3PROD with BILLS 160
4598+•S 919 RS
4599+or holds payment stablecoins, private keys, cash, and 1
4600+other property (hereinafter in this section referred to 2
4601+as the ‘‘customer’’) as belonging to such customer and 3
4602+is not the property of such person; and 4
4603+(2) take such steps as are appropriate to protect 5
4604+the payment stablecoins, private keys, cash, and other 6
4605+property of a customer from the claims of creditors of 7
4606+the person. 8
4607+(c) C
4608+OMMINGLINGPROHIBITED.— 9
4609+(1) I
4610+N GENERAL.—Payment stablecoins, cash, 10
4611+and other property of a customer shall be separately 11
4612+accounted for by a person described in subsection (a) 12
4613+and shall be segregated from and not be commingled 13
4614+with the funds of the person. 14
4615+(2) E
4616+XCEPTION.—Notwithstanding paragraph 15
4617+(1)— 16
4618+(A) the payment stablecoins, cash, and other 17
4619+property of a customer may, for convenience, be 18
4620+commingled and deposited in an omnibus ac-19
4621+count holding the payment stablecoins, cash, and 20
4622+other property of more than 1 customer at a 21
4623+State chartered depository institution, an in-22
4624+sured depository institution, national bank, or 23
4625+trust company; 24
4626+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00160 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4627+ssavage on LAPJG3WLY3PROD with BILLS 161
4628+•S 919 RS
4629+(B) such share of the payment stablecoins, 1
4630+cash, and other property of the customer that 2
4631+shall be necessary to transfer, adjust, or settle a 3
4632+transaction or transfer of assets may be with-4
4633+drawn and applied to such purposes, including 5
4634+the payment of commissions, taxes, storage, and 6
4635+other charges lawfully accruing in connection 7
4636+with the provision of services by a person de-8
4637+scribed in subsection (a); or 9
4638+(C) in accordance with such terms and con-10
4639+ditions as a primary Federal payment stablecoin 11
4640+regulator may prescribe by rule, regulation, or 12
4641+order, any customer payment stablecoin, cash, 13
4642+and other property described in this subsection 14
4643+may be commingled and deposited in customer 15
4644+accounts with payment stablecoins, cash, and 16
4645+other property received by the person and re-17
4646+quired by the primary Federal payment 18
4647+stablecoin regulator to be separately accounted 19
4648+for, treated, and dealt with as belonging to cus-20
4649+tomers. 21
4650+(3) C
4651+USTOMER PRIORITY.—With or without the 22
4652+segregation required under paragraph (1), the claims 23
4653+of a customer with respect to the property described 24
4654+in that paragraph shall have priority over the claims 25
4655+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00161 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4656+ssavage on LAPJG3WLY3PROD with BILLS 162
4657+•S 919 RS
4658+of any person other than a customer against a person 1
4659+described in subparagraph (a) unless the customer ex-2
4660+pressly consents to such other priority of claim. 3
4661+(d) R
4662+EGULATORYINFORMATION.—A person described 4
4663+under subsection (a) shall submit to the applicable primary 5
4664+Federal payment stablecoin regulator information con-6
4665+cerning the person’s business operations and processes to 7
4666+protect customer assets, in such form and manner as the 8
4667+primary regulator shall determine. 9
4668+(e) E
4669+XCLUSION.—The requirements of this section shall 10
4670+not apply to any person solely on the basis that such person 11
4671+engages in the business of providing hardware or software 12
4672+to facilitate a customer’s own custody or safekeeping of the 13
4673+customer’s payment stablecoins or private keys. 14
4674+SEC. 10. TREATMENT OF PAYMENT STABLECOIN ISSUERS IN 15
