II 

118TH CONGRESS 

2D SESSION S. 4155 

To provide for effective regulation of payment stablecoins, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 17, 2024 

Ms. LUMMIS (for herself and Mrs. GILLIBRAND) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide for effective regulation 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 ‘‘Lummis-Gillibrand 

5 Payment Stablecoin Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ALGORITHMIC PAYMENT STABLECOIN.—The 

9 term ‘‘algorithmic payment stablecoin’’ means a 

10 crypto asset that— 


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1 (A) is represented by the issuer, or is oth2 erwise designed to create the reasonable expec3 tation, that the crypto asset will maintain a sta4 ble value relative to the value of a fixed amount 

5 of United States dollars; and 

6 (B) relies on the use of an algorithm that 

7 adjusts the supply of the crypto asset in re8 sponse to changes in market demand for the 

9 crypto asset to maintain the expectation that 

10 the crypto asset will maintain a stable value. 

11 (2) APPLICABLE PAYMENT STABLECOIN REGU12 LATOR.—The term ‘‘applicable payment stablecoin 

13 regulator’’ means, with respect to a payment 

14 stablecoin issuer— 

15 (A) in the case of a depository institution 

16 that issues a payment stablecoin under section 

17 7, consistent with section 11(s)— 

18 (i) the Comptroller or State bank su19 pervisor, as applicable; or 

20 (ii) the Board; and 

21 (B) in the case of a State non-depository 

22 trust company that issues a payment stablecoin 

23 under section 6, the applicable State bank su24 pervisor and the Board, acting jointly. 


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1 (3) BANK SECRECY ACT.—The term ‘‘Bank Se2 crecy Act’’ means— 

3 (A) section 21 of the Federal Deposit In4 surance Act (12 U.S.C. 1829b); 

5 (B) chapter 2 of title I of Public Law 91– 

6 508 (12 U.S.C. 1951 et seq.); and 

7 (C) subchapter II of chapter 53 of title 31, 

8 United States Code. 

9 (4) BOARD.—The term ‘‘Board’’ means the 

10 Board of Governors of the Federal Reserve System. 

11 (5) COMPTROLLER.—The term ‘‘Comptroller’’ 

12 means the Comptroller of the Currency. 

13 (6) CONTROLLING INTEREST.—The term ‘‘con14 trolling interest’’ means a circumstance when a per15 son, directly or indirectly, or acting through or in 

16 concert with 1 or more persons— 

17 (A) owns, controls, or has the power to 

18 vote 25 percent or more of any class of voting 

19 securities of a depository institution or holding 

20 company thereof; 

21 (B) controls in any manner the election of 

22 a majority of the directors of a depository insti23 tution or holding company thereof; or 

24 (C) has the power to exercise a controlling 

25 influence over the management or policies of 


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1 the depository institution or holding company 

2 thereof. 

3 (7) CRYPTO ASSET.—The term ‘‘crypto asset’’ 

4 means a natively electronic asset that confers eco5 nomic, proprietary, or access rights or powers and is 

6 recorded using cryptographically secured distributed 

7 ledger technology, or any similar analog. 

8 (8) DEPOSITORY INSTITUTION.—The term ‘‘de9 pository institution’’— 

10 (A) has the meaning given that term in 

11 section 19(b)(1) of the Federal Reserve Act (12 

12 U.S.C. 461(b)(1)); and 

13 (B) includes a depository institution oper14 ating under subsection (a)(2) of section 5169 of 

15 the Revised Statutes (12 U.S.C. 27), as amend16 ed by this Act, or a substantially similar State 

17 law, which is exclusively engaged in issuing pay18 ment stablecoins, providing safekeeping, trust, 

19 or custodial services, or activities incidental to 

20 the foregoing. 

21 (9) DISTRIBUTED LEDGER.—The term ‘‘distrib22 uted ledger’’ means technology that enables the op23 eration and use of a ledger that— 

24 (A) is shared across a set of distributed 

25 nodes that participate in a network and store a 


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1 complete or partial replica of the ledger, which 

2 may be public or private; 

3 (B) is synchronized between the nodes; 

4 (C) has data appended to the ledger by fol5 lowing the specified consensus mechanism of 

6 the ledger; 

7 (D) may be accessible to anyone or re8 stricted to a subset of participants; and 

9 (E) may require participants to have au10 thorization to perform certain actions or require 

11 no authorization. 

12 (10) INSTITUTION-AFFILIATED PARTY.—With 

13 respect to a payment stablecoin issuer, the term ‘‘in14 stitution-affiliated party’’ means— 

15 (A) any director, officer, employee, or per16 son with a controlling interest in, or acting as 

17 an agent for, the payment stablecoin issuer; 

18 (B) a consultant, joint venture partner, 

19 and any other person that participates in the 

20 conduct of the affairs of the payment stablecoin 

21 issuer; or 

22 (C) any independent contractor providing 

23 services for the payment stablecoin issuer, in24 cluding any attorney, appraiser, or accountant. 


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1 (11) INSURED DEPOSITORY INSTITUTION.—The 

2 term ‘‘insured depository institution’’ means— 

3 (A) an insured depository institution, as 

4 defined in section 3 of the Federal Deposit In5 surance Act (12 U.S.C. 1813); and 

6 (B) an insured credit union, as defined in 

7 section 101 of the Federal Credit Union Act 

8 (12 U.S.C. 1752). 

9 (12) NATIONAL PAYMENT STABLECOIN

10 ISSUER.—The term ‘‘national payment stablecoin 

11 issuer’’ means a depository institution chartered by 

12 the Comptroller or a State bank supervisor which is 

13 approved by the Board to conduct payment 

14 stablecoin activities under section 7. 

15 (13) PAYMENT STABLECOIN.—The term ‘‘pay16 ment stablecoin’’ means crypto asset— 

17 (A) that is, or is designed to be, used as 

18 a means of payment or settlement; 

19 (B) the issuer of which— 

20 (i) is obligated to convert, redeem, or 

21 repurchase for a fixed amount of United 

22 States dollars; or 

23 (ii) represents, or creates the reason24 able expectation, that the crypto asset will 

25 maintain a stable value relative to the 


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1 value of a fixed amount of United States 

2 dollars; and 

3 (C) that is not— 

4 (i) United States coins, a Federal Re5 serve note or other lawful money (as that 

6 term is used in the Federal Reserve Act 

7 (12 U.S.C. 411)), money issued by a cen8 tral bank, or money issued by an intergov9 ernmental organization pursuant to an 

10 agreement by one or more governments; or 

11 (ii) a security issued by an investment 

12 company registered under section 8(a) of 

13 the Investment Company Act of 1940 (15 

14 U.S.C. 80a–8(a)). 

15 (14) PAYMENT STABLECOIN ISSUER.—The term 

16 ‘‘payment stablecoin issuer’’ means— 

17 (A) a non-depository trust company char18 tered by a State bank supervisor that is reg19 istered, or required to be registered, with the 

20 Board to issue payment stablecoins; or 

21 (B) a depository institution chartered by 

22 the Comptroller or a State bank supervisor that 

23 is authorized, or required to be authorized, to 

24 become a national payment stablecoin issuer by 

25 the Board to issue payment stablecoins, includVerDate Sep 11 2014 19:01 Apr 29, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4155.IS S4155

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1 ing a depository institution subsidiary of an in2 sured depository institution or bank holding 

3 company. 

4 (15) STATE BANK SUPERVISOR.—The term 

5 ‘‘State bank supervisor’’ has the meaning given that 

6 term in section 3 of the Federal Deposit Insurance 

7 Act (12 U.S.C. 1813). 

8 (16) SUBCUSTODIAN.—The term ‘‘subcusto9 dian’’ means a person that maintains actual posses10 sion or control of the private keys relating to a pay11 ment stablecoin and has a contractual relationship 

12 with the custodian of record of the payment 

13 stablecoin. 

14 SEC. 3. GENERAL REQUIREMENTS FOR PAYMENT 

15 STABLECOIN ISSUERS. 

16 (a) STABLECOINS GENERALLY.— 

17 (1) ISSUE.—A payment stablecoin may only be 

18 issued directly or indirectly in the United States 

19 by— 

20 (A) a non-depository trust company that 

21 has registered with the Board consistent with 

22 section 6 and for which the nominal value of all 

23 outstanding payment stablecoins does not ex24 ceed $10,000,000,000, as adjusted under sub25 section (b); or 


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1 (B) by a depository institution that has 

2 been authorized as a national payment 

3 stablecoin issuer consistent with section 7. 

4 (2) PROHIBITION ON ISSUANCE.—Except as 

5 otherwise provided under paragraph (1), it shall be 

6 unlawful for any person to engage in the business of 

7 issuing a payment stablecoin, directly or indirectly, 

8 in the United States, through any means or instru9 ments of transportation or communication in the 

10 United States, or to a person in the United States. 

11 (3) OFFERS OR SALES.— 

12 (A) IN GENERAL.—Except as otherwise 

13 provided in this section, it shall be unlawful for 

14 any person to offer or sell a payment stablecoin 

15 through the use of any medium or by any 

16 means of access in interstate commerce in the 

17 United States or to offer or sell a payment 

18 stablecoin to a United States person living in 

19 the United States. 

20 (B) EXCEPTION.—Subparagraph (A) does 

21 not apply to the sale of a payment stablecoin by 

22 a United States person living in the United 

23 States. 

24 (b) ADJUSTMENT OF THRESHOLD.—Not less fre25 quently than once every 4 years, the Board shall issue 


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1 rules adjusting the threshold under subsection (a)(1)(A) 

2 solely to account for inflation. 

3 (c) ALGORITHMIC PAYMENT STABLECOINS.—It shall 

4 be unlawful for any person to engage in the business of 

5 issuing, creating, or originating an algorithmic payment 

6 stablecoin. 

7 (d) SAFE HARBORS.— 

8 (1) IN GENERAL.—The Board shall issue regu9 lations providing limited safe harbors from this sec10 tion that are consistent with the purposes of this 

11 Act. 

12 (2) REGULATION REQUIREMENTS.—Regulations 

13 issued pursuant to paragraph (1) shall provide that 

14 any safe harbors applicable to a payment stablecoin 

15 issuer shall be made available on an equal basis to 

16 any issuer chartered by either the Comptroller or a 

17 State bank supervisor. 

18 (3) SAFE HARBORS.—Safe harbors under this 

19 section may include— 

20 (A) a pilot program allowing for limited 

21 issuance of payment stablecoins by entities not 

22 otherwise authorized under this section, subject 

23 to appropriate safeguards and oversight, in 

24 order to foster responsible innovation and com25 petition in the payment stablecoin market; and 


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1 (B) a safe harbor for payment a payment 

2 stablecoin issuer that is subject to comprehen3 sive regulation and supervision by a foreign fi4 nancial regulatory authority in a jurisdiction 

5 with an equivalent regulatory framework to the 

6 United States, as determined by the Board, in 

7 consultation with the Comptroller and State 

8 bank supervisors. 

9 (e) EXTRATERRITORIAL EFFECT.—This section is in10 tended to have extraterritorial effect. 

11 SEC. 4. PRUDENTIAL REQUIREMENTS APPLICABLE TO ALL 

12 PAYMENT STABLECOIN ISSUERS. 

13 (a) CUSTOMER PROTECTION AND SEGREGATION.—A 

14 person who provides custodial services, including subcusto15 dian or other safekeeping services, for payment stablecoins 

16 shall— 

17 (1) treat and deal with the payment stablecoins 

18 and cash of a customer as belonging to the cus19 tomer; and 

20 (2) take appropriate steps to protect the pay21 ment stablecoins and cash of a customer from any 

22 claims of creditors of the person. 

23 (b) FURTHER REQUIREMENTS RELATING TO SEG24 REGATION.— 


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1 (1) IN GENERAL.—A person described in sub2 section (a) may, for convenience, commingle and de3 posit the payment stablecoins and cash of a cus4 tomer in an account holding the payment stablecoins 

5 and cash of more than 1 customer, but which is sep6 arate from the proprietary assets of the issuer. 

7 (2) TRANSACTIONS.—Such share of the pay8 ment stablecoins and cash of a customer in an ac9 count described in paragraph (1) that shall be nec10 essary to transfer, adjust, or settle a transaction or 

11 transfer of assets may be withdrawn and applied to 

12 such purposes, including the payment of commis13 sions, taxes, storage fees, and other charges lawfully 

14 accruing in connection with the provision of custo15 dial services. 

16 (3) RULE OR ORDER RELATING TO COMMIN17 GLING.—The Board, in consultation with the Comp18 troller and State bank supervisors, may prescribe, by 

19 rule or order, that customer payment stablecoins or 

20 cash may be commingled and deposited in customer 

21 accounts with any other assets received by a person 

22 described in subsection (a) and required by the 

23 Board to be separately accounted for, treated as, 

24 and dealt with as belonging to customers. 


