---
kind: "section"
citation: "12 U.S.C. § 5906"
title: "12"
title_heading: "Banks and Banking"
number: "5906"
heading: "State qualified payment stablecoin issuers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5906"
units:
  - "Chapter 56 — Regulation of Payment Stablecoins"
---

# §5906. State qualified payment stablecoin issuers

- (a) **In general—** A [State payment stablecoin regulator](/usc/12/5901.md?p=30) shall have supervisory, examination, and enforcement authority over all [State qualified payment stablecoin issuers](/usc/12/5901.md?p=31) of such [State](/usc/12/5901.md?p=28).
- (b) **Authority to enter into agreements with the Board—** A [State payment stablecoin regulator](/usc/12/5901.md?p=30) may enter into a memorandum of understanding with the [Board](/usc/12/5901.md?p=3), by mutual agreement, under which the [Board](/usc/12/5901.md?p=3) may participate in the supervision, examination, and enforcement of this chapter with respect to the [State qualified payment stablecoin issuers](/usc/12/5901.md?p=31) of such [State](/usc/12/5901.md?p=28).
- (c) **Sharing of information—** A [State payment stablecoin regulator](/usc/12/5901.md?p=30) and the [Board](/usc/12/5901.md?p=3) shall share information on an ongoing basis with respect to a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) of such [State](/usc/12/5901.md?p=28), including a copy of the initial application and any accompanying documents.
- (d) **Rulemaking—** A [State payment stablecoin regulator](/usc/12/5901.md?p=30) may issue orders and rules under [section 5903 of this title](/usc/12/5903.md) applicable to [State qualified payment stablecoin issuers](/usc/12/5901.md?p=31) to the same extent as the [primary Federal payment stablecoin regulators](/usc/12/5901.md?p=25) issue orders and rules under [section 5903 of this title](/usc/12/5903.md) applicable to [permitted payment stablecoin issuers](/usc/12/5901.md?p=23) that are not [State qualified payment stablecoin issuers](/usc/12/5901.md?p=31).
- (e) **Enforcement authority in unusual and exigent circumstances—**
  - (1) **Board—**
    - (A) **In general—** Subject to [subparagraph (C)](#e-1-C), under unusual and exigent circumstances that the [Board](/usc/12/5901.md?p=3) determines to exist, the [Board](/usc/12/5901.md?p=3) may, after not less than 48 hours’ prior written notice to the applicable [State payment stablecoin regulator](/usc/12/5901.md?p=30), take an enforcement action against a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) or an [institution-affiliated party](/usc/12/5901.md?p=13) of such issuer for violations of this chapter during such unusual and exigent circumstances.
    - (B) **Rulemaking—** Consistent with [section 5913 of this title](/usc/12/5913.md), the [Board](/usc/12/5901.md?p=3) shall issue rules to set forth the unusual and exigent circumstances in which the [Board](/usc/12/5901.md?p=3) may act under this paragraph.
    - (C) **Limitations—** If, after unusual and exigent circumstances are determined to exist pursuant to [subparagraph (A)](#e-1-A), the [Board](/usc/12/5901.md?p=3) determines that there is reasonable cause to believe that the continuation by a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) of any activity constitutes a serious risk to the financial safety, soundness, or stability of the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31), the [Board](/usc/12/5901.md?p=3) may impose such restrictions as the [Board](/usc/12/5901.md?p=3) determines to be necessary to address such risk during such unusual and exigent circumstances, which may include limitations on redemptions of [payment stablecoins](/usc/12/5901.md?p=22), and which shall be issued in the form of a directive, with the effect of a cease and desist order that has become final, to the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) and any of its [affiliates](/usc/12/5481.md?p=1), limiting—
      - (i) transactions between the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31), a holding company, and the [subsidiaries](/usc/12/5901.md?p=32) or [affiliates](/usc/12/5481.md?p=1) of either the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) or the holding company; and
      - (ii) any activities of the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) that might create a serious risk that the liabilities of a holding company and the [affiliates](/usc/12/5481.md?p=1) of the holding company may be imposed on the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31).
    - (D) **Review of directive—**
      - (i) **Administrative review—**
        - (I) **In general—** After a directive described in [subparagraph (C)](#e-1-C) is issued, the applicable [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31), or any [institution-affiliated party](/usc/12/5901.md?p=13) of the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) subject to the directive, may object and present to the [Board](/usc/12/5901.md?p=3), in writing, the reasons why the directive should be modified or rescinded.
        - (II) **Automatic lapse of directive—** If, after 10 days after the receipt of a response described in [subclause (I)](#e-1-D-i-I), the [Board](/usc/12/5901.md?p=3) does not affirm, modify, or rescind the directive, the directive shall automatically lapse.
      - (ii) **Judicial review—**
        - (I) **In general—** If the [Board](/usc/12/5901.md?p=3) affirms or modifies a directive pursuant to [clause (i)](#e-1-D-i), any affected party may immediately thereafter petition the United States district court for the district in which the main office of the affected party is located, or in the United States District Court for the District of Columbia, to stay, modify, terminate, or set aside the directive.
        - (II) **Relief for extraordinary cause—** Upon a showing of extraordinary cause, an affected party may petition for relief under [subclause (I)](#e-1-D-ii-I) without first pursuing or exhausting the administrative remedies under [clause (i)](#e-1-D-i).
  - (2) **Comptroller—**
    - (A) **In general—** Subject to [subparagraph (C)](#e-2-C), under unusual and exigent circumstances determined to exist by the [Comptroller](/usc/12/5901.md?p=4), the [Comptroller](/usc/12/5901.md?p=4) shall, after not less than 48 hours’ prior written notice to the applicable [State payment stablecoin regulator](/usc/12/5901.md?p=30), take an enforcement action against a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) that is a [nonbank entity](/usc/12/5901.md?p=20) for violations of this chapter.