4675+INSOLVENCY PROCEEDINGS. 16
4676+(a) I
4677+NGENERAL.—In any insolvency proceeding of a 17
4678+permitted payment stablecoin issuer under Federal or State 18
4679+law, including any proceeding under title 11, United States 19
4680+Code, and any insolvency proceeding administered by a 20
4681+State payment stablecoin regulator with respect to a per-21
4682+mitted payment stablecoin issuer, the claim of a person 22
4683+holding payment stablecoins issued by the permitted pay-23
4684+ment stablecoin issuer shall have priority over the claims 24
4685+of the permitted payment stablecoin issuer and any other 25
4686+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00162 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4687+ssavage on LAPJG3WLY3PROD with BILLS 163
4688+•S 919 RS
4689+creditor of the permitted payment stablecoin issuer, with 1
4690+respect to required payment stablecoin reserves, subject to 2
4691+section 507(e) of title 11, United States Code. 3
4692+(b) D
4693+EFINITIONS.—Section 101 of title 11, United 4
4694+States Code, is amended by adding after paragraph (40B) 5
4695+the following: 6
4696+‘‘(40C) The terms ‘payment stablecoin’ and ‘per-7
4697+mitted payment stablecoin issuer’ have the meanings 8
4698+given those terms in section 2 of the Guiding and Es-9
4699+tablishing National Innovation for U.S. Stablecoins 10
4700+Act of 2025.’’. 11
4701+(c) A
4702+UTOMATICSTAY.—Section 362 of title 11, United 12
4703+States Code is amended— 13
4704+(1) in subsection (a)— 14
4705+(A) in paragraph (7), by striking ‘‘and’’; 15
4706+(B) in paragraph (8), by striking the period 16
4707+and inserting ‘‘; and’’; and 17
4708+(C) by adding at the end the following: 18
4709+‘‘(9) the redemption of payment stablecoins 19
4710+issued by the debtor, from payment stablecoin reserves 20
4711+required to be maintained under section 4 of the 21
4712+Guiding and Establishing National Innovation for 22
4713+U.S. Stablecoins Act of 2025.’’; and 23
4714+(2) in subsection (d)— 24
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4716+ssavage on LAPJG3WLY3PROD with BILLS 164
4717+•S 919 RS
4718+(A) in paragraph (3)(B)(ii), by striking 1
4719+‘‘or’’ at the end; 2
4720+(B) in paragraph (4)(B), by striking the pe-3
4721+riod at the end and inserting ‘‘; or’’; and 4
4722+(C) by inserting after paragraph (4) the fol-5
4723+lowing: 6
4724+‘‘(5) with respect to the redemption of payment 7
4725+stablecoins held by a person, if the court finds, subject 8
4726+to the motion and attestation of the debtor on the pe-9
4727+tition date, there are payment stablecoin reserves 10
4728+available for distribution on a ratable basis to simi-11
4729+larly situated payment stablecoin holders, provided 12
4730+that the court shall use best efforts to enter a final 13
4731+order to begin distributions under this paragraph not 14
4732+later than 14 days after the date of the required hear-15
4733+ing.’’. 16
4734+(d) P
4735+RIORITY INBANKRUPTCYPROCEEDINGS.—Sec-17
4736+tion 507 of title 11, United States Code, is amended— 18
4737+(1) in subsection (a), by striking ‘‘The following’’ 19
4738+and inserting ‘‘Subject to subsection (e), the fol-20
4739+lowing’’; and 21
4740+(2) by adding at the end the following: 22
4741+‘‘(e) Notwithstanding subsection (a), if a payment 23
4742+stablecoin holder is not able to redeem all outstanding pay-24
4743+ment stablecoin claims from required payment stablecoin 25
4744+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00164 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4745+ssavage on LAPJG3WLY3PROD with BILLS 165
4746+•S 919 RS
4747+reserves maintained by the debtor, any remaining claim of 1
4748+a person holding a payment stablecoin issued by the debtor 2
4749+shall have first priority over any other claim, including 3
