II
119THCONGRESS
1
STSESSION S. 919
To provide for the regulation of payment stablecoins, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH10, 2025
Mr. H
AGERTY(for himself, Mr. SCOTTof South Carolina, Mrs. GILLIBRAND,
Ms. L
UMMIS, and Ms. ALSOBROOKS) introduced the following bill; which
was read twice and referred to the Committee on Banking, Housing, and
Urban Affairs
A BILL
To provide for the regulation of payment stablecoins, and
for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Guiding and Estab-4
lishing National Innovation for U.S. Stablecoins Act of 5
2025’’ or the ‘‘GENIUS Act of 2025’’. 6
SEC. 2. DEFINITIONS. 7
In this Act: 8
(1) B
ANK SECRECY ACT.—The term ‘‘Bank Se-9
crecy Act’’ means— 10
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(A) section 21 of the Federal Deposit In-1
surance Act (12 U.S.C. 1829b); 2
(B) chapter 2 of title I of Public Law 91– 3
508 (12 U.S.C. 1951 et seq.); and 4
(C) subchapter II of chapter 53 of title 31, 5
United States Code. 6
(2) B
OARD.—The term ‘‘Board’’ means the 7
Board of Governors of the Federal Reserve System. 8
(3) C
OMPTROLLER.—The term ‘‘Comptroller’’ 9
means the Office of the Comptroller of the Currency. 10
(4) C
OMPTROLLER-REGULATED ENTITY .—The 11
term ‘‘Comptroller-regulated entity’’ means— 12
(A) any Federal qualified nonbank pay-13
ment stablecoin issuer that is subject to regula-14
tion and supervision exclusively by the Comp-15
troller, pursuant to section 4(a)(7); and 16
(B) any entity chartered by the Comp-17
troller. 18
(5) C
ORPORATION.—The term ‘‘Corporation’’ 19
means the Federal Deposit Insurance Corporation. 20
(6) D
IGITAL ASSET.—The term ‘‘digital asset’’ 21
means any digital representation of value which is 22
recorded on a cryptographically secured distributed 23
ledger. 24
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(7) DISTRIBUTED LEDGER.—The term ‘‘distrib-1
uted ledger’’ means technology in which data is 2
shared across a network that creates a public digital 3
ledger of verified transactions or information among 4
network participants and cryptography is used to 5
link the data to maintain the integrity of the public 6
ledger and execute other functions. 7
(8) F
EDERAL QUALIFIED NONBANK PAYMENT 8
STABLECOIN ISSUER.—The term ‘‘Federal qualified 9
nonbank payment stablecoin issuer’’ means a 10
nonbank entity, other than a State qualified pay-11
ment stablecoin issuer, approved by the Comptroller, 12
pursuant to section 5, to issue payment stablecoins. 13
(9) I
NSTITUTION-AFFILIATED PARTY.—With re-14
spect to a permitted payment stablecoin issuer, the 15
term ‘‘institution-affiliated party’’ means any direc-16
tor, officer, employee, or controlling stockholder of 17
the permitted payment stablecoin issuer. 18
(10) I
NSURED DEPOSITORY INSTITUTION .—The 19
term ‘‘insured depository institution’’ means— 20
(A) an insured depository institution, as 21
defined in section 3 of the Federal Deposit In-22
surance Act (12 U.S.C. 1813); and 23
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(B) an insured credit union, as defined in 1
section 101 of the Federal Credit Union Act 2
(12 U.S.C. 1752). 3
(11) M
ONETARY VALUE.—The term ‘‘monetary 4
value’’ means a national currency or deposit (as de-5
fined in section 3 of the Federal Deposit Insurance 6
Act) denominated in a national currency. 7
(12) M
ONEY.—The term ‘‘money’’ means any 8
financial instrument that is— 9
(A) legal tender; 10
(B) required to be received by a taxing au-11
thority in satisfaction of tax obligations; or 12
(C) widely accepted in an economy for the 13
payment of goods or services. 14
(13) N
ATIONAL CURRENCY .—The term ‘‘na-15
tional currency’’ means each of the following: 16
(A) A Federal Reserve note (as the term is 17
used in the first undesignated paragraph of sec-18
tion 16 of the Federal Reserve Act (12 U.S.C. 19
411)). 20
(B) Money standing to the credit of an ac-21
count with a Federal Reserve Bank. 22
(C) Money issued by a foreign central 23
bank. 24
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(D) Money issued by an intergovernmental 1
organization pursuant to an agreement by 1 or 2
more governments. 3
(14) N
ONBANK ENTITY.—The term ‘‘nonbank 4
entity’’ means a person that is not a depository in-5
stitution or subsidiary of a depository institution. 6
(15) P
AYMENT STABLECOIN .—The term ‘‘pay-7
ment stablecoin’’— 8
(A) means a digital asset— 9
(i) that is or is designed to be used as 10
a means of payment or settlement; and 11
(ii) the issuer of which— 12
(I) is obligated to convert, re-13
deem, or repurchase for a fixed 14
amount of monetary value, not includ-15
ing a digital asset denominated in a 16
fixed amount of monetary value; 17
(II) represents that such issuer 18
will maintain or creates the reason-19
able expectation that it will maintain 20
a stable value relative to the value of 21
a fixed amount of monetary value; or 22
(III) has complied with the au-23
thorization requirements of this Act; 24
and 25
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(B) that— 1
(i) is not a national currency; 2
(ii) is not a deposit (as defined in sec-3
tion 3 of the Federal Deposit Insurance 4
Act), including a deposit recorded using 5
distributed ledger technology; 6
(iii) does not offer a payment of yield 7
or interest; and 8
(iv) is not a security, as defined in 9
section 2 of the Securities Act of 1933 (15 10
U.S.C. 77b), section 3 of the Securities 11
Exchange Act of 1934 (15 U.S.C. 78c), or 12
section 2 of the Investment Company Act 13
of 1940 (15 U.S.C. 80a–2), other than a 14
bond, note, evidence of indebtedness, or in-15
vestment contract satisfying the conditions 16
described in subparagraph (A). 17
(16) P
ERMITTED PAYMENT STABLECOIN 18
ISSUER.—The term ‘‘permitted payment stablecoin 19
issuer’’ means a person incorporated in the United 20
States that is— 21
(A) a subsidiary of an insured depository 22
institution that has been approved to issue pay-23
ment stablecoins under section 5; 24
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(B) a Federal qualified nonbank payment 1
stablecoin issuer that has been approved to 2
issue payment stablecoins under section 5; or 3
(C) a State qualified payment stablecoin 4
issuer. 5
(17) P
ERSON.—The term ‘‘person’’ means an 6
individual, partnership, company, corporation, asso-7
ciation, trust, estate, cooperative organization, or 8
other business entity, incorporated or unincor-9
porated. 10
(18) P
RIMARY FEDERAL PAYMENT STABLECOIN 11
REGULATOR.—The term ‘‘primary Federal payment 12
stablecoin regulator’’ means— 13
(A) with respect to a subsidiary of an in-14
sured depository institution (other than an in-15
sured credit union), the appropriate Federal 16
banking agency (as defined under section 3 of 17
the Federal Deposit Insurance Act (12 U.S.C. 18
1813)) of such insured depository institution; 19
(B) with respect to an insured credit union 20
or a subsidiary of an insured credit union, the 21
National Credit Union Administration; 22
(C) with respect to a State chartered de-23
pository institution not specified under subpara-24
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graph (A), the Corporation, the Comptroller, or 1
the Board; and 2
(D) with respect to a Federal qualified 3
nonbank payment stablecoin issuer or any enti-4
ty chartered by the Comptroller, the Comp-5
troller. 6
(19) R
EGISTERED PUBLIC ACCOUNTING 7
FIRM.—The term ‘‘registered public accounting 8
firm’’ has the meaning given that term under section 9
2 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 10
7201). 11
(20) S
TATE.—The term ‘‘State’’ means each of 12
the several States of the United States, the District 13
of Columbia, and each territory of the United 14
States. 15
(21) S
TATE QUALIFIED PAYMENT STABLECOIN 16
ISSUER.—The term ‘‘State qualified payment 17
stablecoin issuer’’ means an entity that is legally es-18
tablished under the laws of a State and approved to 19
issue payment stablecoins by a State payment 20
stablecoin regulator. 21
(22) S
TATE PAYMENT STABLECOIN REGU -22
LATOR.—The term ‘‘State payment stablecoin regu-23
lator’’ means a State agency that has primary regu-24
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latory and supervisory authority in such State over 1
entities that issue payment stablecoins. 2
(23) S
TATE CHARTERED DEPOSITORY INSTITU -3
TION.—The term ‘‘State chartered depository insti-4
tution’’ has the meaning given the term ‘‘State de-5
pository institution’’ in section 3(c) of the Federal 6
Deposit Insurance Act (12 U.S.C. 1813(c)). 7
(24) S
UBSIDIARY OF AN INSURED CREDIT 8
UNION.—With respect to an insured credit union, 9
the term ‘‘subsidiary of an insured credit union’’ 10
means— 11
(A) an organization providing services to 12
the insured credit union that are associated 13
with the routine operations of credit unions, as 14
described under section 107(7)(I) of the Fed-15
eral Credit Union Act (12 U.S.C. 1757(7)(I)); 16
and 17
(B) a credit union service organization, as 18
such term is used under part 712 of title 12, 19
Code of Federal Regulations, with respect to 20
which the insured credit union has an owner-21
ship interest or to which the insured credit 22
union has extended a loan. 23
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SEC. 3. ISSUANCE AND TREATMENT OF PAYMENT 1
STABLECOINS. 2
(a) I
SSUE.—It shall be unlawful for any person other 3
than a permitted payment stablecoin issuer to issue a pay-4
ment stablecoin in the United States. 5
(b) T
REATMENT.—A payment stablecoin that is not 6
issued by a permitted payment stablecoin issuer shall not 7
be acceptable as a settlement asset to facilitate wholesale 8
payments between banking organizations or by a payment 9
infrastructure to facilitate exchange and settlement among 10
banking organizations. 11
(c) P
ENALTY FORVIOLATION.— 12
(1) I
N GENERAL.—Whoever knowingly partici-13
pates in a violation of subsection (a) shall be fined 14
not more than $1,000,000 for each such violation, 15
imprisoned for not more than 5 years, or both. 16
(2) R
EFERRAL TO ATTORNEY GENERAL .—If a 17
primary Federal payment stablecoin regulator has 18
reason to believe that any person has knowingly vio-19
lated subsection (a), the primary Federal payment 20
stablecoin regulator shall refer the matter to the At-21
torney General. 22
SEC. 4. REQUIREMENTS FOR ISSUING PAYMENT 23
STABLECOINS. 24
(a) S
TANDARDS FOR THE ISSUANCE OFPAYMENT 25
S
TABLECOINS.— 26
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(1) IN GENERAL .—Permitted payment 1
stablecoin issuers shall— 2
(A) maintain reserves backing the out-3
standing payment stablecoins of the permitted 4
payment stablecoin issuer on an at least a 1 to 5
1 basis, with reserves comprising— 6
(i) United States coins and currency 7
(including Federal reserve notes) or money 8
standing to the credit of an account with 9
a Federal Reserve Bank; 10
(ii) funds held as demand deposits (or 11
other deposits that may be withdrawn 12
upon request at any time) or insured 13
shares at an insured depository institution 14
(including any foreign branches and agen-15
cies of an insured depository institution), 16
subject to limitations established by the 17
Corporation and the National Credit Union 18
Administration, as applicable, to address 19
safety and soundness risks of such insured 20
depository institution; 21
(iii) Treasury bills, notes, or bonds— 22
(I) with a remaining maturity of 23
93 days or less; or 24
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(II) issued with a maturity of 93 1
days or less; 2
(iv) repurchase agreements with the 3
permitted payment stablecoin issuer acting 4
as a seller of securities and with an over-5
night maturity that are backed by Treas-6
ury bills with a maturity of 93 days or 7
less; 8
(v) reverse repurchase agreements 9
with the permitted payment stablecoin 10
issuer acting as a purchaser of securities 11
and with an overnight maturity that are 12
collateralized by Treasury notes, bills, or 13
bonds on an overnight basis, subject to 14
overcollateralization in line with standard 15
market terms, that are— 16
(I) tri-party; 17
(II) centrally cleared through a 18
clearing house registered with the Se-19
curities and Exchange Commission; or 20
(III) bilateral with a 21
counterparty that the issuer has de-22
termined to be adequately credit-23
worthy even in the event of severe 24
market stress; 25
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(vi) securities issued by an investment 1