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1 (c) PROHIBITION ON REHYPOTHECATION.—Payment 

2 stablecoin reserves required under sections 6(f) and 7(e) 

3 shall not be pledged, rehypothecated, or reused, except for 

4 the purpose of creating liquidity to meet reasonable expec5 tations of requests to redeem payment stablecoins, such 

6 that reserves in the form of Treasury bills, bonds, or notes 

7 may be pledged as collateral for repurchase agreements 

8 with a maturity of not more than 7 days, if— 

9 (1) the repurchase agreements are cleared by a 

10 central clearing counterparty that is approved by the 

11 Board; or 

12 (2) the payment stablecoin issuer has obtained 

13 the approval of the Board and the Comptroller or 

14 State bank supervisor, as applicable. 

15 (d) DISCLOSURES OF ASSETS.— 

16 (1) IN GENERAL.—Not later than 10 business 

17 days after the end of each month, a payment 

18 stablecoin issuer shall disclose, in a publicly acces19 sible manner, a summary description that includes— 

20 (A) the assets backing the payment 

21 stablecoin, the value of the assets, and the 

22 number of outstanding payment stablecoins, as 

23 of the last day of the month; and 


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1 (B) a report of all instances in which the 

2 payment stablecoin issuer failed to comply with 

3 any requirement under section 6(f) or 7(e). 

4 (2) FILING WITH THE BOARD.—At the time of 

5 disclosure of the summary description under para6 graph (1), the chief financial officer of a payment 

7 stablecoin issuer shall also file the summary descrip8 tion with the Board under penalty of perjury. 

9 (3) PUBLICATION BY THE BOARD.—Not later 

10 than 10 business days after receiving a filing under 

11 paragraph (2), the Board shall make the filing avail12 able on a website of the Board. 

13 (4) VERIFICATION OF DISCLOSURES.—The 

14 Comptroller or State bank supervisor shall, as part 

15 of the regular examination of the payment stablecoin 

16 issuer, verify the composition of the assets and the 

17 accuracy of the summary description under para18 graph (1). 

19 (e) DISCLOSURES TO CUSTOMERS.—A payment 

20 stablecoin issuer shall clearly disclose to customers that 

21 a payment stablecoin is not guaranteed by the United 

22 States Government and is not subject to deposit or share 

23 insurance by the Federal Deposit Insurance Corporation 

24 or the National Credit Union Administration. 


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1 (f) MISREPRESENTATION OF DISCLOSURES.—A pay2 ment stablecoin issuer that misrepresents a disclosure 

3 under subsection (d) or (e) shall be subject to the penalty 

4 under section 18(a)(4) of the Federal Deposit Insurance 

5 Act (12 U.S.C. 1828(a)(4)) or section 709 of title 18, 

6 United States Code, as applicable. 

7 (g) REDEMPTIONS.—Not later than 1 business day 

8 after the receipt of a redemption request of a customer, 

9 a payment stablecoin issuer shall redeem an outstanding 

10 payment stablecoin of that payment stablecoin issuer at 

11 par in legal tender, as defined in section 5103 of title 31, 

12 United States Code. 

13 (h) LIMITATION ON ACTIVITIES.—As determined by 

14 the Comptroller or State bank supervisor, in consultation 

15 with the Board, a payment stablecoin issuer may conduct 

16 only the following activities: 

17 (1) Management of required payment stablecoin 

18 reserves under sections 6(f) and 7(e). 

19 (2) Custodial services. 

20 (3) Settlement and clearing. 

21 (4) Post-trade services. 

22 (5) Incidental activities relating to the issuance 

23 and redemption of payment stablecoins and manage24 ment of required reserves. 

25 (i) CONTRACTED SERVICES.— 


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1 (1) IN GENERAL.—Except as otherwise pro2 vided under paragraph (2), whenever a payment 

3 stablecoin issuer, or an affiliate thereof, relies on or 

4 causes to be performed for itself, by contract, any 

5 services or activities authorized under this Act or 

6 that are necessary to the functioning of the payment 

7 stablecoin, whether on or off its premises— 

8 (A) the person that performs such services 

9 or activities shall be subject to regulation and 

10 supervision by the Comptroller or State bank 

11 supervisor that supervises the payment 

12 stablecoin issuer, as applicable, and the Board, 

13 solely with respect to the limited scope of the 

14 performance of such services and activities; 

15 (B) the person that performs such services 

16 or activities shall be subject to minimum finan17 cial resource requirements established by the 

18 Board, in consultation with the Comptroller and 

19 State bank supervisors, and shall be deemed a 

20 financial institution for purposes of title V of 

21 the Gramm-Leach-Bliley Act (15 U.S.C. 6801 

22 et seq.); 

23 (C) not later than the sooner of 30 days 

24 after making a contract for the performance of 

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1 formance of such services or activities, the pay2 ment stablecoin issuer shall notify the Comp3 troller or State bank supervisor, as applicable, 

4 and the Board of the existence of the relation5 ship; 

6 (D) for the purpose of ensuring compliance 

7 with the requirements under this subsection, 

8 the Board, after making best efforts to obtain 

9 necessary information from public sources and 

10 existing regulators, including the primary Fed11 eral or State regulator of the person performing 

12 such services or activities, if applicable, may 

13 conduct examinations of and require reports 

14 from such person solely with respect to the lim15 ited scope of the performance of services and 

16 activities subject to this subsection; and 

17 (E) the Board shall enforce the require18 ments of this subsection as if the person pro19 viding such services or activities was a payment 

20 stablecoin issuer. 

21 (2) LIMITATIONS.—Paragraph (1) shall not 

22 apply to— 

23 (A) a person performing the services or ac24 tivities described in that paragraph that is sub25 ject to supervision or regulation by a primary 


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1 financial regulatory agency described in sub2 paragraph (A), (B), or (C) of section 2(12) of 

3 the Dodd-Frank Wall Street Reform and Con4 sumer Protection Act (12 U.S.C. 5301(12)), or 

5 a State bank supervisor; and 

6 (B) a person that primarily engages in the 

7 business of providing hardware or software to 

8 facilitate the custody or safekeeping by a cus9 tomer of the payment stablecoins of that cus10 tomer. 

11 (j) TREATMENT UNDER THE BANK SECRECY ACT.— 

12 (1) IN GENERAL.—A payment stablecoin issuer 

13 or a person providing contracted services under sub14 section (i) shall be treated as a financial institution 

15 for purposes of the Bank Secrecy Act. 

16 (2) EXCEPTION.—This subsection shall not 

17 apply to any person that primarily engages in the 

18 business of providing hardware or software to facili19 tate the custody or safekeeping by a customer of the 

20 payment stablecoins of that customer. 

21 (k) COLLATERAL AVAILABILITY.— 

22 (1) IN GENERAL.—The Board, in consultation 

23 with the Comptroller, State bank supervisors, the 

24 Securities and Exchange Commission, and the Com25 modity Futures Trading Commission, shall monitor 


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1 the use of assets authorized as payment stablecoin 

2 reserves under sections 6(f) and 7(e), including 

3 United States Treasury bills, bonds, and notes, and 

4 the impact of the use of such assets on collateral 

5 availability and the efficient functioning of the cap6 ital markets. 

7 (2) RULE OF CONSTRUCTION.—Nothing in this 

8 subsection shall be construed as giving the Board 

9 supervisory or regulatory authority not otherwise 

10 granted under this Act. 

11 SEC. 5. HOLDING COMPANY SUPERVISION, AFFILIATES, 

12 MERGERS, AND ACQUISITIONS OF PAYMENT 

13 STABLECOIN ISSUERS. 

14 (a) HOLDING COMPANIES AND INSURED DEPOSI15 TORY INSTITUTIONS.— 

16 (1) IN GENERAL.—A bank holding company or 

17 insured depository institution that has chartered a 

18 depository institution as a payment stablecoin issuer 

19 under section 7 shall be considered a bank for pur20 poses of the Bank Holding Company Act of 1956 

21 (12 U.S.C. 1841 et seq.). 

22 (2) EXCEPTION.—Paragraph (1) shall not 

23 apply to an insured depository institution that is a 

24 savings association for the purposes of section 10(a) 


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1 of the Home Owners’ Loan Act (12 U.S.C. 

2 1467a(a)). 

3 (b) HOLDING COMPANY SUPERVISION FOR OTHER

4 DEPOSITORY INSTITUTIONS.— 

5 (1) REQUIREMENTS.—A person with a control6 ling interest in a depository institution that is a pay7 ment stablecoin issuer which is not subject to sub8 section (a) shall— 

9 (A) annually submit to the Comptroller or 

10 State bank supervisor, as applicable, and the 

11 Board— 

12 (i) audited financial statements; 

13 (ii) a description of all affiliated or 

14 parent entities and the relationship of the 

15 affiliated or parent entity with the pay16 ment stablecoin issuer; and 

17 (iii) any other information the Board 

18 and the Comptroller or State bank super19 visor, as applicable, may by rule reasonably 

20 require; and 

21 (B) if required by the Comptroller or State 

22 bank supervisor, as applicable, and the Board, 

23 execute a tax allocation agreement with the de24 pository institution that— 


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1 (i) expressly states that an agency re2 lationship exists between the person and 

3 the depository institution with respect to 

4 tax assets generated by the depository in5 stitution, and that the tax assets are held 

6 in trust by the person for the benefit of the 

7 depository institution and will be promptly 

8 remitted to the depository institution; and 

9 (ii) may provide that the amount and 

10 timing of any payments or refunds to the 

11 depository institution by the person should 

12 be no less favorable than if the depository 

13 institution were a separate taxpayer. 

14 (2) EXAMINATION AND DIVESTITURE.— 

15 (A) IN GENERAL.—If the Comptroller or 

16 State bank supervisor, as applicable, and the 

17 Board determine it would be manifestly in the 

18 public interest and that reasonable cause exists 

19 to believe it is necessary to protect the cus20 tomers of a depository institution that is a pay21 ment stablecoin issuer, the Comptroller or State 

22 bank supervisor, as applicable, and the Board 

23 may— 

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1 tory institution or otherwise reasonably re2 quire information from the person; and 

3 (ii) require a person with a controlling 

4 interest in the depository institution to di5 vest itself of or sever its relationship with 

6 the depository institution if necessary to 

7 maintain the safety and soundness of the 

8 depository institution, after consultation 

9 with the Secretary of the Treasury and an 

10 opportunity for a public hearing. 

11 (B) OPPORTUNITY TO REMEDIATE.—Di12 vestiture shall not be ordered under this section 

13 unless the Comptroller or State bank super14 visor, and the Board provide the depository in15 stitution with a meaningful opportunity to re16 mediate findings relating to the safety and 

17 soundness of the depository institution. 

18 (c) REQUIREMENT RELATING TO CONTROLLING IN19 TERESTS.—A person shall be predominantly engaged in 

20 financial activities, as defined in section 102(a)(6) of the 

21 Financial Stability Act of 2010 (12 U.S.C. 5311(a)(6)), 

22 in order to have a controlling interest in a payment 

23 stablecoin issuer. 

24 (d) AFFILIATES.— 


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1 (1) IN GENERAL.—All subsidiaries and affili2 ates of a payment stablecoin issuer that are not sub3 ject to subsection (a) shall be engaged in activities 

4 that are financial in nature (as described in section 

5 4(k) of the Bank Holding Company Act of 1956 (12 

6 U.S.C. 1843(k))). 

7 (2) EXCEPTION.—Paragraph (1) shall not 

8 apply to a subsidiary or affiliate that accounts for 

9 less than 25 percent of the revenue of the holding 

10 company of the subsidiary or affiliate. 

11 (3) TRANSACTIONS WITH AFFILIATES.—A pay12 ment stablecoin issuer is subject to the same restric13 tions on transactions with affiliates, to the same ex14 tent and subject to the same exceptions and exemp15 tions as a member bank under sections 23A and 

16 23B of the Federal Reserve Act (12 U.S.C. 371c, 

17 371c–1). 

18 (e) APPROVAL OF MERGERS AND ACQUISITIONS.— 

19 (1) IN GENERAL.—No person may obtain a 

20 controlling interest in a payment stablecoin issuer 

21 that is not subject to section (a) without the ap22 proval of the Board and the Comptroller or State 

23 bank supervisor, as applicable. 

24 (2) RULES.—The Board, in consultation with 

25 the Comptroller and State bank supervisors, shall 


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1 adopt rules to implement paragraph (1) that, con2 sistent with this section, shall be as close as prac3 ticable to the process used by an appropriate Fed4 eral banking agency (as defined in section 3(q) of 

5 the Federal Deposit Insurance Act (12 U.S.C. 

6 1813(q))) in evaluating and approving a change of 

7 control of an insured depository institution under 

8 section 7(j) of such Act (12 U.S.C. 1817(j)). 

