---
kind: "section"
citation: "12 U.S.C. § 5905"
title: "12"
title_heading: "Banks and Banking"
number: "5905"
heading: "Supervision and enforcement with respect to Federal qualified payment stablecoin issuers and subsidiaries of insured depository institutions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5905"
units:
  - "Chapter 56 — Regulation of Payment Stablecoins"
---

# §5905. Supervision and enforcement with respect to Federal qualified payment stablecoin issuers and subsidiaries of insured depository institutions

- (a) **Supervision—**
  - (1) **In general—** Each [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) that is not a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) with a [payment stablecoin](/usc/12/5901.md?p=22) with a consolidated total outstanding issuance of less than $10,000,000,000 shall be subject to supervision by the appropriate [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25).
  - (2) **Submission of reports—** Each [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) described in [paragraph (1)](#a-1) shall, upon request, submit to the appropriate [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) a report on—
    - (A) the financial condition of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23);
    - (B) the systems of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) for monitoring and controlling financial and operating risks;
    - (C) compliance by the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) (and any [subsidiary](/usc/12/5901.md?p=32) thereof) with this chapter; and
    - (D) the compliance of the Federal qualified nonbank [payment stablecoin](/usc/12/5901.md?p=22) issuer with the requirements of the [Bank Secrecy Act](/usc/12/5901.md?p=2) and with laws authorizing the imposition of sanctions and implemented by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury.
  - (3) **Examinations—** The appropriate [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) shall examine a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) described in [paragraph (1)](#a-1) in order to assess—
    - (A) the nature of the operations and financial condition of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23);
    - (B) the financial, operational, technological, and other risks associated within the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) that may pose a threat to—
      - (i) the safety and soundness of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23); or
      - (ii) the stability of the financial system of the United States; and
    - (C) the systems of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) for monitoring and controlling the risks described in [subparagraph (B)](#a-3-B).
  - (4) **Requirements for efficiency—**
    - (A) **Use of existing reports—** In supervising and examining a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) under this subsection, a [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) shall, to the fullest extent possible, use existing reports and other supervisory information.
    - (B) **Avoidance of duplication—** A [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) shall, to the fullest extent possible, avoid duplication of examination activities, reporting requirements, and requests for information in carrying out this subsection with respect to a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23).
    - (C) **Consideration of burden—** A [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) shall, with respect to any examination or request for the submission of a report under this subsection, only request examinations and reports at a cadence and in a format that is similar to that required for similarly situated entities regulated by the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25).
- (b) **Enforcement—**
  - (1) **Suspension or revocation of registration—** The [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) of a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) that is not a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) with a [payment stablecoin](/usc/12/5901.md?p=22) with a consolidated total outstanding issuance of less than $10,000,000,000 may prohibit the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) from issuing [payment stablecoins](/usc/12/5901.md?p=22), if the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) determines that such [permitted payment stablecoin issuer](/usc/12/5901.md?p=23), or an [institution-affiliated party](/usc/12/5901.md?p=13) of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) is willfully or recklessly violating or has willfully or recklessly violated—
    - (A) this chapter or any regulation or order issued under this chapter; or
    - (B) any condition imposed in writing by the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) in connection with a written agreement entered into between the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) and the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25).
  - (2) **Cease-and-desist proceedings—** If the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) of a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) that is not a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) with a [payment stablecoin](/usc/12/5901.md?p=22) with a consolidated total outstanding issuance of less than $10,000,000,000 has reasonable cause to believe that the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) or any [institution-affiliated party](/usc/12/5901.md?p=13) of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) is violating, has violated, or is attempting to violate this chapter, any regulation or order issued under this chapter, or any written agreement entered into with the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) or condition imposed in writing by the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) in connection with any application or other request, the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) may, by provisions that are mandatory or otherwise, order the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) or [institution-affiliated party](/usc/12/5901.md?p=13) of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) to—
    - (A) cease and desist from such violation or practice; or
    - (B) take affirmative action to correct the conditions resulting from any such violation or practice.
  - (3) **Removal and prohibition authority—** The [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) of a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) that is not a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) may remove an [institution-affiliated party](/usc/12/5901.md?p=13) of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) from the position or office of that [institution-affiliated party](/usc/12/5901.md?p=13) or prohibit further participation in the affairs of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) or of all such [permitted payment stablecoin issuers](/usc/12/5901.md?p=23) by that [institution-affiliated party](/usc/12/5901.md?p=13), if the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) determines that—
    - (A) the [institution-affiliated party](/usc/12/5901.md?p=13) has knowingly committed a violation or attempted violation of this chapter or any regulation or order issued under this chapter; or