4750+over any expenses and claims that have priority under that 4
4751+subsection, to the extent compliance with section 4 of the 5
4752+Guiding and Establishing National Innovation for U.S. 6
4753+Stablecoins Act of 2025 would have required additional re-7
4754+serves to be maintained by the debtor for payment 8
4755+stablecoin holders.’’. 9
4756+(e) P
4757+AYMENTSTABLECOIN RESERVES.—Section 10
4758+541(b) of title 11, United States Code, is amended— 11
4759+(1) in paragraph (9), in the flush text following 12
4760+subparagraph (B), by striking ‘‘or’’ at the end; 13
4761+(2) in paragraph (10)(C), by striking the period 14
4762+and inserting ‘‘; or’’; and 15
4763+(3) by inserting after paragraph (10) the fol-16
4764+lowing: 17
4765+‘‘(11) required payment stablecoin reserves under 18
4766+section 4 of the Guiding and Establishing National 19
4767+Innovation for U.S. Stablecoins Act of 2025.’’. 20
4768+(f) I
4769+NTERVENTION.—Section 1109 of title 11, United 21
4770+States Code, is amended by adding at the end the following: 22
4771+‘‘(c) The Comptroller of the Currency or State payment 23
4772+stablecoin regulator (as defined in section 2 of the Guiding 24
4773+and Establishing National Innovation for U.S. Stablecoins 25
4774+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00165 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
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4776+•S 919 RS
4777+Act of 2025) shall raise and shall appear and be heard on 1
4778+any issue, including the protection of customers, in a case 2
4779+under this chapter in which the debtor is a permitted pay-3
4780+ment stablecoin issuer.’’. 4
4781+(g) A
4782+PPLICATION OFEXISTINGINSOLVENCYLAW.—In 5
4783+accordance with otherwise applicable law, an insolvency 6
4784+proceeding with respect to a permitted payment stablecoin 7
4785+issuer shall occur as follows: 8
4786+(1) A depository institution (as defined in sec-9
4787+tion 3 of the Federal Deposit Insurance Act (12 10
4788+U.S.C. 1813)) shall be resolved by the Federal Deposit 11
4789+Insurance Corporation, National Credit Union Ad-12
4790+ministration, or State payment stablecoin regulator, 13
4791+as applicable. 14
4792+(2) A subsidiary of a depository institution (as 15
4793+defined in section 3 of the Federal Deposit Insurance 16
4794+Act (12 U.S.C. 1813)) or a nonbank entity may be 17
4795+considered a debtor under title 11, United States 18
4796+Code. 19
4797+SEC. 11. INTEROPERABILITY STANDARDS. 20
4798+The primary Federal payment stablecoin regulators, 21
4799+in consultation with the National Institute of Standards 22
4800+and Technology, other relevant standard setting organiza-23
4801+tions, and State bank and credit union regulators, shall as-24
4802+sess and, if necessary, may, pursuant to section 553 of title 25
4803+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00166 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4804+ssavage on LAPJG3WLY3PROD with BILLS 167
4805+•S 919 RS
4806+5 and in a manner consistent with the National Technology 1
4807+Transfer and Advancement Act of 1995 (Public Law 104– 2
4808+113), prescribe standards for permitted payment stablecoin 3
4809+issuers to promote compatibility and interoperability 4
4810+with— 5
4811+(1) other permitted payment stablecoin issuers; 6
4812+and 7
4813+(2) the broader digital finance ecosystem, includ-8
4814+ing accepted communications protocols and 9
4815+blockchains, permissioned or public. 10
4816+SEC. 12. STUDY ON NON-PAYMENT STABLECOINS. 11
4817+(a) S
4818+TUDY BYTREASURY.— 12
4819+(1) S
4820+TUDY.—The Secretary of the Treasury, in 13
4821+consultation with the Board, the Comptroller, the Cor-14
4822+poration, the Securities and Exchange Commission, 15
4823+and the Commodity Futures Trading Commission 16
4824+shall carry out a study of non-payment stablecoins, 17
