Section 1 Short title
This Act may be cited as the “Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025” or the “STABLE Act of 2025”.
Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025
A BILL
To provide for the regulation of payment stablecoins, and for other purposes.
Sec. 2 Definitions
In this Act:
Appropriate Federal banking agency— The term “appropriate Federal banking agency” has the meaning given that term under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
Bank Secrecy Act— The term “Bank Secrecy Act” means—
section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);
chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and
subchapter II of chapter 53 of title 31, United States Code.
Board— The term “Board” means the Board of Governors of the Federal Reserve System.
Comptroller— The term “Comptroller” means the Comptroller of the Currency.
Corporation— The term “Corporation” means the Federal Deposit Insurance Corporation.
Credit union terms— The terms “Federal credit union”, “insured credit union”, and “State credit union” have the meanings given those terms, respectively, in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
Digital asset— The term “digital asset” means any digital representation of value which is recorded on a cryptographically-secured distributed ledger.
Distributed ledger— The term “distributed ledger” means technology where data is shared across a network that creates a public digital ledger of verified transactions or information among network participants and the data is linked using cryptography to maintain the integrity of the public digital ledger and execute other functions.
Federal qualified nonbank payment stablecoin issuer— The term “Federal qualified nonbank payment stablecoin issuer” means a subsidiary of a nonbank entity approved by the primary Federal payment stablecoin regulator, pursuant to section 5, to issue payment stablecoins.
Institution-affiliated party— With respect to a permitted payment stablecoin issuer, the term “institution-affiliated party” means any director, officer, employee, or person in control of, or agent for, the permitted payment stablecoin issuer.
Insured depository institution— The term “insured depository institution” means—
an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
an insured credit union.
Monetary value— The term “monetary value”—
means—
a national currency;
a deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) that is denominated in a national currency; or
an account (as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)); and
does not include any agricultural or other physical commodity (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)).
National currency— The term “national currency” means a Federal Reserve note (as the term is used in the first undesignated paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 411)), money standing to the credit of an account with a Federal reserve bank, money issued by a central bank, and money issued by an intergovernmental organization pursuant to an agreement by one or more governments.
Nonbank entity— The term “nonbank entity” means a person that is not an insured depository institution or subsidiary of an insured depository institution.
Payment stablecoin— The term “payment stablecoin” means a digital asset—
that is or is designed to be used as a means of payment or settlement;
that is denominated in a national currency;
the issuer of which—
is obligated to convert, redeem, or repurchase for a fixed amount of monetary value; or
represents that the digital asset will maintain or creates the reasonable expectation that the digital asset will maintain a stable value relative to the value of a fixed amount of monetary value; and
that is not—
a national currency;
a security issued by—
an investment company registered under section 8(a) of the Investment Company Act of 1940 (15 U.S.C. 80a–8(a)); or
a person that would be an investment company under the Investment Company Act of 1940 but for paragraphs (1) and (7) of section 3(c) of that Act (15 U.S.C. 80a-3(c));
a deposit (as defined under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), regardless of the technology used to record such deposit; or
an account (as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)), regardless of the technology used to record such account.
Permitted payment stablecoin issuer— The term “permitted payment stablecoin issuer” means—
a subsidiary of an insured depository institution that has been approved to issue payment stablecoins under section 5;
a Federal qualified nonbank payment stablecoin issuer; or
a State qualified payment stablecoin issuer.
Person— The term “person” means an individual, partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity.
Primary Federal payment stablecoin regulator—
In general— The term “primary Federal payment stablecoin regulator” means—
with respect to an insured depository institution (other than an insured credit union) or a subsidiary of an insured depository institution (other than an insured credit union), the appropriate Federal banking agency of such insured depository institution;
with respect to an insured credit union or a subsidiary of an insured credit union, the National Credit Union Administration;
with respect to a Federal qualified nonbank payment stablecoin issuer and any nonbank entity that seeks to have a subsidiary approved as a Federal qualified nonbank payment stablecoin issuer, the Comptroller; and
with respect to any entity chartered by the Comptroller, the Comptroller.
Primary Federal payment stablecoin regulators— The term “primary Federal payment stablecoin regulators” means the Comptroller, the Board, the Corporation, and the National Credit Union Administration.
Registered public accounting firm— The term “registered public accounting firm” has the meaning given that term under section 2 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201).
State— The term “State” means each of the several States, the District of Columbia, and each territory of the United States.
State qualified payment stablecoin issuer— The term “State qualified payment stablecoin issuer” means an entity that—
is approved to issue payment stablecoins by a State payment stablecoin regulator;
issues a payment stablecoin in compliance with the laws and regulations of a State regulatory regime certified under section 4(b); and
is not—
chartered by the Comptroller;
a Federal credit union; or
a subsidiary of a State credit union that—
has at least a partial ownership interest or loan from a Federal credit union; or
has at least a partial ownership interest or loan from a State credit union that is organized in a different State than such subsidiary.
State payment stablecoin regulator— The term “State payment stablecoin regulator” means—
a State agency that has primary regulatory and supervisory authority in such State over entities that issue payment stablecoins; and
with respect to a State qualified payment stablecoin issuer that is a subsidiary of a State-chartered depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or a State credit union, the State agency that has primary regulatory and supervisory authority over entities that issue payment stablecoins in the State in which such State-chartered depository institution or State credit union is chartered.
Subsidiary of an insured credit union— With respect to an insured credit union, the term “subsidiary of an insured credit union” means—
an organization providing services to the insured credit union that are associated with the routine operations of credit unions, as described under section 107(7)(I) of the Federal Credit Union Act (12 U.S.C. 1757(7)(I));
a credit union service organization, as such term is used under part 712 of title 12, Code of Federal Regulations, with respect to which the insured credit union has an ownership interest or to which the insured credit union has extended a loan; and
any subsidiary of the insured credit union that is a State credit union.
Sec. 3 Limitation on who may issue a payment stablecoin
Limitation on issuers— It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States.
Limitation on offering or selling—
In general— After the end of the 18-month period beginning on the date of enactment of this Act, it shall be unlawful for any custodial intermediary to offer or sell a payment stablecoin in the United States unless the payment stablecoin was issued by a permitted payment stablecoin issuer.
Exceptions for comparable payment stablecoin regimes—
In general— Paragraph (1) and subsection (a) shall not apply to the offer or sale of a payment stablecoin if—
the payment stablecoin was issued by a foreign payment stablecoin issuer;
the foreign payment stablecoin issuer is subject to regulation by a foreign payment stablecoin regulator of a nation with a payment stablecoin regulatory regime that the Secretary of the Treasury determines under subparagraph (B) is comparable to the requirements under this Act; and
the foreign payment stablecoin issuer consents to be subject to reporting and examination requirements, as determined by—
the Comptroller, if the foreign payment stablecoin issuer is a nonbank; or
the Board, if the foreign payment stablecoin issuer is a banking institution or subsidiary thereof.