9 (3) SCOPE OF RULES.—Criteria for approval 

10 under the rules adopted pursuant to paragraph (2) 

11 shall be exclusively limited to the safety and sound12 ness of the depository institution that issues a pay13 ment stablecoin. 

14 SEC. 6. ISSUANCE OF PAYMENT STABLECOINS BY NON-DE15 POSITORY TRUST COMPANIES. 

16 (a) IN GENERAL.— 

17 (1) IN GENERAL.—A non-depository trust com18 pany may issue and redeem payment stablecoins and 

19 conduct other activities in accordance with this sec20 tion and section 4(g) if the value of all outstanding 

21 payment stablecoins in total does not exceed 

22 $10,000,000,000, as adjusted under section 3(b). 

23 (2) ISSUANCE THRESHOLD EXCEEDED.—If a 

24 non-depository trust company exceeds the threshold 

25 described in paragraph (1), the non-depository trust 


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1 company shall, not later than 180 days after exceed2 ing the threshold— 

3 (A) consistent with subsection (k), file a 

4 completed application with the Comptroller or 

5 State bank supervisor, as applicable, to convert 

6 to a depository institution charter under section 

7 7 and be approved as provided in that section; 

8 or 

9 (B) in consultation with the State bank su10 pervisor, implement a plan to appropriately 

11 limit activities below the threshold, consistent 

12 with the safety and soundness of the non-depos13 itory trust company and customer protection. 

14 (b) AUTHORIZATION TO ISSUE PAYMENT

15 STABLECOIN.— 

16 (1) APPLICATION.— 

17 (A) IN GENERAL.—A non-depository trust 

18 company shall submit to a State bank super19 visor, separately or as part of a charter applica20 tion, an application for authorization to issue 

21 payment stablecoins. 

22 (B) STANDARDS FOR EVALUATION.—The 

23 State bank supervisor may consult with the 

24 Board with respect to the following exclusive set 


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1 of standards prior to approving an application 

2 under subparagraph (A): 

3 (i) The ability of the applicant to 

4 maintain required reserves backing the 

5 payment stablecoins. 

6 (ii) The financial resources, manage7 rial or technical expertise, and governance 

8 of the applicant. 

9 (iii) The benefit to the public, includ10 ing relating to innovation and competition. 

11 (iv) The stability of the financial sys12 tem of the United States. 

13 (2) REGISTRATION.— 

14 (A) DEADLINE.— 

15 (i) IN GENERAL.—Not later than 180 

16 days after the approval of an application 

17 under paragraph (1), a non-depository 

18 trust company shall register with the 

19 Board by submitting to the Board a com20 plete registration statement. 

21 (ii) EXTENSION.—The Board may ex22 tend the deadline under clause (i) by an 

23 additional 180 days, if the Board deter24 mines appropriate. 


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1 (B) CONTENTS OF A COMPLETE REGISTRA2 TION STATEMENT.— 

3 (i) RULES REQUIRED.—Consistent 

4 with section 15 of this Act, the Board, in 

5 consultation with State bank supervisors, 

6 shall issue rules describing the content, 

7 documents, and materials required to be 

8 submitted to the Board that constitute a 

9 complete registration statement, which 

10 shall include materials required to be filed 

11 in an application to comply with the stand12 ards under paragraph (1)(B). 

13 (ii) COMPLETENESS.—If the State 

14 bank supervisor determines that an appli15 cant has submitted all of the materials re16 quired under this subparagraph, the reg17 istration shall be deemed complete. 

18 (3) AUTHORIZATION TO ISSUE PAYMENT

19 STABLECOINS.— 

20 (A) EFFECTIVE DATE.— 

21 (i) IN GENERAL.—An approval of an 

22 application under paragraph (1) shall be 

23 deemed effective on the date that is 90 

24 days after the date the applicant submits 

25 a complete registration statement to the 


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1 Board under paragraph (2), unless the 

Board, by a vote of 2 2 ⁄3 of all members, 

3 votes to deny the application by written 

4 order explaining the reasons for denial. 

5 (ii) EXTENSION.—Upon the request of 

6 an applicant, the Board may extend the ef7 fective date under clause (i). 

8 (B) ISSUE PROHIBITED BEFORE EFFEC9 TIVE DATE.—A non-depository trust company 

10 may not issue payment stablecoins before the 

11 effective date under subparagraph (A). 

12 (4) REQUEST FOR ADDITIONAL INFORMA13 TION.—Nothing in this subsection shall be construed 

14 as prohibiting the Board from requesting further in15 formation from an applicant, but any request by the 

16 Board for further information from an applicant 

17 shall not affect the status of the registration state18 ment as complete, as provided under paragraph 

19 (2)(B)(ii). 

20 (5) PUBLIC AVAILABILITY OF FILINGS.—The 

21 Board shall make each registration statement filed 

22 with the Board under this section available to the 

23 public on the website of the Board. 

24 (6) CONSULTATION.—The Board shall consult 

25 with the applicable State bank supervisor relating to 


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1 a non-depository trust company registration under 

2 this section, which may include sharing materials 

3 submitted as part of the application to issue a pay4 ment stablecoin. 

5 (c) SUPERVISION, REGULATION, AND ENFORCE6 MENT.— 

7 (1) SUPERVISION AUTHORITY.—Upon the filing 

8 of a complete registration statement with the Board, 

9 a non-depository trust company shall be subject to 

10 supervision by the State bank supervisor, and the 

11 Board and State bank supervisor shall have enforce12 ment authority as provided in section 11. 

13 (2) REGULAR EXAMINATIONS.—The applicable 

14 State bank supervisor shall make regular examina15 tions of a non-depository trust company authorized 

16 to issue a payment stablecoin under this section on 

17 a regular basis in order to inform such State bank 

18 supervisor of— 

19 (A) the nature of the operations and finan20 cial condition of the non-depository trust com21 pany and any affiliates; 

22 (B) the financial, operational, and other 

23 risks within the non-depository trust company 

24 that may pose a threat to— 


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1 (i) the safety and soundness of the 

2 non-depository trust company; or 

3 (ii) the stability of the financial sys4 tem of the United States; and 

5 (C) the systems of the non-depository trust 

6 company for monitoring and controlling the 

7 risks described in subparagraph (B). 

8 (d) SUBMISSION OF REPORTS.—At the frequency es9 tablished by rule of the Board, in consultation with State 

10 bank supervisors, each non-depository trust company sub11 ject to this section shall submit a report of condition under 

12 oath to the applicable State bank supervisor relating to— 

13 (1) the financial condition and status of sys14 tems for monitoring and controlling financial and 

15 operating risks of the non-depository trust company; 

16 and 

17 (2) compliance by the non-depository trust com18 pany, and any subsidiary thereof, with this Act and 

19 other applicable laws. 

20 (e) EXISTING REPORTS AND EXAMINATIONS.— 

21 (1) IN GENERAL.—In supervising a non-deposi22 tory trust company under this section, a State bank 

23 supervisor shall, to the fullest extent possible, use 

24 existing reports and other supervisory information 


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1 and avoid duplication of examination activities, re2 porting requirements, and requests for information. 

3 (2) REPORTS TO THE BOARD.—Each State 

4 bank supervisor shall promptly provide to the Board 

5 all reports under subsection (d) and reports of ex6 aminations under this section. 

7 (f) RESERVE REQUIREMENTS.— 

8 (1) IN GENERAL.—A non-depository trust com9 pany that issues a payment stablecoin under this 

10 section shall maintain reserves of not less than 100 

11 percent of the nominal value of all outstanding pay12 ment stablecoins issued by the non-depository trust 

13 company, as of the end of each business day. A non14 depository trust company may maintain reserves 

15 comprised of— 

16 (A) United States coins, currency, or other 

17 instrument that is legal tender described in sec18 tion 5103 of title 31, United States Code; 

19 (B) demand deposits at a depository insti20 tution, except that deposits in an insured depos21 itory institution shall not exceed the limit of de22 posit or share insurance available for that ac23 count; 


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1 (C) United States Treasury bills, bonds, or 

2 notes with a maturity date of 90 days or less 

3 from the date of purchase; and 

4 (D) repurchase agreements, with a matu5 rity date of 7 days or less, that are backed by 

6 United States Treasury bills with a maturity 

7 date of 1 year or less from the date of the re8 purchase agreement. 

9 (g) CUSTODY.—A non-depository trust company shall 

10 be the legal custodian of required payment stablecoin re11 serves under subsection (f), but the non-depository trust 

12 company shall use a depository institution as subcustodian 

13 to provide for the safekeeping of reserves. 

14 (h) RELATION TO GRAMM-LEACH-BLILEY ACT.—A 

15 non-depository trust company that issues a payment 

16 stablecoin under this section shall be deemed to be a finan17 cial institution for the purposes of title V of the Gramm18 Leach-Bliley Act (15 U.S.C. 6801 et seq.). 

19 (i) RULES.— 

20 (1) IN GENERAL.—The Board, in consultation 

21 with the State bank supervisors and the Financial 

22 Crimes Enforcement Network, shall adopt rules to 

23 implement this section, including— 

24 (A) a simplified capital treatment for non25 depository trust companies under this section, 


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1 which shall be exceed the greater of the pro2 jected receivership costs of the non-depository 

3 trust company or the projected costs of oper4 ation of the non-depository trust company over 

5 a 3-year period; 

6 (B) appropriate liquidity, interest rate, and 

7 risk management standards commensurate with 

8 the size of a non-depository trust company; 

9 (C) management practices with respect to 

10 required payment stablecoin assets; 

11 (D) appropriate operational, compliance, 

12 and information technology risk management, 

13 including Bank Secrecy Act and sanctions com14 pliance; and 

15 (E) other rules required by this section. 

16 (2) SIGNIFICANT DIFFERENCES.—In deter17 mining capital requirements applicable to a non-de18 pository trust company that has no material assets 

19 other than required payment stablecoin assets under 

20 this section— 

21 (A) the non-depository trust company shall 

22 not be subject to requirements similar to sec23 tion 171 of the Financial Stability Act of 2010 

24 (12 U.S.C. 5371); and 


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1 (B) State bank supervisors and the Board 

2 shall take into account the limited risks of the 

3 assets of the non-depository trust company. 

4 (j) RULES OF CONSTRUCTION.—Nothing in this sec5 tion may be construed as— 

6 (1) preventing a State bank supervisor from im7 posing additional or more strict regulatory standards 

8 on a non-depository trust company for issuing pay9 ment stablecoins; or 

10 (2) affecting existing State laws governing 

11 interstate trust company business or permitting non12 depository trust companies to conduct payment 

13 stablecoin activities on an interstate basis which are 

14 inconsistent with State laws governing interstate 

15 trust company business. 

16 (k) PLANNING FOR CONVERSION.—Not later than 

17 180 days after the date that the nominal value of all out18 standing payment stablecoins issued by a non-depository 

19 trust company first exceeds $9,000,000,000, as adjusted 

20 under section 3(b), at the end of a business day, the non21 depository trust company shall, in consultation with the 

22 applicable State bank supervisor, develop a plan for the 

23 conversion of the non-depository trust company into a de24 pository institution under section 7, which may include 


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1 capital planning, management planning, and third-party 

2 vendor management. 

3 (l) EXISTING NON-DEPOSITORY TRUST COMPA4 NIES.—A non-depository trust company shall only conduct 

5 payment stablecoin activities specified under this Act with6 in the trust company. 

7 SEC. 7. ISSUANCE OF PAYMENT STABLECOINS BY DEPOSI8 TORY INSTITUTIONS. 

9 (a) IN GENERAL.— 

10 (1) IN GENERAL.—A depository institution may 

11 issue and redeem payment stablecoins and conduct 

12 other activities in accordance with this section and 

13 section 4(g). 

14 (2) CHARTER OF DEPOSITORY INSTITUTIONS.— 

15 (A) IN GENERAL.—An insured depository 

16 institution or bank holding company shall char17 ter a separate depository institution to issue a 

18 payment stablecoin. 

19 (B) THRESHOLD.—A payment stablecoin 

20 issuer with the nominal value of all outstanding 

21 units of the stablecoin which exceeds 

22 $10,000,000,000 (as adjusted under section 

23 3(b)) shall be a depository institution under 

24 this section, but nothing shall be construed as 

25 prohibiting a payment stablecoin issuer with 


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1 less than $10,000,000,000 of nominal value of 

2 outstanding payment stablecoins from obtaining 

3 a depository institution charter under this sec4 tion. 

5 (b) AUTHORIZATION TO ISSUE PAYMENT

6 STABLECOIN.— 

7 (1) APPLICATION.— 

8 (A) APPLICATION TO CHARTERING AU9 THORITY.—A depository institution shall sub10 mit, separately or as part of a charter applica11 tion, to the Comptroller or a State bank super12 visor, as applicable, an application for author13 ization to issue payment stablecoins. 