4825+including endogenously collateralized payment 18
4826+stablecoins. 19
4827+(2) R
4828+EPORT.—Not later than 365 days after the 20
4829+date of the enactment of this Act, the Secretary shall 21
4830+provide to the Committee on Financial Services of the 22
4831+House of Representatives and the Committee on 23
4832+Banking, Housing, and Urban Affairs of the Senate 24
4833+a report that contains all findings made in carrying 25
4834+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00167 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
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4836+•S 919 RS
4837+out the study under paragraph (1), including an 1
4838+analysis of— 2
4839+(A) the categories of non-payment 3
4840+stablecoins, including the benefits and risks of 4
4841+technological design features; 5
4842+(B) the participants in non-payment 6
4843+stablecoin arrangements; 7
4844+(C) utilization and potential utilization of 8
4845+non-payment stablecoins; 9
4846+(D) nature of reserve compositions; 10
4847+(E) types of algorithms being employed; 11
4848+(F) governance structure, including aspects 12
4849+of decentralization; 13
4850+(G) nature of public promotion and adver-14
4851+tising; and 15
4852+(H) clarity and availability of consumer 16
4853+notices disclosures. 17
4854+(b) E
4855+NDOGENOUSLY COLLATERALIZED PAYMENT 18
4856+S
4857+TABLECOINDEFINED.—In this section, the term 19
4858+‘‘endogenously collateralized payment stablecoin’’ means 20
4859+any digital asset— 21
4860+(1) in which its originator has represented will 22
4861+be converted, redeemed, or repurchased for a fixed 23
4862+amount of monetary value; and 24
4863+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00168 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
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4865+•S 919 RS
4866+(2) that relies solely on the value of another dig-1
4867+ital asset created or maintained by the same origi-2
4868+nator to maintain the fixed price. 3
4869+SEC. 13. REPORTS. 4
4870+(a) A
4871+NNUALREPORTINGREQUIREMENT.—Beginning 5
4872+on the date that is 1 year after the date of enactment of 6
4873+this Act, and annually thereafter, the primary Federal pay-7
4874+ment stablecoin regulators shall submit to the Committee 8
4875+on Banking, Housing, and Urban Affairs of the Senate, the 9
4876+Committee on Financial Services of the House of Represent-10
4877+atives, and the Director of the Office of Financial Research 11
4878+a report on the status of the payment stablecoin industry, 12
4879+including— 13
4880+(1) a summary of trends in payment stablecoin 14
4881+activities; 15
4882+(2) a summary of the number of applications for 16
4883+permitted payment stablecoin issuer under section 5, 17
4884+including aggregate approvals and rejections of appli-18
4885+cations; and 19
4886+(3) a description of the potential financial sta-20
4887+bility risks posed to the safety and soundness of the 21
4888+broader financial system by payment stablecoin ac-22
4889+tivities. 23
4890+(b) FSOC R
4891+EPORT.—The Financial Stability Over-24
4892+sight Council shall incorporate the findings in the report 25
4893+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00169 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
4894+ssavage on LAPJG3WLY3PROD with BILLS 170
4895+•S 919 RS
4896+under subsection (a) into the annual report of the Council 1
4897+required under section 112(a)(2)(N) of the Dodd-Frank 2
4898+Wall Street Reform and Consumer Protection Act (12 3
4899+U.S.C. 5322). 4
4900+SEC. 14. AUTHORITY OF BANKING INSTITUTIONS. 5
4901+(a) R
4902+ULE OFCONSTRUCTION.—Nothing in this Act 6
4903+may be construed to limit the authority of a depository in-7
4904+stitution, Federal credit union, State credit union, national 8