Determination— With respect to a foreign nation, the Secretary of the Treasury shall determine, upon request of a foreign payment stablecoin issuer, a foreign payment stablecoin regulator, or on the Secretary’s own initiative, and in consultation with the Federal payment stablecoin regulators, whether the payment stablecoin regulatory regime of such nation is comparable to the requirements under this Act.
Public notice— The Secretary shall make the list of nations for which a determination has been made under subparagraph (B) available to the public, and keep such list current.
Rescinding determinations—
Secretarial action— The Secretary may, in consultation with the primary Federal payment stablecoin regulators, rescind a determination made under subparagraph (B) with respect to a foreign nation, if the Secretary determines that the regulatory regime of such nation is no longer comparable to the requirements under this Act.
Safeharbors— If the Secretary rescinds a determination pursuant to clause (i), a custodial intermediary shall not be in violation of this subsection by reason of the offer or sale of a payment stablecoin issued by such nation’s foreign payment stablecoin issuer until 90 days after the determination is rescinded.
Penalty— Any person who violates this subsection shall be subject to a civil penalty of not more than $100,000 for each day during which such violation continues.
Rulemaking— Not later than 12 months after the date of enactment of this Act, the Secretary shall issue such rules as may be required to carry out this section.
Rule of construction— This section does not apply to transactions in digital assets for an individual’s own lawful purposes by means of a software or hardware wallet that facilitates such individual’s own custody of digital assets.
Sec. 4 Requirements for issuing payment stablecoins
Standards for the issuance of payment stablecoins—
In general— Each permitted payment stablecoin issuer shall—
maintain reserves backing the issuer’s outstanding payment stablecoins on an at least 1 to 1 basis, with reserves comprising—
United States currency (including Federal reserve notes) or money standing to the credit of an account with a Federal reserve bank;
funds held as demand deposits (or other deposits that may be withdrawn upon request at any time) at insured depository institutions (including foreign branches and agencies of insured depository institutions) or approved foreign depository institutions (as determined in paragraph (5)(A)(v)) or share drafts (or other deposits that may be withdrawn upon request at any time) at insured credit unions, subject to limitations established by the Corporation and the National Credit Union Administration, respectively, to address safety and soundness risks of such insured depository institutions;
Treasury bills, notes, or bonds—
with a remaining maturity of 93 days or less; or
issued with a maturity of 93 days or less;
repurchase agreements, wherein the permitted payment stablecoin issuer is acting as a seller of securities, or reverse repurchase agreements, wherein the permitted payment stablecoin issuer is acting as a purchaser of securities, with an overnight maturity and that are backed by Treasury bills with a maturity of 93 days or less that are—
centrally cleared through a clearing agency registered with the Securities and Exchange Commission; or
bilateral, settling either through delivery versus payment or through a tri-party control account, with a counterparty that the issuer has determined to be adequately credit worthy even in the event of severe market stress; or
securities issued by an investment company under section 8(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-8) that operates as a money market fund in compliance with Rule 2a-7 under the Investment Company Act of 1940 (or any successor rule) and that are invested solely in the underlying assets described in clauses (i) through (iv);
publicly disclose the issuer’s redemption policy;
establish procedures for timely redemption of the issuer’s outstanding payment stablecoins; and
publish a report on the monthly composition of the issuer’s reserves on the website of the issuer, containing—
the total number of outstanding payment stablecoins issued by the issuer; and
the amount and composition of the reserves described under subparagraph (A).
Eligibility— Nothing in this Act shall be construed as expanding or contracting legal eligibility to make deposits, or hold an account, at a Federal reserve bank.
Prohibition on rehypothecation— Reserves described under paragraph (1)(A) may not be pledged, rehypothecated, or reused, except for the purpose of satisfying obligations associated with reserves described under paragraph (1)(A)(iv).
Monthly certification; examination of reports by registered public accounting firm—
In general— A permitted payment stablecoin issuer shall, each month, have the information disclosed in the previous month-end report required under paragraph (1)(D) examined by an independent registered public accounting firm.
Certification— Each month, the Chief Executive Officer and Chief Financial Officer of a permitted payment stablecoin issuer shall submit to, as applicable, the primary Federal payment stablecoin regulator or, in the case of a State qualified payment stablecoin issuer, the State payment stablecoin regulator, a certification that, based on such officers’ knowledge, the previous month-end report required under paragraph (1)(D)—
does not contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading; and
fairly presented in all material respects the information required under paragraph (1)(D) for the period presented in such report.
Criminal Penalties— Whoever—
submits a certification set forth in subparagraph (B) knowing that the report to which the certification relates does not fairly present, in all material respects, the information required to be contained in such report shall be fined not more than $1,000,000 or imprisoned not more than 10 years, or both; or
willfully submits a certification set forth in subparagraph (B) knowing that the report to which the certification relates does not fairly present, in all material respects, the information required to be contained in such report shall be fined not more than $5,000,000, or imprisoned not more than 20 years, or both.
Capital, liquidity, risk management, and other requirements—
In general— The primary Federal payment stablecoin regulators shall, jointly and in consultation with the State payment stablecoin regulators, issue rules to establish—
capital requirements applicable to a permitted payment stablecoin issuer that—
are tailored to the business model and risk profile of a permitted payment stablecoin issuer;
do not exceed requirements which are sufficient to ensure the ongoing operations of a permitted payment stablecoin issuer; and
if such regulators determine that a capital buffer is necessary to ensure the ongoing operations of a permitted payment stablecoin issuer, may include capital buffers that are tailored to the business model and risk profile of a permitted payment stablecoin issuer;
requirements implementing liquidity standards applicable to reserves described in paragraph (1) for a permitted payment stablecoin issuer, which may not exceed an amount that is sufficient to ensure the financial integrity of a permitted payment stablecoin issuer and the ability of the issuer to meet the financial obligations of the issuer, including redemptions;
reserve asset diversification and interest rate risk management standards applicable to a permitted payment stablecoin issuer that—
are tailored to the business model and risk profile of a permitted payment stablecoin issuer; and
do not exceed standards which are sufficient to ensure the ongoing operations of a permitted payment stablecoin issuer; and
appropriate operational, compliance, information technology, and cybersecurity risk management standards that are tailored to the business model and risk profile of a permitted payment stablecoin issuer; and
requirements regarding the approval of foreign depository institutions that may hold demand deposits of a permitted payment stablecoin issuer.
