Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 or the GENIUS Act of 2025
This bill establishes a regulatory framework for payment stablecoins (digital assets which an issuer must redeem for a fixed value).
Under the bill, only permitted issuers may issue a payment stablecoin for use by U.S. persons, subject to certain exceptions. Permitted issuers must be a subsidiary of an insured depository institution, a federal-qualified nonbank payment stablecoin issuer, or a state-qualified payment stablecoin issuer. Permitted issuers must be regulated by the appropriate federal or state regulator. Permitted issuers may choose federal or state regulation; however, state regulation is limited to those with a stablecoin issuance of $10 billion or less.
Permitted issuers must maintain reserves backing the stablecoin on a one-to-one basis using U.S. currency or other similarly liquid assets, as specified. Permitted issuers must also publicly disclose their redemption policy and publish monthly the details of their reserves.
The bill specifies requirements for (1) reusing reserves; (2) providing safekeeping services for stablecoins; and (3) supervisory, examination, and enforcement authority over federal-qualified issuers.
The bill allows foreign issuers to offer stablecoins in the United States if the issuer has the capability to comply with lawful orders. The Department of the Treasury must establish reciprocal agreements between the United States and similarly regulated jurisdictions.
Under the bill, permitted payment stablecoins are not considered securities under securities law. However, permitted issuers are subject to the Bank Secrecy Act for anti-money laundering and related purposes.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 919 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 919
To provide for the regulation of payment stablecoins, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 10, 2025
Mr. Hagerty (for himself, Mr. Scott of South Carolina, Mrs. Gillibrand,
Ms. Lummis, and Ms. Alsobrooks) introduced the following bill; which
was read twice and referred to the Committee on Banking, Housing, and
Urban Affairs
_______________________________________________________________________
A BILL
To provide for the regulation of payment stablecoins, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Guiding and Establishing National
Innovation for U.S. Stablecoins Act of 2025'' or the ``GENIUS Act of
2025''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Bank secrecy act.--The term ``Bank Secrecy Act''
means--
(A) section 21 of the Federal Deposit Insurance Act
(12 U.S.C. 1829b);
(B) chapter 2 of title I of Public Law 91-508 (12
U.S.C. 1951 et seq.); and
(C) subchapter II of chapter 53 of title 31, United
States Code.
(2) Board.--The term ``Board'' means the Board of Governors
of the Federal Reserve System.
(3) Comptroller.--The term ``Comptroller'' means the Office
of the Comptroller of the Currency.
(4) Comptroller-regulated entity.--The term ``Comptroller-
regulated entity'' means--
(A) any Federal qualified nonbank payment
stablecoin issuer that is subject to regulation and
supervision exclusively by the Comptroller, pursuant to
section 4(a)(7); and
(B) any entity chartered by the Comptroller.
(5) Corporation.--The term ``Corporation'' means the
Federal Deposit Insurance Corporation.
(6) Digital asset.--The term ``digital asset'' means any
digital representation of value which is recorded on a
cryptographically secured distributed ledger.
(7) Distributed ledger.--The term ``distributed ledger''
means technology in which data is shared across a network that
creates a public digital ledger of verified transactions or
information among network participants and cryptography is used
to link the data to maintain the integrity of the public ledger
and execute other functions.
(8) Federal qualified nonbank payment stablecoin issuer.--
The term ``Federal qualified nonbank payment stablecoin
issuer'' means a nonbank entity, other than a State qualified
payment stablecoin issuer, approved by the Comptroller,
pursuant to section 5, to issue payment stablecoins.
(9) Institution-affiliated party.--With respect to a
permitted payment stablecoin issuer, the term ``institution-
affiliated party'' means any director, officer, employee, or
controlling stockholder of the permitted payment stablecoin
issuer.
(10) Insured depository institution.--The term ``insured
depository institution'' means--
(A) an insured depository institution, as defined
in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813); and
(B) an insured credit union, as defined in section
101 of the Federal Credit Union Act (12 U.S.C. 1752).
(11) Monetary value.--The term ``monetary value'' means a
national currency or deposit (as defined in section 3 of the
Federal Deposit Insurance Act) denominated in a national
currency.
(12) Money.--The term ``money'' means any financial
instrument that is--
(A) legal tender;
(B) required to be received by a taxing authority
in satisfaction of tax obligations; or
(C) widely accepted in an economy for the payment
of goods or services.
(13) National currency.--The term ``national currency''
means each of the following:
(A) 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)).
(B) Money standing to the credit of an account with
a Federal Reserve Bank.
(C) Money issued by a foreign central bank.
(D) Money issued by an intergovernmental
organization pursuant to an agreement by 1 or more
governments.
(14) Nonbank entity.--The term ``nonbank entity'' means a
person that is not a depository institution or subsidiary of a
depository institution.
(15) Payment stablecoin.--The term ``payment stablecoin''--
(A) means a digital asset--
(i) that is or is designed to be used as a
means of payment or settlement; and
(ii) the issuer of which--
(I) is obligated to convert,
redeem, or repurchase for a fixed
amount of monetary value, not including
a digital asset denominated in a fixed
amount of monetary value;
(II) represents that such issuer
will maintain or creates the reasonable
expectation that it will maintain a
stable value relative to the value of a
fixed amount of monetary value; or
(III) has complied with the
authorization requirements of this Act;
and
(B) that--
(i) is not a national currency;
(ii) is not a deposit (as defined in
section 3 of the Federal Deposit Insurance
Act), including a deposit recorded using
distributed ledger technology;
(iii) does not offer a payment of yield or
interest; and
(iv) is not a security, as defined in
section 2 of the Securities Act of 1933 (15
U.S.C. 77b), section 3 of the Securities
Exchange Act of 1934 (15 U.S.C. 78c), or
section 2 of the Investment Company Act of 1940
(15 U.S.C. 80a-2), other than a bond, note,
evidence of indebtedness, or investment
contract satisfying the conditions described in
subparagraph (A).
(16) Permitted payment stablecoin issuer.--The term
``permitted payment stablecoin issuer'' means a person
incorporated in the United States that is--
(A) a subsidiary of an insured depository
institution that has been approved to issue payment
stablecoins under section 5;
(B) a Federal qualified nonbank payment stablecoin
issuer that has been approved to issue payment
stablecoins under section 5; or
(C) a State qualified payment stablecoin issuer.
(17) Person.--The term ``person'' means an individual,
partnership, company, corporation, association, trust, estate,
cooperative organization, or other business entity,
incorporated or unincorporated.
(18) Primary federal payment stablecoin regulator.--The
term ``primary Federal payment stablecoin regulator'' means--
(A) with respect to a subsidiary of an insured
depository institution (other than an insured credit
union), the appropriate Federal banking agency (as
defined under section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813)) of such insured
depository institution;
(B) with respect to an insured credit union or a
subsidiary of an insured credit union, the National
Credit Union Administration;
(C) with respect to a State chartered depository
institution not specified under subparagraph (A), the
Corporation, the Comptroller, or the Board; and
(D) with respect to a Federal qualified nonbank
payment stablecoin issuer or any entity chartered by
the Comptroller, the Comptroller.
(19) 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).
(20) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and each
territory of the United States.
(21) State qualified payment stablecoin issuer.--The term
``State qualified payment stablecoin issuer'' means an entity
that is legally established under the laws of a State and
approved to issue payment stablecoins by a State payment
stablecoin regulator.
(22) 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.
(23) State chartered depository institution.--The term
``State chartered depository institution'' has the meaning
given the term ``State depository institution'' in section 3(c)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).
(24) Subsidiary of an insured credit union.--With respect
to an insured credit union, the term ``subsidiary of an insured
credit union'' means--
(A) 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)); and
(B) 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.
SEC. 3. ISSUANCE AND TREATMENT OF PAYMENT STABLECOINS.
(a) Issue.--It shall be unlawful for any person other than a
permitted payment stablecoin issuer to issue a payment stablecoin in
the United States.
(b) Treatment.--A payment stablecoin that is not issued by a
permitted payment stablecoin issuer shall not be acceptable as a
settlement asset to facilitate wholesale payments between banking
organizations or by a payment infrastructure to facilitate exchange and
settlement among banking organizations.