    - (B) the [institution-affiliated party](/usc/12/5901.md?p=13) has knowingly committed a violation of any provision of subchapter II of chapter 53 of title 31.
  - (4) **Procedures—**
    - (A) **In general—** If a [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) identifies a violation or attempted violation of this chapter or makes a determination under paragraph [(1)](#b-1), [(2)](#b-2), or [(3)](#b-3), the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) shall comply with the procedures set forth in subsections (b) and (e) of [section 1818 of this title](/usc/12/1818.md) or subsections (e) and (g) of [section 1786 of this title](/usc/12/1786.md), as applicable.
    - (B) **Judicial review—** A [person](/usc/12/5901.md?p=24) aggrieved by a final action under this subsection may obtain judicial review of such action exclusively as provided in [section 1818(h) of this title](/usc/12/1818.md?p=h) or [section 1786(j) of this title](/usc/12/1786.md?p=j), as applicable.
    - (C) **Injunction—** A [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) may, at the discretion of the regulator, follow the procedures provided in [section 1818(i)(1) of this title](/usc/12/1818.md?p=i-1) or [section 1786(k)(1) of this title](/usc/12/1786.md?p=k-1), as applicable, for judicial enforcement of any effective and outstanding notice or order issued under this subsection.
    - (D) **Temporary cease-and-desist proceedings—** If a [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) determines that a violation or attempted violation of this chapter or an action with respect to which a determination was made under paragraph [(1)](#b-1), [(2)](#b-2), or [(3)](#b-3), or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23), or is likely to weaken the condition of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) or otherwise prejudice the interests of the customers of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) prior to the completion of the proceedings conducted under this paragraph, the [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) may follow the procedures provided in [section 1818(c) of this title](/usc/12/1818.md?p=c) or [section 1786(f) of this title](/usc/12/1786.md?p=f), as applicable, to issue a temporary cease and desist order.
  - (5) **Civil money penalties—** Unless otherwise specified in this chapter, the civil [money](/usc/12/5901.md?p=18) penalties for violations of this chapter consist of the following:
    - (A) **Failure to be approved—** Any [person](/usc/12/5901.md?p=24) that issues a United States dollar-denominated [payment stablecoin](/usc/12/5901.md?p=22) in violation of [section 5902 of this title](/usc/12/5902.md), and any [institution-affiliated party](/usc/12/5901.md?p=13) of such a [person](/usc/12/5901.md?p=24) who knowingly participates in issuing such a [payment stablecoin](/usc/12/5901.md?p=22), shall be liable for a civil penalty of not more than $100,000 for each day during which such [payment stablecoins](/usc/12/5901.md?p=22) are issued.
    - (B) **First tier—** Except as provided in [subparagraph (A)](#b-5-A), a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) or [institution-affiliated party](/usc/12/5901.md?p=13) of such [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) that materially violates this chapter or any regulation or order issued under this chapter, or that materially violates any condition imposed in writing by the appropriate [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) in connection with a written agreement entered into between the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) and that [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25), shall be liable for a civil penalty of not more than $100,000 for each day during which the violation continues.
    - (C) **Second tier—** Except as provided in [subparagraph (A)](#b-5-A), and in addition to the penalties described in [subparagraph (B)](#b-5-B), a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) or [institution-affiliated party](/usc/12/5901.md?p=13) of such [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) who knowingly participates in a violation of any provision of this chapter, or any regulation or order issued under this chapter, shall be liable for a civil penalty of not more than an additional $100,000 for each day during which the violation continues.
    - (D) **Procedure—** Any penalty imposed under this paragraph may be assessed and collected by the appropriate [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) pursuant to the procedures set forth in [section 1818(i)(2) of this title](/usc/12/1818.md?p=i-2) or [section 1786(k)(2) of this title](/usc/12/1786.md?p=k-2), as applicable.
    - (E) **Notice and orders after separation from service—** The resignation, termination of employment or participation, or separation of an [institution-affiliated party](/usc/12/5901.md?p=13) (including a separation caused by the closing of a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23)) shall not affect the jurisdiction and authority of a [primary Federal payment stablecoin regulator](/usc/12/5901.md?p=25) 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 on which such party ceased to be an [institution-affiliated party](/usc/12/5901.md?p=13) with respect to such [permitted payment stablecoin issuer](/usc/12/5901.md?p=23).
  - (6) **Non-applicability to a State qualified payment stablecoin issuer—** Notwithstanding anything in this subsection to the contrary, this subsection shall not apply to a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31).
- (c) **Rule of construction—** Nothing in this chapter may be construed to modify or otherwise affect any right or remedy under any [Federal consumer financial law](/usc/12/5481.md?p=14), including [12 U.S.C. 5515](/usc/12/5515.md) and [15 U.S.C. 41](/usc/15/41.md) et seq.

## Source credit

(Pub. L. 119–27, § 6, July 18, 2025, 139 Stat. 443.)

## Notes

### Delayed Effective Date of Section

For delayed effective date of section, see Effective Date note below.

### Editorial Notes

### References in Text

This chapter, referred to in subsecs. (a)(2)(C), (b) and (c), was in the original “this Act”, meaning Pub. L. 119–27, July 18, 2025, 139 Stat. 419, known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act and also as the GENIUS Act, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 5901 of this title and Tables.

12 U.S.C. 5515, referred to in subsec. (c), was so in the original, but probably should have been a reference to section 1025 of the Consumer Financial Protection Act of 2010, title X of Pub. L. 111–203, which is classified to section 5515 of this title.

15 U.S.C. 41 et seq., referred to in subsec. (c), was so in the original, but probably should have been a reference to the Federal Trade Commission Act, act Sept. 26, 1914, ch. 311, which is classified generally to subchapter I (§ 41 et seq.) of chapter 2 of Title 15, Commerce and Trade.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the earlier of the date that is 18 months after July 18, 2025, or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, see section 20 of Pub. L. 119–27, set out as a note under section 5901 of this title.