Rule of construction— Nothing in this paragraph may be construed to limit—
the authority of the primary Federal payment stablecoin regulators, in prescribing standards under this paragraph, to tailor or differentiate among permitted payment stablecoin issuers on an individualized basis or by category, taking into consideration the capital structure, business model risk profile, complexity, financial activities, size, and any other risk related factors of permitted payment stablecoin issuers that the primary Federal payment stablecoin regulators determine appropriate; or
the supervisory, regulatory, or enforcement authority of a Federal banking agency (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or the National Credit Union Administration to further the ability of an institution under the supervision of the Federal banking agency or the National Credit Union Administration to maintain safe and sound operations or comply with this Act.
Applicability of existing capital standards—
Applicability of the Financial Stability Act of 2010— Section 171 of the Financial Stability Act of 2010 (12 U.S.C. 5371) shall not apply to requirements issued under this paragraph.
Rules relating to leverage capital requirements or risk-based capital requirements— Where an insured depository institution or depository institution holding company, as defined under section 171(a)(3) of the Financial Stability Act of 2010 (12 U.S.C. 5371(a)(3)), includes, on a consolidated basis, a permitted payment stablecoin issuer, any rule issued by an appropriate Federal banking agency that imposes, on a consolidated basis, a leverage capital requirement or risk-based capital requirement on such insured depository institution or depository institution holding company, shall not require such insured depository institution or depository institution holding company to hold, with respect to the permitted payment stablecoin issuer and its assets and operations, any amount of regulatory capital in excess of the capital that such permitted payment stablecoin issuer must maintain under the capital requirements promulgated pursuant to subparagraph (A)(i).
Rulemaking— Not later than the date the primary Federal payment stablecoin regulators issue regulations to carry out this section, each Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), shall amend or otherwise modify any rule described in clause (ii) so that it complies with such clause (ii).
Treatment Under the Bank Secrecy Act—
In general— A permitted payment stablecoin issuer shall be treated as a financial institution for purposes of the Bank Secrecy Act.
Regulations— The Secretary of the Treasury, acting through the Director of the Financial Crimes Enforcement Network, and in consultation with the primary Federal payment stablecoin regulators, shall issue regulations to apply the Bank Secrecy Act to permitted payment stablecoin issuers that are tailored to the size and complexity of such issuers, including by requiring each permitted payment stablecoin issuer to—
establish and maintain an anti-money laundering and countering the financing of terrorism program, which shall include—
an appropriate risk assessment;
the development of internal policies, procedures, and controls;
the designation of a compliance officer;
an ongoing employee training program; and
an independent audit function to test such program;
retain appropriate records of payment stablecoin transactions;
monitor and report suspicious activity, which may include use of appropriate distributed ledger analytics; and
maintain an effective customer identification program to identify and verify initial holders of a payment stablecoin for the purposes of carrying out appropriate customer due diligence.
Compliance with sanctions— A permitted payment stablecoin issuer shall comply with all laws and regulations related to United States sanctions administered by the Office of Foreign Assets Control.
Limitation on payment stablecoin activities— A permitted payment stablecoin issuer may only—
issue payment stablecoins;
redeem payment stablecoins;
manage related reserves (including purchasing, selling, and holding reserve assets);
provide custodial or safekeeping services for payment stablecoins and private keys of payment stablecoins;
provide custodial or safekeeping services for reserves, consistent with this Act;
undertake other functions that directly support activities described in subparagraphs (A) through (E); and
undertake such non-payment stablecoin activities that are allowed by the primary Federal payment stablecoin regulator.
Prohibition on yield— A permitted payment stablecoin issuer may not pay interest or yield to holders of its payment stablecoins.
Regulation of Federal qualified nonbank payment stablecoin issuers by the Comptroller— A Federal qualified nonbank payment stablecoin issuer shall be regulated and supervised exclusively by the Comptroller.
State-level regulatory regimes—
In general— A State qualified payment stablecoin issuer may only issue payment stablecoins pursuant to the regulation of a State payment stablecoin regulator of a State with a regulatory regime for issuing payment stablecoins that is certified under this subsection as meeting or exceeding the standards and requirements described in subsection (a).
Certification—
In general— Beginning on the date that is 1 year after the date of enactment of this Act or 60 days after the rulemaking described in subsection (d) is completed, whichever is earlier, a State payment stablecoin regulator may submit to the Secretary of the Treasury a certification that the regulatory regime of the State for issuing payment stablecoins meets or exceeds the standards and requirements described in subsection (a).
Validity of certification— A certification under subparagraph (A) shall be valid upon submission and remain valid unless the Secretary of the Treasury rejects the certification under paragraph (6).
Form of certification— A certification described under paragraph (2)—
shall contain an attestation that the regulatory regime of the State for issuing payment stablecoins meets or exceeds the standards and requirements described in subsection (a); and
may include supporting information, such as a copy of any State law or regulation implementing such standards and requirements.
Report and attestation—
In general— A State payment stablecoin regulator with a valid certification under this subsection that has made subsequent material changes to its State regulatory regime and wishes to maintain a valid certification shall submit to the Secretary of the Treasury an explanation of all such material changes.
Form of material changes explanation— With respect to a State payment stablecoin regulator that submits an explanation of material changes to the State regulatory regime under subparagraph (A), the payment stablecoin regulator shall make such explanation in the same manner, and containing the same attestation, as described under paragraph (3) for a certification.
Advisory opinions on proposed laws or regulations— Upon request of any State payment stablecoin regulator, the Secretary of the Treasury shall—
review any proposed law or regulation of the State provided by the State payment stablecoin regulator; and
not later than 30 days after being provided the proposed law or regulation, either—
inform the State payment stablecoin regulator that the proposed law or regulation is consistent with a State regulatory regime for issuing payment stablecoins that meets or exceeds the standards and requirements described in subsection (a); or
provide the State payment stablecoin regulator with a detailed explanation of why the proposed law or regulation is not consistent with a State regulatory regime for issuing payment stablecoins that meets or exceeds the standards and requirements described in subsection (a).
Regimes that are not substantially similar—
In general— The Secretary of the Treasury may reject a certification under paragraph (2) or a certification with respect to which a State payment stablecoin regulator has submitted an explanation of material changes under paragraph (4), if the Secretary, not later than 30 days after the date on which the initial certification or explanation of material changes is submitted—
determines that the State regulatory regime does not meet or exceed the standards and requirements described in subsection (a); and
provides the State payment stablecoin regulator with a written explanation for the rejection, describing the reasoned basis for the rejection with sufficient detail such that the State can bring the State regulatory regime into compliance based on the explanation.