company registered under section 8(a) of 2
the Investment Company Act of 1940 (15 3
U.S.C. 80a–8(a)) that operates as a money 4
market fund in compliance with rule 2a–7 5
issued under that Act (or any successor 6
rule) and that are invested solely in under-7
lying assets described in clauses (i) 8
through (iv) of subparagraph (A); 9
(vii) any other similarly liquid asset 10
approved by the primary Federal payment 11
stablecoin regulator, in consultation with 12
the State payment stablecoin regulator, if 13
applicable, of the permitted payment 14
stablecoin issuer; or 15
(viii) any reserve described in clauses 16
(i) through (vii) in tokenized form, pro-17
vided that such reserves comply with all 18
applicable laws and regulations; 19
(B) publicly disclose the issuer’s redemp-20
tion policy; 21
(C) establish procedures for timely redemp-22
tion of outstanding payment stablecoins; and 23
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(D) publish the monthly composition of the 1
issuer’s reserves on the website of the issuer, 2
containing— 3
(i) the total number of outstanding 4
payment stablecoins issued by the issuer; 5
and 6
(ii) the amount and composition of 7
the reserves described under subparagraph 8
(A). 9
(2) P
ROHIBITION ON REHYPOTHECATION .—Re-10
serves required under paragraph (1)(A) may not be 11
pledged, rehypothecated, or reused by the permitted 12
payment stablecoin issuer, either directly or indi-13
rectly, except for the purpose of— 14
(A) satisfying margin obligations in con-15
nection with investments in permitted reserves 16
under clauses (iv) and (v) of paragraph (1)(A); 17
(B) satisfying obligations associated with 18
the use or receipt of provision of standard cus-19
todial services; or 20
(C) creating liquidity to meet reasonable 21
expectations of requests to redeem payment 22
stablecoins, such that reserves in the form of 23
Treasury bills may be sold as purchased securi-24
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ties for repurchase agreements with a maturity 1
of 93 days or less, provided that either— 2
(i) the repurchase agreements are 3
cleared by a clearing agency registered 4
with the Securities and Exchange Commis-5
sion; or 6
(ii) the permitted payment stablecoin 7
issuer receives the prior approval of its pri-8
mary Federal payment stablecoin regulator 9
or State payment stablecoin regulator, as 10
applicable. 11
(3) M
ONTHLY CERTIFICATION ; EXAMINATION 12
OF REPORTS BY REGISTERED PUBLIC ACCOUNTING 13
FIRM.— 14
(A) I
N GENERAL.—A permitted payment 15
stablecoin issuer shall, each month, have the in-16
formation disclosed in the previous month-end 17
report required under paragraph (1)(D) exam-18
ined by a registered public accounting firm. 19
(B) C
ERTIFICATION.—Each month, the 20
Chief Executive Officer and Chief Financial Of-21
ficer of a permitted payment stablecoin issuer 22
shall submit a certification as to the accuracy 23
of the monthly report to, as applicable— 24
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(i) the primary Federal payment 1
stablecoin regulator of the permitted pay-2
ment stablecoin issuer; or 3
(ii) the State payment stablecoin reg-4
ulator of the permitted payment stablecoin 5
issuer. 6
(C) C
RIMINAL PENALTY.—Any person who 7
submits a certification required under subpara-8
graph (B) knowing that such certification is 9
false shall be subject to the criminal penalties 10
set forth under section 1350(c) of title 18, 11
United States Code. 12
(4) C
APITAL, LIQUIDITY, AND RISK MANAGE -13
MENT REQUIREMENTS .— 14
(A) I
N GENERAL.—The primary Federal 15
payment stablecoin regulators shall, jointly, or 16
in the case of a State qualified payment 17
stablecoin issuer, the State payment stablecoin 18
regulator shall, consistent with section 18, 19
issue— 20
(i) capital requirements applicable to 21
permitted payment stablecoin issuers 22
that— 23
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(I) are tailored to the business 1
model and risk profile of permitted 2
payment stablecoin issuers; 3
(II) do not exceed requirements 4
which are sufficient to ensure the on-5
going operations of permitted pay-6
ment stablecoin issuers; and 7
(III) in the case of the primary 8
Federal payment stablecoin regu-9
lators, if the primary Federal pay-10
ment stablecoin regulators determine 11
that a capital buffer is necessary to 12
ensure the ongoing operations of per-13
mitted payment stablecoin issuers, 14
may include capital buffers that are 15
tailored to the business model and 16
risk profile of permitted payment 17
stablecoin issuers; 18
(ii) regulations implementing the li-19
quidity standard under clause (i); 20
(iii) reserve asset diversification and 21
interest rate risk management standards 22
applicable to permitted payment stablecoin 23
issuers that— 24
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(I) are tailored to the business 1
model and risk profile of permitted 2
payment stablecoin issuers; and 3
(II) do not exceed standards 4
which are sufficient to ensure the on-5
going operations of permitted pay-6
ment stablecoin issuers; and 7
(iv) appropriate operational, compli-8
ance, and information technology risk 9
management standards, including Bank 10
Secrecy Act and sanctions compliance, 11
that— 12
(I) are tailored to the business 13
model and risk profile of permitted 14
payment stablecoin issuers; and 15
(II) are consistent with applicable 16
law. 17
(B) R
ULE OF CONSTRUCTION .—Nothing in 18
this paragraph shall be construed to limit— 19
(i) the authority of the primary Fed-20
eral regulators, in prescribing standards 21
under this paragraph, to tailor or differen-22
tiate among issuers on an individual basis 23
or by category, taking into consideration 24
the capital structure, business model risk 25
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profile, complexity, financial activities (in-1
cluding financial activities of subsidiaries), 2
size, and any other risk related factors of 3
permitted payment stablecoin issuers that 4
the primary Federal regulator determines 5
appropriate, provided that such tailoring or 6
differentiation occurs without respect to 7
whether a permitted payment stablecoin 8
issuer is regulated by a State payment 9
stablecoin regulator; or 10
(ii) the supervisory, regulatory, or en-11
forcement authority of a Federal banking 12
agency to further the safe and sound oper-13
ation of an institution for which the Fed-14
eral banking agency is the appropriate 15
Federal banking agency (as defined under 16
section 3 of the Federal Deposit Insurance 17
Act (12 U.S.C. 1813)). 18
(C) A
PPLICABILITY OF EXISTING CAPITAL 19
STANDARDS.— 20
(i) D
EFINITIONS.—In this subpara-21
graph— 22
(I) ‘‘appropriate Federal banking 23
agency’’ has the meaning given that 24
term in section 3(q) of the Federal 25
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Deposit Insurance Act (12 U.S.C. 1
1813(q)); and 2
(II) ‘‘depository institution hold-3
ing company’’ has the meaning given 4
that term under section 171(a)(3) of 5
the Financial Stability Act of 2010 6
(12 U.S.C. 5371(a)(3)). 7
(ii) A
PPLICABILITY OF FINANCIAL 8
STABILITY ACT.—With respect to the pro-9
mulgation of rules under subparagraph (A) 10
and clauses (iii) and (iv) of this subpara-11
graph, section 171 of the Financial Sta-12
bility Act of 2010 (12 U.S.C. 5371) shall 13
not apply. 14
(iii) R
ULES RELATING TO LEVERAGE 15
CAPITAL REQUIREMENTS OR RISK -BASED 16
CAPITAL REQUIREMENTS .—Any rule issued 17
by an appropriate Federal banking agency 18
that imposes, on a consolidated basis, a le-19
verage capital requirement or risk-based 20
capital requirement with respect to an in-21
sured depository institution or depository 22
institution holding company shall provide 23
that, for purposes of such leverage capital 24
requirement or risk-based capital require-25
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ment, any insured depository institution or 1
depository institution holding company 2
that includes, on a consolidated basis, a 3
permitted payment stablecoin issuer shall 4
not be required to hold, with respect to 5
such permitted payment stablecoin issuer 6
and its assets and operations, any amount 7
of regulatory capital in excess of the cap-8
ital that such permitted payment 9
stablecoin issuer must maintain under the 10
capital requirements promulgated pursuant 11
to paragraph (1)(A)(i). 12
(iv) M
ODIFICATIONS.—Not later than 13
the earlier of the rulemaking deadline 14
under section 18 or the date the Federal 15
payment stablecoin regulators issue regula-16
tions to carry out this section, each appro-17
priate Federal banking agency shall amend 18
or otherwise modify any regulation of the 19
Federal banking agency described in clause 20
(iii) so that such regulation, as amended or 21
otherwise modified, complies with clause 22
(iii) of this subparagraph. 23
(5) T
REATMENT UNDER THE BANK SECRECY 24
ACT AND SANCTIONS LAWS .— 25
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(A) IN GENERAL.—A permitted payment 1
stablecoin issuer shall be treated as a financial 2
institution for purposes of the Bank Secrecy 3
Act, and as such, shall be subject to all Federal 4
laws applicable to a financial institution located 5
in the United States relating to economic sanc-6
tions, prevention of money laundering, customer 7
identification, and due diligence, including— 8
(i) maintenance of an effective anti- 9
money laundering and economic sanctions 10
compliance program, which shall include 11
appropriate risk assessments, verification 12
of sanctions lists and designation of an of-13
ficer to supervise the programs; 14
(ii) retention of appropriate records of 15
payment stablecoin transactions; 16
(iii) monitoring and reporting sus-17
picious activity; 18
(iv) policies and procedures to block, 19
freeze, and reject specific or impermissible 20
transactions that violate Federal or State 21
laws, rules, or regulations; and 22
(v) maintenance of an effective cus-23
tomer identification program, including 24
identification and verification of account 25
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holders with the permitted payment 1
stablecoin issuer, high value transactions 2
and appropriate enhanced due diligence. 3
(B) R
ULEMAKING.—The Financial Crimes 4
Enforcement Network shall adopt rules, tailored 5
to the size and complexity of the permitted pay-6
ment stablecoin issuer, to implement subpara-7
graph (A). 8
(6) C
OORDINATION WITH PERMITTED PAYMENT 9
STABLECOIN ISSUERS WITH RESPECT TO BLOCKING 10
OF PROPERTY AND TECHNOLOGICAL CAPABILITIES 11
TO COMPLY WITH LAWFUL ORDERS .— 12
(A) I
N GENERAL.—The Secretary of the 13
Treasury— 14
(i) shall, to the best of the Secretary’s 15
ability, coordinate with a permitted pay-16
ment stablecoin issuer before taking any 17
action to block and prohibit transactions in 18
property and interests in property of a for-19
eign person to ensure that the permitted 20
payment stablecoin issuer is able to effec-21
tively block a digital asset of the foreign 22
person upon issue of the digital asset; and 23
(ii) is not required to notify any per-24
mitted payment stablecoin issuer of any in-25
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tended action described in clause (i) prior 1
to taking such action. 2
(B) C
OMPLIANCE WITH LAWFUL OR -3
DERS.— 4
(i) I
N GENERAL.— 5
(I) P
ERMITTED PAYMENT 6
STABLECOIN ISSUERS .—A permitted 7
payment stablecoin issuer may issue 8
payment stablecoins only if the issuer 9
has the technological capability to 10
comply and will comply with the terms 11
of any lawful order. 12
(II) F
OREIGN PAYMENT 13
STABLECOINS.—A foreign payment 14
stablecoin that is not licensed under 15
this Act may not be publicly offered, 16
sold, or otherwise made available for 17
trading in the United States unless 18
the payment stablecoin issuer has the 19
technological capability to comply and 20
will comply with the terms of any law-21
ful order. 22
(ii) L
AWFUL ORDER DEFINED .—In 23
this paragraph, the term ‘‘lawful order’’ 24
means any final and valid writ, process, 25
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order, rule, decree, command, or other re-1
quirement issued or promulgated under 2
Federal law, issued by a court of com-3
petent jurisdiction or by an authorized 4
Federal agency pursuant to its statutory 5
authority, that— 6
(I) requires the permitted pay-7
ment stablecoin issuer to seize, freeze, 8
burn, or prevent the transfer of pay-9
