12 USC 5910 - Treatment of payment stablecoin issuers in insolvency proceedings

Collapse to view only § 5910. Treatment of payment stablecoin issuers in insolvency proceedings

§ 5901. Definitions
§ 5902. Issuance and treatment of payment stablecoins
§ 5903. Requirements for issuing payment stablecoins
§ 5904. Approval of subsidiaries of insured depository institutions and Federal qualified payment stablecoin issuers
§ 5905. Supervision and enforcement with respect to Federal qualified payment stablecoin issuers and subsidiaries of insured depository institutions
§ 5906. State qualified payment stablecoin issuers
§ 5907. Anti-money laundering protections
§ 5908. Anti-money laundering innovation
§ 5909. Custody of payment stablecoin reserve and collateral
§ 5910. Treatment of payment stablecoin issuers in insolvency proceedings
§ 5911. Application of existing insolvency law
§ 5912. Interoperability standards
§ 5913. Rulemaking
§ 5914. Reports
§ 5915. Authority of banking institutions
§ 5916. Exception for foreign payment stablecoin issuers and reciprocity for payment stablecoins issued in overseas jurisdictions

§ 5901. DefinitionsIn this chapter:

(1) Appropriate Federal banking agency

(2) Bank Secrecy ActThe term “Bank Secrecy Act” means—

(A)section 1829b of this title;

(B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and

(3) Board

(4) Comptroller

(5) Corporation

(6) Digital asset

(7) Digital asset service providerThe term “digital asset service provider”—

(A) means a person that, for compensation or profit, engages in the business in the United States (including on behalf of 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 relating to digital asset issuance; and

(B) does not include—

(i) a distributed ledger protocol;

(ii) developing, operating, or engaging in the business of developing distributed ledger protocols or self-custodial software interfaces;

(iii) an immutable and self-custodial software interface;

(iv) developing, operating, or engaging in the business of validating transactions or operating a distributed ledger; or

(v) participating in a liquidity pool or other similar mechanism for the provisioning of liquidity for peer-to-peer transactions.

(8) Distributed ledger

(9) Distributed ledger protocol

(10) Federal branch

(11) Federal qualified payment stablecoin issuerThe term “Federal qualified payment stablecoin issuer” means—

(A) a nonbank entity, other than a State qualified payment stablecoin issuer, approved by the Comptroller, pursuant to section 5904 of this title, to issue payment stablecoins;

(B) an uninsured national bank—

(i) that is chartered by the Comptroller, pursuant to title LXII of the Revised Statutes; and

(ii) that is approved by the Comptroller, pursuant to section 5904 of this title, to issue payment stablecoins; and

(C) a Federal branch that is approved by the Comptroller, pursuant to section 5904 of this title, to issue payment stablecoins.

(12) Foreign payment stablecoin issuerThe term “foreign payment stablecoin issuer” means an issuer of a payment stablecoin that is—

(A) organized under the laws of or domiciled in a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands; and

(B) not a permitted payment stablecoin issuer.

(13) Institution-affiliated party

(14) Insured credit union

(15) Insured depository institutionThe term “insured depository institution” means—

(A) an insured depository institution, as defined in section 1813 of this title; and

(B) an insured credit union.

(16) Lawful orderThe 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 person to seize, freeze, burn, or prevent the transfer of payment stablecoins issued by the person;

(B) specifies the payment stablecoins or accounts subject to blocking with reasonable particularity; and

(17) Monetary value

(18) MoneyThe term “money”—

(A) means a medium of exchange currently authorized or adopted by a domestic or foreign government; and

(B) includes a monetary unit of account established by an intergovernmental organization or by agreement between 2 or more countries.

(19) National currencyThe term “national currency” means each of the following:

(A) A Federal Reserve note (as the term is used in section 411 of this title).

(B) Money standing to the credit of an account with a Federal Reserve Bank.

(D) Money issued by an intergovernmental organization pursuant to an agreement by 2 or more governments.

(20) Nonbank entity

(21) Offer

(22) Payment stablecoinThe 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; and(II) represents that such issuer will maintain, or create the reasonable expectation that it will maintain, a stable value relative to the value of a fixed amount of monetary value; and

(B) does not include a digital asset that—

(i) is a national currency;

(ii) is a deposit (as defined in section 1813 of this title), including a deposit recorded using distributed ledger technology; or

(iii) is a security, as defined in section 77b of title 15, section 78c of title 15, or section 80a–2 of title 15, except that, for the avoidance of doubt, no bond, note, evidence of indebtedness, or investment contract that was issued by a permitted payment stablecoin issuer shall qualify as a security solely by virtue of its satisfying the conditions described in subparagraph (A), consistent with section 17 of this Act.