Opportunity to cure—
In general— With respect to a rejection described under subparagraph (A), the Secretary of the Treasury shall provide the State payment stablecoin regulator with not less than a 180-day period from the date on which the State payment stablecoin regulator is notified of such rejection to—
make such changes as may be necessary to ensure the regulatory regime of the State for issuing payment stablecoins meets or exceeds the standards and requirements described in subsection (a); and
resubmit the certification or explanation of material changes.
Rejection— If, after a State payment stablecoin regulator makes changes described under clause (i) during the period described in clause (i), the Secretary of the Treasury determines that the certification should be rejected, the Secretary of the Treasury shall, not later than 30 days after such determination, provide the State payment stablecoin regulator with a written explanation for the determination, describing the reasoned basis for the determination with sufficient detail such that the State can bring its regime into compliance based on the explanation.
Appeal of rejection—
In general— A State payment stablecoin regulator that has had a certification rejected under this paragraph may, after the cure period described under subparagraph (B)(i), appeal such rejection to the United States Court of Appeals for the District of Columbia Circuit, which shall, upon a determination that the regulatory regime of the State for issuing payment stablecoins meets or exceeds the standards and requirements described in subsection (a), reverse such rejection.
Review by the Supreme Court— The judgment and decree of the Court of Appeals shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari, as provided in section 1254 of title 28, United States Code.
Right to resubmit— A State payment stablecoin regulator that has had a certification rejected under this paragraph may resubmit a new certification under paragraph (2).
Appropriate exemptive relief— The Secretary of the Treasury shall issue such rules and orders as are necessary to provide appropriate exemptive relief and safe harbors for State qualified payment stablecoin issuers to continue operations during such periods in which any rules promulgated pursuant to subsection (a) materially affect a previously certified State regulatory regime’s ability to meet or exceed the standards and requirements described in subsection (a).
Not insured by the Federal Government; misrepresentation of insured status—
In general— Payment stablecoins are not backed by the full faith and credit of the United States, guaranteed by the United States Government, subject to deposit insurance by the Corporation, or subject to share insurance by the National Credit Union Administration.
Misrepresentation of insured status— It shall be unlawful to represent that a payment stablecoin is backed by the full faith and credit of the United States, guaranteed by the United States Government, or subject to Federal deposit insurance or Federal share insurance.
Disclosure— Permitted payment stablecoin issuers shall clearly and prominently disclose on their website that payment stablecoins issued by such permitted payment stablecoin issuer are not guaranteed by the United States Government, covered by deposit insurance by the Federal Deposit Insurance Corporation, or covered by share insurance of the National Credit Union Administration.
Penalties— Any person who violates this subsection may be prosecuted to the fullest extent of the law, including, as applicable, under—
section 18(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1828(a)(4); relating to the prohibition on false advertising in connection with deposit insurance, the misuse of FDIC names, and misrepresentations of insured status);
section 709 of title 18, United States Code (relating to false advertising or misuse of names to indicate a Federal agency);
criminal penalties under title 18, United States Code, related to fraud; and
other remedies available under the law.
Officers and directors convicted of certain felonies— No individual who has been convicted of a felony offense involving insider trading, embezzlement, cybercrime, money laundering, financing of terrorism, or financial fraud may serve as—
an officer of a payment stablecoin issuer; or
a director of a payment stablecoin issuer.
Rulemaking—
In general— The primary Federal payment stablecoin regulators may issue such orders and regulations as may be necessary to administer and carry out the requirements of this section, including to establish conditions, and to prevent evasions thereof.
Joint issuance of regulation— All regulations issued to carry out this section by the primary Federal payment stablecoin regulators shall be issued jointly, after consultation with State payment stablecoin regulators.
Rulemaking deadline— Not later than the end of the 180-day period beginning on the date of enactment of this Act, the Federal payment stablecoin regulators shall issue regulations to carry out this section.
Sec. 5 Approval of subsidiaries of insured depository institutions and subsidiaries of nonbank entities
In general—
Application—
In general— The primary Federal payment stablecoin regulator shall receive, review, and consider for approval applications from any insured depository institution that seeks to issue payment stablecoins through a subsidiary and any nonbank entity that seeks to issue payment stablecoins through a subsidiary.
Sharing of information— With respect to applications submitted by State-chartered insured depository institutions, the primary Federal payment stablecoin regulator shall share such applications with the relevant State bank or State credit union supervisor.
Completion of application—
In general— The primary Federal payment stablecoin regulator shall consider an application complete if such application contains sufficient information for the primary Federal payment stablecoin regulator to render a decision on whether the application meets the requirements set forth in section 4.
Material change in circumstances— An application described under clause (i) that is considered complete shall remain complete unless the primary Federal payment stablecoin regulator determines that a material change in circumstances requires otherwise.
Evaluation of applications— A complete application received under paragraph (1) shall be evaluated by the primary Federal payment stablecoin regulator based on the ability of the subsidiary of the applicant to meet the requirements set forth in section 4.
Timing for decision; grounds for denial—
Timing— The primary Federal payment stablecoin regulator shall—
not later than 30 days after receiving the application—
inform the applicant whether the applicant has submitted a complete application; and
if the application is not complete, inform the applicant of the additional information the applicant must provide in order for the application to be considered complete; and
not later than 120 days after informing the applicant that the application is complete, render a decision on an application.
Denial of application—
Grounds for denial—
In general— The primary Federal payment stablecoin regulator may only deny a complete application received under paragraph (1) if the regulator determines that the activities of the applicant would be unsafe or unsound based on the ability of the subsidiary of the applicant to meet the requirements set forth in section 4.
Treatment of certain issuances— The issuance of a payment stablecoin on an open, public, and decentralized network shall not be a valid ground for denial of an application received under paragraph (1).
Explanation required— If the primary Federal payment stablecoin regulator denies a complete application received under paragraph (1), the regulator shall, not later than 30 days after the date of such denial, provide the applicant with—
written notice explaining the denial with specificity, including all findings made by the regulator with respect to all identified material shortcomings in the application; and
actionable recommendations on how the applicant could address the identified material shortcomings.
Opportunity for hearing; final determination—
In general— Not later than 30 days after the date of receipt of any notice of the denial of an application under this subsection, the applicant may request, in writing, an opportunity for a written or oral hearing before the primary Federal payment stablecoin regulator to appeal the denial.
Timing— Upon receipt of a timely request, the primary Federal payment stablecoin regulator shall notice a time (not later than 30 days after the date of receipt of the request) and place at which the applicant may appear, personally or through counsel, to appeal the denial, to submit written materials, or to provide oral testimony and oral argument.