ment stablecoins issued by the per-10
mitted payment stablecoin issuer; 11
(II) specifies the digital assets or 12
accounts subject to blocking with rea-13
sonable particularity; and 14
(III) is subject to judicial or ad-15
ministrative review or appeal as pro-16
vided by law. 17
(C) R
EPORT REQUIRED.—Not later than 1 18
year after the date of enactment of this Act, the 19
Secretary of the Treasury shall submit to the 20
Committee on Banking, Housing, and Urban 21
Affairs of the Senate and the Committee on Fi-22
nancial Services of the House of Representa-23
tives a report on the coordination with per-24
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mitted payment stablecoin issuers required 1
under subparagraph (A). 2
(7) L
IMITATION ON PAYMENT STABLECOIN AC -3
TIVITIES.— 4
(A) I
N GENERAL.—A permitted payment 5
stablecoin issuer may only— 6
(i) issue payment stablecoins; 7
(ii) redeem payment stablecoins; 8
(iii) manage related reserves, includ-9
ing purchasing, selling, and holding reserve 10
assets or providing custodial services for 11
reserve assets, consistent with State and 12
Federal law; 13
(iv) provide custodial or safekeeping 14
services for payment stablecoins, required 15
reserves, or private keys of payment 16
stablecoins, consistent with this Act; and 17
(v) undertake other activities that di-18
rectly support any of the activities de-19
scribed in clauses (i) through (iv). 20
(B) R
ULE OF CONSTRUCTION .—Nothing in 21
subparagraph (A) shall prevent a permitted 22
payment stablecoin issuer from engaging in 23
non-payment stablecoin activities that are al-24
lowed by the primary Federal payment 25
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stablecoin regulator or the State payment 1
stablecoin regulator, as applicable. 2
(8) P
ROHIBITION ON TYING.— 3
(A) I
N GENERAL.—A permitted payment 4
stablecoin issuer may not provide services to a 5
customer on the condition that the customer ob-6
tain an additional paid product or service from 7
the permitted payment stablecoin issuer, or any 8
of its subsidiaries, or agree to not obtain an ad-9
ditional product or service from a competitor. 10
(B) R
EGULATIONS.—The Board may issue 11
such regulations as are necessary to carry out 12
this subparagraph, and, in consultation with the 13
Comptroller and the Corporation, may by regu-14
lation or order, permit such exceptions to clause 15
(i) as the Board considers will not be contrary 16
to the purpose of this Act. 17
(9) R
EGULATION BY THE COMPTROLLER .— 18
(A) I
N GENERAL.—A Federal qualified 19
nonbank payment stablecoin issuer shall be reg-20
ulated and supervised exclusively by the Comp-21
troller, which shall have authority, in coordina-22
tion with other relevant primary Federal pay-23
ment stablecoin regulators and State payment 24
stablecoin regulators, to issue such regulations 25
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and orders as necessary to ensure financial sta-1
bility and implement this subsection. 2
(B) C
ONFORMING AMENDMENT .—Section 3
324(b) of the Revised Statutes (12 U.S.C. 1(b)) 4
is amended by adding at the end the following: 5
‘‘(3) R
EGULATION OF FEDERAL QUALIFIED 6
NONBANK PAYMENT STABLECOIN ISSUERS .—The 7
Comptroller of the Currency shall, in coordination 8
with other relevant regulators and consistent with 9
section 18 of the Guiding and Establishing National 10
Innovation for U.S. Stablecoins Act of 2025, issue 11
such regulations and orders as necessary to ensure 12
financial stability and implement section 4(a) of that 13
Act.’’. 14
(10) A
UDITS AND REPORTS.— 15
(A) A
NNUAL FINANCIAL STATEMENT .— 16
(i) I
N GENERAL.—A permitted pay-17
ment stablecoin issuer with more than 18
$50,000,000,000 in consolidated total out-19
standing issuance, that is not subject to 20
the reporting requirements under sections 21
13(a) or 15(d) of the Securities and Ex-22
change Act of 1934 (15 U.S.C. 78m, 23
78o(d)), shall prepare, in accordance with 24
generally accepted accounting principles, 25
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an annual financial statement, which shall 1
include the disclosure of any related party 2
transactions, as defined by such generally 3
accepted accounting principles. 4
(ii) A
UDITOR.—A registered public ac-5
counting firm shall perform an audit of the 6
annual financial statements described in 7
clause (i). 8
(iii) S
TANDARDS.—An audit described 9
in clause (ii) shall be conducted in accord-10
ance with all applicable auditing standards 11
established by the Public Company Ac-12
counting Oversight Board, including those 13
relating to auditor independence, internal 14
controls, and related party transactions. 15
(iv) R
ULE OF CONSTRUCTION .—Noth-16
ing in this subparagraph shall be construed 17
to limit, alter, or expand the jurisdiction of 18
the Public Company Accounting Oversight 19
Board over permitted payment stablecoin 20
issuers or registered public accounting 21
firms. 22
(B) P
UBLIC DISCLOSURE AND SUBMISSION 23
TO FEDERAL REGULATORS .—Each permitted 24
payment stablecoin issuer required to prepare 25
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an audited annual financial statement under 1
subparagraph (A) shall: 2
(i) make such audited financial state-3
ments publicly available on the website of 4
the permitted payment stablecoin issuer; 5
and 6
(ii) submit such audited financial 7
statements annually to their primary Fed-8
eral payment stablecoin regulator. 9
(C) C
ONSULTATION.—The primary Fed-10
eral payment stablecoin regulators may consult 11
with the Public Company Accounting Oversight 12
Board to determine best practices for deter-13
mining audit oversight and to detect fraud, ma-14
terial misstatements, and other financial mis-15
representations that could mislead permitted 16
payment stablecoin holders. 17
(b) S
TATE-LEVELREGULATORYREGIMES.— 18
(1) O
PTION FOR STATE -LEVEL REGULATORY 19
REGIME.—Notwithstanding the Federal regulatory 20
framework established under subsection (a), a State 21
qualified payment stablecoin issuer with a consoli-22
dated total outstanding issuance of not more than 23
$10,000,000,000 may opt for regulation under a 24
State-level regulatory regime, provided that the 25
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State-level regulatory regime is substantially similar 1
to the Federal regulatory framework under that sub-2
section. 3
(2) P
RINCIPLES.—The Secretary of the Treas-4
ury shall, through notice and comment rulemaking, 5
establish broad based principles for determining 6
whether a State-level regulatory regime is substan-7
tially similar to the Federal regulatory framework 8
under subsection (a). 9
(3) R
EVIEW.—State payment stablecoin regu-10
lators shall review State-level regulatory regimes ac-11
cording to the principles established by the Secretary 12
of the Treasury under paragraph (2) and for the 13
purposes of establishing any necessary cooperative 14
agreements to implement section 7(f). 15
(4) C
ERTIFICATION.— 16
(A) I
NITIAL CERTIFICATION.—Subject to 17
subparagraph (B), not later than 1 year after 18
the effective date of this Act, a State payment 19
stablecoin regulator shall submit to the Sec-20
retary of the Treasury an initial certification 21
that the State-level regulatory regime meets the 22
criteria for substantial similarity established 23
pursuant to paragraph (2). 24
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(B) FORM OF CERTIFICATION.—The initial 1
certification required under subparagraph (A) 2
shall contain, in a form prescribed by the Sec-3
retary of the Treasury, an attestation that the 4
State-level regulatory regime meets the criteria 5
for substantial similarity established pursuant 6
to paragraph (2). 7
(C) A
NNUAL RECERTIFICATION .—Not later 8
than a date to be determined by the Secretary 9
each year, a State payment stablecoin regulator 10
shall submit to the Secretary of the Treasury 11
an additional certification that confirms the ac-12
curacy of initial certification submitted under 13
subparagraph (A). 14
(5) N
OT SUBSTANTIALLY SIMILAR .— 15
(A) I
N GENERAL.—If a State payment 16
stablecoin regulator determines that the criteria 17
established under paragraph (2) are not met 18
and the State payment stablecoin regulator 19
does not submit a certification under paragraph 20
(4), then a permitted payment stablecoin issuer 21
operating under this subsection shall be subject 22
to the Federal regulatory framework as de-23
scribed in subsection (c), notwithstanding the 24
total issuance threshold therein. 25
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(B) TREASURY REVIEW.—Not later than 1
30 days after the date of receipt of a certifi-2
cation under paragraph (4), the Secretary may 3
reject the certification if the Secretary deter-4
mines that the State-level regulatory regime is 5
not substantially similar to the Federal regu-6
latory framework under subsection (a), and the 7
permitted payment stablecoin issuer shall be 8
subject to the Federal regulatory framework as 9
described in subsection (c), notwithstanding the 10
total issuance threshold therein. 11
(C) A
PPELLATE REVIEW .—A State pay-12
ment stablecoin regulator may challenge the de-13
termination of the Secretary of the Treasury 14
under this paragraph in the United States 15
Court of Appeals for the District of Columbia 16
Circuit. 17
(6) L
IST.—The Secretary of the Treasury shall 18
publish and maintain in the Federal Register and on 19
the website of the Department of the Treasury a list 20
of States that have submitted initial certifications 21
and recertifications under paragraph (4). 22
(c) T
RANSITION TOFEDERALOVERSIGHT.— 23
(1) D
EPOSITORY INSTITUTION.—A State char-24
tered depository institution that is a State qualified 25
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•S 919 IS
payment stablecoin issuer with a payment stablecoin 1
with a consolidated total outstanding issuance of 2
more than $10,000,000,000 shall— 3
(A) not later than 360 days after the pay-4
ment stablecoin reaches such threshold, transi-5
tion to the Federal regulatory framework of the 6
primary Federal payment stablecoin regulator 7
of the State chartered depository institution, 8
which shall be administered by the State pay-9
ment stablecoin regulator of the State chartered 10
depository institution and the primary Federal 11
payment stablecoin regulator acting jointly; or 12
(B) beginning on the date the payment 13
stablecoin reaches such threshold, cease issuing 14
new payment stablecoins until the payment 15
stablecoin is under the $10,000,000,000 con-16
solidated total outstanding issuance threshold. 17
(2) O
THER INSTITUTIONS.—A State qualified 18
payment stablecoin issuer not described in para-19
graph (1) with a payment stablecoin with a consoli-20
dated total outstanding issuance of more than 21
$10,000,000,000 shall— 22
(A) not later than 360 days after the pay-23
ment stablecoin reaches such threshold, transi-24
tion to the Federal regulatory framework under 25
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subsection (a) administered by the State pay-1
ment stablecoin regulator of the State qualified 2
payment stablecoin issuer; or 3
(B) beginning on the date the payment 4
stablecoin reaches such threshold, cease issuing 5
new payment stablecoins until the payment 6
stablecoin is under the $10,000,000,000 con-7
solidated total outstanding issuance threshold. 8
(3) W
AIVER.— 9
(A) I
N GENERAL.—Notwithstanding para-10
graphs (1) and (2), the applicable primary Fed-11
eral payment stablecoin regulator may permit a 12
State qualified payment stablecoin issuer with a 13
payment stablecoin with a consolidated total 14
outstanding issuance of more than 15
$10,000,000,000 to remain solely supervised by 16
a State payment stablecoin regulator. 17
(B) C
RITERIA FOR WAIVER.—The primary 18
Federal payment stablecoin regulator shall con-19
sider the following exclusive criteria in deter-20
mining whether to issue a waiver under this 21
paragraph: 22
(i) The capital maintained by the 23
State qualified payment stablecoin issuer. 24
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(ii) The past operations and examina-1
tion history of the State qualified payment 2
stablecoin issuer. 3
(iii) The experience of the State pay-4
ment stablecoin regulator in supervising 5
payment stablecoin and digital asset activi-6
ties. 7
(iv) The laws and rules applicable to, 8
and the supervisory framework of, the 9