(23) Permitted payment stablecoin issuerThe term “permitted payment stablecoin issuer” means a person formed in the United States that is—

(A) a subsidiary of an insured depository institution that has been approved to issue payment stablecoins under section 5904 of this title;

(B) a Federal qualified payment stablecoin issuer; or

(24) Person

(25) Primary Federal payment stablecoin regulatorThe 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 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 payment stablecoin issuer, the Comptroller.

(26) Registered public accounting firm

(27) Stablecoin Certification Review CommitteeThe term “Stablecoin Certification Review Committee” means the committee of that name and having the functions as provided in this chapter—

(A) of which—

(i) the Secretary of the Treasury shall serve as Chair; and

(ii) the Chair of the Board (or the Vice Chair for Supervision, as delegated by the Chair of the Board), and the Chair of the Corporation shall serve as members; and

(B) which, unless otherwise specified in this chapter, shall act by ⅔ vote of its members at any meeting called by the Chair or by unanimous written consent.

(28) State

(29) State chartered depository institution

(30) State payment stablecoin regulator

(31) State qualified payment stablecoin issuerThe term “State qualified payment stablecoin issuer” means an entity that—

(A) is legally established under the laws of a State and approved to issue payment stablecoins by a State payment stablecoin regulator; and

(B) is not an uninsured national bank chartered by the Comptroller pursuant to title LXII of the Revised Statutes, a Federal branch, an insured depository institution, or a subsidiary of such national bank, Federal branch, or insured depository institution.

(32) Subsidiary

(33) Subsidiary of an insured credit unionWith 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 in section 1757(7)(I) of this title;

(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; and

(Pub. L. 119–27, § 2, July 18, 2025, 139 Stat. 419.)

§ 5902. Issuance and treatment of payment stablecoins

(a) Limitation on issuers

(b) Prohibition on offers or sales

(1) In general

(2) Foreign payment stablecoin issuers

(1) In general

The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are—

(A) consistent with the purposes of the 1

1 So in original. Probably should be “this”.

chapter;

(B) limited in scope; and

2 So in original.

to a de minimis volume of transactions, as determined by the Secretary of the Treasury.

(2) Unusual and exigent circumstances

(A) In general

(B) Justification

(d) Rulemaking

(e) Extraterritorial effect

(f) Penalty for violation

(1) In general

(2) Referral to Attorney General

(g) Treatment

A payment stablecoin that is not issued by a permitted payment stablecoin issuer shall not be—

(1) treated as cash or as a cash equivalent for accounting purposes;

(2) eligible as cash or as a cash equivalent margin and collateral for futures commission merchants, derivative clearing organizations, broker-dealers, registered clearing agencies, and swap dealers; or

(3) 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.

(h) Rules of construction

(1) Exempt transactions

This section shall not apply to—

(A) the direct transfer of digital assets between 2 individuals acting on their own behalf and for their own lawful purposes, without the involvement of an intermediary;

(B) to 3

3 So in original. The word “to” probably should not appear.

any transaction involving the receipt of digital assets by an individual between an account owned by the individual in the United States and an account owned by the individual abroad that are offered by the same parent company; or

(C) to 3 any transaction by means of a software or hardware wallet that facilitates an individual’s own custody of digital assets.

(2) Treasury authority

(Pub. L. 119–27, § 3, July 18, 2025, 139 Stat. 423.)

§ 5903. Requirements for issuing payment stablecoins

(a) Standards for the issuance of payment stablecoins

(1) In generalA permitted payment stablecoin issuer shall—

(A) maintain identifiable reserves backing the outstanding payment stablecoins of the permitted payment stablecoin issuer on an at least 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 or agents, including correspondent banks, 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) money received under 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 agency 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 80a–8(a) of title 15, or other registered Government money market fund, and that are invested solely in underlying assets described in clauses (i) through (v);

(vii) any other similarly liquid Federal Government-issued 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 clause 1

1 So in original.

(i) through (iii) or clause 1 (vi) through (vii) in tokenized form, provided that such reserves comply with all applicable laws and regulations;

(B) publicly disclose the issuer’s redemption policy, which shall—

(i) establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins, provided that any discretionary limitations on timely redemptions can only be imposed by a State qualified payment stablecoin regulator, the Corporation, the Comptroller, or the Board, consistent with section 5906 of this title; and

(ii) publicly, clearly, and conspicuously disclose in plain language all fees associated with purchasing or redeeming the payment stablecoins, provided that such fees can only be changed upon not less than 7 days’ prior notice to consumers; and

(i) the total number of outstanding payment stablecoins issued by the issuer; and

(ii) the amount and composition of the reserves described in subparagraph (A), including the average tenor and geographic location of custody of each category of reserve instruments.

(2) Prohibition on rehypothecationReserves 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, receipt, or 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

(B) CertificationEach 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.