(c) Penalty for Violation.--
(1) In general.--Whoever knowingly participates in a
violation of subsection (a) shall be fined not more than
$1,000,000 for each such violation, imprisoned for not more
than 5 years, or both.
(2) Referral to attorney general.--If a primary Federal
payment stablecoin regulator has reason to believe that any
person has knowingly violated subsection (a), the primary
Federal payment stablecoin regulator shall refer the matter to
the Attorney General.
SEC. 4. REQUIREMENTS FOR ISSUING PAYMENT STABLECOINS.
(a) Standards for the Issuance of Payment Stablecoins.--
(1) In general.--Permitted payment stablecoin issuers
shall--
(A) maintain reserves backing the outstanding
payment stablecoins of the permitted payment stablecoin
issuer on an at least a 1 to 1 basis, with reserves
comprising--
(i) United States coins and currency
(including Federal reserve notes) or money
standing to the credit of an account with a
Federal Reserve Bank;
(ii) funds held as demand deposits (or
other deposits that may be withdrawn upon
request at any time) or insured shares at an
insured depository institution (including any
foreign branches and agencies of an insured
depository institution), subject to limitations
established by the Corporation and the National
Credit Union Administration, as applicable, to
address safety and soundness risks of such
insured depository institution;
(iii) Treasury bills, notes, or bonds--
(I) with a remaining maturity of 93
days or less; or
(II) issued with a maturity of 93
days or less;
(iv) repurchase agreements with the
permitted payment stablecoin issuer acting as a
seller of securities and with an overnight
maturity that are backed by Treasury bills with
a maturity of 93 days or less;
(v) reverse repurchase agreements with the
permitted payment stablecoin issuer acting as a
purchaser of securities and with an overnight
maturity that are collateralized by Treasury
notes, bills, or bonds on an overnight basis,
subject to overcollateralization in line with
standard market terms, that are--
(I) tri-party;
(II) centrally cleared through a
clearing house registered with the
Securities and Exchange Commission; or
(III) bilateral with a counterparty
that the issuer has determined to be
adequately creditworthy even in the
event of severe market stress;
(vi) securities issued by an investment
company registered under section 8(a) of the
Investment Company Act of 1940 (15 U.S.C. 80a-
8(a)) that operates as a money market fund in
compliance with rule 2a-7 issued under that Act
(or any successor rule) and that are invested
solely in underlying assets described in
clauses (i) through (iv) of subparagraph (A);
(vii) any other similarly liquid asset
approved by the primary Federal payment
stablecoin regulator, in consultation with the
State payment stablecoin regulator, if
applicable, of the permitted payment stablecoin
issuer; or
(viii) any reserve described in clauses (i)
through (vii) in tokenized form, provided that
such reserves comply with all applicable laws
and regulations;
(B) publicly disclose the issuer's redemption
policy;
(C) establish procedures for timely redemption of
outstanding payment stablecoins; and
(D) publish the monthly composition of the issuer's
reserves on the website of the issuer, containing--
(i) the total number of outstanding payment
stablecoins issued by the issuer; and
(ii) the amount and composition of the
reserves described under subparagraph (A).
(2) Prohibition on rehypothecation.--Reserves required
under paragraph (1)(A) may not be pledged, rehypothecated, or
reused by the permitted payment stablecoin issuer, either
directly or indirectly, except for the purpose of--
(A) satisfying margin obligations in connection
with investments in permitted reserves under clauses
(iv) and (v) of paragraph (1)(A);
(B) satisfying obligations associated with the use
or receipt of provision of standard custodial services;
or
(C) creating liquidity to meet reasonable
expectations of requests to redeem payment stablecoins,
such that reserves in the form of Treasury bills may be
sold as purchased securities for repurchase agreements
with a maturity of 93 days or less, provided that
either--
(i) the repurchase agreements are cleared
by a clearing agency registered with the
Securities and Exchange Commission; or
(ii) the permitted payment stablecoin
issuer receives the prior approval of its
primary Federal payment stablecoin regulator or
State payment stablecoin regulator, as
applicable.
(3) Monthly certification; examination of reports by
registered public accounting firm.--
(A) 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 a registered public
accounting firm.
(B) Certification.--Each month, the Chief Executive
Officer and Chief Financial Officer of a permitted
payment stablecoin issuer shall submit a certification
as to the accuracy of the monthly report to, as
applicable--
(i) the primary Federal payment stablecoin
regulator of the permitted payment stablecoin
issuer; or
(ii) the State payment stablecoin regulator
of the permitted payment stablecoin issuer.
(C) Criminal penalty.--Any person who submits a
certification required under subparagraph (B) knowing
that such certification is false shall be subject to
the criminal penalties set forth under section 1350(c)
of title 18, United States Code.
(4) Capital, liquidity, and risk management requirements.--
(A) In general.--The primary Federal payment
stablecoin regulators shall, jointly, or in the case of
a State qualified payment stablecoin issuer, the State
payment stablecoin regulator shall, consistent with
section 18, issue--
(i) capital requirements applicable to
permitted payment stablecoin issuers that--
(I) are tailored to the business
model and risk profile of permitted
payment stablecoin issuers;
(II) do not exceed requirements
which are sufficient to ensure the
ongoing operations of permitted payment
stablecoin issuers; and
(III) in the case of the primary
Federal payment stablecoin regulators,
if the primary Federal payment
stablecoin regulators determine that a
capital buffer is necessary to ensure
the ongoing operations of permitted
payment stablecoin issuers, may include
capital buffers that are tailored to
the business model and risk profile of
permitted payment stablecoin issuers;
(ii) regulations implementing the liquidity
standard under clause (i);
(iii) reserve asset diversification and
interest rate risk management standards
applicable to permitted payment stablecoin
issuers that--
(I) are tailored to the business
model and risk profile of permitted
payment stablecoin issuers; and
(II) do not exceed standards which
are sufficient to ensure the ongoing
operations of permitted payment
stablecoin issuers; and
(iv) appropriate operational, compliance,
and information technology risk management
standards, including Bank Secrecy Act and
sanctions compliance, that--
(I) are tailored to the business
model and risk profile of permitted
payment stablecoin issuers; and
(II) are consistent with applicable
law.
(B) Rule of construction.--Nothing in this
paragraph shall be construed to limit--
(i) the authority of the primary Federal
regulators, in prescribing standards under this
paragraph, to tailor or differentiate among
issuers on an individual basis or by category,
taking into consideration the capital
structure, business model risk profile,
complexity, financial activities (including
financial activities of subsidiaries), size,
and any other risk related factors of permitted
payment stablecoin issuers that the primary
Federal regulator determines appropriate,
provided that such tailoring or differentiation
occurs without respect to whether a permitted
payment stablecoin issuer is regulated by a
State payment stablecoin regulator; or
(ii) the supervisory, regulatory, or
enforcement authority of a Federal banking
agency to further the safe and sound operation
of an institution for which the Federal banking
agency is the appropriate Federal banking
agency (as defined under section 3 of the
Federal Deposit Insurance Act (12 U.S.C.
1813)).
(C) Applicability of existing capital standards.--
(i) Definitions.--In this subparagraph--
(I) ``appropriate Federal banking
agency'' has the meaning given that
term in section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C.
1813(q)); and
(II) ``depository institution
holding company'' has the meaning given
that term under section 171(a)(3) of
the Financial Stability Act of 2010 (12
U.S.C. 5371(a)(3)).
(ii) Applicability of financial stability
act.--With respect to the promulgation of rules
under subparagraph (A) and clauses (iii) and
(iv) of this subparagraph, section 171 of the
Financial Stability Act of 2010 (12 U.S.C.
5371) shall not apply.
(iii) Rules relating to leverage capital
requirements or risk-based capital
requirements.--Any rule issued by an
appropriate Federal banking agency that
imposes, on a consolidated basis, a leverage
capital requirement or risk-based capital
requirement with respect to an insured
depository institution or depository
institution holding company shall provide that,
for purposes of such leverage capital
requirement or risk-based capital requirement,
any insured depository institution or
depository institution holding company that
includes, on a consolidated basis, a permitted
payment stablecoin issuer shall not be required
to hold, with respect to such 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 (1)(A)(i).
(iv) Modifications.--Not later than the
earlier of the rulemaking deadline under
section 18 or the date the Federal payment
stablecoin regulators issue regulations to
carry out this section, each appropriate
Federal banking agency shall amend or otherwise
modify any regulation of the Federal banking
agency described in clause (iii) so that such
regulation, as amended or otherwise modified,
complies with clause (iii) of this
subparagraph.