State qualified payment stablecoin issuer 10
with respect to payment stablecoins and 11
digital assets. 12
(C) R
ULE OF CONSTRUCTION .—A State 13
qualified payment stablecoin issuer subject to 14
Federal oversight under paragraph (1) or (2) of 15
this subsection that does not receive a waiver 16
under this paragraph shall continue to be su-17
pervised by the State payment stablecoin regu-18
lator of the State qualified payment stablecoin 19
issuer along jointly with the primary Federal 20
payment stablecoin regulator. Nothing in this 21
subsection shall require the State qualified pay-22
ment stablecoin issuer to convert to a Federal 23
charter. 24
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(d) MISREPRESENTATION OF INSUREDSTATUS; 1
M
ARKETING.— 2
(1) I
N GENERAL.—Payment stablecoins shall 3
not be backed by the full faith and credit of the 4
United States, guaranteed by the United States 5
Government, subject to deposit insurance by the 6
Federal Deposit Insurance Corporation, or subject 7
to share insurance by the National Credit Union Ad-8
ministration. 9
(2) M
ISREPRESENTATION OF INSURED STA -10
TUS.— 11
(A) I
N GENERAL.—It shall be unlawful to 12
represent that payment stablecoins are backed 13
by the full faith and credit of the United 14
States, guaranteed by the United States Gov-15
ernment, or subject to Federal deposit insur-16
ance or Federal share insurance. 17
(B) P
ENALTY.—A violation of subpara-18
graph (A) shall be considered a violation of sec-19
tion 18(a)(4) of the Federal Deposit Insurance 20
Act (12 U.S.C. 1828(a)(4)) or section 709 of 21
title 18, United States Code, as applicable. 22
(3) M
ARKETING.—It shall be unlawful to mar-23
ket a digital asset in the United States as a payment 24
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stablecoin unless the digital asset is issued pursuant 1
to this Act. 2
(e) O
FFICERS ORDIRECTORSCONVICTED OFCER-3
TAINFELONIES.— 4
(1) I
N GENERAL.—No individual who has been 5
convicted of a felony offense involving insider trad-6
ing, embezzlement, cybercrime, money laundering, fi-7
nancing of terrorism, or financial fraud may serve 8
as— 9
(A) an officer of a payment stablecoin 10
issuer; or 11
(B) a director of a payment stablecoin 12
issuer. 13
(2) P
ENALTY.— 14
(A) I
N GENERAL.—Whoever knowingly 15
participates in a violation of paragraph (1) shall 16
be fined not more than $1,000,000 for each 17
such violation, imprisoned for not more than 5 18
years; or both. 19
(B) R
EFERRAL TO ATTORNEY GENERAL .— 20
If a Federal payment stablecoin regulator has 21
reason to believe that any person has knowingly 22
violated paragraph (1), the Federal payment 23
stablecoin regulator shall refer the matter to 24
the Attorney General. 25
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(f) RULEMAKING.— 1
(1) I
N GENERAL.—Consistent with section 18, 2
the primary Federal payment stablecoin regulators 3
and State payment stablecoin regulators shall issue 4
such regulations as may be necessary to establish a 5
payment stablecoin regulatory framework necessary 6
to administer and carry out the requirements of this 7
section, including to establish conditions, and to pre-8
vent evasions thereof. 9
(2) J
OINT ISSUANCE OF REGULATION .—All reg-10
ulations issued to carry out this section shall be 11
issued jointly by the primary Federal payment 12
stablecoin regulators, if not issued by a State pay-13
ment stablecoin regulator. 14
SEC. 5. APPROVAL OF SUBSIDIARIES OF INSURED DEPOSI-15
TORY INSTITUTIONS AND FEDERAL QUALI-16
FIED NONBANK PAYMENT STABLECOIN 17
ISSUERS. 18
(a) A
PPLICATION.— 19
(1) I
N GENERAL.—Each primary Federal pay-20
ment stablecoin regulator shall receive, review, and 21
consider for approval applications from any insured 22
depository institution that seeks to issue payment 23
stablecoins through a subsidiary and any nonbank 24
entity that seeks to issue payment stablecoins as a 25
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Federal qualified nonbank payment stablecoin 1
issuer. Each primary Federal payment stablecoin 2
regulator shall establish a process and framework 3
for the licensing, regulation, examination, and super-4
vision of such entities that prioritizes the safety and 5
soundness of such entities. 6
(2) A
UTHORITY TO ISSUE REGULATIONS AND 7
PROCESS APPLICATIONS.—The primary Federal pay-8
ment stablecoin regulators shall, before the date de-9
scribed in section 18— 10
(A) issue regulations consistent with that 11
section to carry out this section; and 12
(B) pursuant to the regulations described 13
in subparagraph (A), accept and process appli-14
cations under this Act. 15
(3) M
ANDATORY APPROVAL PROCESS .—The pri-16
mary Federal payment stablecoin regulator shall, 17
upon receipt of a substantially complete application, 18
evaluate and make a determination on each applica-19
tion based on the criteria established under this Act. 20
(b) E
VALUATION OFAPPLICATIONS.—A substantially 21
complete application received under subsection (a) shall be 22
evaluated by the primary Federal payment stablecoin reg-23
ulator using the factors described in subsection (c). 24
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(c) FACTORSTOBECONSIDERED.—The factors de-1
scribed in this subsection are the following: 2
(1) The ability of the applicant (or, in the case 3
of an applicant that is an insured depository institu-4
tion, the subsidiary of the applicant), based on fi-5
nancial condition and resources, to meet the require-6
ments set forth under section 4. 7
(2) Whether an individual who has been con-8
victed of a felony offense involving insider trading, 9
embezzlement, cybercrime, money laundering, fi-10
nancing of terrorism, or financial fraud is serving as 11
an officer or director of the applicant. 12
(3) Any other factors established by the pri-13
mary Federal payment stablecoin regulator that are 14
necessary to ensure the safety and soundness of the 15
permitted payment stablecoin issuer. 16
(d) T
IMING FORDECISION; GROUNDS FOR DE-17
NIAL.— 18
(1) T
IMING FOR DECISIONS ON APPLICA -19
TIONS.— 20
(A) I
N GENERAL.—Not later than 120 21
days after receiving a substantially complete ap-22
plication under subsection (a), a primary Fed-23
eral payment stablecoin regulator shall render a 24
decision on the application. 25
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(B) SUBSTANTIALLY COMPLETE .— 1
(i) I
N GENERAL.—For purposes of 2
subparagraph (A), an application shall be 3
considered substantially complete if the ap-4
plication contains sufficient information for 5
the primary Federal payment stablecoin 6
regulator to render a decision on whether 7
the applicant satisfies the criteria under 8
subsection (c). 9
(ii) N
OTIFICATION.—Not later than 10
30 days after receiving an application 11
under subsection (a), a primary Federal 12
payment stablecoin regulator shall notify 13
the applicant whether the primary Federal 14
payment stablecoin regulator considers the 15
application to be substantially complete 16
and, if the application is not substantially 17
complete, the additional information the 18
applicant must provide in order for the ap-19
plication to be considered substantially 20
complete. 21
(iii) M
ATERIAL CHANGE IN CIR -22
CUMSTANCES.—An application considered 23
substantially complete under this subpara-24
graph remains substantially complete un-25
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less there is a material change in cir-1
cumstances that requires the primary Fed-2
eral payment stablecoin regulator to treat 3
the application as a new application. 4
(2) D
ENIAL OF APPLICATION.— 5
(A) G
ROUNDS FOR DENIAL.— 6
(i) I
N GENERAL.—The primary Fed-7
eral payment stablecoin regulator shall 8
only deny a complete application received 9
under subsection (a) if the regulator deter-10
mines that the activities of the applicant 11
would be unsafe or unsound based on the 12
factors described in subsection (c). 13
(ii) I
SSUANCE NOT GROUND FOR DE -14
NIAL.—The issuance of a payment 15
stablecoin on an open, public, or decentral-16
ized network shall not be a valid ground 17
for denial of an application. 18
(B) E
XPLANATION REQUIRED .—If the pri-19
mary Federal payment stablecoin regulator de-20
nies a complete application received under sub-21
section (a), not later than 30 days after the 22
date of such denial, the regulator shall provide 23
the applicant with written notice explaining the 24
denial with specificity, including all findings 25
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made by the regulator with respect to all identi-1
fied material shortcomings in the application, 2
including actionable recommendations on how 3
the applicant could address the identified mate-4
rial shortcomings. 5
(C) O
PPORTUNITY FOR HEARING ; FINAL 6
DETERMINATION.— 7
(i) I
N GENERAL.—Not later than 30 8
days after the date of receipt of any notice 9
of the denial of an application under this 10
section, the applicant may request, in writ-11
ing, an opportunity for a written or oral 12
hearing before the primary Federal pay-13
ment stablecoin regulator to appeal the de-14
nial. 15
(ii) T
IMING.—Upon receipt of a timely 16
request, the primary Federal payment 17
stablecoin regulator shall notice a time 18
(not later than 30 days after the date of 19
receipt of the request) and place at which 20
the applicant may appear, personally or 21
through counsel, to submit written mate-22
rials or provide oral testimony and oral ar-23
gument. 24
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(iii) FINAL DETERMINATION .—Not 1
later than 60 days after the date of a hear-2
ing under this subparagraph, the primary 3
Federal payment stablecoin regulator shall 4
notify the applicant of a final determina-5
tion, which shall contain a statement of the 6
basis for that determination, with specific 7
findings. 8
(iv) N
OTICE IF NO HEARING .—If an 9
applicant does not make a timely request 10
for a hearing under this subparagraph, the 11
primary Federal payment stablecoin regu-12
lator shall notify the applicant, not later 13
than 10 days after the date by which the 14
applicant may request a hearing under this 15
subparagraph, in writing, that the denial 16
of the application is a final determination 17
of the primary Federal payment stablecoin 18
regulator. 19
(3) F
AILURE TO RENDER A DECISION .—If the 20
primary Federal payment stablecoin regulator fails 21
to render a decision on a complete application within 22
the time period specified in paragraph (1), the appli-23
cation shall be deemed approved. 24
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(4) RIGHT TO REAPPLY.—The denial of an ap-1
plication under this section shall not prohibit the ap-2
plicant from filing a subsequent application. 3
(e) R
EPORT ONPENDINGAPPLICATIONS.—The pri-4
mary Federal payment stablecoin regulators shall annually 5
report to Congress on the applications under subsection 6
(a) that have been pending for 180 days or more since 7
the date the initial application was filed and for which the 8
applicant has been informed that the application remains 9
incomplete, including documentation on the status of such 10
applications and why such applications have not yet been 11
approved. 12
(f) R
ULEMAKING.—Consistent with section 18, the 13
primary Federal payment stablecoin regulators shall rules 14
necessary for the regulation of the issuance of payment 15
stablecoins, but may not impose requirements in addition 16
to the requirements specified under section 4. 17
SEC. 6. SUPERVISION AND ENFORCEMENT WITH RESPECT 18
TO SUBSIDIARIES OF INSURED DEPOSITORY 19
INSTITUTIONS AND COMPTROLLER-REGU-20
LATED ENTITIES. 21
(a) S
UPERVISION.— 22
(1) I
N GENERAL.—Each permitted payment 23
stablecoin issuer that is not a State qualified pay-24
ment stablecoin issuer with a payment stablecoin 25
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with a consolidated total outstanding issuance of less 1
than $10,000,000,000 shall be subject to supervision 2
by the appropriate primary Federal payment 3
stablecoin regulator. 4
(2) S
UBMISSION OF REPORTS .—Each permitted 5
payment stablecoin issuer described in paragraph (1) 6
shall, upon request, submit to its primary Federal 7
payment stablecoin regulator a report on— 8
(A) the financial condition of the permitted 9
payment stablecoin issuer; 10
(B) the systems of the permitted payment 11
stablecoin issuer for monitoring and controlling 12
financial and operating risks; and 13