(4) Capital, liquidity, and risk management requirements

(A) In generalThe primary Federal payment stablecoin regulators shall, or in the case of a State qualified payment stablecoin issuer, the State payment stablecoin regulator shall, consistent with section 5913 of this title, issue regulations implementing—

(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 that 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) the liquidity standard under paragraph (1)(A);

(iii) reserve asset diversification, including deposit concentration at banking institutions, 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 that are sufficient to ensure the ongoing operations of permitted payment stablecoin issuers; and

(iv) appropriate operational, compliance, and information technology risk management principles-based requirements and standards, including Bank Secrecy Act and sanctions compliance standards, 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 constructionNothing in this paragraph shall be construed to limit—

(i) the authority of the primary Federal payment stablecoin 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 a primary Federal payment stablecoin 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) any supervisory, regulatory, or enforcement authority of a primary Federal payment stablecoin regulator to further the safe and sound operation of an institution for which the primary Federal payment stablecoin regulator is the appropriate regulator.

(i) Definition

(ii) Applicability of Financial Stability Act

(iii) Rules relating to leverage capital requirements or risk-based capital requirements

(iv) Modifications

(5) Treatment under the Bank Secrecy Act and sanctions laws

(A) In generalA 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 program, which shall include appropriate risk assessments and designation of an officer to supervise the program;

(ii) retention of appropriate records;

(iii) monitoring and reporting of any suspicious transaction relevant to a possible violation of law or regulation;

(iv) technical capabilities, policies, and procedures to block, freeze, and reject specific or impermissible transactions that violate Federal or State laws, rules, or regulations;

(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; and

(vi) maintenance of an effective economic sanctions compliance program, including verification of sanctions lists, consistent with Federal law.

(B) Rulemaking

(6) Coordination with permitted payment stablecoin issuers with respect to blocking of property and technological capabilities to comply with lawful orders

(A) In generalThe 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 payment stablecoin of the foreign person upon issuance of the payment stablecoin; 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

(D) Rule of construction

(7) Limitation on payment stablecoin activities

(A) In generalA 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 chapter; and

(v) undertake other activities that directly support any of the activities described in clauses (i) through (iv).

(B) Rule of construction

(8) Prohibition on tying

(A) In general

(B) Regulations

(9) Prohibition on the use of deceptive names

(A) In generalA permitted payment stablecoin issuer may not—

(i) use any combination of terms relating to the United States Government, including “United States”, “United States Government”, and “USG” in the name of a payment stablecoin; or

(ii) market a payment stablecoin in such a way that a reasonable person would perceive the payment stablecoin to be—(I) legal tender, as described in section 5103 of title 31;(II) issued by the United States; or(III) guaranteed or approved by the Government of the United States.

(B) Pegged stablecoins

(10) Audits and reports

(A) Annual financial statement

(i) In general

(ii) Auditor

(iii) Standards

(iv) Rule of construction

(B) Public disclosure and submission to Federal regulatorsEach 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.

(11) Prohibition on interest

(12) Non-financial services public companies

(A) DefinitionsIn this paragraph:

(i) Financial activitiesThe term “financial activities”—(I) has the meaning given that term in section 1843(k) of this title; and(II) for the avoidance of doubt, includes those activities described in subparagraphs (A) and (B) of section 5901(7) of this title and section 5903(a)(7)(A) of this title.

(ii) Public company

(B) Prohibition

(i) In generalA public company that is not predominantly engaged in 1 or more financial activities, and its wholly or majority owned subsidiaries or affiliates, may not issue a payment stablecoin unless the public company obtains a unanimous vote of the Stablecoin Certification Review Committee finding that—(I) it will not pose a material risk to the safety and soundness of the United States banking system, the financial stability of the United States, or the Deposit Insurance Fund;(II) the public company will comply with data use limitations providing that, unless the public company receives consent from the consumer, nonpublic personal information obtained from stablecoin transaction data may not be—(aa) used to target, personalize, or rank advertising or other span;(bb) sold to any third party; or(cc) shared with non-affiliates; and(III) the public company and the affiliates of the public company will comply with the tying prohibitions under paragraph (8).

(ii) ExceptionThe prohibition under clause (i) against the sharing of consumer information shall not apply to sharing of such information—(I) to comply with Federal, State, or local laws, rules, and other applicable legal requirements;(II) to comply with a properly authorized civil, criminal, or regulatory investigation, subpoena, or summons by a Federal, State, or local authority; or(III) to respond to judicial process or a government regulatory authority having jurisdiction over the public company.

(i) In generalAny company not domiciled in the United States or its Territories that is not predominantly engaged in 1 or more financial activities, may not issue a payment stablecoin unless the public company obtains a unanimous vote of the Stablecoin Certification Review Committee finding that—(I) it will not pose a material risk to the safety and soundness of the United States banking system, the financial stability of the United States, or the Deposit Insurance Fund;(II) the public company will comply with data use limitations providing that, unless the public company receives consent from the consumer, nonpublic personal information obtained from stablecoin transaction data may not be—(aa) used to target, personalize, or rank advertising or other span;(bb) sold to any third party; or(cc) shared with non-affiliates; except 1(III) the public company and the affiliates of the public company will comply with the tying prohibitions under paragraph (8).