(5) Treatment under the bank secrecy act and sanctions
laws.--
(A) In general.--A permitted payment stablecoin
issuer shall be treated as a financial institution for
purposes of the Bank Secrecy Act, and as such, shall be
subject to all Federal laws applicable to a financial
institution located in the United States relating to
economic sanctions, prevention of money laundering,
customer identification, and due diligence, including--
(i) maintenance of an effective anti-money
laundering and economic sanctions compliance
program, which shall include appropriate risk
assessments, verification of sanctions lists
and designation of an officer to supervise the
programs;
(ii) retention of appropriate records of
payment stablecoin transactions;
(iii) monitoring and reporting suspicious
activity;
(iv) policies and procedures to block,
freeze, and reject specific or impermissible
transactions that violate Federal or State
laws, rules, or regulations; and
(v) maintenance of an effective customer
identification program, including
identification and verification of account
holders with the permitted payment stablecoin
issuer, high value transactions and appropriate
enhanced due diligence.
(B) Rulemaking.--The Financial Crimes Enforcement
Network shall adopt rules, tailored to the size and
complexity of the permitted payment stablecoin issuer,
to implement subparagraph (A).
(6) Coordination with permitted payment stablecoin issuers
with respect to blocking of property and technological
capabilities to comply with lawful orders.--
(A) In general.--The Secretary of the Treasury--
(i) shall, to the best of the Secretary's
ability, coordinate with a permitted payment
stablecoin issuer before taking any action to
block and prohibit transactions in property and
interests in property of a foreign person to
ensure that the permitted payment stablecoin
issuer is able to effectively block a digital
asset of the foreign person upon issue of the
digital asset; and
(ii) is not required to notify any
permitted payment stablecoin issuer of any
intended action described in clause (i) prior
to taking such action.
(B) Compliance with lawful orders.--
(i) In general.--
(I) Permitted payment stablecoin
issuers.--A permitted payment
stablecoin issuer may issue payment
stablecoins only if the issuer has the
technological capability to comply and
will comply with the terms of any
lawful order.
(II) Foreign payment stablecoins.--
A foreign payment stablecoin that is
not licensed under this Act may not be
publicly offered, sold, or otherwise
made available for trading in the
United States unless the payment
stablecoin issuer has the technological
capability to comply and will comply
with the terms of any lawful order.
(ii) Lawful order defined.--In this
paragraph, the term ``lawful order'' means any
final and valid writ, process, order, rule,
decree, command, or other requirement issued or
promulgated under Federal law, issued by a
court of competent jurisdiction or by an
authorized Federal agency pursuant to its
statutory authority, that--
(I) requires the permitted payment
stablecoin issuer to seize, freeze,
burn, or prevent the transfer of
payment stablecoins issued by the
permitted payment stablecoin issuer;
(II) specifies the digital assets
or accounts subject to blocking with
reasonable particularity; and
(III) is subject to judicial or
administrative review or appeal as
provided by law.
(C) Report required.--Not later than 1 year after
the date of enactment of this Act, the Secretary of the
Treasury shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives a report on the coordination with
permitted payment stablecoin issuers required under
subparagraph (A).
(7) Limitation on payment stablecoin activities.--
(A) In general.--A permitted payment stablecoin
issuer may only--
(i) issue payment stablecoins;
(ii) redeem payment stablecoins;
(iii) manage related reserves, including
purchasing, selling, and holding reserve assets
or providing custodial services for reserve
assets, consistent with State and Federal law;
(iv) provide custodial or safekeeping
services for payment stablecoins, required
reserves, or private keys of payment
stablecoins, consistent with this Act; and
(v) undertake other activities that
directly support any of the activities
described in clauses (i) through (iv).
(B) Rule of construction.--Nothing in subparagraph
(A) shall prevent a permitted payment stablecoin issuer
from engaging in non-payment stablecoin activities that
are allowed by the primary Federal payment stablecoin
regulator or the State payment stablecoin regulator, as
applicable.
(8) Prohibition on tying.--
(A) In general.--A permitted payment stablecoin
issuer may not provide services to a customer on the
condition that the customer obtain an additional paid
product or service from the permitted payment
stablecoin issuer, or any of its subsidiaries, or agree
to not obtain an additional product or service from a
competitor.
(B) Regulations.--The Board may issue such
regulations as are necessary to carry out this
subparagraph, and, in consultation with the Comptroller
and the Corporation, may by regulation or order, permit
such exceptions to clause (i) as the Board considers
will not be contrary to the purpose of this Act.
(9) Regulation by the comptroller.--
(A) In general.--A Federal qualified nonbank
payment stablecoin issuer shall be regulated and
supervised exclusively by the Comptroller, which shall
have authority, in coordination with other relevant
primary Federal payment stablecoin regulators and State
payment stablecoin regulators, to issue such
regulations and orders as necessary to ensure financial
stability and implement this subsection.
(B) Conforming amendment.--Section 324(b) of the
Revised Statutes (12 U.S.C. 1(b)) is amended by adding
at the end the following:
``(3) Regulation of federal qualified nonbank payment
stablecoin issuers.--The Comptroller of the Currency shall, in
coordination with other relevant regulators and consistent with
section 18 of the Guiding and Establishing National Innovation
for U.S. Stablecoins Act of 2025, issue such regulations and
orders as necessary to ensure financial stability and implement
section 4(a) of that Act.''.
(10) Audits and reports.--
(A) Annual financial statement.--
(i) In general.--A permitted payment
stablecoin issuer with more than
$50,000,000,000 in consolidated total
outstanding issuance, that is not subject to
the reporting requirements under sections 13(a)
or 15(d) of the Securities and Exchange Act of
1934 (15 U.S.C. 78m, 78o(d)), shall prepare, in
accordance with generally accepted accounting
principles, an annual financial statement,
which shall include the disclosure of any
related party transactions, as defined by such
generally accepted accounting principles.
(ii) Auditor.--A registered public
accounting firm shall perform an audit of the
annual financial statements described in clause
(i).
(iii) Standards.--An audit described in
clause (ii) shall be conducted in accordance
with all applicable auditing standards
established by the Public Company Accounting
Oversight Board, including those relating to
auditor independence, internal controls, and
related party transactions.
(iv) Rule of construction.--Nothing in this
subparagraph shall be construed to limit,
alter, or expand the jurisdiction of the Public
Company Accounting Oversight Board over
permitted payment stablecoin issuers or
registered public accounting firms.
(B) Public disclosure and submission to federal
regulators.--Each permitted payment stablecoin issuer
required to prepare an audited annual financial
statement under subparagraph (A) shall:
(i) make such audited financial statements
publicly available on the website of the
permitted payment stablecoin issuer; and
(ii) submit such audited financial
statements annually to their primary Federal
payment stablecoin regulator.
(C) Consultation.--The primary Federal payment
stablecoin regulators may consult with the Public
Company Accounting Oversight Board to determine best
practices for determining audit oversight and to detect
fraud, material misstatements, and other financial
misrepresentations that could mislead permitted payment
stablecoin holders.
(b) State-Level Regulatory Regimes.--
(1) Option for state-level regulatory regime.--
Notwithstanding the Federal regulatory framework established
under subsection (a), a State qualified payment stablecoin
issuer with a consolidated total outstanding issuance of not
more than $10,000,000,000 may opt for regulation under a State-
level regulatory regime, provided that the State-level
regulatory regime is substantially similar to the Federal
regulatory framework under that subsection.
(2) Principles.--The Secretary of the Treasury shall,
through notice and comment rulemaking, establish broad based
principles for determining whether a State-level regulatory
regime is substantially similar to the Federal regulatory
framework under subsection (a).
(3) Review.--State payment stablecoin regulators shall
review State-level regulatory regimes according to the
principles established by the Secretary of the Treasury under
paragraph (2) and for the purposes of establishing any
necessary cooperative agreements to implement section 7(f).
(4) Certification.--
(A) Initial certification.--Subject to subparagraph
(B), not later than 1 year after the effective date of
this Act, a State payment stablecoin regulator shall
submit to the Secretary of the Treasury an initial
certification that the State-level regulatory regime
meets the criteria for substantial similarity
established pursuant to paragraph (2).