Final determination— Not later than 60 days after the date of a hearing under this clause, the primary Federal payment stablecoin regulator shall notify the applicant of the final determination of the primary Federal payment stablecoin regulator with respect to the appeal, which shall contain a statement of the basis for such determination, with specific findings.
Notice if no hearing— If an applicant does not make a timely request for a hearing under this clause, the primary Federal payment stablecoin regulator shall notify the applicant, not later than 10 days after the date by which the applicant may request a hearing under this clause, in writing, that the denial of the application is a final determination of the primary Federal payment stablecoin regulator.
Failure to render a decision— If the primary Federal payment stablecoin regulator fails to render a decision on a complete application within the time period specified in subparagraph (A), the application shall be deemed approved.
Right to reapply— The denial of an application under this subsection shall not prohibit the applicant from filing a subsequent application.
Report on pending applications— Each of the primary Federal payment stablecoin regulators shall annually report to Congress on—
the number of calendar days each applicant waited for either an approval or denial of an application under this subsection;
the number of calendar days each applicant with an outstanding application has waited for a decision; and
the number of applications that have been pending for 6 months or longer since the date of the initial application filed under paragraph (1) where the applicant has been informed that the application remains incomplete, including providing documentation on the status of the application and why the application has not yet been approved.
Rulemaking—
In general— Not later than 180 days after the date of enactment of this Act, the primary Federal payment stablecoin regulators shall, jointly, issue rules to carry out this section, which may only relate to the application process under this subsection and may not implement the requirements set forth in section 4.
Tailoring of rules— The joint rulemaking required under subparagraph (A) shall be tailored so as to minimize any incremental burden placed on well capitalized and highly-rated insured depository institutions.
Effective date—
In general— This section shall take effect on the earlier of—
12 months after the date of enactment of this Act; or
the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue final regulations implementing this section.
Notice to Congress— Each of the primary Federal payment stablecoin regulators shall notify Congress upon receiving their first application.
Effect on State law for payment stablecoin issuers approved by Federal payment stablecoin regulators under this section— The provisions of this section preempt any conflicting State law and supersede any State licensing requirement for any nonbank entity or subsidiary of an insured depository institution or credit union that is approved under this section to be a permitted payment stablecoin issuer.
Sec. 6 Supervision and enforcement with respect to subsidiaries of insured depository institutions and Federal qualified nonbank payment stablecoin issuers
Supervision—
Subsidiary of an insured depository institution—
In general— Each permitted payment stablecoin issuer that is a subsidiary of an insured depository institution shall be subject to supervision by the primary Federal payment stablecoin regulator in the same manner as such insured depository institution.
Gramm-Leach-Bliley Act— For purposes of title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) each permitted payment stablecoin issuer that is a subsidiary of an insured depository institution shall be deemed a financial institution.
Federal qualified nonbank payment stablecoin issuer—
Submission of reports— Each Federal qualified nonbank payment stablecoin issuer shall, upon request, submit reports to the Comptroller as to—
the financial condition of the Federal qualified nonbank payment stablecoin issuer;
the systems of the Federal qualified nonbank payment stablecoin issuer for monitoring and controlling financial and operating risks; and
compliance with this Act and regulations issued pursuant to this Act by the Federal qualified nonbank payment stablecoin issuer.
Examinations— The Comptroller may examine a Federal qualified nonbank payment stablecoin issuer in order to inform the Comptroller of—
the nature of the operations and financial condition of the Federal qualified nonbank payment stablecoin issuer;
the financial, operational, and other risks within the Federal qualified nonbank payment stablecoin issuer that may pose a threat to—
the safety and soundness of the Federal qualified nonbank payment stablecoin issuer; or
the stability of the financial system of the United States;
the systems of the Federal qualified nonbank payment stablecoin issuer for monitoring and controlling the risks described in clause (ii);
the compliance of the Federal qualified nonbank payment stablecoin issuer with this Act and regulations issued pursuant to this Act; and
the compliance of the Federal qualified nonbank payment stablecoin issuer with the requirements of the Bank Secrecy Act and laws authorizing the imposition of sanctions and implemented by the Secretary of the Treasury.
Requirements for efficiency— In supervising and examining a Federal qualified nonbank payment stablecoin issuer, the Comptroller shall, to the fullest extent possible, use existing reports and other supervisory information.
Avoidance of duplication— The Comptroller shall, to the fullest extent possible, avoid duplication of examination activities, reporting requirements, and requests for information in carrying out this Act with respect to a Federal qualified nonbank payment stablecoin issuer.
Gramm-Leach-Bliley Act— For purposes of title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) each Federal qualified nonbank payment stablecoin issuer shall be deemed a financial institution.
Enforcement—
Suspension or revocation of registration— The primary Federal payment stablecoin regulator may prohibit a permitted payment stablecoin issuer from issuing payment stablecoins, if the primary Federal payment stablecoin regulator determines that such permitted payment stablecoin issuer, or an institution-affiliated party of the permitted payment stablecoin issuer, is—
materially violating or has materially violated this Act or any regulation or order issued under this Act, including the issuer’s obligations under the section 4(a)(6); or
materially violating or has materially violated any condition imposed in writing by the primary Federal payment stablecoin regulator in connection with a written agreement entered into between the permitted payment stablecoin issuer and the primary Federal payment stablecoin regulator.
Cease-and-desist proceedings— If the primary Federal payment stablecoin regulator has reasonable cause to believe that a permitted payment stablecoin issuer or any institution-affiliated party of a permitted payment stablecoin issuer is violating, has violated, or is attempting to violate this Act, any regulation or order issued under this Act, or any written agreement entered into with the primary Federal payment stablecoin regulator or condition imposed in writing by the primary Federal payment stablecoin regulator in connection with any application or other request, the primary Federal payment stablecoin regulator may order the permitted payment stablecoin issuer or institution-affiliated party of the permitted payment stablecoin issuer to—
cease and desist from such violation or practice; or
take affirmative action to correct the conditions resulting from any such violation or practice.
Removal and prohibition authority— The primary Federal payment stablecoin regulator may remove an institution-affiliated party of a permitted payment stablecoin issuer from their position or office or prohibit further participation in the affairs of the permitted payment stablecoin issuer or all permitted payment stablecoin issuers by such institution-affiliated party, if the primary Federal payment stablecoin regulator determines that—
the institution-affiliated party has, directly or indirectly, committed a violation or attempted violation of this Act or any regulation or order issued under this Act; or
the institution-affiliated party has committed a violation of any provision of subchapter II of chapter 53 of title 31, United States Code.