(D) Rulemaking

(13) Eligibility

(14) Rule of construction

(b) Regulation by the Comptroller

(1) In general

(2) Omitted

(1) Option for State-level regulatory regime

(2) Principles

(3) Review

(4) Certification

(A) Initial certification

(B) Form of certification

(5) Certification review

(A) In generalNot later than 30 days after the date on which a State payment stablecoin regulator submits an initial certification or a recertification under paragraph (4), the Stablecoin Certification Review Committee shall—

(i) approve such certification if the Committee unanimously determines that the State-level regulatory regime meets or exceeds the standards and requirements described in subsection (a); or

(ii) deny such certification and provide the State payment stablecoin regulator with a written explanation of the denial, describing the reasoned basis for the denial with sufficient detail to enable the State payment stablecoin regulator and State-level regulatory regime to make any changes necessary to meet or exceed the standards and requirements described in subsection (a).

(B) RecertificationsWith respect to any recertification certification 1 submitted by a State payment stablecoin regulator under paragraph (4), the Stablecoin Certification Review Committee shall only deny the recertification if—

(i) the State-level regulatory regime has materially changed from the prior certification or there has been a significant change in circumstances; and

(ii) the material change in the regime or significant change in circumstances described in clause (i) is such that the State-level regulatory regime will not promote the safe and sound operation of State qualified payment stablecoin issuers under its supervision.

(i) In generalWith respect to a denial described under subparagraph (A) or (B), the Stablecoin Certification Review Committee shall provide the State payment stablecoin regulator with not less than 180 days from the date on which the State payment stablecoin regulator is notified of such denial to—(I) make such changes as may be necessary to ensure the State-level regulatory regime meets or exceeds the standards described in subsection (a); and(II) resubmit the initial certification or recertification.

(ii) Denial

(D) Appeal of denial

(E) Right to resubmit

(6) List

(7) Expedited certifications of existing regulatory regimes

(d) Transition to Federal oversight

(1) Depository institutionA 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 institutionsA 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 relevant State payment stablecoin regulator and the Comptroller, acting in coordination; or

(3) Waiver

(A) In general

(B) Criteria for waiverThe 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 supervisory framework, including regulations and guidance, of the State qualified payment stablecoin issuer with respect to payment stablecoins and digital assets.

(i) Federal oversight

(ii) State oversight

(e) Misrepresentation of insured status

(1) In general

(2) Misrepresentation of insured status

(A) In general

(B) Penalty

(3) Marketing

(A) In general

(B) Penalty

(C) Determination of the number of violationsFor purposes of determining the number of violations for which to impose penalties under subparagraph (B), separate acts of noncompliance are a single violation when the acts are the result of—

(i) a common or substantially overlapping originating cause; or

(ii) the same statement or publication.

(D) Referral to Secretary of the Treasury

(f) Officers or directors convicted of certain felonies

(1) In generalNo 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

(B) Referral to Attorney General

(g) Clarification relating to Federal savings association reserves

(h) Rulemaking

(1) In general

(2) Coordinated issuance of regulations

(i) Rules of constructionNothing in this chapter shall be construed—

(1) as expanding the authority of the Board with respect to the services the Board can make directly available to the public; or

(2) to limit or prevent the continued application of applicable ethics statutes and regulations administered by the Office of Government Ethics, or the ethics rules of the Senate and the House of Representatives, including section 208 of title 18 and sections 2635.702 and 2635.802 of title 5, Code of Federal Regulations. For the avoidance of doubt, existing Office of Government Ethics laws and the ethics rules of the Senate and the House of Representatives prohibit any member of Congress or senior executive branch official from issuing a payment stablecoin during their time in public service. For the purposes of this paragraph, an employee described in section 202 of title 18 shall be deemed an executive branch employee for purposes of complying with section 208 of that title.

(Pub. L. 119–27, § 4, July 18, 2025, 139 Stat. 425.)

§ 5904. Approval of subsidiaries of insured depository institutions and Federal qualified payment stablecoin issuers

(a) Application

(1) In generalEach primary Federal payment stablecoin regulator shall—

(A) 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, Federal branch, or uninsured national bank that is chartered by the Comptroller pursuant to title LXII of the Revised Statutes, and that seeks to issue payment stablecoins as a Federal qualified payment stablecoin issuer; and

(B) 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 applicationsThe primary Federal payment stablecoin regulators shall, before the date described in section 5913 of this title—

(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 described in paragraph (1).

(3) Mandatory approval process

(b) Evaluation of applications

(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 5903 of this title.

(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) The competence, experience, and integrity of the officers, directors, and principal shareholders of the applicant, its subsidiaries, and parent company, including—

(A) the record of those officers, directors, and principal shareholders of compliance with laws and regulations; and

(B) the ability of those officers, directors, and principal shareholders to fulfill any commitments to, and any conditions imposed by, their primary Federal payment stablecoin regulator in connection with the application at issue and any prior applications.