4905+bank, or trust company to engage in activities permissible 9
4906+pursuant to applicable State and Federal law, including— 10
4907+(1) accepting or receiving deposits and issuing 11
4908+digital assets that represent deposits; 12
4909+(2) utilizing a distributed ledger for the books 13
4910+and records of the entity and to affect intrabank 14
4911+transfers; and 15
4912+(3) providing custodial services for payment 16
4913+stablecoins, private keys of payment stablecoins, or re-17
4914+serves backing payment stablecoins. 18
4915+(b) R
4916+EGULATORYREVIEW.—The primary Federal 19
4917+payment stablecoin regulators shall review all existing 20
4918+guidance and regulations, and if necessary, amend or pro-21
4919+mulgate new regulations and guidance, to clarify that regu-22
4920+lated entities can engage in the payment stablecoin activi-23
4921+ties contemplated in, and in accordance with, this Act. 24
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4923+ssavage on LAPJG3WLY3PROD with BILLS 171
4924+•S 919 RS
4925+(c) TREATMENT OFCUSTODYACTIVITIES.—The ap-1
4926+propriate Federal banking agency (as defined under section 2
4927+3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), 3
4928+the National Credit Union Administration (in the case of 4
4929+a credit union), and the Securities and Exchange Commis-5
4930+sion may not require a depository institution, national 6
4931+bank, Federal credit union, State credit union, or trust 7
4932+company, or any institution-affiliated party thereof— 8
4933+(1) to include assets held in custody that are not 9
4934+owned by the entity as a liability on the financial 10
4935+statement or balance sheet of the entity, including 11
4936+payment stablecoin custody or safekeeping activities; 12
4937+(2) to hold regulatory capital against assets, in-13
4938+cluding reserves backing such assets described in sec-14
4939+tion 4(a)(1)(A), in custody or safekeeping, except as 15
4940+necessary to mitigate against operational risks inher-16
4941+ent with the custody or safekeeping services, as deter-17
4942+mined by— 18
4943+(A) the appropriate Federal banking agen-19
4944+cy; 20
4945+(B) the National Credit Union Administra-21
4946+tion (in the case of a credit union); 22
4947+(C) a State bank supervisor (as defined 23
4948+under section 3 of the Federal Deposit Insurance 24
4949+Act (12 U.S.C. 1813)); or 25
4950+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00171 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
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4952+•S 919 RS
4953+(D) a State credit union supervisor (as de-1
4954+fined under section 6003 of the Anti-Money 2
4955+Laundering Act of 2020); 3
4956+(3) to recognize a liability for any obligations re-4
4957+lated to activities or services performed for digital as-5
4958+sets that the entity does not own in any amount 6
4959+greater than the expense recognized in the income 7
4960+statement or the consideration received as a result of 8
4961+the corresponding obligation. 9
4962+(d) D
4963+EFINITIONS.—In this section: 10
4964+(1) D
4965+EPOSITORY INSTITUTION.—The term ‘‘de-11
4966+pository institution’’ has the meaning given that term 12
4967+under section 3 of the Federal Deposit Insurance Act 13
4968+(12 U.S.C. 1813). 14
4969+(2) C
4970+REDIT UNION TERMS.—The terms ‘‘Federal 15
4971+credit union’’ and ‘‘State credit union’’ have the 16
4972+meaning given those terms, respectively, under section 17
4973+101 of the Federal Credit Union Act. 18
4974+SEC. 15. AMENDMENTS TO CLARIFY THAT PAYMENT 19
4975+STABLECOINS ARE NOT SECURITIES OR COM-20
4976+MODITIES AND PERMITTED PAYMENT 21
4977+STABLECOIN ISSUERS ARE NOT INVESTMENT 22
4978+COMPANIES. 23
4979+(a) I
4980+NVESTMENTADVISERSACT OF1940.—Section 24
4981+202(a)(18) of the Investment Advisers Act of 1940 (15 25