(B) Form of certification.--The initial
certification required under subparagraph (A) shall
contain, in a form prescribed by the Secretary of the
Treasury, an attestation that the State-level
regulatory regime meets the criteria for substantial
similarity established pursuant to paragraph (2).
(C) Annual recertification.--Not later than a date
to be determined by the Secretary each year, a State
payment stablecoin regulator shall submit to the
Secretary of the Treasury an additional certification
that confirms the accuracy of initial certification
submitted under subparagraph (A).
(5) Not substantially similar.--
(A) In general.--If a State payment stablecoin
regulator determines that the criteria established
under paragraph (2) are not met and the State payment
stablecoin regulator does not submit a certification
under paragraph (4), then a permitted payment
stablecoin issuer operating under this subsection shall
be subject to the Federal regulatory framework as
described in subsection (c), notwithstanding the total
issuance threshold therein.
(B) Treasury review.--Not later than 30 days after
the date of receipt of a certification under paragraph
(4), the Secretary may reject the certification if the
Secretary determines that the State-level regulatory
regime is not substantially similar to the Federal
regulatory framework under subsection (a), and the
permitted payment stablecoin issuer shall be subject to
the Federal regulatory framework as described in
subsection (c), notwithstanding the total issuance
threshold therein.
(C) Appellate review.--A State payment stablecoin
regulator may challenge the determination of the
Secretary of the Treasury under this paragraph in the
United States Court of Appeals for the District of
Columbia Circuit.
(6) List.--The Secretary of the Treasury shall publish and
maintain in the Federal Register and on the website of the
Department of the Treasury a list of States that have submitted
initial certifications and recertifications under paragraph
(4).
(c) Transition to Federal Oversight.--
(1) Depository institution.--A State chartered depository
institution that is a State qualified payment stablecoin issuer
with a payment stablecoin with a consolidated total outstanding
issuance of more than $10,000,000,000 shall--
(A) not later than 360 days after the payment
stablecoin reaches such threshold, transition to the
Federal regulatory framework of the primary Federal
payment stablecoin regulator of the State chartered
depository institution, which shall be administered by
the State payment stablecoin regulator of the State
chartered depository institution and the primary
Federal payment stablecoin regulator acting jointly; or
(B) beginning on the date the payment stablecoin
reaches such threshold, cease issuing new payment
stablecoins until the payment stablecoin is under the
$10,000,000,000 consolidated total outstanding issuance
threshold.
(2) Other institutions.--A State qualified payment
stablecoin issuer not described in paragraph (1) with a payment
stablecoin with a consolidated total outstanding issuance of
more than $10,000,000,000 shall--
(A) not later than 360 days after the payment
stablecoin reaches such threshold, transition to the
Federal regulatory framework under subsection (a)
administered by the State payment stablecoin regulator
of the State qualified payment stablecoin issuer; or
(B) beginning on the date the payment stablecoin
reaches such threshold, cease issuing new payment
stablecoins until the payment stablecoin is under the
$10,000,000,000 consolidated total outstanding issuance
threshold.
(3) Waiver.--
(A) In general.--Notwithstanding paragraphs (1) and
(2), the applicable primary Federal payment stablecoin
regulator may permit a State qualified payment
stablecoin issuer with a payment stablecoin with a
consolidated total outstanding issuance of more than
$10,000,000,000 to remain solely supervised by a State
payment stablecoin regulator.
(B) Criteria for waiver.--The primary Federal
payment stablecoin regulator shall consider the
following exclusive criteria in determining whether to
issue a waiver under this paragraph:
(i) The capital maintained by the State
qualified payment stablecoin issuer.
(ii) The past operations and examination
history of the State qualified payment
stablecoin issuer.
(iii) The experience of the State payment
stablecoin regulator in supervising payment
stablecoin and digital asset activities.
(iv) The laws and rules applicable to, and
the supervisory framework of, the State
qualified payment stablecoin issuer with
respect to payment stablecoins and digital
assets.
(C) Rule of construction.--A State qualified
payment stablecoin issuer subject to Federal oversight
under paragraph (1) or (2) of this subsection that does
not receive a waiver under this paragraph shall
continue to be supervised by the State payment
stablecoin regulator of the State qualified payment
stablecoin issuer along jointly with the primary
Federal payment stablecoin regulator. Nothing in this
subsection shall require the State qualified payment
stablecoin issuer to convert to a Federal charter.
(d) Misrepresentation of Insured Status; Marketing.--
(1) In general.--Payment stablecoins shall not be backed by
the full faith and credit of the United States, guaranteed by
the United States Government, subject to deposit insurance by
the Federal Deposit Insurance Corporation, or subject to share
insurance by the National Credit Union Administration.
(2) Misrepresentation of insured status.--
(A) In general.--It shall be unlawful to represent
that payment stablecoins are 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.
(B) Penalty.--A violation of subparagraph (A) shall
be considered a violation of section 18(a)(4) of the
Federal Deposit Insurance Act (12 U.S.C. 1828(a)(4)) or
section 709 of title 18, United States Code, as
applicable.
(3) Marketing.--It shall be unlawful to market a digital
asset in the United States as a payment stablecoin unless the
digital asset is issued pursuant to this Act.
(e) Officers or Directors Convicted of Certain Felonies.--
(1) In general.--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--
(A) an officer of a payment stablecoin issuer; or
(B) a director of a payment stablecoin issuer.
(2) Penalty.--
(A) In general.--Whoever knowingly participates in
a violation of paragraph (1) shall be fined not more
than $1,000,000 for each such violation, imprisoned for
not more than 5 years; or both.
(B) Referral to attorney general.--If a Federal
payment stablecoin regulator has reason to believe that
any person has knowingly violated paragraph (1), the
Federal payment stablecoin regulator shall refer the
matter to the Attorney General.
(f) Rulemaking.--
(1) In general.--Consistent with section 18, the primary
Federal payment stablecoin regulators and State payment
stablecoin regulators shall issue such regulations as may be
necessary to establish a payment stablecoin regulatory
framework necessary to administer and carry out the
requirements of this section, including to establish
conditions, and to prevent evasions thereof.
(2) Joint issuance of regulation.--All regulations issued
to carry out this section shall be issued jointly by the
primary Federal payment stablecoin regulators, if not issued by
a State payment stablecoin regulator.
SEC. 5. APPROVAL OF SUBSIDIARIES OF INSURED DEPOSITORY INSTITUTIONS AND
FEDERAL QUALIFIED NONBANK PAYMENT STABLECOIN ISSUERS.
(a) Application.--
(1) In general.--Each 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 as a
Federal qualified nonbank payment stablecoin issuer. Each
primary Federal payment stablecoin regulator shall establish a
process and framework for the licensing, regulation,
examination, and supervision of such entities that prioritizes
the safety and soundness of such entities.
(2) Authority to issue regulations and process
applications.--The primary Federal payment stablecoin
regulators shall, before the date described in section 18--
(A) issue regulations consistent with that section
to carry out this section; and
(B) pursuant to the regulations described in
subparagraph (A), accept and process applications under
this Act.
(3) Mandatory approval process.--The primary Federal
payment stablecoin regulator shall, upon receipt of a
substantially complete application, evaluate and make a
determination on each application based on the criteria
established under this Act.
(b) Evaluation of Applications.--A substantially complete
application received under subsection (a) shall be evaluated by the
primary Federal payment stablecoin regulator using the factors
described in subsection (c).
(c) Factors To Be Considered.--The factors described in this
subsection are the following:
(1) The ability of the applicant (or, in the case of an
applicant that is an insured depository institution, the
subsidiary of the applicant), based on financial condition and
resources, to meet the requirements set forth under section 4.
(2) Whether an individual who has been convicted of a
felony offense involving insider trading, embezzlement,
cybercrime, money laundering, financing of terrorism, or
financial fraud is serving as an officer or director of the
applicant.
(3) Any other factors established by the primary Federal
payment stablecoin regulator that are necessary to ensure the
safety and soundness of the permitted payment stablecoin
issuer.
(d) Timing for Decision; Grounds for Denial.--
(1) Timing for decisions on applications.--
(A) In general.--Not later than 120 days after
receiving a substantially complete application under
subsection (a), a primary Federal payment stablecoin
regulator shall render a decision on the application.