Procedures—
In general— If the primary Federal payment stablecoin regulator identifies a violation or attempted violation of this Act or makes a determination under paragraph (1), (2), or (3), the primary Federal payment stablecoin regulator shall comply with the procedures set forth, as applicable, in—
subsections (b) and (e) of sections 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818); or
subsections (e) and (g) of section 206 of the Federal Credit Union Act (12 U.S.C. 1786).
Judicial review— A person aggrieved by a final action under this subsection may obtain judicial review of such action exclusively as provided, as applicable, in—
section 8(h) of the Federal Deposit Insurance Act (12 U.S.C. 1818(h)); or
section 206(j) of the Federal Credit Union Act (12 U.S.C. 1786(j)).
Injunction— The primary Federal payment stablecoin regulator may, in the discretion of the regulator, follow the procedures for judicial enforcement of any effective and outstanding notice or order issued under this subsection provided, as applicable, in—
section 8(i)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(1)); or
section 206(k)(1) of the Federal Credit Union Act (12 U.S.C. 1786(k)(1)).
Temporary cease-and-desist proceedings— If the primary Federal payment stablecoin regulator determines that a violation or attempted violation of this Act or an action with respect to which a determination was made under paragraph (1), (2), or (3), or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of a permitted payment stablecoin issuer, or is likely to weaken the condition of the permitted payment stablecoin issuer or otherwise prejudice the interests of the customers of the permitted payment stablecoin issuer prior to the completion of the proceedings conducted under this paragraph, the primary Federal payment stablecoin regulator may follow the procedures provided, as applicable, in—
section 8(c) of the Federal Deposit Insurance Act (12 U.S.C. 1818(c)) to issue a temporary cease-and-desist order; or
section 206(f) of the Federal Credit Union Act (12 U.S.C. 1786(f)) to issue a temporary cease-and-desist order.
Civil money penalties—
Failure to be approved— Any person who issues a payment stablecoin and who is not a permitted payment stablecoin issuer, and any institution-affiliated party of such a person who knowingly participates in issuing such a payment stablecoin, shall be liable for a civil penalty of not more than $100,000 for each day during which such payment stablecoins are outstanding.
First tier— Except as provided in subparagraph (A), a permitted payment stablecoin issuer or institution-affiliated party of such permitted payment stablecoin issuer that materially violates this Act or any regulation or order issued under this Act, or that materially violates any condition imposed in writing by the primary Federal payment stablecoin regulator in connection with a written agreement entered into between the permitted payment stablecoin issuer and the primary Federal payment stablecoin regulator, shall be liable for a civil penalty of up to $100,000 for each day during which the violation continues.
Second tier— Except as provided in subparagraph (A), and in addition to the penalties described under subparagraph (B), a permitted payment stablecoin issuer or institution-affiliated party of such permitted payment stablecoin issuer who knowingly participates in a violation of any provision of this Act, or any regulation or order issued thereunder, is liable for a civil penalty of up to an additional $100,000 for each day during which the violation continues.
Procedure— Any penalty imposed under this paragraph may be assessed and collected by the primary Federal payment stablecoin regulator pursuant to the procedures set forth, as applicable, in—
section 8(i)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(2)); or
section 206(k)(2) of the Federal Credit Union Act (12 U.S.C. 1786(k)(2)).
Notice and orders after separation from service— The resignation, termination of employment or participation, or separation of an institution-affiliated party (including a separation caused by the closing of a permitted payment stablecoin issuer) shall not affect the jurisdiction and authority of the primary Federal payment stablecoin regulator to issue any notice or order and proceed under this subsection against any such party, if such notice or order is served before the end of the 6-year period beginning on the date such party ceased to be an institution-affiliated party with respect to such permitted payment stablecoin issuer.
Non-applicability to a State qualified payment stablecoin issuer— This subsection shall not apply to a State qualified payment stablecoin issuer, except as described in section 7(e).
Sharing of information— A State payment stablecoin regulator and the primary Federal payment stablecoin regulator shall share information on an ongoing basis with respect to a permitted payment stablecoin issuer that is a subsidiary of a State-chartered insured depository institution.
Sec. 7 State qualified payment stablecoin issuers
In general— With respect to a State, a State payment stablecoin regulator shall have supervisory, examination, and enforcement authority over a State qualified payment stablecoin issuer of such State.
Authority to enter into agreements—
In general— A State payment stablecoin regulator may enter into a memorandum of understanding with the primary Federal banking agency and Comptroller setting out the manner in which the primary Federal banking agency and Comptroller may participate in the supervision, examination, and enforcement authority with respect to the State qualified payment stablecoin issuers of such State.
Rule of construction— Nothing in this subsection or a memorandum entered into under this subsection may be construed to limit the authority of the primary Federal banking agency or Comptroller under subsection (e) or any other provision of law.
Sharing of information—
In general— A State payment stablecoin regulator and, as applicable, the Comptroller, the Board, the Corporation, or the National Credit Union Administration shall share information on an ongoing basis with respect to each State qualified payment stablecoin issuer of such State, including a copy of all initial applications and any accompanying documents.
Privileges not affected by sharing of information— The sharing of information under paragraph (1) shall not be construed as waiving, destroying, or otherwise affecting any privilege applicable to such information under Federal or State law as to any person or entity other than the State payment stablecoin regulator, the Comptroller, the Board, the Corporation, and the National Credit Union Administration.
Rulemaking— A State payment stablecoin regulator may, to the same extent as the primary Federal payment stablecoin regulators issue orders and rules under section 4 applicable to a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer, issue orders and rules related to the requirements under section 4 applicable to State qualified payment stablecoin issuers.
Back-up enforcement authority—
By the primary Federal banking agency—
In general— Subject to subparagraph (C), the primary Federal banking agency may, after not less than 48 hours prior written notice to any applicable State payment stablecoin regulator, take an enforcement action against a State qualified payment stablecoin issuer that is a subsidiary of an insured depository institution or an institution-affiliated party thereof for violations of this Act if—
the applicable State payment stablecoin regulator has not commenced an enforcement action to correct such violation; and
failure to take such action would create a material risk of loss to holders of such issuer’s stablecoins or create a material threat to U.S. financial stability.
Rulemaking— Not later than the end of the 180-day period beginning on the date of enactment of this Act, the primary Federal banking agencies shall issue rules to set forth the standards that would be used by the primary Federal banking agencies to exercise the back-up authority under this paragraph.
Back-up authority under section 6(b)— Solely for purposes of carrying out this paragraph, section 6(b) shall apply to a State qualified payment stablecoin issuer that is a subsidiary of an insured depository institution as if the primary Federal banking agency were the primary Federal payment stablecoin regulator with respect to the State qualified payment stablecoin issuer.
