II 

117TH CONGRESS 

2D SESSION S. 5340 

To provide a regulatory framework and consumer protections for the issuance 

of payment stablecoins, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 21, 2022 

Mr. TOOMEY introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide a regulatory framework and consumer protections 

for the issuance of payment stablecoins, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stablecoin Trans5 parency of Reserves and Uniform Safe Transactions Act 

6 of 2022’’ or the ‘‘Stablecoin TRUST Act of 2022’’. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 


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1 (1) APPROPRIATE FEDERAL BANKING AGEN2 CY.—The term ‘‘appropriate Federal banking agen3 cy’’— 

4 (A) has the meaning given the term in sec5 tion 3 of the Federal Deposit Insurance Act (12 

6 U.S.C. 1813); and 

7 (B) includes the National Credit Union 

8 Administration. 

9 (2) DEPOSIT.—The term ‘‘deposit’’ has the 

10 meaning given the term in section 3 of the Federal 

11 Deposit Insurance Act (12 U.S.C. 1813). 

12 (3) DIGITAL ASSET.—The term ‘‘digital asset’’ 

13 means any digital representation of value that is re14 corded on a cryptographically secured distributed 

15 ledger. 

16 (4) INSURED DEPOSITORY INSTITUTION.—The 

17 term ‘‘insured depository institution’’ has the mean18 ing given the term in section 3 of the Federal De19 posit Insurance Act (12 U.S.C. 1813). 

20 (5) LEVEL 1 HIGH-QUALITY LIQUID ASSET.— 

21 The term ‘‘level 1 high-quality liquid asset’’ means 

22 an asset described in section 249.20(a) of title 12, 

23 Code of Federal Regulations. 

24 (6) MONEY TRANSMITTING BUSINESS.—The 

25 term ‘‘money transmitting business’’ has the meanVerDate Sep 11 2014 19:32 Jan 09, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S5340.IS S5340

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1 ing given the term in section 5330 of title 31, 

2 United States Code. 

3 (7) NATIONAL LIMITED PAYMENT STABLECOIN

4 ISSUER.—The term ‘‘national limited payment 

5 stablecoin issuer’’ means a person that— 

6 (A) issues payment stablecoins; and 

7 (B) receives a license from, and becomes 

8 subject to the regulatory standards established 

9 by, the Office of the Comptroller of the Cur10 rency under section 5244A of the Revised Stat11 utes, as added by section 6 of this Act. 

12 (8) NON-DEPOSITORY TRUST COMPANY.—The 

13 term ‘‘non-depository trust company’’ means a trust 

14 company that does not receive deposits other than 

15 trust funds. 

16 (9) PAYMENT STABLECOIN.—The term ‘‘pay17 ment stablecoin’’ means a digital asset that— 

18 (A) is designed to maintain a stable value 

19 relative to a fiat currency or currencies; 

20 (B) is convertible directly to fiat currency 

21 by the issuer; 

22 (C) is designed to be widely used as a me23 dium of exchange; 

24 (D) is issued by a centralized entity; 


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1 (E) does not inherently pay interest to the 

2 holder; and 

3 (F) is recorded on a public distributed 

4 ledger. 

5 (10) PAYMENT STABLECOIN ISSUER.—The term 

6 ‘‘payment stablecoin issuer’’ means a person that 

7 issues a payment stablecoin under section 3(b) of 

8 this Act. 

9 (11) REGISTERED PUBLIC ACCOUNTING

10 FIRM.—The term ‘‘registered public accounting 

11 firm’’ has the meaning given the term in section 

12 2(a) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 

13 7201(a)). 

14 (12) STATE BANKING SUPERVISOR.—The term 

15 ‘‘State banking supervisor’’ means the commissioner, 

16 superintendent, or similar official of a State who is 

17 responsible for the chartering, regulation, and exam18 ination of depository institutions, trust companies, 

19 money transmitting businesses, and similar entities 

20 within the State. 

21 SEC. 3. ISSUANCE OF PAYMENT STABLECOINS. 

22 (a) IN GENERAL.—Except as provided in subsection 

23 (b), it shall be unlawful for any person to issue a payment 

24 stablecoin. 


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1 (b) EXCEPTIONS.—Subsection (a) shall not apply 

2 to— 

3 (1) a money transmitting business, a non-de4 pository trust company, or any other person that is 

5 authorized by a State banking supervisor to issue 

6 payment stablecoins; 

7 (2) a national limited payment stablecoin 

8 issuer; 

9 (3) a depository institution, as defined in sec10 tion 19(b)(1) of the Federal Reserve Act (12 U.S.C 

11 461(b)(1)); or 

12 (4) a national trust bank. 