    - (B) **Rulemaking—** Consistent with [section 5913 of this title](/usc/12/5913.md), the [Comptroller](/usc/12/5901.md?p=4) shall issue rules to set forth the unusual and exigent circumstances in which the [Comptroller](/usc/12/5901.md?p=4) may act under this paragraph.
    - (C) **Limitations—** If, after unusual and exigent circumstances are determined to exist under [subparagraph (A)](#e-2-A), the [Comptroller](/usc/12/5901.md?p=4) determines that there is reasonable cause to believe that the continuation of any activity by a [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) that is a [nonbank entity](/usc/12/5901.md?p=20) constitutes a serious risk to the financial safety, soundness, or stability of the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) that is a [nonbank entity](/usc/12/5901.md?p=20), the [Comptroller](/usc/12/5901.md?p=4) shall impose such restrictions as the [Comptroller](/usc/12/5901.md?p=4) determines to be necessary to address such risk during such unusual and exigent circumstances, which may include limitations on redemption of [payment stablecoins](/usc/12/5901.md?p=22), and which shall be issued in the form of a directive, with the effect of a cease and desist order that has become final, to the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) that is a [nonbank entity](/usc/12/5901.md?p=20) and any of its [affiliates](/usc/12/5481.md?p=1), limiting—
      - (i) transactions between the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31), a holding company, and the [subsidiaries](/usc/12/5901.md?p=32) or [affiliates](/usc/12/5481.md?p=1) of either the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) or the holding company; and
      - (ii) any activities of the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) that might create a serious risk that the liabilities of a holding company and the [affiliates](/usc/12/5481.md?p=1) of the holding company may be imposed on the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31).
    - (D) **Review of directive—**
      - (i) **Administrative review—**
        - (I) **In general—** After a directive described in [subparagraph (C)](#e-2-C) is issued, the applicable [Federal qualified payment stablecoin issuer](/usc/12/5901.md?p=11), or any [institution-affiliated party](/usc/12/5901.md?p=13) of the [Federal qualified payment stablecoin issuer](/usc/12/5901.md?p=11) subject to the directive, may object and present to the [Comptroller](/usc/12/5901.md?p=4), in writing, the reasons that the directive should be modified or rescinded.
        - (II) **Automatic lapse of directive—** If, after 10 days after the receipt of a response described in [subclause (I)](#e-2-D-i-I), the [Comptroller](/usc/12/5901.md?p=4) does not affirm, modify, or rescind the directive, the directive shall automatically lapse.
      - (ii) **Judicial review—**
        - (I) **In general—** If the [Comptroller](/usc/12/5901.md?p=4) affirms or modifies a directive pursuant to [clause (i)](#e-2-D-i), any affected party may immediately thereafter petition the United States district court for the district in which the main office of the affected party is located, or in the United States District Court for the District of Columbia, to stay, modify, terminate, or set aside the directive.
        - (II) **Relief for extraordinary cause—** Upon a showing of extraordinary cause, an affected party may petition for relief under [subclause (I)](#e-2-D-ii-I) without first pursuing or exhausting the administrative remedies under [clause (i)](#e-2-D-i).
- (f) **Effect on State law—**
  - (1) **Host State law—** Notwithstanding any other provision of law, the laws of a host [State](/usc/12/5901.md?p=28), including laws relating to [consumer](/usc/12/5481.md?p=4) protection, shall only apply to the activities conducted in the host [State](/usc/12/5901.md?p=28) by an out-of-[State](/usc/12/5901.md?p=28) [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) to the same extent as such laws apply to the activities conducted in the host [State](/usc/12/5901.md?p=28) by an out-of-[State](/usc/12/5901.md?p=28) [Federal qualified payment stablecoin issuer](/usc/12/5901.md?p=11).
  - (2) **Home State law—** If any host [State](/usc/12/5901.md?p=28) law is determined not to apply under [paragraph (1)](#f-1), the laws of the home [State](/usc/12/5901.md?p=28) of the [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) shall govern the activities of the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) conducted in the host [State](/usc/12/5901.md?p=28).
  - (3) **Applicability—**
    - (A) **In general—** This subsection shall only apply to an out-of-[State](/usc/12/5901.md?p=28) [State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) chartered, licensed, or otherwise authorized to do business by a [State](/usc/12/5901.md?p=28) that has a certification in place pursuant to [section 5903(c) of this title](/usc/12/5903.md?p=c).
    - (B) **Exclusion—** The laws applicable to an out-of-[State qualified payment stablecoin issuer](/usc/12/5901.md?p=31) under [paragraph (1)](#f-1) exclude host [State](/usc/12/5901.md?p=28) laws governing the chartering, licensure, or other authorization to do business in the host [State](/usc/12/5901.md?p=28) as a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) pursuant to this chapter.
  - (4) **Rule of construction—** Except for [State](/usc/12/5901.md?p=28) laws relating to the chartering, licensure, or other authorization to do business as a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23), nothing in this chapter shall preempt [State](/usc/12/5901.md?p=28) [consumer](/usc/12/5481.md?p=4) protection laws, including common law, and the remedies available thereunder.

## Source credit

(Pub. L. 119–27, § 7, July 18, 2025, 139 Stat. 447.)

## 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. (b), (e)(1)(A), (2)(A), and (f)(3)(B), (4), 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.

### 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.