(B) Substantially complete.--
(i) In general.--For purposes of
subparagraph (A), an application shall be
considered substantially complete if the
application contains sufficient information for
the primary Federal payment stablecoin
regulator to render a decision on whether the
applicant satisfies the criteria under
subsection (c).
(ii) Notification.--Not later than 30 days
after receiving an application under subsection
(a), a primary Federal payment stablecoin
regulator shall notify the applicant whether
the primary Federal payment stablecoin
regulator considers the application to be
substantially complete and, if the application
is not substantially complete, the additional
information the applicant must provide in order
for the application to be considered
substantially complete.
(iii) Material change in circumstances.--An
application considered substantially complete
under this subparagraph remains substantially
complete unless there is a material change in
circumstances that requires the primary Federal
payment stablecoin regulator to treat the
application as a new application.
(2) Denial of application.--
(A) Grounds for denial.--
(i) In general.--The primary Federal
payment stablecoin regulator shall only deny a
complete application received under subsection
(a) if the regulator determines that the
activities of the applicant would be unsafe or
unsound based on the factors described in
subsection (c).
(ii) Issuance not ground for denial.--The
issuance of a payment stablecoin on an open,
public, or decentralized network shall not be a
valid ground for denial of an application.
(B) Explanation required.--If the primary Federal
payment stablecoin regulator denies a complete
application received under subsection (a), not later
than 30 days after the date of such denial, the
regulator shall 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, including actionable recommendations on
how the applicant could address the identified material
shortcomings.
(C) Opportunity for hearing; final determination.--
(i) In general.--Not later than 30 days
after the date of receipt of any notice of the
denial of an application under this section,
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.
(ii) 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
submit written materials or provide oral
testimony and oral argument.
(iii) Final determination.--Not later than
60 days after the date of a hearing under this
subparagraph, the primary Federal payment
stablecoin regulator shall notify the applicant
of a final determination, which shall contain a
statement of the basis for that determination,
with specific findings.
(iv) Notice if no hearing.--If an applicant
does not make a timely request for a hearing
under this subparagraph, 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 subparagraph, in writing,
that the denial of the application is a final
determination of the primary Federal payment
stablecoin regulator.
(3) 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
paragraph (1), the application shall be deemed approved.
(4) Right to reapply.--The denial of an application under
this section shall not prohibit the applicant from filing a
subsequent application.
(e) Report on Pending Applications.--The primary Federal payment
stablecoin regulators shall annually report to Congress on the
applications under subsection (a) that have been pending for 180 days
or more since the date the initial application was filed and for which
the applicant has been informed that the application remains
incomplete, including documentation on the status of such applications
and why such applications have not yet been approved.
(f) Rulemaking.--Consistent with section 18, the primary Federal
payment stablecoin regulators shall rules necessary for the regulation
of the issuance of payment stablecoins, but may not impose requirements
in addition to the requirements specified under section 4.
SEC. 6. SUPERVISION AND ENFORCEMENT WITH RESPECT TO SUBSIDIARIES OF
INSURED DEPOSITORY INSTITUTIONS AND COMPTROLLER-REGULATED
ENTITIES.
(a) Supervision.--
(1) In general.--Each permitted payment stablecoin issuer
that is not a State qualified payment stablecoin issuer with a
payment stablecoin 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.
(2) Submission of reports.--Each permitted payment
stablecoin issuer described in paragraph (1) shall, upon
request, submit to its primary Federal payment stablecoin
regulator a report on--
(A) the financial condition of the permitted
payment stablecoin issuer;
(B) the systems of the permitted payment stablecoin
issuer for monitoring and controlling financial and
operating risks; and
(C) compliance by the permitted payment stablecoin
issuer (and any subsidiary thereof) with this Act.
(3) Examinations.--The primary Federal payment stablecoin
regulator shall examine a permitted payment stablecoin issuer
described in paragraph (1) in order to assess--
(A) the nature of the operations and financial
condition of the permitted payment stablecoin issuer;
(B) the financial, operational, technological, and
other risks within the permitted payment stablecoin
issuer that may pose a threat to--
(i) the safety and soundness of the
permitted payment stablecoin issuer; or
(ii) the stability of the financial system
of the United States; and
(C) the systems of the permitted payment stablecoin
issuer for monitoring and controlling the risks
described in subparagraph (B).
(4) Requirements for efficiency.--
(A) Use of existing reports.--In supervising and
examining a permitted payment stablecoin issuer under
this subsection, the primary Federal payment stablecoin
regulator shall, to the fullest extent possible, use
existing reports and other supervisory information.
(B) Avoidance of duplication.--A primary Federal
payment stablecoin regulator 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.
(C) Consideration of burden.--A primary Federal
payment stablecoin regulator 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
those required for similarly situated entities
regulated by the primary Federal payment stablecoin
regulator.
(b) Enforcement.--
(1) Suspension or revocation of registration.--The primary
Federal payment stablecoin regulator of a permitted payment
stablecoin issuer that is not a State qualified payment
stablecoin issuer may prohibit the 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--
(A) is recklessly violating or has recklessly
violated this Act or any regulation or order issued
under this Act; or
(B) is recklessly violating or has recklessly
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.
(2) Cease and desist proceedings.--If the primary Federal
payment stablecoin regulator of a permitted payment stablecoin
issuer that is not a State qualified payment stablecoin issuer
has reasonable cause to believe that the permitted payment
stablecoin issuer or any institution-affiliated party of the
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, by provisions that are mandatory or otherwise, order the
permitted payment stablecoin issuer or institution-affiliated
party of the permitted payment stablecoin issuer 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 of a permitted payment stablecoin
issuer that is not a State qualified payment stablecoin issuer
may remove an institution-affiliated party of the permitted
payment stablecoin issuer from their position or office or
prohibit further participation in the affairs of the permitted
payment stablecoin issuer or all such permitted payment
stablecoin issuers by such institution-affiliated party, if the
primary Federal payment stablecoin regulator determines that--
(A) the institution-affiliated party has knowingly
committed a violation or attempted violation of this
Act or any regulation or order issued under this Act;
or
(B) the institution-affiliated party has knowingly
committed a violation of any provision of subchapter II
of chapter 53 of title 31, United States Code.
(4) Procedures.--
(A) In general.--If a 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 in subsections (b)
and (e) of sections 8 of the Federal Deposit Insurance
Act (12 U.S.C. 1818).
(B) Judicial review.--A person aggrieved by a final
action under this subsection may obtain judicial review
of such action exclusively as provided in section 8(h)
of the Federal Deposit Insurance Act (12 U.S.C.
1818(h)).
(C) Injunction.--The primary Federal payment
stablecoin regulator may, in the discretion of the
regulator, follow the procedures provided in section
8(i)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1818(i)(1)) for judicial enforcement of any effective
and outstanding notice or order issued under this
subsection.
(D) 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 in section 8(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1818(c)) to issue a temporary
cease and desist order.
(5) Civil money penalties.--
(A) Failure to be approved.--Any person who issues
a United States dollar-denominated payment stablecoin
in violation of section 3, 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 issued.
(B) 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.
(C) 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.
(D) 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 in section 8(i)(2) of the Federal
Deposit Insurance Act (12 U.S.C. 1818(i)(2)).
(E) 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.
(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.
SEC. 7. STATE QUALIFIED PAYMENT STABLECOIN ISSUERS.
(a) In General.--A State payment stablecoin regulator shall have
supervisory, examination, and enforcement authority over all State
qualified payment stablecoin issuers of such State.
(b) Authority To Enter Into Agreements With the Board.--A State
payment stablecoin regulator may enter into a memorandum of
understanding with the Board, by mutual agreement, under which the
Board may participate in the supervision, examination, and enforcement
of this Act with respect to the State qualified payment stablecoin
issuers of such State.
(c) Sharing of Information.--A State payment stablecoin regulator
and the Board shall share information on an ongoing basis with respect
to a State qualified payment stablecoin issuer of such State, including
a copy of the initial application and any accompanying documents.
(d) Rulemaking.--A State payment stablecoin regulator may issue
orders and rules under section 4 applicable to State qualified payment
stablecoin issuers to the same extent as the primary Federal payment
stablecoin regulators issue orders and rules under section 4 applicable
to permitted payment stablecoin issuers that are not State qualified
payment stablecoin issuers.