13 (c) JOINT SUPERVISION.— 

14 (1) IN GENERAL.—If a person is authorized by 

15 the appropriate Federal banking agency and the ap16 plicable State banking supervisor to issue payment 

17 stablecoins, the person shall be jointly supervised by 

18 the appropriate Federal banking agency and the 

19 State banking supervisor. 

20 (2) DEPOSITORY INSTITUTIONS.—A depository 

21 institution described in subsection (b)(3)— 

22 (A) may become a member bank of the 

23 Federal Reserve System or obtain deposit or 

24 share insurance; and 


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1 (B) shall not be required to satisfy sub2 paragraph (A) as a condition to operate. 

3 (d) INJUNCTIVE RELIEF.—The Comptroller of the 

4 Currency may bring an action in the appropriate district 

5 court of the United States or the court of any territory 

6 of the United States for the enforcement of this section 

7 and such courts shall have jurisdiction and power to order 

8 and require compliance herewith, including through in9 junctive relief. 

10 (e) FEDERAL RESERVE ACCOUNTS AND SERVICES.— 

11 Each Federal Reserve bank shall, upon application from 

12 a national limited payment stablecoin issuer or a payment 

13 stablecoin issuer that only engages in the business of 

14 issuing and redeeming payment stablecoins and engaging 

15 in activities incidental to such issuance or redemption— 

16 (1) establish and maintain an account for the 

17 payment stablecoin issuer; and 

18 (2) provide to the payment stablecoin issuer— 

19 (A) the services listed in section 11A(b) of 

20 the Federal Reserve Act (12 U.S.C. 248a(b)); 

21 and 

22 (B) a deposit account in accordance with 

23 the first undesignated paragraph of section 13 

24 of the Federal Reserve Act (12 U.S.C. 342). 


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1 SEC. 4. DISCLOSURES, REDEMPTION POLICIES, ATTESTA2 TIONS, AND PERMISSIBLE ASSETS FOR PAY3 MENT STABLECOIN ISSUERS. 

4 (a) IN GENERAL.—Any person described in section 

5 3(b) that issues a payment stablecoin shall— 

6 (1) publicly disclose the assets backing the pay7 ment stablecoin on a monthly basis; 

8 (2) adopt and publicly disclose policies for re9 deeming the payment stablecoin, including whether 

10 redemption requests will be met on demand or with 

11 a time lag; 

12 (3) undergo quarterly attestations by a reg13 istered public accounting firm and publicly disclose 

14 the results; and 

15 (4) attest that the assets backing the payment 

16 stablecoin do not materially diverge from those dis17 closed. 

18 (b) FILING OF DISCLOSURES.—Disclosures described 

19 in subsection (a) shall— 

20 (1) be filed with the Secretary of the Treasury; 

21 and 

22 (2) made publicly available on a Department of 

23 the Treasury website on a form which shall include 

24 an executive summary not longer than 1 page in 

25 length. 


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1 (c) RULEMAKING.—The Secretary of the Treasury 

2 may promulgate regulations under section 553 of title 5, 

3 United States Code, to develop a template form for ensur4 ing that the disclosures described in subsection (a) are 

5 complete, clear, and understandable. 

6 (d) PERMISSIBLE ASSETS.—Payment stablecoins 

7 issued by a payment stablecoin issuer shall be backed by 

8 assets— 

9 (1) with a market value equal to not less than 

10 100 percent of the par value of the payment 

11 stablecoins outstanding; and 

12 (2) that are— 

13 (A) level 1 high-quality liquid assets, de14 nominated in United States dollars; 

15 (B) United States coins and currency, as 

16 described in section 5103 of title 31, United 

17 States Code; and 

18 (C) any deposit with an insured depository 

19 institution. 

20 SEC. 5. EQUAL TREATMENT FOR DEPOSITORY INSTITU21 TIONS. 

22 (a) NATIONAL BANKING ASSOCIATIONS.—Section 

23 5136 of the Revised Statutes (12 U.S.C. 24) is amended 

24 by adding at the end the following: 

25 ‘‘Twelfth. To issue payment stablecoins.’’. 


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1 (b) SEGREGATION.—A depository institution, as de2 fined in section 19(b)(1) of the Federal Reserve Act (12 

3 U.S.C. 461(b)(1))— 

4 (1) may segregate into a separate legal entity 

5 the issuance of payment stablecoins and manage6 ment of such payment stablecoin reserve assets from 

7 other activities; and 

8 (2) that elects to segregate under paragraph 

9 (1), or which only issues payment stablecoins or 

10 manages payment stablecoin reserve assets— 

11 (A) shall be subject to the same tailored 

12 regulatory standards as a national limited pay13 ment stablecoin issuer for that activity; and 

14 (B) shall remain subject to regulation, ex15 amination, and supervision by the same regu16 lator as the depository institution. 

