H.R. 2392 — what changed
Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025
From Introduced in House to Reported in House. 9 sections amended between Introduced in House and Reported in House.
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
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does not include any agricultural or other physical commodity (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a).1a)).
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National currency— The term “national currency” means a Federal Reserve note, 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
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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));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
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any subsidiary of an 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—
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In general— After the end of the 2-year 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;
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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 defined determined in paragraph (5)(v)) (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
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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 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) and (vi);(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).
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Eligibility— The requirements to maintain reserves under paragraph (1)(A) may not Nothing in this Act shall be construed as expanding or contracting legal eligibility to qualify as make deposits, or hold an account, at a depository institution under section 19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 461(b)(1)(A)).reserve bank.
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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) if the permitted payment stablecoin issuer receives the prior approval of the primary Federal payment stablecoin regulator or the State payment stablecoin regulator.(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.
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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 paragraph (5)(A)(i).subparagraph (A)(i).
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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 regulation rule described in clause (ii) so that it complies with such clause (ii).
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Treatment Under the Bank Secrecy Act—
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In general— A permitted payment stablecoin issuer shall be treated as a financial institution for purposes of the Bank Secrecy Act.
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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—
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establish and maintain an anti-money laundering and countering the financing of terrorism program, which shall include—
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an appropriate risk assessment;
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the development of internal policies, procedures, and controls;
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the designation of a compliance officer;
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an ongoing employee training program; and
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an independent audit function to test such program;
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retain appropriate records of payment stablecoin transactions;
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monitor and report suspicious activity, which may include use of appropriate distributed ledger analytics; and
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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.
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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.
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Treatment under the Bank Secrecy Act— A permitted payment stablecoin issuer shall be treated as a financial institution for purposes of the Bank Secrecy Act.
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was (2)(8)
Limitation on payment stablecoin activities— A permitted payment stablecoin issuer may only—
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was (2)(8)(3)
issue payment stablecoins;
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was (2)(8)(4)
redeem payment stablecoins;
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was (2)(8)(5)
manage related reserves (including purchasing, selling, and holding reserve assets);
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was (2)(8)(6)
provide custodial or safekeeping services for payment stablecoins and private keys of payment stablecoins;
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was (2)(8)(7)
provide custodial or safekeeping services for reserves, consistent with this Act;
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was (2)(8)(8)
undertake other functions that directly support activities described in subparagraphs (A) through (E); and
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was (2)(8)(9)
undertake such non-payment stablecoin activities that are allowed by the primary Federal payment stablecoin regulator.
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was (2)(9)
Prohibition on yield— A permitted payment stablecoin issuer may not pay interest or yield to holders of its payment stablecoins.
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was (2)(10)
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.
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State-Level 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—
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In general— The Secretary of the Treasury may reject a certification under paragraph (3) (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.
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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 28.28, 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.
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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—
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section 18(a)(4) of the Federal Deposit Insurance Act (relating (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. 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.
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Authority To 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.
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Back-Up 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.
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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 bank 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)—
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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 no 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
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In general— A person may only engage in the business of providing custodial or safekeeping services for payment stablecoins issued by permitted payment stablecoins, stablecoin issuers, reserves described in section 4(a)(1)(A), or private keys of payment stablecoins issued by permitted payment stablecoins, 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.
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Customer priority— The In any insolvency, claims against reserves of a customer with respect to property of payment stablecoin issuer from persons holding payment stablecoins issued by the customer payment stablecoin issuer shall have priority over all other claims, other than for administrative expenses, against the claims of a payment stablecoin issuer or any creditor of a payment stablecoin issuer unless the customer expressly consents otherwise.issuer.
Exception— Notwithstanding paragraph (1)—
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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 an insured a depository institution or (as defined in section 3 of the Federal Deposit Insurance Act), trust company;company, Federal credit union, or State credit union;
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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); and(a);
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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.customers; and
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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
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A digital asset shall not be construed to be a payment stablecoin, stablecoin if it is—
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redeemable by the issuer 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
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if necessary, may, pursuant to section 553 of title 5 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. 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
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clarity and availability of consumer notices and disclosures.
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Impact study—
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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.
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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—
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the impact of payment stablecoins on the cost of domestic and cross-border payments and remittances;
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the role of payment stablecoins in providing access to a stable currency in the Global South;
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the use of payment stablecoins by populations in the Global South to mitigate exposure to the effects of inflation;
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the extent to which payment stablecoin adoption reinforces the role of the United States dollar as the world’s reserve currency; and
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the extent to which payment stablecoins may expand demand for United States Treasury securities and reduce the cost of United States Government borrowing.
Sec. 14 Authority of banking institutions
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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”)—
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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 activities;services;
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to hold additional 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
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a State credit union supervisor (as defined in section 6003 of the Anti-Money Laundering Act of 2020 (31 U.S.C. 5311 note));note)); and
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to recognize a liability for any obligations related to activities or services performed for 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).