14 (B) APPLICATION TO BOARD AS NATIONAL

15 PAYMENT STABLECOIN ISSUER.—At the same 

16 time as the filing of an application under para17 graph (1), a depository institution shall submit 

18 to the Board an application for authorization as 

19 a national payment stablecoin issuer. 

20 (2) STANDARDS FOR APPROVAL.—The following 

21 exclusive set of standards shall govern the decision 

22 of the Comptroller or State bank supervisor, as ap23 plicable, with respect to an application under para24 graph (1): 


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1 (A) The ability of the applicant to main2 tain required reserves backing the payment 

3 stablecoins required under this section. 

4 (B) The financial resources, managerial or 

5 technical expertise, and governance of the appli6 cant, including risk management and compli7 ance. 

8 (C) The benefit to the public, including re9 lating to innovation and competition. 

10 (D) The stability of the financial system of 

11 the United States. 

12 (3) APPLICATION CONTENTS.— 

13 (A) RULES REQUIRED.—Not later than 

14 180 days after the date of enactment of this 

15 Act, the Board, in consultation with the Comp16 troller and State bank supervisors, shall issue 

17 rules describing the content, documents, and 

18 materials required to be submitted to the Board 

19 that constitute a complete application, which 

20 shall include— 

21 (i) a tailored recovery and resolution 

22 plan, consistent with the standards adopt23 ed under subsection (h)(1)(E), that would 

24 permit the orderly resumption of a safe 

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1 down of operations in the event of distress, 

2 including the redemption of all outstanding 

3 payment stablecoins; 

4 (ii) a draft customer agreement; 

5 (iii) a flow of funds explanation; 

6 (iv) an information technology oper7 ations and security plan; and 

8 (v) all materials required to comply 

9 with the standards under paragraph (2). 

10 (B) COMPLETENESS.—If the Comptroller 

11 or State bank supervisor, as applicable, deter12 mines that an applicant has submitted all of the 

13 materials required under this paragraph, the 

14 application shall be deemed complete. 

15 (4) PUBLIC NOTICE.— 

16 (A) IN GENERAL.—The Board shall pro17 vide a copy of each application under this sec18 tion to the public (with any confidential infor19 mation redacted) and provide for a 60-day pub20 lic comment period during which the public may 

21 submit written comments on the application. 

22 (B) EXCEPTION.—The Board may waive 

23 the public comment requirement under subpara24 graph (A) if the Board determines that it must 

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1 pository institution or the probable failure of an 

2 affiliate of the institution. 

3 (5) WRITTEN DECISION.— 

4 (A) IN GENERAL.—Not later than 180 

5 days after receiving a complete application pur6 suant to paragraph (3), the Board shall render 

7 a written decision to approve or deny the na8 tional payment stablecoin issuer application 

9 under paragraph (1), with appropriate findings, 

10 and the Comptroller or State bank supervisor 

11 shall render a decision on the charter applica12 tion as otherwise provided by Federal or State 

13 law. 

14 (B) APPROVAL BY MAJORITY VOTE.—The 

15 Board shall not approve an application under 

16 paragraph (1) unless a majority of its members 

17 vote to approve. 

18 (C) EXTENSION.—Upon the request of an 

19 applicant, the Board may extend the decision 

20 deadline of the Board under subparagraph (A). 

21 (6) REQUESTS FOR ADDITIONAL INFORMA22 TION.—Nothing in this subsection shall be construed 

23 as prohibiting the Board from requesting further in24 formation from an applicant, but any request by the 

25 Board for further information from an applicant 


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1 shall not affect the status of the application as com2 plete, as provided under paragraph (3)(B). 

3 (c) SUPERVISION.—Upon authorization as a national 

4 payment stablecoin issuer under this section, a depository 

5 institution shall be subject to prudential supervision and 

6 regulation by the Comptroller or State bank supervisor, 

7 as applicable, and the Board, as specified under this Act. 

8 (d) REQUIRED PAYMENT STABLECOIN ASSETS.— 

9 (1) IN GENERAL.—A depository institution that 

10 issues a payment stablecoin under this section shall 

11 maintain reserves of not less than 100 percent of the 

12 nominal value of all outstanding payment 

13 stablecoins, as of the end of each business day. 

14 (2) COMPOSITION OF RESERVES.—A depository 

15 institution may maintain reserves comprised of— 

16 (A) United States coins, currency, or other 

17 instrument that is legal tender described in sec18 tion 5103 of title 31, United States Code; 

19 (B) demand deposits at a depository insti20 tution, except that deposits in an insured depos21 itory institution shall not exceed the limit of de22 posit or share insurance available for that ac23 count; 

24 (C) balances held at a Federal Reserve 

25 bank; 


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1 (D) United States Treasury bills, notes, or 

2 bonds with a maturity date of 90 days or less 

3 after the date of purchase; and 

4 (E) repurchase agreements with a maturity 

5 date of 7 days or less, that are backed by 

6 United States Treasury bills with a maturity 

7 date of 1 year or less from the date of the re8 purchase agreement. 

9 (e) CALL REPORT.—As applicable, the Comptroller 

10 or State bank supervisor and the Board shall require a 

11 depository institution that issues a payment stablecoin to 

12 report, in detail, on the composition of the assets and li13 abilities in each periodic report of condition, or in an alter14 native format approved by the Federal Financial Institu15 tions Examination Council, at the frequency otherwise re16 quired by law for depository institutions. 

17 (f) EXAMINATIONS.— 

18 (1) USE OF EXISTING REPORTS.—In super19 vising a depository institution under this section, the 

20 Comptroller or State bank supervisor, as applicable, 

21 and the Board shall, to the fullest extent possible, 

22 use existing reports and other supervisory informa23 tion and avoid duplication of examination activities, 

24 reporting requirements, and requests for informa25 tion. 


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1 (2) REGULAR EXAMINATIONS.—The Comp2 troller or State bank supervisor, as applicable, and 

3 the Board shall make regular examinations of a de4 pository institution under this section on a regular 

5 basis in order to inform the Comptroller or State 

6 bank supervisor, as applicable, and the Board of— 

7 (A) the nature of the operations and finan8 cial condition of the depository institution and 

9 any affiliates; 

10 (B) the financial, operational, and other 

11 risks within the depository institution that may 

12 pose a threat to— 

13 (i) the safety and soundness of the de14 pository institution; or 

15 (ii) the stability of the financial sys16 tem of the United States; and 

17 (C) the systems of the depository institu18 tion for monitoring and controlling the risks de19 scribed in subparagraph (B). 

20 (g) RELATION TO GRAMM-LEACH-BLILEY ACT.—A 

21 depository institution that issues a payment stablecoin 

22 under this section shall be deemed to be a financial institu23 tion for the purposes of title V of the Gramm-Leach-Bliley 

24 Act (15 U.S.C. 6801 et seq.). 

25 (h) RULES.— 


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1 (1) IN GENERAL.—The Board, in consultation 

2 with the Comptroller, State bank supervisors, and 

3 the Financial Crimes Enforcement Network, shall 

4 adopt rules to implement this section, including— 

5 (A) capital treatment for depository insti6 tutions under this section, which shall be not 

7 greater than the total sum of— 

8 (i) the greater of— 

9 (I) projected receivership costs; 

10 or 

11 (II) projected costs of operation 

12 over a 3-year period; and 

13 (ii) the sum of— 

14 (I) operational risk, as provided 

15 under paragraph (2)(C); and 

16 (II) collateral reasonably needed 

17 to address payment system risk; 

18 (B) managing liquidity, leverage, and mar19 ket and interest rate risk; 

20 (C) management practices with respect to 

21 required payment stablecoin assets; 

22 (D) appropriate operational, compliance, 

23 and information technology risk management, 

24 including Bank Secrecy Act and sanctions com25 pliance; 


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1 (E) tailored recovery and resolution stand2 ards relating to payment stablecoins; and 

3 (F) third-party risk management, includ4 ing appropriate governance of relationships with 

5 crypto asset exchanges. 

6 (2) SIGNIFICANT DIFFERENCES.—In deter7 mining capital requirements applicable to a deposi8 tory institution that has no material assets other 

9 than required payment stablecoin assets under this 

10 section— 

11 (A) the depository institution shall not be 

12 subject to section 171 of the Financial Stability 

13 Act of 2010 (12 U.S.C. 5371); 

14 (B) the Board, in consultation with the 

15 Comptroller and State bank supervisors, shall 

16 take into account the significant differences be17 tween the risks of the assets of the institution 

18 and those of depository institutions with assets 

19 that consist primarily of commercial or con20 sumer loans; and 

21 (C) assessment of operational risk shall 

22 occur commensurate with the size and com23 plexity of the depository institution. 

24 (i) RULES OF CONSTRUCTION.—Nothing in this Act 

25 may be construed as— 


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1 (1) preventing the Comptroller or a State bank 

2 supervisor which charters a depository institution 

3 from imposing additional or more strict regulatory 

4 standards on the institution for issuing payment 

5 stablecoins; 

6 (2) making inapplicable the provisions of sec7 tion 24(j) of the Federal Deposit Insurance Act (12 

8 U.S.C. 1831a(j)) to a depository institution, includ9 ing the ability of a depository institution to operate 

10 under home State law on an interstate basis without 

11 further licensure, registration, or authorization, as 

12 provided in that Act; or 

13 (3) requiring a depository institution to obtain 

14 deposit insurance to issue a payment stablecoin 

15 under this section or to conduct incidental activities 

16 under this section. 

17 (j) CONVERSION OF A NON-DEPOSITORY TRUST

18 COMPANY PAYMENT STABLECOIN ISSUER.—Not later 

19 than 2 years after the date of enactment of this Act, the 

20 Board, in consultation with the Comptroller and State 

21 bank supervisors, shall issue rules— 

22 (1) establishing a process for a non-depository 

23 trust company registered under section 6 to convert 

24 to a depository institution under this section; 


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1 (2) setting forth an expedited process for ap2 proval that is consistent with this section; and 

3 (3) providing for the implementation of the plan 

4 required to be developed under subsection (l) of sec5 tion 6 of this Act. 

6 (k) EXISTING HOLDING COMPANIES AND DEPOSI7 TORY INSTITUTIONS.—A bank holding company or in8 sured depository institution shall only conduct payment 

9 stablecoin activities authorized by this Act within a deposi10 tory institution subsidiary of the insured depository insti11 tution or a bank holding company. 

12 SEC. 8. CERTIFICATE OF AUTHORITY TO COMMENCE BANK13 ING FOR CERTAIN NATIONAL ASSOCIATIONS. 

14 Section 5169 of the Revised Statutes (12 U.S.C. 27) 

15 is amended— 

16 (1) in subsection (a), in the third sentence, by 

17 striking ‘‘to those of a non-depository trust company 

18 and activities related thereto.’’ and inserting ‘‘to— 

19 ‘‘(1) those of a non-depository trust company 

20 and fiduciary activities related thereto; or 

21 ‘‘(2) those of a depository institution for the 

22 purposes of issuing a payment stablecoin and activi23 ties related thereto as a national payment stablecoin 

24 issuer under section 7 of the Lummis-Gillibrand 

25 Payment Stablecoin Act.’’; and 


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1 (2) by adding at the end the following: 

2 ‘‘(c) The Comptroller may, by rule, establish assess3 ments depository institutions engaged in issuing payment 

4 stablecoins.’’. 

5 SEC. 9. APPOINTMENT OF FDIC AS CONSERVATOR OR RE6 CEIVER OF PAYMENT STABLECOIN ISSUERS. 

7 (a) DEFINITION.—As used in this section, the term 

8 ‘‘customer’’ means a person, or authorized representative 

9 of the person, that— 

10 (1) utilized or is utilizing any service of a pay11 ment stablecoin issuer with respect to an account in 

12 the name of the person maintained by the payment 

13 stablecoin issuer; or 

14 (2) is in possession or control of a payment 

15 stablecoin issued by a payment stablecoin issuer for 

16 which the payment stablecoin issuer for which an 

17 open account with the issuer is needed to redeem the 

18 payment stablecoin. 

19 (b) FUNDING.— 

20 (1) IN GENERAL.—A payment stablecoin issuer 

21 shall not be charged deposit insurance premiums for 

22 the purposes of this section, but the Federal Deposit 

23 Insurance Corporation (in this section referred to as 

24 the ‘‘Corporation’’) may use the capital of the pay25 ment stablecoin issuer and any returns on required 


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1 payment stablecoin reserves to fund the costs of a 

2 receivership or conservatorship. 

3 (2) LIMITATION.—The Corporation shall not 

4 exercise borrowing authority under section 14 of the 

5 Federal Deposit Insurance Act (12 U.S.C. 1824) re6 lated to a receivership or conservatorship under this 

7 section. 

8 (c) LIQUIDATION AS CLOSING OF PAYMENT

9 STABLECOIN ISSUER.—For the purposes of this section, 

10 a payment stablecoin issuer shall be deemed to have been 

11 closed on account or inability to meet the demands of its 

12 customers in any case in which it has been closed for the 

13 purpose of liquidation without adequate provision being 

14 made for payment of its customers. 