(4) Whether the redemption policy of the applicant meets the standards under section 5903(a)(1)(B) of this title.

(5) 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

(B) Substantially complete

(i) In general

(ii) Notification

(iii) Material change in circumstances

(2) Denial of application

(A) Grounds for denial

(i) In general

(ii) Issuance on open, public, or decentralized network not ground for denial

(B) Explanation required

(i) In general

(ii) Timing

(iii) Final determination

(iv) Notice if no hearing

(3) Failure to render a decision

(4) Right to reapply

(e) Reports on pending applicationsEach primary Federal payment stablecoin regulator shall—

(1) notify Congress upon beginning to process applications under this chapter; and

(2) annually report to Congress on the applications 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) Safe harbor for pending applicationsThe primary Federal payment stablecoin regulators may waive the application of the requirements of this chapter for a period not to exceed 12 months beginning on the effective date of this chapter, 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 Federal qualified payment stablecoin issuer with a pending application on that effective date.

(g) Rulemaking

(h) Relation to other licensing requirements

(i) Certification required

(1) In general

(2) Availability of certifications

(3) Penalties

(A) Approval revocation

(B) Criminal penalty

(i) In general

(ii) Referral to Attorney General

(Pub. L. 119–27, § 5, July 18, 2025, 139 Stat. 439.)

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

(a) Supervision

(1) In general

(2) Submission of reportsEach permitted payment stablecoin issuer described in paragraph (1) shall, upon request, submit to the appropriate 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;

(D) the compliance of the Federal qualified nonbank payment stablecoin issuer with the requirements of the Bank Secrecy Act and with laws authorizing the imposition of sanctions and implemented by the Secretary of the Treasury.

(3) ExaminationsThe appropriate 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 associated 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

(B) Avoidance of duplication

(b) Enforcement

(1) Suspension or revocation of registrationThe primary Federal payment stablecoin regulator of a 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 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 is willfully or recklessly violating or has willfully or recklessly violated—

(A) this chapter or any regulation or order issued under this chapter; or

(B) any condition imposed in writing by the primary Federal payment stablecoin regulator 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 proceedingsIf the primary Federal payment stablecoin regulator of a 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 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 chapter, any regulation or order issued under this chapter, 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 authorityThe 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 the position or office of that institution-affiliated party or prohibit further participation in the affairs of the permitted payment stablecoin issuer or of all such permitted payment stablecoin issuers by that 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 chapter or any regulation or order issued under this chapter; or

(B) the institution-affiliated party has knowingly committed a violation of any provision of subchapter II of chapter 53 of title 31.

(4) Procedures

(A) In general

(B) Judicial review

(D) Temporary cease-and-desist proceedings

(5) Civil money penaltiesUnless otherwise specified in this chapter, the civil money penalties for violations of this chapter consist of the following:

(A) Failure to be approved

(B) First tier

(D) Procedure

(E) Notice and orders after separation from service

(6) Non-applicability to a State qualified payment stablecoin issuer

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

§ 5906. State qualified payment stablecoin issuers

(a) In general

(b) Authority to enter into agreements with the Board

(d) Rulemaking

(e) Enforcement authority in unusual and exigent circumstances

(1) Board

(A) In general

(B) Rulemaking

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 unusual and exigent circumstances, which may include limitations on redemptions of payment stablecoins, and which shall be issued in the form of a directive, with the effect of a cease and desist order that has become final, to the State qualified payment stablecoin issuer and any of its affiliates, limiting—

(i) 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

(ii) 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(II) Automatic lapse of directive

(ii) Judicial review(I) In general(II) Relief for extraordinary cause

(2) Comptroller

(A) In general

(B) Rulemaking

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 of any activity by a State qualified payment stablecoin issuer that is a nonbank entity 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, which may include limitations on redemption of payment stablecoins, and which shall be issued in the form of a directive, with the effect of a cease and desist order that has become final, to the State qualified payment stablecoin issuer that is a nonbank entity and any of its affiliates, limiting—

(D) Review of directive

(i) Administrative review(I) In general(II) Automatic lapse of directive

(ii) Judicial review(I) In general(II) Relief for extraordinary cause

(f) Effect on State law

(1) Host State law

(2) Home State law

(3) Applicability

(A) In general

(B) Exclusion

(4) Rule of construction

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

§ 5907. Anti-money laundering protections

(a) Payment stablecoins issued by a foreign payment stablecoin issuer

(1) In general

(2) Enforcement

(A) Authority

(B) Designation as noncompliant

(3) Appeal

(b) Publication of designation; prohibition on secondary trading

(1) In general

If a foreign payment stablecoin issuer does not come into compliance with the lawful order within 30 days from the date of issuance of the written notice described in subsection (a), except as provided in subsection (c), 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 payment stablecoin 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 payment stablecoin issuer in the United States.