(C) compliance by the permitted payment 14
stablecoin issuer (and any subsidiary thereof) 15
with this Act. 16
(3) E
XAMINATIONS.—The primary Federal pay-17
ment stablecoin regulator shall examine a permitted 18
payment stablecoin issuer described in paragraph (1) 19
in order to assess— 20
(A) the nature of the operations and finan-21
cial condition of the permitted payment 22
stablecoin issuer; 23
(B) the financial, operational, techno-24
logical, and other risks within the permitted 25
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payment stablecoin issuer that may pose a 1
threat to— 2
(i) the safety and soundness of the 3
permitted payment stablecoin issuer; or 4
(ii) the stability of the financial sys-5
tem of the United States; and 6
(C) the systems of the permitted payment 7
stablecoin issuer for monitoring and controlling 8
the risks described in subparagraph (B). 9
(4) R
EQUIREMENTS FOR EFFICIENCY .— 10
(A) U
SE OF EXISTING REPORTS .—In su-11
pervising and examining a permitted payment 12
stablecoin issuer under this subsection, the pri-13
mary Federal payment stablecoin regulator 14
shall, to the fullest extent possible, use existing 15
reports and other supervisory information. 16
(B) A
VOIDANCE OF DUPLICATION .—A pri-17
mary Federal payment stablecoin regulator 18
shall, to the fullest extent possible, avoid dupli-19
cation of examination activities, reporting re-20
quirements, and requests for information in 21
carrying out this subsection with respect to a 22
permitted payment stablecoin issuer. 23
(C) C
ONSIDERATION OF BURDEN .—A pri-24
mary Federal payment stablecoin regulator 25
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shall, with respect to any examination or re-1
quest for the submission of a report under this 2
subsection, only request examinations and re-3
ports at a cadence and in a format that is simi-4
lar to those required for similarly situated enti-5
ties regulated by the primary Federal payment 6
stablecoin regulator. 7
(b) E
NFORCEMENT.— 8
(1) S
USPENSION OR REVOCATION OF REGISTRA -9
TION.—The primary Federal payment stablecoin 10
regulator of a permitted payment stablecoin issuer 11
that is not a State qualified payment stablecoin 12
issuer may prohibit the permitted payment 13
stablecoin issuer from issuing payment stablecoins, if 14
the primary Federal payment stablecoin regulator 15
determines that such permitted payment stablecoin 16
issuer, or an institution-affiliated party of the per-17
mitted payment stablecoin issuer— 18
(A) is recklessly violating or has recklessly 19
violated this Act or any regulation or order 20
issued under this Act; or 21
(B) is recklessly violating or has recklessly 22
violated any condition imposed in writing by the 23
primary Federal payment stablecoin regulator 24
in connection with a written agreement entered 25
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into between the permitted payment stablecoin 1
issuer and the primary Federal payment 2
stablecoin regulator. 3
(2) C
EASE AND DESIST PROCEEDINGS .—If the 4
primary Federal payment stablecoin regulator of a 5
permitted payment stablecoin issuer that is not a 6
State qualified payment stablecoin issuer has reason-7
able cause to believe that the permitted payment 8
stablecoin issuer or any institution-affiliated party of 9
the permitted payment stablecoin issuer is violating, 10
has violated, or is attempting to violate this Act, any 11
regulation or order issued under this Act, or any 12
written agreement entered into with the primary 13
Federal payment stablecoin regulator or condition 14
imposed in writing by the primary Federal payment 15
stablecoin regulator in connection with any applica-16
tion or other request, the primary Federal payment 17
stablecoin regulator may, by provisions that are 18
mandatory or otherwise, order the permitted pay-19
ment stablecoin issuer or institution-affiliated party 20
of the permitted payment stablecoin issuer to— 21
(A) cease and desist from such violation or 22
practice; or 23
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(B) take affirmative action to correct the 1
conditions resulting from any such violation or 2
practice. 3
(3) R
EMOVAL AND PROHIBITION AUTHORITY .— 4
The primary Federal payment stablecoin regulator 5
of a permitted payment stablecoin issuer that is not 6
a State qualified payment stablecoin issuer may re-7
move an institution-affiliated party of the permitted 8
payment stablecoin issuer from their position or of-9
fice or prohibit further participation in the affairs of 10
the permitted payment stablecoin issuer or all such 11
permitted payment stablecoin issuers by such insti-12
tution-affiliated party, if the primary Federal pay-13
ment stablecoin regulator determines that— 14
(A) the institution-affiliated party has 15
knowingly committed a violation or attempted 16
violation of this Act or any regulation or order 17
issued under this Act; or 18
(B) the institution-affiliated party has 19
knowingly committed a violation of any provi-20
sion of subchapter II of chapter 53 of title 31, 21
United States Code. 22
(4) P
ROCEDURES.— 23
(A) I
N GENERAL.—If a primary Federal 24
payment stablecoin regulator identifies a viola-25
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•S 919 IS
tion or attempted violation of this Act or makes 1
a determination under paragraph (1), (2), or 2
(3), the primary Federal payment stablecoin 3
regulator shall comply with the procedures set 4
forth in subsections (b) and (e) of sections 8 of 5
the Federal Deposit Insurance Act (12 U.S.C. 6
1818). 7
(B) J
UDICIAL REVIEW.—A person ag-8
grieved by a final action under this subsection 9
may obtain judicial review of such action exclu-10
sively as provided in section 8(h) of the Federal 11
Deposit Insurance Act (12 U.S.C. 1818(h)). 12
(C) I
NJUNCTION.—The primary Federal 13
payment stablecoin regulator may, in the dis-14
cretion of the regulator, follow the procedures 15
provided in section 8(i)(1) of the Federal De-16
posit Insurance Act (12 U.S.C. 1818(i)(1)) for 17
judicial enforcement of any effective and out-18
standing notice or order issued under this sub-19
section. 20
(D) T
EMPORARY CEASE AND DESIST PRO -21
CEEDINGS.—If the primary Federal payment 22
stablecoin regulator determines that a violation 23
or attempted violation of this Act or an action 24
with respect to which a determination was made 25
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under paragraph (1), (2), or (3), or the con-1
tinuation thereof, is likely to cause insolvency or 2
significant dissipation of assets or earnings of a 3
permitted payment stablecoin issuer, or is likely 4
to weaken the condition of the permitted pay-5
ment stablecoin issuer or otherwise prejudice 6
the interests of the customers of the permitted 7
payment stablecoin issuer prior to the comple-8
tion of the proceedings conducted under this 9
paragraph, the primary Federal payment 10
stablecoin regulator may follow the procedures 11
provided in section 8(c) of the Federal Deposit 12
Insurance Act (12 U.S.C. 1818(c)) to issue a 13
temporary cease and desist order. 14
(5) C
IVIL MONEY PENALTIES.— 15
(A) F
AILURE TO BE APPROVED .—Any per-16
son who issues a United States dollar-denomi-17
nated payment stablecoin in violation of section 18
3, and any institution-affiliated party of such a 19
person who knowingly participates in issuing 20
such a payment stablecoin, shall be liable for a 21
civil penalty of not more than $100,000 for 22
each day during which such payment 23
stablecoins are issued. 24
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(B) FIRST TIER.—Except as provided in 1
subparagraph (A), a permitted payment 2
stablecoin issuer or institution-affiliated party 3
of such permitted payment stablecoin issuer 4
that materially violates this Act or any regula-5
tion or order issued under this Act, or that ma-6
terially violates any condition imposed in writ-7
ing by the primary Federal payment stablecoin 8
regulator in connection with a written agree-9
ment entered into between the permitted pay-10
ment stablecoin issuer and the primary Federal 11
payment stablecoin regulator, shall be liable for 12
a civil penalty of up to $100,000 for each day 13
during which the violation continues. 14
(C) S
ECOND TIER.—Except as provided in 15
subparagraph (A), and in addition to the pen-16
alties described under subparagraph (B), a per-17
mitted payment stablecoin issuer or institution- 18
affiliated party of such permitted payment 19
stablecoin issuer who knowingly participates in 20
a violation of any provision of this Act, or any 21
regulation or order issued thereunder, is liable 22
for a civil penalty of up to an additional 23
$100,000 for each day during which the viola-24
tion continues. 25
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(D) PROCEDURE.—Any penalty imposed 1
under this paragraph may be assessed and col-2
lected by the primary Federal payment 3
stablecoin regulator pursuant to the procedures 4
set forth in section 8(i)(2) of the Federal De-5
posit Insurance Act (12 U.S.C. 1818(i)(2)). 6
(E) N
OTICE AND ORDERS AFTER SEPARA -7
TION FROM SERVICE.—The resignation, termi-8
nation of employment or participation, or sepa-9
ration of an institution-affiliated party (includ-10
ing a separation caused by the closing of a per-11
mitted payment stablecoin issuer) shall not af-12
fect the jurisdiction and authority of the pri-13
mary Federal payment stablecoin regulator to 14
issue any notice or order and proceed under 15
this subsection against any such party, if such 16
notice or order is served before the end of the 17
6-year period beginning on the date such party 18
ceased to be an institution-affiliated party with 19
respect to such permitted payment stablecoin 20
issuer. 21
(6) N
ON-APPLICABILITY TO A STATE QUALI -22
FIED PAYMENT STABLECOIN ISSUER .—Notwith-23
standing anything in this subsection to the contrary, 24
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this subsection shall not apply to a State qualified 1
payment stablecoin issuer. 2
SEC. 7. STATE QUALIFIED PAYMENT STABLECOIN ISSUERS. 3
(a) I
NGENERAL.—A State payment stablecoin regu-4
lator shall have supervisory, examination, and enforcement 5
authority over all State qualified payment stablecoin 6
issuers of such State. 7
(b) A
UTHORITYTOENTERINTOAGREEMENTS 8
W
ITH THEBOARD.—A State payment stablecoin regu-9
lator may enter into a memorandum of understanding 10
with the Board, by mutual agreement, under which the 11
Board may participate in the supervision, examination, 12
and enforcement of this Act with respect to the State 13
qualified payment stablecoin issuers of such State. 14
(c) S
HARING OFINFORMATION.—A State payment 15
stablecoin regulator and the Board shall share information 16
on an ongoing basis with respect to a State qualified pay-17
ment stablecoin issuer of such State, including a copy of 18
the initial application and any accompanying documents. 19
(d) R
ULEMAKING.—A State payment stablecoin regu-20
lator may issue orders and rules under section 4 applicable 21
to State qualified payment stablecoin issuers to the same 22
extent as the primary Federal payment stablecoin regu-23
lators issue orders and rules under section 4 applicable 24
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•S 919 IS
to permitted payment stablecoin issuers that are not State 1
qualified payment stablecoin issuers. 2
(e) E
NFORCEMENT AUTHORITY INUNUSUAL AND 3
E
XIGENTCIRCUMSTANCES.— 4
(1) B
OARD.— 5
(A) I
N GENERAL.—Subject to subpara-6
graph (C), under unusual and exigent cir-7
cumstances that the Board determines to exist, 8
the Board may, after not less than 48 hours 9
prior written notice to the applicable State pay-10
ment stablecoin regulator, take an enforcement 11
action against a State qualified payment 12
stablecoin issuer or an institution-affiliated 13
party of such issuer for violations of this Act 14
during such unusual and exigent circumstances. 15
(B) R
ULEMAKING.—Consistent with sec-16
tion 18, the Board shall issue rules to set forth 17
the unusual and exigent circumstances in which 18
the Board may act under this paragraph. 19
(C) L
IMITATIONS.—If, after unusual and 20
exigent circumstances are determined to exist 21
pursuant to subparagraph (A), the Board deter-22
mines that there is reasonable cause to believe 23
that the continuation by a State qualified pay-24
ment stablecoin issuer of any activity con-25