(e) Enforcement Authority in Unusual and Exigent Circumstances.--
(1) Board.--
(A) In general.--Subject to subparagraph (C), under
unusual and exigent circumstances that the Board
determines to exist, the Board may, after not less than
48 hours prior written notice to the applicable State
payment stablecoin regulator, take an enforcement
action against a State qualified payment stablecoin
issuer or an institution-affiliated party of such
issuer for violations of this Act during such unusual
and exigent circumstances.
(B) Rulemaking.--Consistent with section 18, the
Board shall issue rules to set forth the unusual and
exigent circumstances in which the Board may act under
this paragraph.
(C) Limitations.--If, after unusual and exigent
circumstances are determined to exist pursuant to
subparagraph (A), the Board determines that there is
reasonable cause to believe that the continuation by a
State qualified payment stablecoin issuer of any
activity constitutes a serious risk to the financial
safety, soundness, or stability of the State qualified
payment stablecoin issuer, the Board may impose such
restrictions as the Board determines to be necessary to
address such risk during such usual and exigent
circumstances. Such restrictions 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 and any of its
affiliates, limiting--
(i) the payment of dividends by the State
qualified payment stablecoin issuer;
(ii) transactions between the State
qualified payment stablecoin issuer, a holding
company, and the subsidiaries or affiliates of
either the State qualified payment stablecoin
issuer or the holding company; and
(iii) any activities of the State qualified
payment stablecoin issuer that might create a
serious risk that the liabilities of a holding
company and the affiliates of the holding
company may be imposed on the State qualified
payment stablecoin issuer.
(D) Review of directive.--
(i) Administrative review.--
(I) In general.--After a directive
described in subparagraph (C) is
issued, the State qualified payment
stablecoin issuer, or any institution-
affiliated party of the State qualified
payment stablecoin issuer subject to
the directive, may object and present
to the Board, 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), the Board does not
affirm, modify, or rescind the
directive, the directive shall
automatically lapse.
(ii) Judicial review.--
(I) In general.--If the Board
affirms or modifies a directive
pursuant to clause (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) without
first pursuing or exhausting the
administrative remedies under clause
(i).
(2) Comptroller.--
(A) In general.--Subject to subparagraph (C), under
unusual and exigent circumstances determined to exist
by the Comptroller, the Comptroller shall, after not
less than 48 hours prior written notice to the
applicable State payment stablecoin regulator, take an
enforcement action against a State qualified payment
stablecoin issuer that is a nonbank entity for
violations of this Act.
(B) Rulemaking.--Consistent with section 18, the
Comptroller shall issue rules to set forth the unusual
and exigent circumstances in which the Comptroller may
act under this paragraph.
(C) Limitations.--If, after unusual and exigent
circumstances are determined to exist under
subparagraph (A), the Comptroller determines that there
is reasonable cause to believe that the continuation by
a State qualified payment stablecoin issuer that is a
nonbank entity of any activity constitutes a serious
risk to the financial safety, soundness, or stability
of the State qualified payment stablecoin issuer that
is a nonbank entity, the Comptroller shall impose such
restrictions as the Comptroller determines to be
necessary to address such risk during such unusual and
exigent circumstances. Such restrictions 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 that is a
nonbank entity and any of its affiliates, limiting--
(i) the payment of dividends by the State
qualified payment stablecoin issuer;
(ii) transactions between the State
qualified payment stablecoin issuer, a holding
company, and the subsidiaries or affiliates of
either the State qualified payment stablecoin
issuer or the holding company; and
(iii) any activities of the State qualified
payment stablecoin issuer that might create a
serious risk that the liabilities of a holding
company and the affiliates of the holding
company may be imposed on the State qualified
payment stablecoin issuer.
(D) Review of directive.--
(i) Administrative review.--
(I) In general.--After a directive
described in subparagraph (C) is
issued, the Comptroller-regulated
entity, or any institution-affiliated
party of the Comptroller-regulated
entity subject to the directive, may
object and present to the Comptroller,
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), the Comptroller does not
affirm, modify, or rescind the
directive, the directive shall
automatically lapse.
(ii) Judicial review.--
(I) In general.--If the Comptroller
affirms or modifies a directive
pursuant to clause (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) without
first pursuing or exhausting the
administrative remedies under clause
(i).
(f) Effect on State Law.--
(1) Host state law.--The laws of a host State, including
generally applicable laws relating to consumer protection,
shall only apply to the activities conducted in the host State
by an out-of-State State qualified payment stablecoin issuer to
the same extent as such laws apply to the activities conducted
in the host State by an out-of-State Federal qualified nonbank
payment stablecoin issuer.
(2) Home state law.--If any host State law is determined
not to apply under paragraph (1), the laws of the home State of
the State qualified payment stablecoin issuer shall govern the
activities of the permitted payment stablecoin issuer conducted
in the host State.
(3) Applicability.--The laws applicable under paragraph (1)
exclude host State laws governing the chartering, licensure, or
other authorization to do business in the host State as a
permitted payment stablecoin issuer pursuant to this Act.
SEC. 8. ANTI-MONEY LAUNDERING PROTECTIONS.
(a) Definitions.--In this subsection:
(1) Digital asset service provider.--The term ``digital
asset service provider''--
(A) means a person that, for compensation or
profit, engages in the business in the United States or
for customers or users in the United States, of--
(i) exchanging digital assets for monetary
value;
(ii) exchanging digital assets for other
digital assets;
(iii) transferring digital assets to a
third party;
(iv) acting as a digital asset custodian;
or
(v) participating in financial services
related to a digital asset issuance; and
(B) does not include--
(i) a distributed ledger protocol or a
person solely developing such a protocol; or
(ii) a person solely validating
transactions or operating a distributed ledger
node.
(2) Offering.--The term ``offering'' means making available
for purchase, sale, or exchange.
(3) Distributed ledger protocol.--The term ``distributed
ledger protocol'' means publicly available and accessible
executable software deployed to a distributed ledger, including
smart contracts or networks of smart contracts.
(4) Lawful order.--The term ``lawful order'' means any
final and valid writ, process, order, rule, decree, command, or
other requirement issued or promulgated under Federal law,
issued by a court of competent jurisdiction or by an authorized
Federal agency pursuant to its statutory authority, that--
(A) requires a permitted payment stablecoin issuer
to seize, freeze, burn, or prevent the transfer of
payment stablecoins issued by the permitted payment
stablecoin issuer;
(B) specifies the digital assets or accounts
subject to blocking with reasonable particularity; and
(C) is subject to judicial or administrative review
or appeal as provided by law.
(b) Treasury Authority To Designate Noncompliant Issuers.--Not
later than 30 days after the Department of the Treasury has identified
the failure of a foreign issuer of any payment stablecoins trading in
the United States that is not a permitted payment stablecoin issuer to
comply with the terms of any lawful order, the Secretary of the
Treasury, in coordination with relevant Federal agencies, shall
designate the foreign issuer as noncompliant and notify the foreign
issuer in writing of the designation.
(c) Publication of Designation; Prohibition on Secondary Trading.--
(1) In general.--If a foreign issuer described in
subsection (b) does not come into compliance with the lawful
order within 30 days of receiving the written notice described
in that subsection, the Secretary of the Treasury shall--
(A) publish the determination of noncompliance in
the Federal Register, including a statement on the
failure of the foreign issuer to comply with the lawful
order after the written notice; and
(B) issue a notification in the Federal Register
prohibiting digital asset service providers from
facilitating secondary trading of payment stablecoins
issued by the foreign issuer in the United States.
(2) Effective date of prohibition.--The prohibition on
facilitation of secondary trading described in paragraph (1)
shall become effective on the date that is 30 days after the
date of issue of notification of the prohibition in the Federal
Register.
(3) Waivers and extensions.--With respect to the
prohibition on facilitation of secondary trading described in
paragraph (1), the Secretary of the Treasury may issue waivers
and time extensions to digital asset service providers on a
case by case basis.
(4) Civil monetary penalties.--
(A) Digital asset service providers.--Any digital
asset service provider that knowingly violates a
prohibition under paragraph (1)(B) shall be subject to
a civil monetary penalty of not more than $100,000 per
violation per day.