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4984+•S 919 RS
4985+U.S.C. 80b–2(a)(18)) is amended by adding at the end the 1
4986+following: ‘‘The term ‘security’ does not include a payment 2
4987+stablecoin issued by a permitted payment stablecoin issuer, 3
4988+as such terms are defined in section 2 of the Guiding and 4
4989+Establishing National Innovation for U.S. Stablecoins Act 5
4990+of 2025.’’. 6
4991+(b) I
4992+NVESTMENTCOMPANYACT OF1940.—The Invest-7
4993+ment Company Act of 1940 is amended— 8
4994+(1) in section 2(a)(36) (15 U.S.C. 80a– 9
4995+2(a)(36))(15 U.S.C. 80a–2(a)(36)), by adding at the 10
4996+end the following: ‘‘The term ‘security’ does not in-11
4997+clude a payment stablecoin issued by a permitted 12
4998+payment stablecoin issuer, as such terms are defined 13
4999+in section 2 of the Guiding and Establishing National 14
5000+Innovation for U.S. Stablecoins Act of 2025.’’; and 15
5001+(2) in section 3(c)(3) (15 U.S.C. 80a–3(c)(3)), by 16
5002+inserting ‘‘any permitted payment stablecoin issuer, 17
5003+as such term is defined in section 2 of the Guiding 18
5004+and Establishing National Innovation for U.S. 19
5005+Stablecoins Act of 2025;’’ after ‘‘therefor;’’. 20
5006+(c) S
5007+ECURITIESACT OF1933.—Section 2(a)(1) of the 21
5008+Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is amended 22
5009+by adding at the end the following: ‘‘The term ‘security’ 23
5010+does not include a payment stablecoin issued by a permitted 24
5011+payment stablecoin issuer, as such terms are defined in sec-25
5012+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00173 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
5013+ssavage on LAPJG3WLY3PROD with BILLS 174
5014+•S 919 RS
5015+tion 2 of the Guiding and Establishing National Innovation 1
5016+for U.S. Stablecoins Act of 2025.’’. 2
5017+(d) S
5018+ECURITIESEXCHANGEACT OF1934.—Section 3
5019+3(a)(10) of the Securities Exchange Act of 1934 (15 U.S.C. 4
5020+78c(a)(10)) is amended by adding at the end the following: 5
5021+‘‘The term ‘security’ does not include a payment stablecoin 6
5022+issued by a permitted payment stablecoin issuer, as such 7
5023+terms are defined in section 2 of the Guiding and Estab-8
5024+lishing National Innovation for U.S. Stablecoins Act of 9
5025+2025.’’. 10
5026+(e) S
5027+ECURITIESINVESTORPROTECTIONACT OF 11
5028+1970.—Section 16(14) of the Securities Investor Protection 12
5029+Act of 1970 (15 U.S.C. 78lll(14)) is amended by adding 13
5030+at the end the following: ‘‘The term ‘security’ does not in-14
5031+clude a payment stablecoin issued by a permitted payment 15
5032+stablecoin issuer, as such terms are defined in section 2 of 16
5033+the Guiding and Establishing National Innovation for U.S. 17
5034+Stablecoins Act of 2025.’’. 18
5035+(f) C
5036+OMMODITYEXCHANGEACT.—Section 1a of the 19
5037+Commodity Exchange Act (7 U.S.C. 1a) is amended by add-20
5038+ing at the end the following: ‘‘The term ‘commodity’ does 21
5039+not include a payment stablecoin issued by a permitted 22
5040+payment stablecoin issuer, as such terms are defined in sec-23
5041+tion 2 of the Guiding and Establishing National Innovation 24
5042+for U.S. payment stablecoins Act of 2025.’’ 25
5043+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00174 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
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5045+•S 919 RS
5046+SEC. 16. RECIPROCITY FOR PAYMENT STABLECOINS ISSUED 1
5047+IN OVERSEAS JURISDICTIONS. 2
5048+Notwithstanding section 2(15)(A)(ii)(III), the Sec-3
5049+retary of the Treasury shall create and implement recip-4
5050+rocal arrangements or other bilateral agreements between 5
5051+the United States and jurisdictions with substantially simi-6
5052+lar payment stablecoin regulatory regimes to the require-7
5053+ments under this Act, including reserve requirements, su-8