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stitutes a serious risk to the financial safety, 1
soundness, or stability of the State qualified 2
payment stablecoin issuer, the Board may im-3
pose such restrictions as the Board determines 4
to be necessary to address such risk during 5
such usual and exigent circumstances. Such re-6
strictions shall be issued in the form of a direc-7
tive, with the effect of a cease and desist order 8
that has become final, to the State qualified 9
payment stablecoin issuer and any of its affili-10
ates, limiting— 11
(i) the payment of dividends by the 12
State qualified payment stablecoin issuer; 13
(ii) transactions between the State 14
qualified payment stablecoin issuer, a hold-15
ing company, and the subsidiaries or affili-16
ates of either the State qualified payment 17
stablecoin issuer or the holding company; 18
and 19
(iii) any activities of the State quali-20
fied payment stablecoin issuer that might 21
create a serious risk that the liabilities of 22
a holding company and the affiliates of the 23
holding company may be imposed on the 24
State qualified payment stablecoin issuer. 25
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(D) REVIEW OF DIRECTIVE.— 1
(i) A
DMINISTRATIVE REVIEW.— 2
(I) I
N GENERAL.—After a direc-3
tive described in subparagraph (C) is 4
issued, the State qualified payment 5
stablecoin issuer, or any institution-af-6
filiated party of the State qualified 7
payment stablecoin issuer subject to 8
the directive, may object and present 9
to the Board, in writing, the reasons 10
why the directive should be modified 11
or rescinded. 12
(II) A
UTOMATIC LAPSE OF DI -13
RECTIVE.—If, after 10 days after the 14
receipt of a response described in sub-15
clause (I), the Board does not affirm, 16
modify, or rescind the directive, the 17
directive shall automatically lapse. 18
(ii) J
UDICIAL REVIEW.— 19
(I) I
N GENERAL.—If the Board 20
affirms or modifies a directive pursu-21
ant to clause (i), any affected party 22
may immediately thereafter petition 23
the United States district court for 24
the district in which the main office of 25
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the affected party is located or in the 1
United States District Court for the 2
District of Columbia to stay, modify, 3
terminate, or set aside the directive. 4
(II) R
ELIEF FOR EXTRAOR -5
DINARY CAUSE.—Upon a showing of 6
extraordinary cause, an affected party 7
may petition for relief under subclause 8
(I) without first pursuing or exhaust-9
ing the administrative remedies under 10
clause (i). 11
(2) C
OMPTROLLER.— 12
(A) I
N GENERAL.—Subject to subpara-13
graph (C), under unusual and exigent cir-14
cumstances determined to exist by the Comp-15
troller, the Comptroller shall, after not less 16
than 48 hours prior written notice to the appli-17
cable State payment stablecoin regulator, take 18
an enforcement action against a State qualified 19
payment stablecoin issuer that is a nonbank en-20
tity for violations of this Act. 21
(B) R
ULEMAKING.—Consistent with sec-22
tion 18, the Comptroller shall issue rules to set 23
forth the unusual and exigent circumstances in 24
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which the Comptroller may act under this para-1
graph. 2
(C) L
IMITATIONS.—If, after unusual and 3
exigent circumstances are determined to exist 4
under subparagraph (A), the Comptroller deter-5
mines that there is reasonable cause to believe 6
that the continuation by a State qualified pay-7
ment stablecoin issuer that is a nonbank entity 8
of any activity constitutes a serious risk to the 9
financial safety, soundness, or stability of the 10
State qualified payment stablecoin issuer that is 11
a nonbank entity, the Comptroller shall impose 12
such restrictions as the Comptroller determines 13
to be necessary to address such risk during 14
such unusual and exigent circumstances. Such 15
restrictions shall be issued in the form of a di-16
rective, with the effect of a cease and desist 17
order that has become final, to the State quali-18
fied payment stablecoin issuer that is a 19
nonbank entity and any of its affiliates, lim-20
iting— 21
(i) the payment of dividends by the 22
State qualified payment stablecoin issuer; 23
(ii) transactions between the State 24
qualified payment stablecoin issuer, a hold-25
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ing company, and the subsidiaries or affili-1
ates of either the State qualified payment 2
stablecoin issuer or the holding company; 3
and 4
(iii) any activities of the State quali-5
fied payment stablecoin issuer that might 6
create a serious risk that the liabilities of 7
a holding company and the affiliates of the 8
holding company may be imposed on the 9
State qualified payment stablecoin issuer. 10
(D) R
EVIEW OF DIRECTIVE.— 11
(i) A
DMINISTRATIVE REVIEW.— 12
(I) I
N GENERAL.—After a direc-13
tive described in subparagraph (C) is 14
issued, the Comptroller-regulated enti-15
ty, or any institution-affiliated party 16
of the Comptroller-regulated entity 17
subject to the directive, may object 18
and present to the Comptroller, in 19
writing, the reasons why the directive 20
should be modified or rescinded. 21
(II) A
UTOMATIC LAPSE OF DI -22
RECTIVE.—If, after 10 days after the 23
receipt of a response described in sub-24
clause (I), the Comptroller does not 25
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affirm, modify, or rescind the direc-1
tive, the directive shall automatically 2
lapse. 3
(ii) J
UDICIAL REVIEW.— 4
(I) I
N GENERAL.—If the Comp-5
troller affirms or modifies a directive 6
pursuant to clause (i), any affected 7
party may immediately thereafter pe-8
tition the United States district court 9
for the district in which the main of-10
fice of the affected party is located or 11
in the United States District Court 12
for the District of Columbia to stay, 13
modify, terminate, or set aside the di-14
rective. 15
(II) R
ELIEF FOR EXTRAOR -16
DINARY CAUSE.—Upon a showing of 17
extraordinary cause, an affected party 18
may petition for relief under subclause 19
(I) without first pursuing or exhaust-20
ing the administrative remedies under 21
clause (i). 22
(f) E
FFECT ONSTATELAW.— 23
(1) H
OST STATE LAW.—The laws of a host 24
State, including generally applicable laws relating to 25
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•S 919 IS
consumer protection, shall only apply to the activi-1
ties conducted in the host State by an out-of-State 2
State qualified payment stablecoin issuer to the 3
same extent as such laws apply to the activities con-4
ducted in the host State by an out-of-State Federal 5
qualified nonbank payment stablecoin issuer. 6
(2) H
OME STATE LAW.—If any host State law 7
is determined not to apply under paragraph (1), the 8
laws of the home State of the State qualified pay-9
ment stablecoin issuer shall govern the activities of 10
the permitted payment stablecoin issuer conducted 11
in the host State. 12
(3) A
PPLICABILITY.—The laws applicable under 13
paragraph (1) exclude host State laws governing the 14
chartering, licensure, or other authorization to do 15
business in the host State as a permitted payment 16
stablecoin issuer pursuant to this Act. 17
SEC. 8. ANTI-MONEY LAUNDERING PROTECTIONS. 18
(a) D
EFINITIONS.—In this subsection: 19
(1) D
IGITAL ASSET SERVICE PROVIDER .—The 20
term ‘‘digital asset service provider’’— 21
(A) means a person that, for compensation 22
or profit, engages in the business in the United 23
States or for customers or users in the United 24
States, of— 25
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(i) exchanging digital assets for mone-1
tary value; 2
(ii) exchanging digital assets for other 3
digital assets; 4
(iii) transferring digital assets to a 5
third party; 6
(iv) acting as a digital asset custo-7
dian; or 8
(v) participating in financial services 9
related to a digital asset issuance; and 10
(B) does not include— 11
(i) a distributed ledger protocol or a 12
person solely developing such a protocol; or 13
(ii) a person solely validating trans-14
actions or operating a distributed ledger 15
node. 16
(2) O
FFERING.—The term ‘‘offering’’ means 17
making available for purchase, sale, or exchange. 18
(3) D
ISTRIBUTED LEDGER PROTOCOL .—The 19
term ‘‘distributed ledger protocol’’ means publicly 20
available and accessible executable software deployed 21
to a distributed ledger, including smart contracts or 22
networks of smart contracts. 23
(4) L
AWFUL ORDER.—The term ‘‘lawful order’’ 24
means any final and valid writ, process, order, rule, 25
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decree, command, or other requirement issued or 1
promulgated under Federal law, issued by a court of 2
competent jurisdiction or by an authorized Federal 3
agency pursuant to its statutory authority, that— 4
(A) requires a permitted payment 5
stablecoin issuer to seize, freeze, burn, or pre-6
vent the transfer of payment stablecoins issued 7
by the permitted payment stablecoin issuer; 8
(B) specifies the digital assets or accounts 9
subject to blocking with reasonable particu-10
larity; and 11
(C) is subject to judicial or administrative 12
review or appeal as provided by law. 13
(b) T
REASURYAUTHORITYTODESIGNATENON-14
COMPLIANTISSUERS.—Not later than 30 days after the 15
Department of the Treasury has identified the failure of 16
a foreign issuer of any payment stablecoins trading in the 17
United States that is not a permitted payment stablecoin 18
issuer to comply with the terms of any lawful order, the 19
Secretary of the Treasury, in coordination with relevant 20
Federal agencies, shall designate the foreign issuer as non-21
compliant and notify the foreign issuer in writing of the 22
designation. 23
(c) P
UBLICATION OFDESIGNATION; PROHIBITION ON 24
S
ECONDARYTRADING.— 25
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(1) IN GENERAL.—If a foreign issuer described 1
in subsection (b) does not come into compliance with 2
the lawful order within 30 days of receiving the writ-3
ten notice described in that subsection, the Secretary 4
of the Treasury shall— 5
(A) publish the determination of non-6
compliance in the Federal Register, including a 7
statement on the failure of the foreign issuer to 8
comply with the lawful order after the written 9
notice; and 10
(B) issue a notification in the Federal Reg-11
ister prohibiting digital asset service providers 12
from facilitating secondary trading of payment 13
stablecoins issued by the foreign issuer in the 14
United States. 15
(2) E
FFECTIVE DATE OF PROHIBITION .—The 16
prohibition on facilitation of secondary trading de-17
scribed in paragraph (1) shall become effective on 18
the date that is 30 days after the date of issue of 19
notification of the prohibition in the Federal Reg-20
ister. 21
(3) W
AIVERS AND EXTENSIONS .—With respect 22
to the prohibition on facilitation of secondary trad-23
ing described in paragraph (1), the Secretary of the 24
Treasury may issue waivers and time extensions to 25
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digital asset service providers on a case by case 1
basis. 2
(4) C
IVIL MONETARY PENALTIES .— 3
(A) D
IGITAL ASSET SERVICE PRO -4
VIDERS.—Any digital asset service provider that 5
knowingly violates a prohibition under para-6
graph (1)(B) shall be subject to a civil mone-7
tary penalty of not more than $100,000 per vio-8
lation per day. 9
(B) F
OREIGN PAYMENT STABLECOIN 10
ISSUERS.—Any foreign issuer of payment 11
stablecoin that knowingly continues to publicly 12
offer a payment stablecoin in the United States 13
after publication of the determination of non-14
compliance under paragraph (1)(A) shall be 15
subject to a civil monetary penalty of not more 16
than $1,000,000 per violation per day, and the 17
Secretary of the Treasury may seek an injunc-18
tion in a United States District Court to bar 19
the foreign issuer from engaging in financial 20
transactions in the United States or with 21
United States persons. 22
(d) A
PPEAL.—A determination of noncompliance 23
under subsection (b) is subject to judicial review in the 24
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United States Court of Appeals for the District of Colum-1
bia Circuit. 2
(e) W
AIVER, LICENSINGAUTHORITY, ANDEXCEP-3
TIONS.— 4
(1) I
N GENERAL.—The Secretary of the Treas-5
ury may offer a waiver, general license, or specific 6
license to any United States persons engaging in 7
secondary trading described in subsection (c) on a 8