15 (d) APPOINTMENT OF CORPORATION AS CONSER16 VATOR OR RECEIVER.— 

17 (1) IN GENERAL.—Notwithstanding any other 

18 provision of Federal law, the law of any State, or the 

19 constitution of any State, the Corporation may ac20 cept appointment and act as conservator or receiver 

21 for a payment stablecoin issuer upon appointment in 

22 the manner provided in paragraph (2) or (3). 

23 (2) OCC DEPOSITORY INSTITUTIONS.— 

24 (A) APPOINTMENT.— 


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1 (i) CONSERVATOR.—The Corporation 

2 may, at the discretion of the Comptroller, 

3 be appointed conservator of a payment 

4 stablecoin issuer which is a depository in5 stitution chartered by the Comptroller and 

6 the Corporation may accept such appoint7 ment. 

8 (ii) RECEIVER.—The Corporation 

9 shall be appointed receiver, and shall ac10 cept such appointment, whenever a receiver 

11 is appointed for the purpose of liquidation 

12 or winding up the affairs of a payment 

13 stablecoin issuer which is a depository in14 stitution chartered by the Comptroller, not15 withstanding any other provision of Fed16 eral law. 

17 (B) ADDITIONAL POWERS.—In addition to 

18 and not in derogation of the powers conferred 

19 and the duties imposed by this section on the 

20 Corporation as conservator or receiver, the Cor21 poration, to the extent not inconsistent with 

22 such powers and duties, shall have any other 

23 power conferred on or any duty (which is re24 lated to the exercise of such power) imposed on 

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1 itory institution under any other provision of 

2 law. 

3 (C) CORPORATION NOT SUBJECT TO ANY

4 OTHER AGENCY.—When acting as conservator 

5 or receiver pursuant to an appointment de6 scribed in subparagraph (A), the Corporation 

7 shall not be subject to the direction or super8 vision of any other agency or department of the 

9 United States or any State in the exercise of 

10 the Corporation’s rights, powers, and privileges. 

11 (D) DEPOSITORY INSTITUTION IN CON12 SERVATORSHIP SUBJECT TO BANKING AGENCY

13 SUPERVISION.—Notwithstanding subparagraph 

14 (C), a payment stablecoin issuer which is a de15 pository institution chartered by the Comp16 troller for which the Corporation has been ap17 pointed conservator shall remain subject to the 

18 supervision of the Comptroller. 

19 (3) STATE-CHARTERED PAYMENT STABLECOIN

20 ISSUERS.— 

21 (A) APPOINTMENT BY STATE BANK SU22 PERVISOR.—Whenever a State bank supervisor 

23 appoints a conservator or receiver for such in24 stitution and tenders appointment to the CorVerDate Sep 11 2014 19:01 Apr 29, 2024 Jkt 049200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S4155.IS S4155

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1 poration, the Corporation may accept such ap2 pointment. 

3 (B) ADDITIONAL POWERS.—In addition to 

4 the powers conferred and the duties related to 

5 the exercise of such powers imposed by State 

6 law on any conservator or receiver appointed 

7 under the law of such State, the Corporation, 

8 as conservator or receiver pursuant to an ap9 pointment described in subparagraph (A), shall 

10 have the powers conferred and the duties im11 posed by this section on the Corporation as con12 servator or receiver. 

13 (C) CORPORATION NOT SUBJECT TO ANY

14 OTHER AGENCY.—When acting as conservator 

15 or receiver pursuant to an appointment de16 scribed in subparagraph (A), the Corporation 

17 shall not be subject to the direction or super18 vision of any other agency or department of the 

19 United States or any State in the agency or de20 partment of the United States or any State in 

21 the exercise of its rights, powers, and privileges. 

22 (D) ISSUER IN CONSERVATORSHIP SUB23 JECT TO BANKING AGENCY SUPERVISION.— 

24 Notwithstanding subparagraph (C), a State25 chartered payment stablecoin issuer for which 


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1 the Corporation has been appointed conservator 

2 shall remain subject to the supervision of the 

3 State bank supervisor. 

4 (4) GROUNDS FOR APPOINTING CONSERVATOR

5 OR RECEIVER.—The grounds for appointing a con6 servator or receiver (which may be the Corporation) 

7 for a payment stablecoin issuer are as follows: 

8 (A) ASSETS INSUFFICIENT FOR OBLIGA9 TIONS.—The issuer’s assets are less than the 

10 issuer’s obligations to its creditors and others. 

11 (B) SUBSTANTIAL DISSIPATION.—Substan12 tial dissipation of assets or earnings due to— 

13 (i) any violation of any statute or reg14 ulation; or 

15 (ii) any unsafe or unsound practice. 

16 (C) UNSAFE OR UNSOUND CONDITION.— 

17 An unsafe or unsound condition to transact 

18 business. 

19 (D) CEASE AND DESIST ORDERS.—Any 

20 willful violation of a cease and desist order 

21 which has become final. 

22 (E) CONCEALMENT.—Any concealment of 

23 the institution’s books, papers, records, or as24 sets, or any refusal to submit the institution’s 

25 books, papers, records, or affairs for inspection 


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1 to any examiner or to any lawful agent of the 

2 Comptroller, State bank supervisor, or the 

3 Board. 

4 (F) INABILITY TO MEET OBLIGATIONS.— 

5 The issuer is likely to be unable to pay its obli6 gations or meet its customers’ demands in the 

7 normal course of business. 

8 (G) LOSSES.—The issuer has incurred or 

9 is likely to incur losses that will deplete all or 

10 substantially all of its capital, and there is no 

11 reasonable prospect for the institution to come 

12 into compliance with capital requirements speci13 fied under this Act, consistent with Board regu14 lation. 

15 (H) VIOLATIONS OF LAW.—Any violation 

16 of any law or regulation, or any unsafe or un17 sound practice or condition that is likely to— 

18 (i) cause insolvency or substantial dis19 sipation of assets or earnings; 

20 (ii) weaken the issuer’s condition; or 

21 (iii) otherwise seriously prejudice the 

22 interests of the institution’s customers. 

23 (I) CONSENT.—The issuer, by resolution of 

24 its board of directors or its shareholders or 

25 members, consents to the appointment. 


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1 (J) UNDERCAPITALIZATION OF INSTITU2 TION.—The institution is undercapitalized as 

3 specified by Board rule, and— 

4 (i) has no reasonable prospect of be5 coming adequately capitalized (as defined 

6 by Board rule); 

7 (ii) fails to become adequately capital8 ized when required to do so; 

9 (iii) fails to submit a capital restora10 tion plan; or 

11 (iv) materially fails to implement a 

12 capital restoration plan. 

13 (K) UNDERCAPITALIZATION OF ISSUER.— 

14 The issuer— 

15 (i) is critically undercapitalized, as de16 fined by Board rule; or 

17 (ii) otherwise has substantially insuffi18 cient capital. 

19 (L) MONEY LAUNDERING OFFENSE.—The 

20 Attorney General notifies the Board, Comp21 troller, or State bank supervisor, as applicable, 

22 or the Corporation in writing that the payment 

23 stablecoin issuer has been found guilty of a 

24 criminal offense under section 1956 or 1957 of 


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1 title 18, United States Code, or section 5322 or 

2 5324 of title 31, United States Code. 

3 (5) DIRECTORS NOT LIABLE FOR ACQUIESCING

4 IN APPOINTMENT OF CONSERVATOR OR RECEIVER.— 

5 The members of the board of directors of a payment 

6 stablecoin issuer shall not be liable to the issuer’s 

7 shareholders or creditors for acquiescing in or con8 senting in good faith to— 

9 (A) the appointment of the Corporation as 

10 conservator or receiver for that issuer; or 

11 (B) an acquisition or combination in which 

12 the Corporation requires the issuer to be ac13 quired or combined with another payment 

14 stablecoin issuer. 

15 (e) POWERS AND DUTIES OF CORPORATION AS CON16 SERVATOR OR RECEIVER.— 

17 (1) RULEMAKING AUTHORITY OF CORPORA18 TION.—The Corporation may prescribe such regula19 tions as the Corporation determines to be appro20 priate regarding the conduct of conservatorships or 

21 receiverships of payment stablecoin issuers, in con22 sultation with the Comptroller, State bank super23 visors, and the Board. 

24 (2) GENERAL POWERS.— 


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1 (A) SUCCESSOR TO INSTITUTION.—The 

2 Corporation shall, as conservator or receiver, 

3 and by operation of law, succeed to— 

4 (i) all rights, titles, powers, and privi5 leges of the payment stablecoin issuer, and 

6 of any stockholder, member, accountholder, 

7 depositor, officer, or director of such issuer 

8 with respect to the issuer and the assets of 

9 the issuer; and 

10 (ii) title to the books, records, and as11 sets of any previous conservator or other 

12 legal custodian of such institution. 

13 (B) OPERATE THE INSTITUTION.—The 

14 Corporation may, as conservator or receiver— 

15 (i) take over the assets of and operate 

16 the payment stablecoin issuer with all the 

17 powers of the members or shareholders, 

18 the directors, and the officers of the issuer 

19 and conduct all business of the issuer; 

20 (ii) collect all obligations and money 

21 due to the institution; 

22 (iii) perform all functions of the issuer 

23 in the name of the issuer which are con24 sistent with the appointment as conser25 vator or receiver; and 


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1 (iv) preserve and conserve the assets 

2 and property of the issuer. 

3 (C) FUNCTIONS OF ISSUER’S OFFICERS, 

4 DIRECTORS, AND SHAREHOLDERS.—The Cor5 poration may, by regulation or order, provide 

6 for the exercise of any function by any member 

7 or stockholder, director, or officer of any pay8 ment stablecoin issuer for which the Corpora9 tion has been appointed conservator or receiver. 

10 (D) POWERS AS CONSERVATOR.—The Cor11 poration may, as conservator, take such action 

12 as may be— 

13 (i) necessary to put the payment 

14 stablecoin issuer in a sound and solvent 

15 condition; and 

16 (ii) appropriate to carry on the busi17 ness of the issuer and preserve and con18 serve the assets and property of the issuer. 

19 (E) ADDITIONAL POWERS AS RECEIVER.— 

20 The Corporation may, as receiver, place the 

21 payment stablecoin issuer in liquidation and 

22 proceed to realize upon the assets of the issuer, 

23 having due regard to the conditions of credit in 

24 the locality. 


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1 (F) ORGANIZATION OF NEW INSTITU2 TIONS.—The Corporation may, as receiver, with 

3 respect to any payment stablecoin issuer, orga4 nize a bridge payment stablecoin issuer under 

5 subsection (m). 

6 (G) MERGER; TRANSFER OF ASSETS AND

7 LIABILITIES.— 

8 (i) IN GENERAL.—The Corporation 

9 may, as conservator or receiver— 

10 (I) merge the payment stablecoin 

11 issuer with another payment 

12 stablecoin issuer; or 

13 (II) subject to clause (ii), trans14 fer any asset or liability of the issuer 

15 in default without any approval, as16 signment, or consent with respect to 

17 such transfer. 

18 (ii) APPROVAL BY APPROPRIATE REG19 ULATOR.—No transfer described in clause 

20 (i)(II) may be made to a payment 

21 stablecoin issuer or without the approval of 

22 the appropriate payment stablecoin regu23 lator for such issuer. 

24 (H) PAYMENT OF VALID OBLIGATIONS.— 

25 The Corporation, as conservator or receiver, 


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1 shall pay all valid obligations of the payment 

2 stablecoin issuer, as determined by the Corpora3 tion. 

4 (I) SUBPOENA AUTHORITY.— 

5 (i) IN GENERAL.—The Corporation 

6 may, as conservator, receiver, or exclusive 

7 manager and for purposes of carrying out 

8 any power, authority, or duty with respect 

9 to a payment stablecoin issuer (including 

10 determining any claim against the issuer 

11 and determining and realizing upon any 

12 asset of any person in the course of col13 lecting money due the issuer), exercise any 

14 power established under section 8(n) of the 

15 Federal Deposit Insurance Act (12 U.S.C. 

16 1818(n)) and the provisions of such section 

17 shall apply with respect to the exercise of 

18 any such power under this subparagraph 

19 in the same manner as such provisions 

20 apply under such section. 

21 (ii) AUTHORITY OF BOARD OF DIREC22 TORS.—A subpoena or subpoena duces 

23 tecum may be issued under clause (i) only 

24 by, or with the written approval of, the 


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1 Board of Directors of the Corporation or 

2 their designees. 

3 (iii) RULE OF CONSTRUCTION.—This 

4 subsection shall not be construed as lim5 iting any rights that the Corporation, in 

6 any capacity, may otherwise have under 

7 section 10(c) of the Federal Deposit Insur8 ance Act (12 U.S.C. 1820(c)). 