(B) Foreign payment stablecoin issuers.--Any
foreign issuer of payment stablecoin that knowingly
continues to publicly offer a payment stablecoin in the
United States after publication of the determination of
noncompliance under paragraph (1)(A) shall be subject
to a civil monetary penalty of not more than $1,000,000
per violation per day, and the Secretary of the
Treasury may seek an injunction in a United States
District Court to bar the foreign issuer from engaging
in financial transactions in the United States or with
United States persons.
(d) Appeal.--A determination of noncompliance under subsection (b)
is subject to judicial review in the United States Court of Appeals for
the District of Columbia Circuit.
(e) Waiver, Licensing Authority, and Exceptions.--
(1) In general.--The Secretary of the Treasury may offer a
waiver, general license, or specific license to any United
States persons engaging in secondary trading described in
subsection (c) on a case by case basis if the Secretary
determines that--
(A) prohibiting secondary trading would adversely
affect the financial system of the United States; or
(B) the foreign issuer of the payment stablecoin is
taking tangible steps to remedy the failure to comply
with the lawful order that resulted in the
noncompliance determination under subsection (b).
(2) National security waiver.--The President may waive the
application of the secondary trading restrictions under
subsection (c) if the President determines that the waiver is
in the national security interest of the United States.
(3) Exceptions for intelligence and law enforcement
activities.--This Act shall not apply with respect to--
(A) activities subject to the reporting
requirements under title V of the National Security Act
of 1947 (50 U.S.C. 3091 et seq.) or any authorized
intelligence activities of the United States; or
(B) activities necessary to carry out or assist law
enforcement activity of the United States.
(4) Report required.--Not later than 7 days after issuing a
waiver or a license under paragraph (1), the Secretary of the
Treasury shall submit a report to the Chairmen and Ranking
members of the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the
House of Representatives, including the text of the waiver or
license, as well as the facts and circumstances justifying the
waiver determination, and provide a briefing on the report.
SEC. 9. CUSTODY OF PAYMENT STABLECOIN RESERVE AND COLLATERAL.
(a) In General.--A person may only engage in the business of
providing custodial or safekeeping services for the payment stablecoin
reserve, the payment stablecoins used as collateral, or the private
keys of permitted payment stablecoins if the person--
(1) is subject to--
(A) 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
(B) supervision by a State bank supervisor, as
defined under section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813) or a State credit union
supervisor, as defined under section 6003 of the Anti-
Money Laundering Act of 2020, 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
(2) complies with the requirements under subsection (b),
unless such person complies with similar requirements as
required by a primary Federal payment stablecoin regulator, the
Securities and Exchange Commission, or the Commodity Futures
Trading Commission.
(b) Customer Property Requirement.--A person described in
subsection (a) shall--
(1) treat and deal with the payment stablecoins, private
keys, cash, and other property of a 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 is not the property of such
person; and
(2) 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.
(c) Commingling Prohibited.--
(1) 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 be segregated from
and not be commingled with the funds of the person.
(2) Exception.--Notwithstanding paragraph (1)--
(A) the payment stablecoins, cash, and other
property of a customer may, for convenience, be
commingled and deposited in an omnibus account holding
the payment stablecoins, cash, and other property of
more than 1 customer at a State chartered depository
institution, an insured depository institution,
national bank, or trust company;
(B) 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); or
(C) in accordance with such terms and conditions as
a primary Federal payment stablecoin regulator 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 primary Federal payment stablecoin regulator to be
separately accounted for, treated, and dealt with as
belonging to customers.
(d) Regulatory Information.--A person described under subsection
(a) shall submit to the applicable primary Federal payment stablecoin
regulator information concerning the person's business operations and
processes to protect customer assets, in such form and manner as the
primary regulator shall determine.
(e) 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. 10. TREATMENT OF PAYMENT STABLECOIN ISSUERS IN INSOLVENCY
PROCEEDINGS.
(a) In General.--In any insolvency proceeding of a permitted
payment stablecoin issuer under Federal or State law, including any
proceeding under title 11, United States Code, and any insolvency
proceeding administered by a State payment stablecoin regulator with
respect to a permitted payment stablecoin issuer, the claim of a person
holding payment stablecoins issued by the permitted payment stablecoin
issuer shall have priority over the claims of the permitted payment
stablecoin issuer and any other creditor of the permitted payment
stablecoin issuer, with respect to required payment stablecoin
reserves, subject to section 507(e) of title 11, United States Code.
(b) Definitions.--Section 101 of title 11, United States Code, is
amended by adding after paragraph (40B) the following:
``(40C) The terms `payment stablecoin' and `permitted
payment stablecoin issuer' have the meanings given those terms
in section 2 of the Guiding and Establishing National
Innovation for U.S. Stablecoins Act of 2025.''.
(c) Automatic Stay.--Section 362 of title 11, United States Code is
amended--
(1) in subsection (a)--
(A) in paragraph (7), by striking ``and'';
(B) in paragraph (8), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(9) the redemption of payment stablecoins issued by the
debtor, from payment stablecoin reserves required to be
maintained under section 4 of the Guiding and Establishing
National Innovation for U.S. Stablecoins Act of 2025.''; and
(2) in subsection (d)--
(A) in paragraph (3)(B)(ii), by striking ``or'' at
the end;
(B) in paragraph (4)(B), by striking the period at
the end and inserting ``; or''; and
(C) by inserting after paragraph (4) the following:
``(5) with respect to the redemption of payment stablecoins
held by a person, if the court finds, subject to the motion and
attestation of the debtor on the petition date, there are
payment stablecoin reserves available for distribution on a
ratable basis to similarly situated payment stablecoin holders,
provided that the court shall use best efforts to enter a final
order to begin distributions under this paragraph not later
than 14 days after the date of the required hearing.''.
(d) Priority in Bankruptcy Proceedings.--Section 507 of title 11,
United States Code, is amended--
(1) in subsection (a), by striking ``The following'' and
inserting ``Subject to subsection (e), the following''; and
(2) by adding at the end the following:
``(e) Notwithstanding subsection (a), if a payment stablecoin
holder is not able to redeem all outstanding payment stablecoin claims
from required payment stablecoin reserves maintained by the debtor, any
remaining claim of a person holding a payment stablecoin issued by the
debtor shall have first priority over any other claim, including over
any expenses and claims that have priority under that subsection, to
the extent compliance with section 4 of the Guiding and Establishing
National Innovation for U.S. Stablecoins Act of 2025 would have
required additional reserves to be maintained by the debtor for payment
stablecoin holders.''.
(e) Payment Stablecoin Reserves.--Section 541(b) of title 11,
United States Code, is amended--
(1) in paragraph (9), in the flush text following
subparagraph (B), by striking ``or'' at the end;
(2) in paragraph (10)(C), by striking the period and
inserting ``; or''; and
(3) by inserting after paragraph (10) the following:
``(11) required payment stablecoin reserves under section 4
of the Guiding and Establishing National Innovation for U.S.
Stablecoins Act of 2025.''.
(f) Intervention.--Section 1109 of title 11, United States Code, is
amended by adding at the end the following:
``(c) The Comptroller of the Currency or State payment stablecoin
regulator (as defined in section 2 of the Guiding and Establishing
National Innovation for U.S. Stablecoins Act of 2025) shall raise and
shall appear and be heard on any issue, including the protection of
customers, in a case under this chapter in which the debtor is a
permitted payment stablecoin issuer.''.
(g) Application of Existing Insolvency Law.--In accordance with
otherwise applicable law, an insolvency proceeding with respect to a
permitted payment stablecoin issuer shall occur as follows:
(1) A depository institution (as defined in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall be
resolved by the Federal Deposit Insurance Corporation, National
Credit Union Administration, or State payment stablecoin
regulator, as applicable.
(2) A subsidiary of a depository institution (as defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813)) or a nonbank entity may be considered a debtor under
title 11, United States Code.
SEC. 11. INTEROPERABILITY STANDARDS.
The primary Federal payment stablecoin regulators, in consultation
with the National Institute of Standards and Technology, other relevant
standard setting organizations, and State bank and credit union
regulators, shall assess and, if necessary, may, pursuant to section
553 of title 5 and in a manner consistent with the National Technology
Transfer and Advancement Act of 1995 (Public Law 104-113), prescribe
standards for permitted payment stablecoin issuers to promote
compatibility and interoperability with--
(1) other permitted payment stablecoin issuers; and
(2) the broader digital finance ecosystem, including
accepted communications protocols and blockchains, permissioned
or public.