case by case basis if the Secretary determines that— 9
(A) prohibiting secondary trading would 10
adversely affect the financial system of the 11
United States; or 12
(B) the foreign issuer of the payment 13
stablecoin is taking tangible steps to remedy the 14
failure to comply with the lawful order that re-15
sulted in the noncompliance determination 16
under subsection (b). 17
(2) N
ATIONAL SECURITY WAIVER .—The Presi-18
dent may waive the application of the secondary 19
trading restrictions under subsection (c) if the Presi-20
dent determines that the waiver is in the national se-21
curity interest of the United States. 22
(3) E
XCEPTIONS FOR INTELLIGENCE AND LAW 23
ENFORCEMENT ACTIVITIES .—This Act shall not 24
apply with respect to— 25
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(A) activities subject to the reporting re-1
quirements under title V of the National Secu-2
rity Act of 1947 (50 U.S.C. 3091 et seq.) or 3
any authorized intelligence activities of the 4
United States; or 5
(B) activities necessary to carry out or as-6
sist law enforcement activity of the United 7
States. 8
(4) R
EPORT REQUIRED.—Not later than 7 days 9
after issuing a waiver or a license under paragraph 10
(1), the Secretary of the Treasury shall submit a re-11
port to the Chairmen and Ranking members of the 12
Committee on Banking, Housing, and Urban Affairs 13
of the Senate and the Committee on Financial Serv-14
ices of the House of Representatives, including the 15
text of the waiver or license, as well as the facts and 16
circumstances justifying the waiver determination, 17
and provide a briefing on the report. 18
SEC. 9. CUSTODY OF PAYMENT STABLECOIN RESERVE AND 19
COLLATERAL. 20
(a) I
NGENERAL.—A person may only engage in the 21
business of providing custodial or safekeeping services for 22
the payment stablecoin reserve, the payment stablecoins 23
used as collateral, or the private keys of permitted pay-24
ment stablecoins if the person— 25
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(1) is subject to— 1
(A) supervision or regulation by a primary 2
Federal payment stablecoin regulator or a pri-3
mary financial regulatory agency described 4
under subparagraph (B) or (C) of section 2(12) 5
of the Dodd-Frank Wall Street Reform and 6
Consumer Protection Act (12 U.S.C. 7
5301(12)); or 8
(B) supervision by a State bank super-9
visor, as defined under section 3 of the Federal 10
Deposit Insurance Act (12 U.S.C. 1813) or a 11
State credit union supervisor, as defined under 12
section 6003 of the Anti-Money Laundering Act 13
of 2020, and such state bank supervisor or 14
state credit union supervisor makes available to 15
the Board such information as the Board deter-16
mines necessary and relevant to the categories 17
of information under subsection (d); and 18
(2) complies with the requirements under sub-19
section (b), unless such person complies with similar 20
requirements as required by a primary Federal pay-21
ment stablecoin regulator, the Securities and Ex-22
change Commission, or the Commodity Futures 23
Trading Commission. 24
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(b) CUSTOMERPROPERTYREQUIREMENT.—A per-1
son described in subsection (a) shall— 2
(1) treat and deal with the payment stablecoins, 3
private keys, cash, and other property of a person 4
for whom or on whose behalf the person receives, ac-5
quires, or holds payment stablecoins, private keys, 6
cash, and other property (hereinafter in this section 7
referred to as the ‘‘customer’’) as belonging to such 8
customer and is not the property of such person; 9
and 10
(2) take such steps as are appropriate to pro-11
tect the payment stablecoins, private keys, cash, and 12
other property of a customer from the claims of 13
creditors of the person. 14
(c) C
OMMINGLINGPROHIBITED.— 15
(1) I
N GENERAL.—Payment stablecoins, cash, 16
and other property of a customer shall be separately 17
accounted for by a person described in subsection 18
(a) and shall be segregated from and not be com-19
mingled with the funds of the person. 20
(2) E
XCEPTION.—Notwithstanding paragraph 21
(1)— 22
(A) the payment stablecoins, cash, and 23
other property of a customer may, for conven-24
ience, be commingled and deposited in an omni-25
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bus account holding the payment stablecoins, 1
cash, and other property of more than 1 cus-2
tomer at a State chartered depository institu-3
tion, an insured depository institution, national 4
bank, or trust company; 5
(B) such share of the payment stablecoins, 6
cash, and other property of the customer that 7
shall be necessary to transfer, adjust, or settle 8
a transaction or transfer of assets may be with-9
drawn and applied to such purposes, including 10
the payment of commissions, taxes, storage, 11
and other charges lawfully accruing in connec-12
tion with the provision of services by a person 13
described in subsection (a); or 14
(C) in accordance with such terms and 15
conditions as a primary Federal payment 16
stablecoin regulator may prescribe by rule, reg-17
ulation, or order, any customer payment 18
stablecoin, cash, and other property described 19
in this subsection may be commingled and de-20
posited in customer accounts with payment 21
stablecoins, cash, and other property received 22
by the person and required by the primary Fed-23
eral payment stablecoin regulator to be sepa-24
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rately accounted for, treated, and dealt with as 1
belonging to customers. 2
(d) R
EGULATORY INFORMATION.—A person de-3
scribed under subsection (a) shall submit to the applicable 4
primary Federal payment stablecoin regulator information 5
concerning the person’s business operations and processes 6
to protect customer assets, in such form and manner as 7
the primary regulator shall determine. 8
(e) E
XCLUSION.—The requirements of this section 9
shall not apply to any person solely on the basis that such 10
person engages in the business of providing hardware or 11
software to facilitate a customer’s own custody or safe-12
keeping of the customer’s payment stablecoins or private 13
keys. 14
SEC. 10. TREATMENT OF PAYMENT STABLECOIN ISSUERS 15
IN INSOLVENCY PROCEEDINGS. 16
(a) I
NGENERAL.—In any insolvency proceeding of 17
a permitted payment stablecoin issuer under Federal or 18
State law, including any proceeding under title 11, United 19
States Code, and any insolvency proceeding administered 20
by a State payment stablecoin regulator with respect to 21
a permitted payment stablecoin issuer, the claim of a per-22
son holding payment stablecoins issued by the permitted 23
payment stablecoin issuer shall have priority over the 24
claims of the permitted payment stablecoin issuer and any 25
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other creditor of the permitted payment stablecoin issuer, 1
with respect to required payment stablecoin reserves, sub-2
ject to section 507(e) of title 11, United States Code. 3
(b) D
EFINITIONS.—Section 101 of title 11, United 4
States Code, is amended by adding after paragraph (40B) 5
the following: 6
‘‘(40C) The terms ‘payment stablecoin’ and 7
‘permitted payment stablecoin issuer’ have the 8
meanings given those terms in section 2 of the Guid-9
ing and Establishing National Innovation for U.S. 10
Stablecoins Act of 2025.’’. 11
(c) A
UTOMATICSTAY.—Section 362 of title 11, 12
United States Code is amended— 13
(1) in subsection (a)— 14
(A) in paragraph (7), by striking ‘‘and’’; 15
(B) in paragraph (8), by striking the pe-16
riod and inserting ‘‘; and’’; and 17
(C) by adding at the end the following: 18
‘‘(9) the redemption of payment stablecoins 19
issued by the debtor, from payment stablecoin re-20
serves required to be maintained under section 4 of 21
the Guiding and Establishing National Innovation 22
for U.S. Stablecoins Act of 2025.’’; and 23
(2) in subsection (d)— 24
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(A) in paragraph (3)(B)(ii), by striking 1
‘‘or’’ at the end; 2
(B) in paragraph (4)(B), by striking the 3
period at the end and inserting ‘‘; or’’; and 4
(C) by inserting after paragraph (4) the 5
following: 6
‘‘(5) with respect to the redemption of payment 7
stablecoins held by a person, if the court finds, sub-8
ject to the motion and attestation of the debtor on 9
the petition date, there are payment stablecoin re-10
serves available for distribution on a ratable basis to 11
similarly situated payment stablecoin holders, pro-12
vided that the court shall use best efforts to enter 13
a final order to begin distributions under this para-14
graph not later than 14 days after the date of the 15
required hearing.’’. 16
(d) P
RIORITY INBANKRUPTCYPROCEEDINGS.—Sec-17
tion 507 of title 11, United States Code, is amended— 18
(1) in subsection (a), by striking ‘‘The fol-19
lowing’’ and inserting ‘‘Subject to subsection (e), the 20
following’’; and 21
(2) by adding at the end the following: 22
‘‘(e) Notwithstanding subsection (a), if a payment 23
stablecoin holder is not able to redeem all outstanding pay-24
ment stablecoin claims from required payment stablecoin 25
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reserves maintained by the debtor, any remaining claim 1
of a person holding a payment stablecoin issued by the 2
debtor shall have first priority over any other claim, in-3
cluding over any expenses and claims that have priority 4
under that subsection, to the extent compliance with sec-5
tion 4 of the Guiding and Establishing National Innova-6
tion for U.S. Stablecoins Act of 2025 would have required 7
additional reserves to be maintained by the debtor for pay-8
ment stablecoin holders.’’. 9
(e) P
AYMENTSTABLECOIN RESERVES.—Section 10
541(b) of title 11, United States Code, is amended— 11
(1) in paragraph (9), in the flush text following 12
subparagraph (B), by striking ‘‘or’’ at the end; 13
(2) in paragraph (10)(C), by striking the period 14
and inserting ‘‘; or’’; and 15
(3) by inserting after paragraph (10) the fol-16
lowing: 17
‘‘(11) required payment stablecoin reserves 18
under section 4 of the Guiding and Establishing Na-19
tional Innovation for U.S. Stablecoins Act of 2025.’’. 20
(f) I
NTERVENTION.—Section 1109 of title 11, United 21
States Code, is amended by adding at the end the fol-22
lowing: 23
‘‘(c) The Comptroller of the Currency or State pay-24
ment stablecoin regulator (as defined in section 2 of the 25
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Guiding and Establishing National Innovation for U.S. 1
Stablecoins Act of 2025) shall raise and shall appear and 2
be heard on any issue, including the protection of cus-3
tomers, in a case under this chapter in which the debtor 4
is a permitted payment stablecoin issuer.’’. 5
(g) A
PPLICATION OFEXISTINGINSOLVENCYLAW.— 6
In accordance with otherwise applicable law, an insolvency 7
proceeding with respect to a permitted payment stablecoin 8
issuer shall occur as follows: 9
(1) A depository institution (as defined in sec-10
tion 3 of the Federal Deposit Insurance Act (12 11
U.S.C. 1813)) shall be resolved by the Federal De-12
posit Insurance Corporation, National Credit Union 13
Administration, or State payment stablecoin regu-14
lator, as applicable. 15
(2) A subsidiary of a depository institution (as 16
defined in section 3 of the Federal Deposit Insur-17
ance Act (12 U.S.C. 1813)) or a nonbank entity 18
may be considered a debtor under title 11, United 19
States Code. 20
SEC. 11. INTEROPERABILITY STANDARDS. 21
The primary Federal payment stablecoin regulators, 22
in consultation with the National Institute of Standards 23
and Technology, other relevant standard setting organiza-24
tions, and State bank and credit union regulators, shall 25
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assess and, if necessary, may, pursuant to section 553 of 1
title 5 and in a manner consistent with the National Tech-2
nology Transfer and Advancement Act of 1995 (Public 3
Law 104–113), prescribe standards for permitted pay-4
ment stablecoin issuers to promote compatibility and 5
interoperability with— 6
(1) other permitted payment stablecoin issuers; 7
and 8
(2) the broader digital finance ecosystem, in-9
cluding accepted communications protocols and 10
blockchains, permissioned or public. 11
SEC. 12. STUDY ON NON-PAYMENT STABLECOINS. 12
(a) S
TUDY BYTREASURY.— 13
(1) S
TUDY.—The Secretary of the Treasury, in 14
consultation with the Board, the Comptroller, the 15