Primary Federal banking agency defined— In this section—
the term “primary Federal banking agency” means—
the appropriate Federal banking agency; and
the National Credit Union Administration, in the case of an insured credit union; and
the term “primary Federal banking agencies” means the Board, the Comptroller, the Corporation, and the National Credit Union Administration.
By the Comptroller—
In general— Subject to subparagraph (C), the Comptroller may, after not less than 48 hours prior written notice to any applicable State payment stablecoin regulator, take an enforcement action against a State qualified payment stablecoin issuer that is a nonbank entity or an institution-affiliated party thereof for violations of this Act if—
the applicable State payment stablecoin regulator has not commenced an enforcement action to correct such violation; and
failure to take such action would create a material risk of loss to holders of such issuer’s stablecoins or create a material threat to U.S. financial stability.
Rulemaking— Not later than the end of the 180-day period beginning on the date of enactment of this Act, the Comptroller shall issue rules to set forth the standards that would be used by the Comptroller to exercise the back-up authority under this paragraph.
Back-up authority under section 6(b)— Solely for purposes of carrying out this paragraph, section 6(b) shall apply to a State qualified payment stablecoin issuer that is a nonbank entity as if the Comptroller were the primary Federal payment stablecoin regulator with respect to the State qualified payment stablecoin issuer.
Gramm-Leach-Bliley Act— For purposes of title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) a State qualified payment stablecoin issuer is deemed a financial institution.
Interstate payment stablecoin market—
Definitions— For the purposes of this subsection—
the term “home State” means the State of a State qualified payment stablecoin issuer’s State payment stablecoin regulator; and
the term “host State” means a State other than that of the State qualified payment stablecoin issuer’s State payment stablecoin regulator.
Authority to issue payment stablecoins in host States— Subject to the requirements of paragraph (3), a State qualified payment stablecoin issuer may issue payment stablecoins in a host State without a charter or license to issue payment stablecoins from such host State.
State obligations— Where a State qualified payment stablecoin issuer issues a payment stablecoin in a host State pursuant to paragraph (2)—
such State qualified payment stablecoin issuer shall notify any State payment stablecoin regulator in such host State of the issuer’s intention to do business in the host State not less than 30 days before such issuer commences business in the host State and in a manner prescribed by the host State’s State payment stablecoin regulator or State banking regulator if such State does not have a regime certified under section 4(b), provided that such notice does not impose a de facto licensure or chartering requirement on such State qualified payment stablecoin issuer;
such State qualified payment stablecoin issuer shall comply with all requirements of the issuer’s home State regulatory regime when conducting business in the host State, and where the host State maintains a payment stablecoin regulatory regime that is certified under section 4(b), such issuer shall comply with any obligations of the host State’s payment stablecoin regulatory regime that exceed those of such issuer’s home State regulatory regime;
where the host State does not maintain a payment stablecoin regulatory regime that is certified under section 4(b), such State qualified payment stablecoin issuer shall remain subject to all applicable consumer protection laws of such host State; and
where the host State maintains a payment stablecoin regulatory regime that is certified under section 4(b), such State qualified payment stablecoin issuer shall remain subject to applicable consumer protection laws of such host State, but only to the same extent as State qualified payment stablecoin issuers chartered or licensed in that host State.
Sec. 8 Customer protection
In general— A person may only engage in the business of providing custodial or safekeeping services for payment stablecoins issued by permitted payment stablecoin issuers, reserves described in section 4(a)(1)(A), or private keys of payment stablecoins issued by permitted payment stablecoin issuers, if the person—
is subject to—
supervision or regulation by a primary Federal payment stablecoin regulator or a primary financial regulatory agency described under subparagraph (B) or (C) of section 2(12) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301(12)); or
supervision by a State bank supervisor, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) or a State credit union supervisor, as defined in section 6003 of the Anti-Money Laundering Act of 2020 (31 U.S.C. 5311 note), and such State bank supervisor or State credit union supervisor makes available to the Board such information as the Board determines necessary and relevant to the categories of information under subsection (d); and
complies with the segregation requirements under subsections (b), (c), and (d), unless such person complies with similar requirements as required by the Board, the Comptroller, the Corporation, the Securities and Exchange Commission, or the Commodity Futures Trading Commission, as applicable.
Customer property requirements— A person described in subsection (a) shall—
treat and deal with the payment stablecoins, private keys, cash, and other property of another person for whom or on whose behalf the person receives, acquires, or holds payment stablecoins, private keys, cash, and other property (hereinafter in this section referred to as the “customer”) as belonging to such customer and not as the property of such person; and
take such steps as are appropriate to protect the payment stablecoins, private keys, cash, and other property of a customer from the claims of creditors of the person.
Commingling prohibited—
In general— Payment stablecoins, cash, and other property of a customer shall be separately accounted for by a person described in subsection (a) and shall not be commingled with the funds of the person.
Customer priority— In any insolvency, claims against reserves of a payment stablecoin issuer from persons holding payment stablecoins issued by the payment stablecoin issuer shall have priority over all other claims, other than for administrative expenses, against the payment stablecoin issuer.
Exception— Notwithstanding paragraph (1)—
the payment stablecoins, cash, and other property of a customer may be commingled and deposited in an omnibus account holding the payment stablecoins, cash, and other property of more than 1 customer at a depository institution (as defined in section 3 of the Federal Deposit Insurance Act), trust company, Federal credit union, or State credit union;
such share of the payment stablecoins, cash, and other property of the customer that shall be necessary to transfer, adjust, or settle a transaction or transfer of assets may be withdrawn and applied to such purposes, including the payment of commissions, taxes, storage, and other charges lawfully accruing in connection with the provision of services by a person described in subsection (a);
in accordance with such terms and conditions as the Board may prescribe by rule, regulation, or order, any customer payment stablecoin, cash, and other property described in this subsection may be commingled and deposited in customer accounts with payment stablecoins, cash, and other property received by the person and required by the Board to be separately accounted for, treated, and dealt with as belonging to customers; and
an insured depository institution that provides custodial or safekeeping services for payment stablecoin reserves shall be permitted to hold payment stablecoin reserves in the form of cash on deposit.
Regulatory information— A person described under subsection (a) shall submit to the primary Federal payment stablecoin regulator (or, if the person does not have a primary Federal payment stablecoin regulator, to the Board) information concerning the person’s business operations and processes to protect customer payment stablecoins, cash, and other property, in such form and manner as the primary Federal payment stablecoin regulator (or, if the person does not have a primary Federal payment stablecoin regulator, the Board) shall determine.