9 (J) INCIDENTAL POWERS.—The Corpora10 tion may, as conservator or receiver— 

11 (i) exercise all powers and authorities 

12 necessary to conduct the conservatorship 

13 or receivership, respectively, and such inci14 dental powers as shall be necessary to 

15 carry out such powers; and 

16 (ii) take any action authorized by this 

17 section, which the Corporation determines 

18 is in the best interests of the payment 

19 stablecoin issuer, its customers, or the Cor20 poration. 

21 (K) UTILIZATION OF PRIVATE SECTOR.— 

22 In carrying out its responsibilities in the man23 agement and disposition of assets from payment 

24 stablecoin issuers, as conservator, receiver, or in 

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1 lize the services of private persons, including 

2 property management, auction marketing, legal, 

3 and brokerage services, only if such services are 

4 available in the private sector and the Corpora5 tion determines utilization of such services is 

6 the most practicable, efficient, and cost effec7 tive. 

8 (3) AUTHORITY OF RECEIVER TO DETERMINE

9 CLAIMS.— 

10 (A) IN GENERAL.—The Corporation may, 

11 as receiver, determine claims in accordance with 

12 the requirements of this subsection and regula13 tions prescribed under paragraph (4). 

14 (B) NOTICE REQUIREMENTS.—The Cor15 poration, as receiver, in any case involving the 

16 liquidation or winding up of the affairs of a 

17 closed payment stablecoin issuer, shall— 

18 (i) promptly publish a notice to the 

19 payment stablecoin issuer’s creditors to 

20 present their claims, together with proof, 

21 to the receiver by a date specified in the 

22 notice which shall be not less than 90 days 

23 after the publication of such notice; and 

24 (ii) republish such notice approxi25 mately 1 month and 2 months, respecVerDate Sep 11 2014 19:01 Apr 29, 2024 Jkt 049200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S4155.IS S4155

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1 tively, after the publication under clause 

2 (i). 

3 (C) MAILING REQUIRED.—The Corpora4 tion, as receiver, shall mail a notice similar to 

5 the notice published under subparagraph (B)(i) 

6 at the time of such publication to any creditor 

7 shown on the issuer’s books— 

8 (i) at the creditor’s last address ap9 pearing in such books; or 

10 (ii) upon discovery of the name and 

11 address of a claimant not appearing on the 

12 issuer’s books within 30 days after the dis13 covery of such name and address. 

14 (4) RULEMAKING AUTHORITY RELATING TO DE15 TERMINATION OF CLAIMS.— 

16 (A) IN GENERAL.—The Corporation may 

17 prescribe regulations regarding the allowance or 

18 disallowance of claims by the Corporation, as 

19 receiver, and providing for administrative deter20 mination of claims and review of such deter21 mination. 

22 (B) FINAL SETTLEMENT PAYMENT PROCE23 DURE.—In the handling of receiverships of pay24 ment stablecoin issuers, to maintain essential li25 quidity and to prevent financial disruption, the 


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1 Corporation may, after the declaration of an 

2 issuer’s insolvency, settle all unsecured claims 

3 on the receivership with a final settlement pay4 ment which shall constitute full payment and 

5 disposition of the Corporation’s obligations to 

6 such claimants. 

7 (5) PROCEDURES FOR DETERMINATION OF

8 CLAIMS.— 

9 (A) DETERMINATION PERIOD.— 

10 (i) IN GENERAL.—Before the end of 

11 the 180-day period beginning on the date 

12 any claim against a payment stablecoin 

13 issuer is filed with the Corporation as re14 ceiver, the Corporation shall determine 

15 whether to allow or disallow the claim and 

16 shall notify the claimant of any determina17 tion with respect to such claim. 

18 (ii) EXTENSION OF TIME.—The period 

19 described in clause (i) may be extended by 

20 a written agreement between the claimant 

21 and the Corporation. 

22 (iii) MAILING OF NOTICE SUFFI23 CIENT.—The requirements of clause (i) 

24 shall be deemed to be satisfied if the notice 

25 of any determination with respect to any 


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1 claim is mailed to the last address of the 

2 claimant which appears— 

3 (I) on the payment stablecoin 

4 issuer’s books; 

5 (II) in the claim filed by the 

6 claimant; or 

7 (III) in documents submitted in 

8 proof of the claim. 

9 (iv) CONTENTS OF NOTICE OF DIS10 ALLOWANCE.—If any claim filed under 

11 clause (i) is disallowed, the notice to the 

12 claimant shall contain— 

13 (I) a statement of each reason 

14 for the disallowance; and 

15 (II) the procedures available for 

16 obtaining agency review of the deter17 mination to disallow the claim or judi18 cial determination of the claim. 

19 (B) ALLOWANCE OF PROVEN CLAIMS.— 

20 The Corporation, as receiver, shall allow any 

21 claim received on or before the date specified in 

22 the notice published under paragraph (3)(B)(i) 

23 by the receiver from any claimant which is 

24 proved to the satisfaction of the receiver. 


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1 (C) DISALLOWANCE OF CLAIMS FILED

2 AFTER END OF FILING PERIOD.— 

3 (i) IN GENERAL.—Except as provided 

4 in clause (ii), claims filed after the date 

5 specified in the notice published under 

6 paragraph (3)(B)(i) shall be disallowed 

7 and such disallowance shall be final. 

8 (ii) CERTAIN EXCEPTIONS.—Clause 

9 (i) shall not apply with respect to any 

10 claim filed by any claimant after the date 

11 specified in the notice published under 

12 paragraph (3)(B)(i) and such claim may 

13 be considered by the Corporation, as re14 ceiver, if— 

15 (I) the claimant did not receive 

16 notice of the appointment of the re17 ceiver in time to file such claim before 

18 such date; and 

19 (II) such claim is filed in time to 

20 permit payment of such claim. 

21 (D) AUTHORITY TO DISALLOW CLAIMS.— 

22 (i) IN GENERAL.—The Corporation, 

23 as receiver, may disallow any portion of 

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1 rity, preference, or priority which is not 

2 proved to the satisfaction of the receiver. 

3 (ii) PAYMENTS TO LESS THAN FULLY

4 SECURED CREDITORS.—In the case of a 

5 claim of a creditor against a payment 

6 stablecoin issuer which is secured by any 

7 property or other asset of such issuer, the 

8 Corporation, as receiver— 

9 (I) may treat the portion of such 

10 claim which exceeds an amount equal 

11 to the fair market value of such prop12 erty or other asset as an unsecured 

13 claim against the issuer; and 

14 (II) may not make any payment 

15 with respect to such unsecured por16 tion of the claim other than in connec17 tion with the disposition of all claims 

18 of unsecured creditors of the issuer. 

19 (E) NO JUDICIAL REVIEW OF DETERMINA20 TION.—No court may review the Corporation’s 

21 determination pursuant to subparagraph (D) to 

22 disallow a claim. 

23 (F) LEGAL EFFECT OF FILING.— 

24 (i) STATUTE OF LIMITATIONS

25 TOLLED.—For purposes of any applicable 


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1 statute of limitations, the filing of a claim 

2 with the Corporation as receiver shall con3 stitute a commencement of an action. 

4 (ii) NO PREJUDICE TO OTHER AC5 TIONS.—Subject to paragraph (12), the fil6 ing of a claim with the Corporation as re7 ceiver shall not prejudice any right of the 

8 claimant to continue any action which was 

9 filed before the appointment of the Cor10 poration as receiver. 

11 (6) PROVISION FOR AGENCY REVIEW OR JUDI12 CIAL DETERMINATION OF CLAIMS.— 

13 (A) IN GENERAL.—Before the end of the 

14 60-day period beginning on the earlier of— 

15 (i) the end of the period described in 

16 paragraph (5)(A)(i) with respect to any 

17 claim against a payment stablecoin issuer 

18 for which the Corporation is receiver; or 

19 (ii) the date of any notice of disallow20 ance of such claim pursuant to paragraph 

21 (5)(A)(i), 

22 the claimant may request administrative review 

23 of the claim in accordance with subparagraph 

24 (A) or (B) of paragraph (7) or file suit on such 

25 claim (or continue an action commenced before 


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1 the appointment of the Corporation as receiver 

2 in the district or territorial court of the United 

3 States for the district within which the payment 

4 stablecoin issuer’s principal place of business is 

5 located or the United States District Court for 

6 the District of Columbia (and such court shall 

7 have jurisdiction to hear such claim). 

8 (B) STATUTE OF LIMITATIONS.—If any 

9 claimant fails to— 

10 (i) request administrative review of 

11 any claim in accordance with subparagraph 

12 (A) or (B) of paragraph (7); or 

13 (ii) file suit on such claim (or con14 tinue an action commenced before the ap15 pointment of the Corporation as receiver), 

16 before the end of the 60-day period described in 

17 subparagraph (A), the claim shall be deemed to 

18 be disallowed (other than any portion of such 

19 claim which was allowed by the receiver) as of 

20 the end of such period, such disallowance shall 

21 be final, and the claimant shall have no further 

22 rights or remedies with respect to such claim. 

23 (7) REVIEW OF CLAIMS.— 

24 (A) ADMINISTRATIVE HEARING.—If any 

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1 graph in lieu of filing or continuing any action 

2 under paragraph (6) and the Corporation 

3 agrees to such request, the Corporation shall 

4 consider the claim after opportunity for a hear5 ing on the record. The final determination of 

6 the Corporation with respect to such claim shall 

7 be subject to judicial review under chapter 7 of 

8 title 5, United States Code. 

9 (B) OTHER REVIEW PROCEDURES.— 

10 (i) IN GENERAL.—The Corporation 

11 shall also establish such alternative dispute 

12 resolution processes as may be appropriate 

13 for the resolution of claims filed under 

14 paragraph (5)(A)(i). 

15 (ii) CRITERIA.—In establishing alter16 native dispute resolution processes under 

17 clause (i), the Corporation shall strive for 

18 procedures which are expeditious, fair, 

19 independent, and low cost. 

20 (iii) VOLUNTARY BINDING OR NON21 BINDING PROCEDURES.—The Corporation 

22 may establish both binding and nonbinding 

23 processes, which may be conducted by any 

24 government or private party, but all par25 ties, including the claimant and the CorVerDate Sep 11 2014 19:01 Apr 29, 2024 Jkt 049200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\S4155.IS S4155

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1 poration, shall agree to the use of the proc2 ess established under clause (i) in a par3 ticular case. 

4 (iv) CONSIDERATION OF INCEN5 TIVES.—The Corporation shall seek to de6 velop incentives for claimants to partici7 pate in the alternative dispute resolution 

8 process established under clause (i). 

9 (8) EXPEDITED DETERMINATION OF CLAIMS.— 

10 (A) ESTABLISHMENT REQUIRED.—The 

11 Corporation shall establish a procedure for ex12 pedited relief outside of the routine claims proc13 ess established under paragraph (5) for claim14 ants who— 

15 (i) allege the existence of legally valid 

16 and enforceable or perfected security inter17 ests in assets of a payment stablecoin 

18 issuer for which the Corporation has been 

19 appointed receiver; and 

20 (ii) allege that irreparable injury will 

21 occur if the routine claims procedure is fol22 lowed. 

23 (B) DETERMINATION PERIOD.—Before the 

24 end of the 90-day period beginning on the date 

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1 dures established pursuant to subparagraph 

2 (A), the Corporation shall— 

3 (i) determine— 

4 (I) whether to allow or disallow 

5 such claim; or 

6 (II) whether such claim should be 

7 determined pursuant to the proce8 dures established pursuant to para9 graph (5); and 

10 (ii) notify the claimant of the deter11 mination, and if the claim is disallowed, 

12 provide a statement of each reason for the 

13 disallowance and the procedure for obtain14 ing agency review or judicial determina15 tion. 

16 (C) PERIOD FOR FILING OR RENEWING

17 SUIT.—Any claimant who files a request for ex18 pedited relief shall be permitted to file a suit, 

19 or to continue a suit filed before the appoint20 ment of the receiver, seeking a determination of 

21 the claimant’s rights with respect to such secu22 rity interest after the earlier of— 

23 (i) the end of the 90-day period begin24 ning on the date of the filing of a request 

25 for expedited relief; or 


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1 (ii) the date the Corporation denies 

2 the claim. 

3 (D) STATUTE OF LIMITATIONS.—If an ac4 tion described in subparagraph (C) is not filed, 

5 or the motion to renew a previously filed suit is 

6 not made, before the end of the 30-day period 

7 beginning on the date on which such action or 

8 motion may be filed in accordance with sub9 paragraph (B), the claim shall be deemed to be 

10 disallowed as of the end of such period (other 

11 than any portion of such claim which was al12 lowed by the receiver), such disallowance shall 

13 be final, and the claimant shall have no further 

14 rights or remedies with respect to such claim. 