SEC. 12. STUDY ON NON-PAYMENT STABLECOINS.
(a) Study by Treasury.--
(1) Study.--The Secretary of the Treasury, in consultation
with the Board, the Comptroller, the Corporation, the
Securities and Exchange Commission, and the Commodity Futures
Trading Commission shall carry out a study of non-payment
stablecoins, including endogenously collateralized payment
stablecoins.
(2) 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 paragraph (1), including an analysis of--
(A) the categories of non-payment stablecoins,
including the benefits and risks of technological
design features;
(B) the participants in non-payment stablecoin
arrangements;
(C) utilization and potential utilization of non-
payment stablecoins;
(D) nature of reserve compositions;
(E) types of algorithms being employed;
(F) governance structure, including aspects of
decentralization;
(G) nature of public promotion and advertising; and
(H) clarity and availability of consumer notices
disclosures.
(b) Endogenously Collateralized Payment Stablecoin Defined.--In
this section, the term ``endogenously collateralized payment
stablecoin'' means any digital asset--
(1) in which its originator has represented will be
converted, redeemed, or repurchased for a fixed amount of
monetary value; and
(2) that relies solely on the value of another digital
asset created or maintained by the same originator to maintain
the fixed price.
SEC. 13. REPORTS.
(a) Annual Reporting Requirement.--Beginning on the date that is 1
year after the date of enactment of this Act, and annually thereafter,
the primary Federal payment stablecoin regulators shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate, the
Committee on Financial Services of the House of Representatives, and
the Director of the Office of Financial Research a report on the status
of the payment stablecoin industry, including--
(1) an overview of trends in payment stablecoin activities;
(2) a summary of the number of applications for permitted
payment stablecoin issuer under section 5, including aggregate
approvals and rejections of applications; and
(3) a description of the potential financial stability
risks posed to the safety and soundness of the broader
financial system by payment stablecoin activities.
(b) FSOC Report.--The Financial Stability Oversight Council shall
incorporate the findings in the report under subsection (a) into the
annual report of the Council required under section 112(a)(2)(N) of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5322).
SEC. 14. AUTHORITY OF BANKING INSTITUTIONS.
(a) Rule of Construction.--Nothing in this Act may be construed to
limit the authority of a depository institution, Federal credit union,
State credit union, national bank, or trust company to engage in
activities permissible pursuant to applicable State and Federal law,
including--
(1) accepting or receiving deposits and issuing digital
assets that represent deposits;
(2) utilizing a distributed ledger for the books and
records of the entity and to affect intrabank transfers; and
(3) providing custodial services for payment stablecoins,
private keys of payment stablecoins, or reserves backing
payment stablecoins.
(b) Regulatory Review.--The primary Federal payment stablecoin
regulators shall review all existing guidance and regulations, and if
necessary, amend or promulgate new regulations and guidance, to clarify
that regulated entities can engage in the payment stablecoin activities
contemplated in, and in accordance with, this Act.
(c) Treatment of Custody Activities.--The appropriate Federal
banking agency (as defined under section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813)), 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 institution-affiliated party thereof--
(1) 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;
(2) 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--
(A) the appropriate Federal banking agency;
(B) the National Credit Union Administration (in
the case of a credit union);
(C) a State bank supervisor (as defined under
section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813)); or
(D) a State credit union supervisor (as defined
under section 6003 of the Anti-Money Laundering Act of
2020);
(3) to recognize a liability for any obligations related to
activities or services performed for digital assets that the
entity does not own in any amount greater than the expense
recognized in the income statement or the consideration
received as a result of the corresponding obligation.
(d) Definitions.--In this section:
(1) Depository institution.--The term ``depository
institution'' has the meaning given that term under section 3
of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(2) Credit union terms.--The terms ``Federal credit union''
and ``State credit union'' have the meaning given those terms,
respectively, under section 101 of the Federal Credit Union
Act.
SEC. 15. AMENDMENTS TO CLARIFY THAT PAYMENT STABLECOINS ARE NOT
SECURITIES OR COMMODITIES AND PERMITTED PAYMENT
STABLECOIN ISSUERS ARE NOT INVESTMENT COMPANIES.
(a) 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 in section 2 of the Guiding and Establishing
National Innovation for U.S. Stablecoins Act of 2025.''.
(b) Investment Company Act of 1940.--The Investment Company Act of
1940 is amended--
(1) in section 2(a)(36) (15 U.S.C. 80a-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
in section 2 of the Guiding and Establishing National
Innovation for U.S. Stablecoins Act of 2025.''; and
(2) in section 3(c)(3) (15 U.S.C. 80a-3(c)(3)), by
inserting ``any permitted payment stablecoin issuer, as such
term is defined in section 2 of the Guiding and Establishing
National Innovation for U.S. Stablecoins Act of 2025;'' after
``therefor;''.
(c) 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 in section 2 of the Guiding and Establishing National
Innovation for U.S. Stablecoins Act of 2025.''.
(d) 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 in section 2 of the Guiding and Establishing
National Innovation for U.S. Stablecoins Act of 2025.''.
(e) 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 in section 2 of the
Guiding and Establishing National Innovation for U.S. Stablecoins Act
of 2025.''.
(f) Commodity Exchange Act.--Section 1a of the Commodity Exchange
Act (7 U.S.C. 1a) is amended by adding at the end the following: ``The
term `commodity' does not include a payment stablecoin issued by a
permitted payment stablecoin issuer, as such terms are defined in
section 2 of the Guiding and Establishing National Innovation for U.S.
payment stablecoins Act of 2025.''
SEC. 16. RECIPROCITY FOR PAYMENT STABLECOINS ISSUED IN OVERSEAS
JURISDICTIONS.
The Secretary of the Treasury shall create and implement reciprocal
arrangements or other bilateral agreements between the United States
and jurisdictions with substantially similar payment stablecoin
regulatory regimes to the requirements under this Act, including
reserve requirements, supervision, anti-money laundering and counter-
terrorism features, sanctions compliance standards, liquidity
requirements, and risk management standards, to facilitate
international transactions and interoperability with United States
dollar-denominated payment stablecoins issued overseas. The Secretary
of the Treasury shall aim to complete such arrangements not later than
the date that is 2 years after the date of enactment of this Act.
SEC. 17. EFFECTIVE DATE.
(a) In General.--This Act, and the amendments made by this Act,
shall take effect on the earlier of--
(1) 18 months after the date of enactment of this Act; or
(2) the date that is 120 days after the date on which the
primary Federal payment stablecoin regulators issue any final
regulations implementing this Act.
(b) Notice to Congress.--The primary Federal payment stablecoin
regulators shall notify Congress upon beginning to process applications
under this Act.
(c) Safe Harbor for Pending Applications.--The primary Federal
payment stablecoin regulators may waive the application of the
requirements of this Act for a period not to exceed 12 months beginning
on the effective date described under subsection (a), with respect to--
(1) a subsidiary of an insured depository institution, if
the insured depository institution has an application pending
for the subsidiary to become a permitted payment stablecoin
issuer on that effective date; or
(2) a nonbank entity with an application pending to become
a Comptroller-regulated entity on that effective date.
SEC. 18. RULEMAKING.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, each primary Federal payment stablecoin regulator, the
Secretary of the Treasury, and each State payment stablecoin regulator
shall implement this Act through appropriate notice and comment
rulemaking, including promulgating regulations as described in this Act
as necessary.
(b) Coordination.--Federal payment stablecoin regulators and State
payment stablecoin regulators should coordinate on the issuance of any
regulations to implement this Act.
(c) Report Required.--Not later than 180 days after the date of
enactment of this Act, each Federal banking agency shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a
report that confirms and describes the rules promulgated to implement
this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
Committee on Banking, Housing, and Urban Affairs. Reported by Senator Scott SC, under authority of the order of the Senate of 03/14/2025 with an amendment in the nature of a substitute. Without written report.
Committee on Banking, Housing, and Urban Affairs. Reported by Senator Scott SC, under authority of the order of the Senate of 03/14/2025 with an amendment in the nature of a substitute. Without written report.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 33.
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