(2) Effective date of prohibition

(3) Expiration of prohibition

(A) In general

(B) Rulemaking

(4) Civil monetary penalties

The Secretary of the Treasury may impose a civil monetary penalty as follows:

(A) Digital asset service providers

(B) Foreign payment stablecoin issuers

(D) Commencement of civil actions

The Secretary of the Treasury may commence a civil action against a foreign payment stablecoin issuer in a district court of the United States to—

(i) recover a civil monetary penalty assessed under subparagraph (A) or (B);

(ii) seek an injunction to bar the foreign payment stablecoin issuer from engaging in financial transactions in the United States or with United States persons; or

(iii) seek an injunction to stop a digital asset service provider from offering on the platform of the digital asset service provider payment stablecoins issued by the foreign payment stablecoin issuer.

(1) In general

The Secretary of the Treasury may offer a waiver, general license, or specific license to any United States person engaging in secondary trading described in subsection (b)(1)(B) 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 payment stablecoin issuer is taking tangible steps to remedy the failure to comply with the lawful order that resulted in the noncompliance determination under subsection (a).

(2) National security waiver

(3) Waiver for intelligence and law enforcement activities

The head of a department or agency may waive the application of this section 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

(d) Rule of construction

(Pub. L. 119–27, § 8, July 18, 2025, 139 Stat. 450.)

§ 5908. Anti-money laundering innovation

(a) Public comment

Beginning on the date that is 30 days after July 18, 2025, and for a period of 60 days thereafter, the Secretary of the Treasury shall seek public comment to identify innovative or novel methods, techniques, or strategies that regulated financial institutions use, or have the potential to use, to detect illicit activity, such as money laundering, involving digital assets, including comments with respect to—

(1) application program interfaces;

(2) artificial intelligence;

(3) digital identify verification; and

(4) use of blockchain technology and monitoring.

(b) Treasury research

(1) In general

(2) Research factors

With respect to each innovative or novel method, technique, or strategy described in paragraph (1), the Financial Crimes Enforcement Network shall evaluate and consider the following factors against existing methods, techniques, or strategies:

(A) Improvements in the ability of financial institutions to detect illicit activity involving digital assets.

(B) Costs to regulated financial institutions.

(D) Privacy risks associated with the information that is collected or reviewed.

(E) Operational challenges and efficiency considerations.

(F) Cybersecurity risks.

(G) Effectiveness of methods, techniques, or strategies at mitigating illicit finance.

As part of the national strategy for combating terrorist and other illicit financing required under sections 261 and 262 of the Countering America’s Adversaries Through Sanctions Act (Public Law 115–44; 131 Stat. 934), the Secretary of the Treasury shall consider—

(1) the source of illicit activity, such as money laundering and sanctions evasion involving digital assets;

(2) the effectiveness of and gaps in existing methods, techniques, and strategies used by regulated financial institutions in detecting illicit activity, such as money laundering, involving digital assets;

(3) the impact of existing regulatory frameworks on the use and development of innovative methods, techniques, or strategies by regulated financial institutions; and

(4) any foreign jurisdictions that pose a high risk of facilitating illicit activity through the use of digital assets to obtain fiat currency.

(d) FinCEN guidance or rulemaking

Not later than 3 years after July 18, 2025, the Financial Crimes Enforcement Network shall issue public guidance and notice and comment rulemaking, based on the results of the research and risk assessments required under this section, relating to the following:

(1) The implementation of innovative or novel methods, techniques, or strategies by regulated financial institutions to detect illicit activity involving digital assets.

(2) Standards for payment stablecoin issuers to identify and report illicit activity involving the payment stablecoin of a permitted payment stablecoin issuer, including, fraud, cybercrime, money laundering, financing of terrorism, sanctions evasion, or insider trading.

(3) Standards for payment stablecoin issuers’ systems and practices to monitor transactions on blockchains, digital asset mixing services, tumblers, or other similar services that mix payment stablecoins in such a way as to make such transaction or the identity of the transaction parties less identifiable.

(4) Tailored risk management standards for financial institutions interacting with decentralized finance protocols.

(e) Recommendations and report to Congress

(1) In general

Not later than 180 days after July 18, 2025, the Secretary of the Treasury shall submit to the chairs 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 a report on—

(A) legislative and regulatory proposals to allow regulated financial institutions to develop and implement novel and innovative methods, techniques, or strategies to detect illicit activity, such as money laundering and sanctions evasion, involving digital assets;

(B) the results of the research and risk assessments conducted pursuant to this section;

(C) efforts to support the ability of financial institutions to implement novel and innovative methods, techniques, or strategies to detect illicit activity, such as money laundering and sanctions evasion, involving digital assets;

(D) the extent to which transactions on distributed ledgers, digital asset mixing services, tumblers, or other similar services that mix payment stablecoins in such a way as to make such transaction or the identity of the transaction parties less identifiable may facilitate illicit activity; and

(E) legislative recommendations relating to the scope of the term “digital asset service provider” and the application of that term to decentralized finance.