15 (E) LEGAL EFFECT OF FILING.— 

16 (i) STATUTE OF LIMITATIONS

17 TOLLED.—For purposes of any applicable 

18 statute of limitations, the filing of a claim 

19 with the Corporation as receiver shall con20 stitute a commencement of an action. 

21 (ii) NO PREJUDICE TO OTHER AC22 TIONS.—Subject to paragraph (12), the fil23 ing of a claim with the receiver shall not 

24 prejudice any right of the claimant to con25 tinue any action which was filed before the 


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1 appointment of the Corporation as re2 ceiver. 

3 (9) AGREEMENT AS BASIS OF CLAIM.—Any 

4 agreement which does not meet the requirements set 

5 forth in section 13(e) of the Federal Deposit Insur6 ance Act (12 U.S.C. 1823(e)), shall not form the 

7 basis of, or substantially comprise, a claim against 

8 the Corporation as receiver. 

9 (10) PAYMENT OF CLAIMS.— 

10 (A) IN GENERAL.—The Corporation as re11 ceiver may, in the discretion of the Corporation 

12 and to the extent funds are available, pay cred13 itor claims approved pursuant to a final deter14 mination pursuant to paragraph (7) or (8), or 

15 determined by the final judgment of any court 

16 of competent jurisdiction in such manner and 

17 amounts as are authorized under this section. 

18 (B) PAYMENT OF DIVIDENDS ON

19 CLAIMS.—The Corporation, as receiver, may, in 

20 the sole discretion of the Corporation, pay divi21 dends on proved claims at any time, and no li22 ability shall attach to the Corporation (in such 

23 Corporation’s corporate capacity or as receiver), 

24 by reason of any such payment, for failure to 


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1 pay dividends to a claimant whose claim is not 

2 proved at the time of any such payment. 

3 (C) RULEMAKING AUTHORITY OF COR4 PORATION.—The Corporation may prescribe 

5 such rules, including definitions of terms, as it 

6 deems appropriate to establish a single uniform 

7 interest rate for or to make payments of post 

8 insolvency interest to creditors holding proven 

9 claims against the receivership estates of pay10 ment stablecoin issuers following satisfaction by 

11 the Corporation as receiver of the principal 

12 amount of all creditor claims. 

13 (11) CUSTOMER PREFERENCE.— 

14 (A) IN GENERAL.—Subject to section 

15 5(e)(2)(C) of the Federal Deposit Insurance 

16 Act (12 U.S.C. 1815(e)(2)(C)), amounts real17 ized from the liquidation or other resolution of 

18 a payment stablecoin issuer by the Corporation 

19 as receiver shall be distributed to pay claims 

20 (other than secured claims to the extent of any 

21 such security) in the following order of priority: 

22 (i) Administrative expenses of the 

23 Corporation as receiver. 

24 (ii) Outstanding payment stablecoin 

25 liabilities. 


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1 (iii) Any other general or senior liabil2 ity of the issuer (which is not a liability de3 scribed in clause (iv) or (v)). 

4 (iv) Any obligation subordinated to 

5 payment stablecoin liabilities or general 

6 creditors (which is not an obligation de7 scribed in clause (v)). 

8 (v) Any obligation to shareholders or 

9 members arising as a result of their status 

10 as shareholders or members (including any 

11 holding company or any shareholder or 

12 creditor of such company). 

13 (B) REHYPOTHECATION OF PAYMENT

14 STABLECOIN RESERVES.—A person who violates 

15 section 4 shall not be considered to have a se16 cured claim under subparagraph (A) or State 

17 law. 

18 (C) EFFECT ON STATE LAW.— 

19 (i) IN GENERAL.—The provisions of 

20 subparagraph (A) shall not supersede the 

21 law of any State except to the extent such 

22 law is inconsistent with the provisions of 

23 such subparagraph, and then only to the 

24 extent of the inconsistency. 


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1 (ii) PROCEDURE FOR DETERMINATION

2 OF INCONSISTENCY.—Upon the Corpora3 tion’s own motion or upon the request of 

4 any person with a claim described in sub5 paragraph (A) or any State which is sub6 mitted to the Corporation in accordance 

7 with procedures which the Corporation 

8 shall prescribe, the Corporation shall deter9 mine whether any provision of the law of 

10 any State is inconsistent with any provi11 sion of subparagraph (A) and the extent of 

12 any such inconsistency. 

13 (iii) JUDICIAL REVIEW.—The final de14 termination of the Corporation under 

15 clause (ii) shall be subject to judicial re16 view under chapter 7 of title 5, United 

17 States Code. 

18 (D) ACCOUNTING REPORT.—Any distribu19 tion by the Corporation in connection with any 

20 claim described in subparagraph (A)(v) shall be 

21 accompanied by the accounting report required 

22 under paragraph (15)(B). 

23 (12) SUSPENSION OF LEGAL ACTIONS.— 

24 (A) In general. After the appointment of 

25 the Corporation as conservator or receiver for a 


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•S 4155 IS

1 payment stablecoin issuer, the Corporation may 

2 request a stay for a period not to exceed— 

3 (i) 45 days, in the case of the Cor4 poration as conservator; and 

5 (ii) 90 days, in the case of the Cor6 poration as receiver, 

7 in any judicial action or proceeding to which 

8 the issuer is or becomes a party. 

9 (B) GRANT OF STAY BY ALL COURTS RE10 QUIRED.—Upon receipt of a request by the Cor11 poration as conservator or receiver pursuant to 

12 subparagraph (A) for a stay of any judicial ac13 tion or proceeding in any court with jurisdiction 

14 of such action or proceeding, the court shall 

15 grant such stay as to all parties. 

16 (13) ADDITIONAL RIGHTS AND DUTIES.— 

17 (A) PRIOR FINAL ADJUDICATION.—The 

18 Corporation shall abide by any final 

19 unappealable judgment of any court of com20 petent jurisdiction which was rendered before 

21 the appointment of the Corporation as conser22 vator or receiver. 

23 (B) RIGHTS AND REMEDIES OF CONSER24 VATOR OR RECEIVER.—In the event of any apVerDate Sep 11 2014 19:01 Apr 29, 2024 Jkt 049200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S4155.IS S4155

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1 pealable judgment, the Corporation as conser2 vator or receiver shall— 

3 (i) have all the rights and remedies 

4 available to the payment stablecoin issuer 

5 (before the appointment of such conser6 vator or receiver) and the Corporation in 

7 its corporate capacity, including removal to 

8 Federal court and all appellate rights; and 

9 (ii) not be required to post any bond 

10 in order to pursue such remedies. 

11 (C) NO ATTACHMENT OR EXECUTION.—No 

12 attachment or execution may issue by any court 

13 upon assets in the possession of the Corpora14 tion as receiver. 

15 (D) LIMITATION ON JUDICIAL REVIEW.— 

16 Except as otherwise provided in this subsection, 

17 no court shall have jurisdiction over— 

18 (i) any claim or action for payment 

19 from, or any action seeking a determina20 tion of rights with respect to, the assets of 

21 a payment stablecoin issuer for which the 

22 Corporation has been appointed receiver, 

23 including assets which the Corporation 

24 may acquire from itself as such receiver; or 


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1 (ii) any claim relating to any act or 

2 omission of such issuer or the Corporation 

3 as receiver. 

4 (E) DISPOSITION OF ASSETS.—In exer5 cising any right, power, privilege, or authority 

6 as conservator or receiver in connection with 

7 any sale or disposition of assets of any payment 

8 stablecoin issuer for which the Corporation has 

9 been appointed conservator or receiver, the Cor10 poration shall conduct its operations in a man11 ner which— 

12 (i) maximizes the net present value 

13 return from the sale or disposition of such 

14 assets; 

15 (ii) minimizes the amount of any loss 

16 realized in the resolution of cases; 

17 (iii) ensures adequate competition and 

18 fair and consistent treatment of offerors; 

19 and 

20 (iv) prohibits discrimination on the 

21 basis of race, sex, or ethnic groups in the 

22 solicitation and consideration of offers. 

23 (14) STATUTE OF LIMITATIONS FOR ACTIONS

24 BROUGHT BY CONSERVATOR OR RECEIVER.— 


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1 (A) IN GENERAL.—Notwithstanding any 

2 provision of any contract, the applicable statute 

3 of limitations with regard to any action brought 

4 by the Corporation as conservator or receiver 

5 shall be— 

6 (i) in the case of any contract claim, 

7 the longer of— 

8 (I) the 6-year period beginning 

9 on the date the claim accrues; or 

10 (II) the period applicable under 

11 State law; and 

12 (ii) in the case of any tort claim, the 

13 longer of— 

14 (I) the 3-year period beginning 

15 on the date the claim accrues; or 

16 (II) the period applicable under 

17 State law. 

18 (B) DETERMINATION OF THE DATE ON

19 WHICH A CLAIM ACCRUES.—For purposes of 

20 subparagraph (A), the date on which the stat21 ute of limitations begins to run on any claim 

22 described in such subparagraph shall be the 

23 later of— 

24 (i) the date of the appointment of the 

25 Corporation as conservator or receiver; or 


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•S 4155 IS

1 (ii) the date on which the cause of ac2 tion accrues. 

3 (C) REVIVAL OF EXPIRED STATE CAUSES

4 OF ACTION.— 

5 (i) IN GENERAL.—In the case of any 

6 tort claim described in clause (ii) for which 

7 the statute of limitations applicable under 

8 State law with respect to such claim has 

9 expired not more than 5 years before the 

10 appointment of the Corporation as conser11 vator or receiver, the Corporation may 

12 bring an action as conservator or receiver 

13 on such claim without regard to the expira14 tion of the statute of limitations applicable 

15 under State law. 

16 (ii) CLAIMS DESCRIBED.—A tort 

17 claim referred to in clause (i) is a claim 

18 arising from fraud, intentional misconduct 

19 resulting in unjust enrichment, or inten20 tional misconduct resulting in substantial 

21 loss to the institution. 

22 (15) ACCOUNTING AND RECORDKEEPING RE23 QUIREMENTS.— 

24 (A) IN GENERAL.—The Corporation as 

25 conservator or receiver shall, consistent with the 


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1 accounting and reporting practices and proce2 dures established by the Corporation, maintain 

3 a full accounting of each conservatorship and 

4 receivership or other disposition of issuers in 

5 default. 

6 (B) ANNUAL ACCOUNTING OR REPORT.— 

7 With respect to each conservatorship or receiv8 ership to which the Corporation was appointed, 

9 the Corporation shall make an annual account10 ing or report, as appropriate, available to the 

11 Secretary of the Treasury, the Comptroller 

12 General of the United States, and the authority 

13 that appointed the Corporation as conservator 

14 or receiver. 

15 (C) AVAILABILITY OF REPORTS.—Any re16 port prepared pursuant to subparagraph (B) 

17 shall be made available by the Corporation upon 

18 request to any shareholder of the payment 

19 stablecoin issuer for which the Corporation was 

20 appointed conservator or receiver or any other 

21 member of the public. 

22 (D) RECORDKEEPING REQUIREMENT.— 

23 (i) IN GENERAL.—Except as provided 

24 in clause (ii), after the end of the 6-year 

25 period beginning on the date the CorporaVerDate Sep 11 2014 03:08 Apr 30, 2024 Jkt 049200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\S4155.IS S4155

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1 tion is appointed as receiver of a payment 

2 stablecoin issuer, the Corporation may de3 stroy any records of such institution which 

4 the Corporation, in the Corporation’s dis5 cretion, determines to be unnecessary un6 less directed not to do so by a court of 

7 competent jurisdiction or governmental 

8 agency, or otherwise prohibited by law. 

9 (ii) OLD RECORDS.—Notwithstanding 

10 clause (i), the Corporation may destroy 

11 records of a payment stablecoin issuer 

12 which are at least 10 years old as of the 

13 date on which the Corporation is appointed 

14 as the receiver of such payment stablecoin 

15 issuer in accordance with clause (i) at any 

16 time after such appointment is final, with17 out regard to the 6-year period of limita18 tion contained in clause (i). 

19 (16) FRAUDULENT TRANSFERS.— 

20 (A) IN GENERAL.—The Corporation, as 

21 conservator or receiver for a payment stablecoin 

22 issuer, may avoid a transfer of any interest of 

23 an institution-affiliated party, or any person 

24 who the Corporation determines is a debtor of 

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1 curred by such party or person, that was made 

2 within 5 years of the date on which the Cor3 poration was appointed conservator or receiver 

4 if such party or person voluntarily or involun5 tarily made such transfer or incurred such li6 ability with the intent to hinder, delay, or de7 fraud the payment stablecoin issuer, the Cor8 poration, Board, Comptroller, or a State bank 

9 supervisor. 

10 (B) RIGHT OF RECOVERY.—To the extent 

11 a transfer is avoided under subparagraph (A), 

12 the Corporation may recover, for the benefit of 

13 the payment stablecoin issuer, the property 

14 transferred, or, if a court so orders, the value 

15 of such property (at the time of such transfer) 

16 from— 

17 (i) the initial transferee of such trans18 fer or the institution-affiliated party or 

19 person for whose benefit such transfer was 

20 made; or 

21 (ii) any immediate or mediate trans22 feree of any such initial transferee. 