Corporation, the Securities and Exchange Commis-16
sion, and the Commodity Futures Trading Commis-17
sion shall carry out a study of non-payment 18
stablecoins, including endogenously collateralized 19
payment stablecoins. 20
(2) R
EPORT.—Not later than 365 days after 21
the date of the enactment of this Act, the Secretary 22
shall provide to the Committee on Financial Services 23
of the House of Representatives and the Committee 24
on Banking, Housing, and Urban Affairs of the Sen-25
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ate a report that contains all findings made in car-1
rying out the study under paragraph (1), including 2
an analysis of— 3
(A) the categories of non-payment 4
stablecoins, including the benefits and risks of 5
technological design features; 6
(B) the participants in non-payment 7
stablecoin arrangements; 8
(C) utilization and potential utilization of 9
non-payment stablecoins; 10
(D) nature of reserve compositions; 11
(E) types of algorithms being employed; 12
(F) governance structure, including aspects 13
of decentralization; 14
(G) nature of public promotion and adver-15
tising; and 16
(H) clarity and availability of consumer 17
notices disclosures. 18
(b) E
NDOGENOUSLY COLLATERALIZED PAYMENT 19
S
TABLECOIN DEFINED.—In this section, the term 20
‘‘endogenously collateralized payment stablecoin’’ means 21
any digital asset— 22
(1) in which its originator has represented will 23
be converted, redeemed, or repurchased for a fixed 24
amount of monetary value; and 25
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(2) that relies solely on the value of another 1
digital asset created or maintained by the same 2
originator to maintain the fixed price. 3
SEC. 13. REPORTS. 4
(a) A
NNUALREPORTINGREQUIREMENT.—Beginning 5
on the date that is 1 year after the date of enactment 6
of this Act, and annually thereafter, the primary Federal 7
payment stablecoin regulators shall submit to the Com-8
mittee on Banking, Housing, and Urban Affairs of the 9
Senate, the Committee on Financial Services of the House 10
of Representatives, and the Director of the Office of Fi-11
nancial Research a report on the status of the payment 12
stablecoin industry, including— 13
(1) an overview of trends in payment stablecoin 14
activities; 15
(2) a summary of the number of applications 16
for permitted payment stablecoin issuer under sec-17
tion 5, including aggregate approvals and rejections 18
of applications; and 19
(3) a description of the potential financial sta-20
bility risks posed to the safety and soundness of the 21
broader financial system by payment stablecoin ac-22
tivities. 23
(b) FSOC R
EPORT.—The Financial Stability Over-24
sight Council shall incorporate the findings in the report 25
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under subsection (a) into the annual report of the Council 1
required under section 112(a)(2)(N) of the Dodd-Frank 2
Wall Street Reform and Consumer Protection Act (12 3
U.S.C. 5322). 4
SEC. 14. AUTHORITY OF BANKING INSTITUTIONS. 5
(a) R
ULE OFCONSTRUCTION.—Nothing in this Act 6
may be construed to limit the authority of a depository 7
institution, Federal credit union, State credit union, na-8
tional bank, or trust company to engage in activities per-9
missible pursuant to applicable State and Federal law, in-10
cluding— 11
(1) accepting or receiving deposits and issuing 12
digital assets that represent deposits; 13
(2) utilizing a distributed ledger for the books 14
and records of the entity and to affect intrabank 15
transfers; and 16
(3) providing custodial services for payment 17
stablecoins, private keys of payment stablecoins, or 18
reserves backing payment stablecoins. 19
(b) R
EGULATORYREVIEW.—The primary Federal 20
payment stablecoin regulators shall review all existing 21
guidance and regulations, and if necessary, amend or pro-22
mulgate new regulations and guidance, to clarify that reg-23
ulated entities can engage in the payment stablecoin ac-24
tivities contemplated in, and in accordance with, this Act. 25
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(c) TREATMENT OFCUSTODYACTIVITIES.—The ap-1
propriate Federal banking agency (as defined under sec-2
tion 3 of the Federal Deposit Insurance Act (12 U.S.C. 3
1813)), the National Credit Union Administration (in the 4
case of a credit union), and the Securities and Exchange 5
Commission may not require a depository institution, na-6
tional bank, Federal credit union, State credit union, or 7
trust company, or any institution-affiliated party there-8
of— 9
(1) to include assets held in custody that are 10
not owned by the entity as a liability on the financial 11
statement or balance sheet of the entity, including 12
payment stablecoin custody or safekeeping activities; 13
(2) to hold regulatory capital against assets, in-14
cluding reserves backing such assets described in 15
section 4(a)(1)(A), in custody or safekeeping, except 16
as necessary to mitigate against operational risks in-17
herent with the custody or safekeeping services, as 18
determined by— 19
(A) the appropriate Federal banking agen-20
cy; 21
(B) the National Credit Union Administra-22
tion (in the case of a credit union); 23
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(C) a State bank supervisor (as defined 1
under section 3 of the Federal Deposit Insur-2
ance Act (12 U.S.C. 1813)); or 3
(D) a State credit union supervisor (as de-4
fined under section 6003 of the Anti-Money 5
Laundering Act of 2020); 6
(3) to recognize a liability for any obligations 7
related to activities or services performed for digital 8
assets that the entity does not own in any amount 9
greater than the expense recognized in the income 10
statement or the consideration received as a result 11
of the corresponding obligation. 12
(d) D
EFINITIONS.—In this section: 13
(1) D
EPOSITORY INSTITUTION.—The term ‘‘de-14
pository institution’’ has the meaning given that 15
term under section 3 of the Federal Deposit Insur-16
ance Act (12 U.S.C. 1813). 17
(2) C
REDIT UNION TERMS .—The terms ‘‘Fed-18
eral credit union’’ and ‘‘State credit union’’ have the 19
meaning given those terms, respectively, under sec-20
tion 101 of the Federal Credit Union Act. 21
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SEC. 15. AMENDMENTS TO CLARIFY THAT PAYMENT 1
STABLECOINS ARE NOT SECURITIES OR COM-2
MODITIES AND PERMITTED PAYMENT 3
STABLECOIN ISSUERS ARE NOT INVESTMENT 4
COMPANIES. 5
(a) I
NVESTMENTADVISERSACT OF1940.—Section 6
202(a)(18) of the Investment Advisers Act of 1940 (15 7
U.S.C. 80b–2(a)(18)) is amended by adding at the end 8
the following: ‘‘The term ‘security’ does not include a pay-9
ment stablecoin issued by a permitted payment stablecoin 10
issuer, as such terms are defined in section 2 of the Guid-11
ing and Establishing National Innovation for U.S. 12
Stablecoins Act of 2025.’’. 13
(b) I
NVESTMENTCOMPANYACT OF1940.—The In-14
vestment Company Act of 1940 is amended— 15
(1) in section 2(a)(36) (15 U.S.C. 80a– 16
2(a)(36))(15 U.S.C. 80a–2(a)(36)), by adding at the 17
end the following: ‘‘The term ‘security’ does not in-18
clude a payment stablecoin issued by a permitted 19
payment stablecoin issuer, as such terms are defined 20
in section 2 of the Guiding and Establishing Na-21
tional Innovation for U.S. Stablecoins Act of 2025.’’; 22
and 23
(2) in section 3(c)(3) (15 U.S.C. 80a–3(c)(3)), 24
by inserting ‘‘any permitted payment stablecoin 25
issuer, as such term is defined in section 2 of the 26
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Guiding and Establishing National Innovation for 1
U.S. Stablecoins Act of 2025;’’ after ‘‘therefor;’’. 2
(c) S
ECURITIESACT OF1933.—Section 2(a)(1) of 3
the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is 4
amended by adding at the end the following: ‘‘The term 5
‘security’ does not include a payment stablecoin issued by 6
a permitted payment stablecoin issuer, as such terms are 7
defined in section 2 of the Guiding and Establishing Na-8
tional Innovation for U.S. Stablecoins Act of 2025.’’. 9
(d) S
ECURITIESEXCHANGEACT OF1934.—Section 10
3(a)(10) of the Securities Exchange Act of 1934 (15 11
U.S.C. 78c(a)(10)) is amended by adding at the end the 12
following: ‘‘The term ‘security’ does not include a payment 13
stablecoin issued by a permitted payment stablecoin 14
issuer, as such terms are defined in section 2 of the Guid-15
ing and Establishing National Innovation for U.S. 16
Stablecoins Act of 2025.’’. 17
(e) S
ECURITIESINVESTORPROTECTIONACT OF 18
1970.—Section 16(14) of the Securities Investor Protec-19
tion Act of 1970 (15 U.S.C. 78lll(14)) is amended by add-20
ing at the end the following: ‘‘The term ‘security’ does 21
not include a payment stablecoin issued by a permitted 22
payment stablecoin issuer, as such terms are defined in 23
section 2 of the Guiding and Establishing National Inno-24
vation for U.S. Stablecoins Act of 2025.’’. 25
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(f) COMMODITYEXCHANGEACT.—Section 1a of the 1
Commodity Exchange Act (7 U.S.C. 1a) is amended by 2
adding at the end the following: ‘‘The term ‘commodity’ 3
does not include a payment stablecoin issued by a per-4
mitted payment stablecoin issuer, as such terms are de-5
fined in section 2 of the Guiding and Establishing Na-6
tional Innovation for U.S. payment stablecoins Act of 7
2025.’’ 8
SEC. 16. RECIPROCITY FOR PAYMENT STABLECOINS 9
ISSUED IN OVERSEAS JURISDICTIONS. 10
The Secretary of the Treasury shall create and imple-11
ment reciprocal arrangements or other bilateral agree-12
ments between the United States and jurisdictions with 13
substantially similar payment stablecoin regulatory re-14
gimes to the requirements under this Act, including re-15
serve requirements, supervision, anti-money laundering 16
and counter-terrorism features, sanctions compliance 17
standards, liquidity requirements, and risk management 18
standards, to facilitate international transactions and 19
interoperability with United States dollar-denominated 20
payment stablecoins issued overseas. The Secretary of the 21
Treasury shall aim to complete such arrangements not 22
later than the date that is 2 years after the date of enact-23
ment of this Act. 24
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SEC. 17. EFFECTIVE DATE. 1
(a) I
NGENERAL.—This Act, and the amendments 2
made by this Act, shall take effect on the earlier of— 3
(1) 18 months after the date of enactment of 4
this Act; or 5
(2) the date that is 120 days after the date on 6
which the primary Federal payment stablecoin regu-7
lators issue any final regulations implementing this 8
Act. 9
(b) N
OTICE TOCONGRESS.—The primary Federal 10
payment stablecoin regulators shall notify Congress upon 11
beginning to process applications under this Act. 12
(c) S
AFEHARBOR FORPENDINGAPPLICATIONS.— 13
The primary Federal payment stablecoin regulators may 14
waive the application of the requirements of this Act for 15
a period not to exceed 12 months beginning on the effec-16
tive date described under subsection (a), with respect to— 17
(1) a subsidiary of an insured depository insti-18
tution, if the insured depository institution has an 19
application pending for the subsidiary to become a 20
permitted payment stablecoin issuer on that effective 21
date; or 22
(2) a nonbank entity with an application pend-23
ing to become a Comptroller-regulated entity on that 24
effective date. 25
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SEC. 18. RULEMAKING. 1
(a) I
NGENERAL.—Not later than 1 year after the 2
date of enactment of this Act, each primary Federal pay-3
ment stablecoin regulator, the Secretary of the Treasury, 4
and each State payment stablecoin regulator shall imple-5
ment this Act through appropriate notice and comment 6
rulemaking, including promulgating regulations as de-7
scribed in this Act as necessary. 8
(b) C
OORDINATION.—Federal payment stablecoin 9
regulators and State payment stablecoin regulators should 10
coordinate on the issuance of any regulations to implement 11
this Act. 12
(c) R
EPORTREQUIRED.—Not later than 180 days 13
after the date of enactment of this Act, each Federal 14
banking agency shall submit to the Committee on Bank-15
ing, Housing, and Urban Affairs of the Senate and the 16
Committee on Financial Services of the House of Rep-17
resentatives a report that confirms and describes the rules 18
promulgated to implement this Act. 19
Æ
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