Exclusion— The requirements of this section shall not apply to any person solely on the basis that such person engages in the business of providing hardware or software to facilitate a customer’s own custody or safekeeping of the customer’s payment stablecoins or private keys.
Sec. 9 Rule of construction
A digital asset shall not be construed to be a payment stablecoin if it is—
redeemable exclusively for other digital assets, provided that such digital assets for which it is redeemable are not primarily—
payment stablecoins; or
representations of permissible reserves described under section 4(a)(1)(A) or similar such assets; or
primarily used within a system controlled by such digital asset’s issuer as a means of accessing products, services, or loyalty rewards.
Sec. 10 Interoperability standards
In general— The primary Federal payment stablecoin regulators, in consultation with the National Institute of Standards and Technology, other relevant standard setting organizations, and State governments—
shall assess compatibility and interoperability standards for permitted payment stablecoin issuers; and
if necessary, may, pursuant to section 553 of title 5, United States Code, and in a manner consistent with the National Technology Transfer and Advancement Act of 1995 (Public Law 104–113), prescribe standards for payment stablecoin issuers to promote compatibility and interoperability.
Agreements with foreign regulators— The Secretary of the Treasury shall seek to enter into agreements with foreign jurisdictions with comparable payment stablecoin regulatory regimes to facilitate international transactions and interoperability with any United States dollar-denominated payment stablecoins issued overseas.
Sec. 11 Moratorium on endogenously collateralized stablecoins
Moratorium— During the 2-year period beginning on the date of enactment of this Act, it shall be unlawful to issue an endogenously collateralized stablecoin not in existence on the date of enactment of this Act.
Endogenously collateralized stablecoin defined— In this section, the term “endogenously collateralized stablecoin” means any digital asset—
in which its issuer has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value; and
that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.
Sec. 12 Studies and reports
Study by Treasury— The Secretary of the Treasury, in consultation with the Board, the Comptroller, the Corporation, the National Credit Union Administration, and the Securities and Exchange Commission, shall carry out a study of non-payment stablecoins, including decentralized stablecoins.
Report— Not later than 365 days after the date of the enactment of this Act, the Secretary shall provide to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report that contains all findings made in carrying out the study under subsection (a), including an analysis of—
the categories of non-payment stablecoins, including the benefits and risks of technological design features;
the participants in non-payment stablecoin arrangements;
utilization and potential utilization of non-payment stablecoins;
nature of reserve compositions;
governance structure, including aspects of decentralization;
nature of public promotion and advertising; and
clarity and availability of consumer notices and disclosures.
Impact study—
In general— The Secretary of the Treasury, in consultation with the Board, the Comptroller, the Corporation, the National Credit Union Administration, and the Securities and Exchange Commission, shall carry out a study on the impact of payment stablecoins.
Report— Not later than 365 days after the date of enactment of this Act, the Secretary shall provide the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report containing all findings made in carrying out the study under paragraph (1), including an analysis of—
the impact of payment stablecoins on the cost of domestic and cross-border payments and remittances;
the role of payment stablecoins in providing access to a stable currency in the Global South;
the use of payment stablecoins by populations in the Global South to mitigate exposure to the effects of inflation;
the extent to which payment stablecoin adoption reinforces the role of the United States dollar as the world’s reserve currency; and
the extent to which payment stablecoins may expand demand for United States Treasury securities and reduce the cost of United States Government borrowing.
Sec. 13 Report on rulemaking status
Not later than 6 months after the date of enactment of this Act, the primary Federal payment stablecoin regulators shall provide a status update on the development of the rulemaking under this Act to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.
Sec. 14 Authority of banking institutions
Rule of construction— Nothing in this Act may be construed to limit the authority of a depository institution, national bank, Federal credit union, State credit union, or trust company to engage in activities permissible pursuant to applicable State and Federal law, including—
accepting or receiving deposits and issuing digital assets that represent deposits;
utilizing a distributed ledger for the books and records of the entity and to affect intrabank transfers; and
providing custodial services for payment stablecoins, private keys of payment stablecoins, or reserves backing payment stablecoins.
Regulatory review— The primary Federal payment stablecoin regulators shall review all existing regulations and guidance and, if necessary, amend such regulations or guidance or issue new regulations or guidance to clarify that regulated entities can engage in the payment stablecoin activities contemplated in, and in accordance with, this Act.
Treatment of custody activities— The appropriate Federal banking agency, the National Credit Union Administration (in the case of a credit union), and the Securities and Exchange Commission may not require a depository institution, national bank, Federal credit union, State credit union, or trust company, or any affiliate thereof (the “entity”)—
to include assets held in custody that are not owned by the entity as a liability on the financial statement or balance sheet of the entity, including payment stablecoin custody or safekeeping services;
to hold regulatory capital against assets, including reserves backing such assets described in section 4(a)(1)(A), in custody or safekeeping, except as necessary to mitigate against operational risks inherent with the custody or safekeeping services, as determined by—
the appropriate Federal banking agency;
the National Credit Union Administration (in the case of a credit union);
a State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)); or
a State credit union supervisor (as defined in section 6003 of the Anti-Money Laundering Act of 2020 (31 U.S.C. 5311 note)); and
to recognize a liability for any obligations related to activities or services performed with respect to digital assets that the entity does not own if that liability would exceed the expense recognized in the income statement as a result of the corresponding obligation.
Depository institution defined— In this section, the term “depository institution” has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
Sec. 15 Amendments to clarify that payment stablecoins are not securities
Investment Advisers Act of 1940— Section 202(a)(18) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a)(18)) is amended by adding at the end the following: “The term “security” does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined, respectively, in section 2 of the STABLE Act of 2025.”.
Investment Company Act of 1940— The Investment Company Act of 1940 is amended—
in section 2(a)(36) (15 U.S.C. 80a–2(a)(36)), by adding at the end the following: “The term “security” does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined, respectively, in section 2 of the STABLE Act of 2025.”; and
in section 3(c) (15 U.S.C. 80a–3(c)), by adding at the end the following:
“(15) Any permitted payment stablecoin issuer, as such term is defined in section 2 of the STABLE Act of 2025.”
Securities Act of 1933— Section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is amended by adding at the end the following: “The term “security” does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined, respectively, in section 2 of the STABLE Act of 2025.”.
Securities Exchange act of 1934— Section 3(a)(10) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(10)) is amended by adding at the end the following: “The term “security” does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined, respectively, in section 2 of the STABLE Act of 2025.”.
Securities Investor Protection Act of 1970— Section 16(14) of the Securities Investor Protection Act of 1970 (15 U.S.C. 78lll(14)) is amended by adding at the end the following: “The term “security” does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined, respectively, in section 2 of the STABLE Act of 2025.”.