5054+pervision, anti-money laundering and counter-terrorism 9
5055+features, sanctions compliance standards, liquidity require-10
5056+ments, and risk management standards, to facilitate inter-11
5057+national transactions and interoperability with United 12
5058+States dollar-denominated payment stablecoins issued over-13
5059+seas. The Secretary of the Treasury shall aim to complete 14
5060+such arrangements not later than the date that is 2 years 15
5061+after the date of enactment of this Act. 16
5062+SEC. 17. EFFECTIVE DATE. 17
5063+(a) I
5064+NGENERAL.—This Act, and the amendments 18
5065+made by this Act, shall take effect on the earlier of— 19
5066+(1) 18 months after the date of enactment of this 20
5067+Act; or 21
5068+(2) the date that is 120 days after the date on 22
5069+which the primary Federal payment stablecoin regu-23
5070+lators issue any final regulations implementing this 24
5071+Act. 25
5072+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00175 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
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5074+•S 919 RS
5075+(b) NOTICE TOCONGRESS.—The primary Federal 1
5076+payment stablecoin regulators shall notify Congress upon 2
5077+beginning to process applications under this Act. 3
5078+(c) S
5079+AFEHARBOR FORPENDINGAPPLICATIONS.—The 4
5080+primary Federal payment stablecoin regulators may waive 5
5081+the application of the requirements of this Act for a period 6
5082+not to exceed 12 months beginning on the effective date de-7
5083+scribed under subsection (a), with respect to— 8
5084+(1) a subsidiary of an insured depository insti-9
5085+tution, if the insured depository institution has an 10
5086+application pending for the subsidiary to become a 11
5087+permitted payment stablecoin issuer on that effective 12
5088+date; or 13
5089+(2) a nonbank entity with an application pend-14
5090+ing to become a Comptroller-regulated entity on that 15
5091+effective date. 16
5092+SEC. 18. RULEMAKING. 17
5093+(a) I
5094+NGENERAL.—Not later than 1 year after the date 18
5095+of enactment of this Act, each primary Federal payment 19
5096+stablecoin regulator, the Secretary of the Treasury, and each 20
5097+State payment stablecoin regulator shall implement this Act 21
5098+through appropriate notice and comment rulemaking, in-22
5099+cluding promulgating regulations as described in this Act 23
5100+as necessary. 24
5101+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00176 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
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5103+•S 919 RS
5104+(b) COORDINATION.—Federal payment stablecoin regu-1
5105+lators and State payment stablecoin regulators should co-2
5106+ordinate on the issuance of any regulations to implement 3
5107+this Act. 4
5108+(c) R
5109+EPORTREQUIRED.—Not later than 180 days 5
5110+after the date of enactment of this Act, each Federal banking 6
5111+agency shall submit to the Committee on Banking, Housing, 7
5112+and Urban Affairs of the Senate and the Committee on Fi-8
5113+nancial Services of the House of Representatives a report 9
5114+that confirms and describes the rules promulgated to imple-10
5115+ment this Act. 11
5116+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00177 Fmt 6652 Sfmt 6203 E:\BILLS\S919.RS S919
5117+ssavage on LAPJG3WLY3PROD with BILLS Calendar No.
5118+33
5119+119
5120+TH
5121+CONGRESS
5122+1
5123+ST
5124+S
5125+ESSION
5126+
5127+S. 919 A BILL
5128+To provide for the regulation of payment
5129+stablecoins, and for other purposes.
5130+M
5131+ARCH
5132+18, 2025
5133+Reported with an amendment
5134+VerDate Sep 11 2014 22:02 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00178 Fmt 6651 Sfmt 6651 E:\BILLS\S919.RS S919
26815135 ssavage on LAPJG3WLY3PROD with BILLS