(2) Classified annex

(f) Rule of construction

(Pub. L. 119–27, § 9, July 18, 2025, 139 Stat. 453.)

§ 5909. Custody of payment stablecoin reserve and collateral

(a) In generalA 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 used to issue 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 5301(12) of this title; or

(B) supervision by a State bank supervisor, as defined under section 1813 of this title, or a State credit union supervisor, as defined under section 6003 of the Anti-Money Laundering Act of 2020 (31 U.S.C. 5311 note), and such State bank supervisor or State credit union supervisor makes available to the Board such information as the Board determines necessary and relevant to the categories of information under subsection (d); and

(2) complies with the requirements under subsection (b), unless such person holds such property in accordance 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 requirementA person described in subsection (a) shall, with respect to other property described in that subsection—

(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 described in that subsection receives, acquires, or holds payment stablecoins, private keys, cash, and other property (hereinafter referred to in this section as the “customer”) as belonging to such customer and not as 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.

(1) In general

(2) ExceptionsNotwithstanding paragraph (1) or subsection (b)—

(A) the payment stablecoin reserves, payment stablecoins, cash, and other property of a permitted payment stablecoin issuer or customer may, for convenience, be commingled and deposited in an omnibus account holding the payment stablecoin reserves, payment stablecoins, cash, and other property of more than 1 permitted payment stablecoin issuer or customer at a State chartered depository institution, an insured depository institution, national bank, or trust company, and any payment stablecoin reserves in the form of cash held in the form of a deposit liability at a depository institution shall not be subject to any requirement relating to the separation of such cash from the property of the applicable depository institution;

(B) such share of the payment stablecoin reserves, payment stablecoins, cash, and other property of the permitted payment stablecoin issuer or 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);

(C) in accordance with such terms and conditions as a primary Federal payment stablecoin regulator may prescribe by rule, regulation, or order, any payment stablecoin reserves, payment stablecoins, cash, and other property described in this subsection may be commingled and deposited in permitted payment stablecoin issuer or customer accounts with payment stablecoin reserves, 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 as, and dealt with as belonging to such permitted payment stablecoin issuers or customers; or

(D) an insured depository institution that provides custodial or safekeeping services for payment stablecoin reserves shall be permitted to hold payment stablecoin reserves in the form of cash on deposit provided such treatment is consistent with Federal law.

(3) Customer priority

(d) Regulatory information

(e) Exclusion

(Pub. L. 119–27, § 10, July 18, 2025, 139 Stat. 455.)

§ 5910. Treatment of payment stablecoin issuers in insolvency proceedings

Subject to section 507(e) of title 11, as added by subsection (d), in any insolvency proceeding of a permitted payment stablecoin issuer under Federal or State law, including any proceeding under that title and any insolvency proceeding administered by a State payment stablecoin regulator with respect to a permitted payment stablecoin issuer—

(1) the claim of a person holding payment stablecoins issued by the permitted payment stablecoin issuer shall have priority, on a ratable basis with the claims of other persons holding such payment stablecoins, over the claims of the permitted payment stablecoin issuer and any other holder of claims against the permitted payment stablecoin issuer, with respect to required payment stablecoin reserves;

(2) notwithstanding any other provision of law, including the definition of “claim” under section 101(5) of title 11, any person holding a payment stablecoin issued by the permitted payment stablecoin issuer shall be deemed to hold a claim; and

(3) the priority under paragraph (1) shall not apply to claims other than those arising directly from the holding of payment stablecoins.

(Pub. L. 119–27, § 11(a), July 18, 2025, 139 Stat. 457.)

§ 5911. 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 1813 of this title) 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 1813 of this title) or a nonbank entity may be considered a debtor under title 11.

(Pub. L. 119–27, § 11(g), July 18, 2025, 139 Stat. 458.)

§ 5912. 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.

(Pub. L. 119–27, § 12, July 18, 2025, 139 Stat. 459.)

§ 5913. Rulemaking

(a) In general

(b) Coordination

(Pub. L. 119–27, § 13, July 18, 2025, 139 Stat. 459.)

§ 5914. Reports

(a) Annual reporting requirement

Beginning on the date that is 1 year after July 18, 2025, and annually thereafter, the primary Federal payment stablecoin regulators, in consultation with State payment stablecoin regulators, as necessary, 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, which may include a classified annex, if applicable, on the status of the payment stablecoin industry, including—

(1) a summary of trends in payment stablecoin activities;

(2) a summary of the number of applications for approval as a permitted payment stablecoin issuer under section 5904 of this title, 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

(Pub. L. 119–27, § 15, July 18, 2025, 139 Stat. 460.)