17 SEC. 6. NATIONAL LIMITED PAYMENT STABLECOIN 

18 ISSUERS. 

19 The Revised Statutes are amended by inserting after 

20 section 5244 (12 U.S.C. 43) the following: 

21 ‘‘SEC. 5244A. NATIONAL LIMITED PAYMENT STABLECOIN 

22 ISSUERS. 

23 ‘‘(a) APPLICATION.—An entity may submit to the 

24 Comptroller of the Currency an application for a national 

25 limited payment stablecoin issuer license. 


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1 ‘‘(b) AUTHORITY.—A license for a national limited 

2 payment stablecoin issuer shall authorize the national lim3 ited payment stablecoin issuer to issue and redeem pay4 ment stablecoins and engage in any activities incidental 

5 to such issuance or redemption, including making a mar6 ket in such payment stablecoin and holding and managing 

7 the reserve assets of such payment stablecoins. 

8 ‘‘(c) LIMITATION ON OTHER ACTIVITIES.—A na9 tional limited payment stablecoin issuer shall not engage 

10 in any activities, such as making loans or other extensions 

11 of credit, other than those authorized by subsection (b). 

12 ‘‘(d) REVIEW.— 

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), the Comptroller of the Currency shall 

15 grant applications for national limited payment 

16 stablecoin issuer licenses not later than 90 days 

17 after the date on which the application is submitted. 

18 ‘‘(2) CONSIDERATIONS.— 

19 ‘‘(A) IN GENERAL.—The Comptroller of 

20 the Currency may deny an application for a li21 cense under this subsection only if the Comp22 troller determines that the activities of the ap23 plicant would be unsafe or unsound based on 

24 the factors described in subparagraph (B). 


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1 ‘‘(B) FACTORS.—The factors described in 

2 this subparagraph are as follows: 

3 ‘‘(i) The financial condition and busi4 ness plan of the applicant. 

5 ‘‘(ii) The general character and fit6 ness of the management of the applicant. 

7 ‘‘(iii) The risks presented and the po8 tential benefits that could be delivered to 

9 consumers. 

10 ‘‘(3) DEFAULT.—If the Comptroller of the Cur11 rency fails to approve or deny an application before 

12 the expiration of the 90-day period under paragraph 

13 (1), the application shall be deemed to have been ap14 proved. 

15 ‘‘(4) RESPONSE.—If the Comptroller of the 

16 Currency denies an application under this section, 

17 the Comptroller shall respond to the applicant with 

18 a detailed written explanation for such denial. 

19 ‘‘(e) CORPORATE GOVERNANCE.—A national limited 

20 payment stablecoin issuer may elect, by designating in the 

21 bylaws of the issuer, to follow the corporate governance 

22 provisions of— 

23 ‘‘(1) the law of the State in which the issuer is 

24 incorporated; 


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1 ‘‘(2) the law of the State in which the main of2 fice of the issuer is located; 

3 ‘‘(3) chapter 1 of title 8 of the Delaware Code; 

4 or 

5 ‘‘(4) the Model Business Corporation Act. 

6 ‘‘(f) SUPERVISION.—A license for a national limited 

7 payment stablecoin issuer shall permit supervision, exam8 ination, and regulation by the Comptroller of the Currency 

9 of only the legal entity that issues payment stablecoins. 

10 ‘‘(g) REGULATIONS.—The Office of the Comptroller 

11 of the Currency may establish only the following regula12 tions, in accordance with section 553 of title 5, United 

13 States Code, for national limited payment stablecoin 

14 issuers: 

15 ‘‘(1) Capital requirements which shall not ex16 ceed 6 months of operating expenses. 

17 ‘‘(2) Liquidity requirements. 

18 ‘‘(3) Governance and risk-management require19 ments tailored to the business model and risk profile 

20 of national limited payment stablecoin issuers. 

21 ‘‘(h) ENFORCEMENT.—If the Comptroller of the Cur22 rency determines that a national limited payment 

23 stablecoin issuer has violated the requirements of this sub24 section or any other applicable law (including regulations), 

25 the Comptroller of the Currency may issue a temporary 


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1 order requiring the national limited payment stablecoin 

2 issuers to— 

3 ‘‘(1) cease and desist from any such violation; 

4 and 

5 ‘‘(2) take affirmative action to prevent or rem6 edy such violation.’’. 