§ 5915. Authority of banking institutions

(a) Rule of constructionNothing in this chapter 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 or shares (in the case of a credit union), and issuing digital assets that represent those deposits or shares;

(2) utilizing a distributed ledger for the books and records of the entity and to effect intrabank transfers; and

(3) providing custodial services for payment stablecoins, private keys of payment stablecoins, or reserves backing payment stablecoins.

(b) Regulatory review

(c) Treatment of custody activitiesThe appropriate Federal banking agency, the National Credit Union Administration (in the case of a credit union), and the Securities and Exchange Commission may not require a depository institution, national bank, Federal credit union, State credit union, or trust company, or any affiliate thereof—

(1) to include digital 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; or

(2) to hold in custody or safekeeping regulatory capital against digital assets and reserves backing such assets described in section 5903(a)(1)(A) of this title, except as necessary to mitigate against operational risks inherent in 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);

(D) a State credit union supervisor.

(d) State-chartered depository institutions

(1) In generalA depository institution chartered under the banking laws of a State, that has a subsidiary that is a permitted payment stablecoin issuer, may engage in the business of money transmission or provide custodial services through the permitted payment stablecoin issuer in any State if such State-chartered depository institution is—

(A) required by the laws or regulations of the home State to establish and maintain adequate liquidity, and such liquidity is regularly reassessed by the home State banking supervisor to take into account any changes in the financial condition and risk profile of the institution, including any uninsured deposits maintained by such institution; and

(B) required by the laws or regulations of the home State to establish and maintain adequate capital, and such capital is regularly reassessed by the home State banking supervisor to take into account any changes in the financial condition and risk profile of the institution, including any uninsured deposits maintained by such institution.

(2) Rule of construction

(e) DefinitionsIn this section:

(1) Home State

(2) Host State

(Pub. L. 119–27, § 16, July 18, 2025, 139 Stat. 461.)

§ 5916. Exception for foreign payment stablecoin issuers and reciprocity for payment stablecoins issued in overseas jurisdictions

(a) In general

The prohibitions under section 5902 of this title shall not apply to a foreign payment stablecoin issuer if all of the following apply:

(1) The foreign payment stablecoin issuer is subject to regulation and supervision by a foreign payment stablecoin regulator of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands that has a regulatory and supervisory regime with respect to payment stablecoins that the Secretary of the Treasury determines, pursuant to subsection (b), is comparable to the regulatory and supervisory regime established under this chapter, including, in particular, the requirements under section 5903(a) of this title.

(2) The foreign payment stablecoin issuer is registered with the Comptroller pursuant to subsection (c).

(3) The foreign payment stablecoin issuer holds reserves in a United States financial institution sufficient to meet liquidity demands of United States customers, unless otherwise permitted under a reciprocal arrangement established pursuant to subsection (d).

(4) The foreign country in which the foreign payment stablecoin issuer is domiciled and regulated is not subject to comprehensive economic sanctions by the United States or in a jurisdiction that the Secretary of the Treasury has determined to be a jurisdiction of primary money laundering concern.

(b) Treasury determination

(1) In general

(2) Request

(3) Timing for determination

(4) Rescission of determination

(A) In general

(B) Limited safe harbor

(5) Public notice

(6) Rulemaking

(1) Registration

(A) In general

(B) Registration approval

In determining whether to reject a foreign payment stablecoin issuer’s registration, the Comptroller shall consider 1

1 So in original. Probably should be followed by a dash.

(i) the final determination of the Secretary of the Treasury under this section;

(ii) the financial and managerial resources of the United States operations of the foreign payment stablecoin issuer;

(iii) whether the foreign payment stablecoin issuer will provide adequate information to the Comptroller as the Comptroller determines is necessary to determine compliance with this chapter;

(iv) whether the foreign payment stablecoin presents a risk to the financial stability of the United States; and

(v) whether the foreign payment stablecoin issuer presents illicit finance risks to the United States.

(D) Procedure for appeal

(E) Rulemaking

(F) Public notice

(2) Ongoing monitoring

A foreign payment stablecoin issuer shall 1

(A) be subject to reporting, supervision, and examination requirements as determined by the Comptroller; and

(B) consent to United States jurisdiction relating to the enforcement of this chapter.

(3) Lack of compliance

(A) Comptroller action

(B) Secretary action

(d)

(1) In general

The Secretary of the Treasury may create and implement reciprocal arrangements or other bilateral agreements between the United States and jurisdictions with payment stablecoin regulatory regimes that are comparable to the requirements established under this chapter. The Secretary of the Treasury shall consider whether the jurisdiction’s requirements for payment stablecoin issuers include 1

(A) similar requirements to those under section 5903(a) of this title;

(B) adequate anti-money laundering and counter-financing of terrorism program and sanction compliance standards; and

(C) adequate supervisory and enforcement capacity to facilitate international transactions and interoperability with United States dollar-denominated payment stablecoins issued overseas.

(2) Publication

(3) Completion

(Pub. L. 119–27, § 18, July 18, 2025, 139 Stat. 463.)