7 SEC. 7. EXEMPTION FROM SECURITIES REQUIREMENTS. 

8 (a) SECURITIES.— 

9 (1) SECURITIES ACT OF 1933.—Section 2(a)(1) 

10 of the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) 

11 is amended by adding at the end the following: ‘‘The 

12 term ‘security’ does not include a payment 

13 stablecoin, as that term is defined in section 2 of the 

14 Stablecoin TRUST Act of 2022.’’. 

15 (2) SECURITIES EXCHANGE ACT OF 1934.—Sec16 tion 3(a)(10) of the Securities Exchange Act of 

17 1934 (15 U.S.C. 78c(a)(10)) is amended by adding 

18 before the period at the end the following: ‘‘, and 

19 shall also not include a payment stablecoin, as that 

20 term is defined in section 2 of the Stablecoin 

21 TRUST Act of 2022’’. 

22 (3) INVESTMENT COMPANY ACT OF 1940.—Sec23 tion 2(a)(36) of the Investment Company Act of 

24 1940 (15 U.S.C. 80a–2(a)(36)) is amended by add25 ing at the end the following: ‘‘The term ‘security’ 


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1 does not include a payment stablecoin, as that term 

2 is defined in section 2 of the Stablecoin TRUST Act 

3 of 2022.’’. 

4 (4) INVESTMENT ADVISERS ACT OF 1940.—Sec5 tion 202(a)(18) of the Investment Advisers Act of 

6 1940 (15 U.S.C. 80b–2(a)(18)) is amended by add7 ing at the end the following: ‘‘The term ‘security’ 

8 does not include a payment stablecoin, as that term 

9 is defined in section 2 of the Stablecoin TRUST Act 

10 of 2022.’’. 

11 (b) INVESTMENT COMPANY.—Section 3(c) of the In12 vestment Company Act of 1940 (15 U.S.C. 80a–3(c)) is 

13 amended by adding at the end the following: 

14 ‘‘(15) Any payment stablecoin issuer, as that 

15 term is defined in section 2 of the Stablecoin 

16 TRUST Act of 2022.’’. 

17 (c) INVESTMENT ADVISER.—Section 202(a)(11) of 

18 the Investment Advisers Act of 1940 (15 U.S.C. 80b– 

19 2(a)(11)) is amended— 

20 (1) by striking ‘‘;; (G)’’ and inserting ‘‘; (G)’’; 

21 (2) by striking ‘‘or (H)’’ and inserting ‘‘(H)’’; 

22 and 

23 (3) by inserting ‘‘; or (I) any payment 

24 stablecoin issuer, defined in section 2 of the 


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1 Stablecoin TRUST Act of 2022’’ before the period 

2 at the end. 

3 SEC. 8. PRIVACY PROTECTIONS FOR DIGITAL ASSETS AND 

4 PAYMENT STABLECOIN USERS. 

5 (a) EXEMPTION FROM REPORTING REQUIRE6 MENTS.—The Secretary of the Treasury may not collect 

7 or mandate the collection of nonpublic information about 

8 digital asset transactions unless the information is— 

9 (1) particularly described in a search warrant 

10 granted by a judge upon a finding of probable cause 

11 that 1 or more of the participants to the transaction 

12 committed or is committing a crime; or 

13 (2) voluntarily provided by a customer of a fi14 nancial institution, business, or other third party 

15 and held for a legitimate business purpose by that 

16 financial institution, business, or third party. 

17 (b) APPLICABILITY OF OTHER LAWS.—A national 

18 limited payment stablecoin issuer shall be subject to title 

19 V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et 

20 seq.). 

21 (c) RULE OF CONSTRUCTION.—Nothing in this sec22 tion may be construed to limit— 

23 (1) any duty to report taxable income; 

24 (2) any duty to disclose foreign account owner25 ship; or 


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1 (3) the ability of the Internal Revenue Service 

2 to conduct investigations pursuant to a warrant or 

3 other regular legal process. 

4 SEC. 9. TREATMENT OF INSOLVENT PAYMENT STABLECOIN 

5 ISSUERS. 

6 In any insolvency proceeding, including any pro7 ceeding under title 11, United States Code, or any insol8 vency proceeding by an appropriate Federal banking agen9 cy or a State banking supervisor with respect to a payment 

10 stablecoin issuer, a claim of a person holding payment 

11 stablecoins issued by the payment stablecoin issuer shall 

12 have priority over all other claims against the payment 

13 stablecoin issuer. 

14 SEC. 10. RULES OF CONSTRUCTION. 

15 (a) APPLICABILITY TO OTHER INSTRUMENTS.— 

16 Nothing in sections 2 through 6 may be construed as re17 stricting activities involving instruments other than pay18 ment stablecoins. 

19 (b) RELATION TO STATE AND FEDERAL AUTHOR20 ITY.—Nothing in this Act may be construed as— 

21 (1) preventing a State banking supervisor from 

22 imposing additional or stricter regulatory standards 

23 on a person licensed by the State banking supervisor 

24 to issue payment stablecoins; 


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1 (2) superseding any requirement of State law 

2 relating to money transmitting businesses operating 

3 in that State, other than for payment stablecoin 

4 issuers; or 

5 (3) limiting the authority of an insured deposi6 tory institution to engage in activities permissible 

7 pursuant to applicable State and Federal law, in8 cluding accepting or receiving deposits and issuing 

9 digital assets that represent deposits. 

Æ 


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