23 (C) RIGHTS OF TRANSFEREE OR OBLI24 GEE.—The Corporation may not recover under 

25 subparagraph (B) from— 


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•S 4155 IS

1 (i) any transferee that takes for value, 

2 including satisfaction or securing of a 

3 present or antecedent debt, in good faith; 

4 or 

5 (ii) any immediate or mediate good 

6 faith transferee of such transferee. 

7 (D) RIGHTS IN BANKRUPTCY.—The rights 

8 under this paragraph of the Corporation shall 

9 be superior to any rights of a trustee or any 

10 other party (other than any party which is a 

11 Federal agency) under title 11, United States 

12 Code. 

13 (17) ATTACHMENT OF ASSETS AND OTHER IN14 JUNCTIVE RELIEF.—Subject to paragraph (18), any 

15 court of competent jurisdiction may, at the request 

16 of the Corporation (in the Corporation’s capacity as 

17 conservator or receiver for any payment stablecoin 

18 issuer or in the Corporation’s corporate capacity 

19 with respect to any asset acquired or liability as20 sumed by the Corporation), issue an order in accord21 ance with Rule 65 of the Federal Rules of Civil Pro22 cedure, including an order placing the assets of any 

23 person designated by the Corporation under the con24 trol of the court and appointing a trustee to hold 

25 such assets. 


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1 (18) STANDARDS.— 

2 (A) SHOWING.—Rule 65 of the Federal 

3 Rules of Civil Procedure shall apply with re4 spect to any proceeding under paragraph (17) 

5 without regard to the requirement of such rule 

6 that the applicant show that the injury, loss, or 

7 damage is irreparable and immediate. 

8 (B) STATE PROCEEDING.—If, in the case 

9 of any proceeding in a State court, the court 

10 determines that rules of civil procedure avail11 able under the laws of such State provide sub12 stantially similar protections to such party’s 

13 right to due process as Rule 65 (as modified 

14 with respect to such proceeding by subpara15 graph (A)), the relief sought by the Corporation 

16 pursuant to paragraph (17) may be requested 

17 under the laws of such State. 

18 (19) TREATMENT OF CLAIMS ARISING FROM

19 BREACH OF CONTRACTS EXECUTED BY THE RE20 CEIVER OR CONSERVATOR.— 

21 (A) IN GENERAL.—Notwithstanding any 

22 other provision of this subsection, any final and 

23 unappealable judgment for monetary damages 

24 entered against the Corporation as receiver or 

25 conservator for a payment stablecoin issuer for 


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•S 4155 IS

1 the breach of an agreement executed or ap2 proved by the Corporation after the date of its 

3 appointment shall be paid as an administrative 

4 expense of the receiver or conservator. 

5 (B) RULE OF CONSTRUCTION.—Nothing in 

6 this paragraph shall be construed to limit the 

7 power of the Corporation as receiver or conser8 vator to exercise any rights under contract or 

9 law, including to terminate, breach, cancel, or 

10 otherwise discontinue such agreement. 

11 (f) PROVISIONS RELATING TO CONTRACTS ENTERED

12 INTO BEFORE APPOINTMENT OF CONSERVATOR OR RE13 CEIVER.— 

14 (1) AUTHORITY TO REPUDIATE CONTRACTS.— 

15 In addition to any other rights the Corporation as 

16 conservator or receiver may have, the Corporation 

17 may disaffirm or repudiate any contract or lease— 

18 (A) to which the issuer is a party; 

19 (B) the performance of which the Corpora20 tion, in the discretion of the Corporation, deter21 mines to be burdensome; and 

22 (C) the disaffirmance or repudiation of 

23 which the Corporation determines, in the discre24 tion of the Corporation, will promote the or25 derly administration of the affairs of the issuer. 


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•S 4155 IS

1 (2) TIMING OF REPUDIATION.—The Corpora2 tion as conservator or receiver appointed for any 

3 payment stablecoin issuer in accordance with sub4 section (d), shall determine whether or not to exer5 cise the rights of repudiation under this subsection 

6 within a reasonable period following such appoint7 ment. 

8 (3) CLAIMS FOR DAMAGES FOR REPUDI9 ATION.— 

10 (A) IN GENERAL.—Except as otherwise 

11 provided in subparagraph (C) and paragraphs 

12 (4), (5), and (6), the liability of the Corporation 

13 as conservator or receiver for the disaffirmance 

14 or repudiation of any contract pursuant to 

15 paragraph (1) shall be— 

16 (i) limited to actual direct compen17 satory damages; and 

18 (ii) determined as of— 

19 (I) the date of the appointment 

20 of the Corporation as conservator or 

21 receiver; or 

22 (II) in the case of any contract 

23 or agreement referred to in paragraph 

24 (8), the date of the disaffirmance or 


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•S 4155 IS

1 repudiation of such contract or agree2 ment. 

3 (B) NO LIABILITY FOR OTHER DAM4 AGES.—For purposes of subparagraph (A), the 

5 term ‘‘actual direct compensatory damages’’ 

6 does not include— 

7 (i) punitive or exemplary damages; 

8 (ii) damages for lost profits or oppor9 tunity; or 

10 (iii) damages for pain and suffering. 

11 (C) MEASURE OF DAMAGES FOR REPUDI12 ATION OF FINANCIAL CONTRACTS.—In the case 

13 of any qualified financial contract or agreement 

14 to which paragraph (8) applies, compensatory 

15 damages shall be— 

16 (i) deemed to include normal and rea17 sonable costs of cover or other reasonable 

18 measures of damages utilized in the indus19 tries for such contract and agreement 

20 claims; and 

21 (ii) paid in accordance with this sub22 section and subsection (g) except as other23 wise specifically provided in this section. 

24 (4) LEASES UNDER WHICH THE ISSUER IS THE

25 LESSEE.— 


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•S 4155 IS

1 (A) IN GENERAL.—If the Corporation as 

2 conservator or receiver disaffirms or repudiates 

3 a lease under which the payment stablecoin 

4 issuer was the lessee, the conservator or re5 ceiver shall not be liable for any damages (other 

6 than damages determined pursuant to subpara7 graph (B)) for the disaffirmance or repudiation 

8 of such lease. 

9 (B) PAYMENTS OF RENT.—Notwith10 standing subparagraph (A), the lessor under a 

11 lease to which such subparagraph applies 

12 shall— 

13 (i) unless the lessor is in default or 

14 breach of the terms of the lease, be enti15 tled to the contractual rent accruing before 

16 the later of the date— 

17 (I) the notice of disaffirmance or 

18 repudiation is mailed; or 

19 (II) the disaffirmance or repudi20 ation becomes effective; 

21 (ii) have no claim for damages under 

22 any acceleration clause or other penalty 

23 provision in the lease; and 

24 (iii) have a claim for any unpaid rent, 

25 subject to all appropriate offsets and deVerDate Sep 11 2014 19:01 Apr 29, 2024 Jkt 049200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\S4155.IS S4155

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1 fenses, due as of the date of the appoint2 ment which shall be paid in accordance 

3 with this subsection and subsection (g). 

4 (5) LEASES UNDER WHICH THE ISSUER IS THE

5 LESSOR.— 

6 (A) IN GENERAL.—If the Corporation as 

7 conservator or receiver repudiates an unexpired 

8 written lease of real property of the payment 

9 stablecoin issuer under which the issuer is the 

10 lessor and the lessee is not, as of the date of 

11 such repudiation, in default, the lessee under 

12 such lease may either— 

13 (i) treat the lease as terminated by 

14 such repudiation; or 

15 (ii) remain in possession of the lease16 hold interest for the balance of the term of 

17 the lease unless the lessee defaults under 

18 the terms of the lease after the date of 

19 such repudiation. 

20 (B) PROVISIONS APPLICABLE TO LESSEE

21 REMAINING IN POSSESSION.—If any lessee 

22 under a lease described in subparagraph (A) re23 mains in possession of a leasehold interest pur24 suant to clause (ii) of such subparagraph— 

25 (i) the lessee— 


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1 (I) shall continue to pay the con2 tractual rent pursuant to the terms of 

3 the lease after the date of the repudi4 ation of such lease; and 

5 (II) may offset against any rent 

6 payment which accrues after the date 

7 of the repudiation of the lease, any 

8 damages which accrue after such date 

9 due to the nonperformance of any ob10 ligation of the payment stablecoin 

11 issuer under the lease after such date; 

12 and 

13 (ii) the Corporation as conservator or 

14 receiver shall not be liable to the lessee for 

15 any damages arising after such date as a 

16 result of the repudiation other than the 

17 amount of any offset allowed under clause 

18 (i)(II). 

19 (6) CONTRACTS FOR THE SALE OF REAL PROP20 ERTY.— 

21 (A) IN GENERAL.—If the Corporation as 

22 conservator or receiver repudiates any contract 

23 (which meets the requirements of each para24 graph of section 13(e)of the Federal Deposit 

25 Insurance Act (12 U.S.C. 1823(e)) for the sale 


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1 of real property and the purchaser of such real 

2 property under such contract is in possession 

3 and is not, as of the date of such repudiation, 

4 in default, such purchaser may either— 

5 (i) treat the contract as terminated by 

6 such repudiation; or 

7 (ii) remain in possession of such real 

8 property. 

9 (B) PROVISIONS APPLICABLE TO PUR10 CHASER REMAINING IN POSSESSION.—If any 

11 purchaser of real property under any contract 

12 described in subparagraph (A) remains in pos13 session of such property pursuant to clause (ii) 

14 of such subparagraph— 

15 (i) the purchaser— 

16 (I) shall continue to make all 

17 payments due under the contract after 

18 the date of the repudiation of the con19 tract; and 

20 (II) may offset against any such 

21 payments any damages which accrue 

22 after such date due to the non23 performance (after such date) of any 

24 obligation of the payment stablecoin 

25 issuer under the contract; and 


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1 (ii) the Corporation as conservator or 

2 receiver shall— 

3 (I) not be liable to the purchaser 

4 for any damages arising after such 

5 date as a result of the repudiation 

6 other than the amount of any offset 

7 allowed under clause (i)(II); 

8 (II) deliver title to the purchaser 

9 in accordance with the provisions of 

10 the contract; and 

11 (III) have no obligation under 

12 the contract other than the perform13 ance required under subclause (II). 

14 (C) ASSIGNMENT AND SALE ALLOWED.— 

15 (i) IN GENERAL.—No provision of this 

16 paragraph shall be construed as limiting 

17 the right of the Corporation as conservator 

18 or receiver to assign the contract described 

19 in subparagraph (A) and sell the property 

20 subject to the contract and the provisions 

21 of this paragraph. 

22 (ii) NO LIABILITY AFTER ASSIGNMENT

23 AND SALE.—If an assignment and sale de24 scribed in clause (i) is consummated, the 

25 Corporation as conservator or receiver 


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1 shall have no further liability under the 

2 contract described in subparagraph (A) or 

3 with respect to the real property which was 

4 the subject of such contract. 

5 (7) PROVISIONS APPLICABLE TO SERVICE CON6 TRACTS.— 

7 (A) SERVICES PERFORMED BEFORE AP8 POINTMENT.—In the case of any contract for 

9 services between any person and any payment 

10 stablecoin issuer for which the Corporation has 

11 been appointed conservator or receiver, any 

12 claim of such person for services performed be13 fore the appointment of the Corporation shall 

14 be— 

15 (i) a claim to be paid in accordance 

16 with subsections (e) and (g); and 

17 (ii) deemed to have arisen as of the 

18 date the Corporation was appointed con19 servator or receiver. 

20 (B) SERVICES PERFORMED AFTER AP21 POINTMENT AND PRIOR TO REPUDIATION.—If, 

22 in the case of any contract for services de23 scribed in subparagraph (A), the conservator or 

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1 ceiver makes any determination to exercise the 

2 right of repudiation of such contract under this 

3 section— 

4 (i) the other party shall be paid under 

5 the terms of the contract for the services 

6 performed; and 

7 (ii) the amount of such payment shall 

8 be treated as an administrative expense of 

9 the conservatorship or receivership. 

10 (C) ACCEPTANCE OF PERFORMANCE NO

11 BAR TO SUBSEQUENT REPUDIATION.—The ac12 ceptance by the Corporation as conservator or 

13 receiver of services referred to in subparagraph 

14 (B) in connection with a contract described in 

15 such subparagraph shall not affect the right of 

16 the Corporation as conservator or receiver to re17 pudiate such contract under this section at any 

18 time after such performance. 

19 (8) CERTAIN QUALIFIED FINANCIAL CON20 TRACTS.— 

21 (A) RIGHTS OF PARTIES TO CONTRACTS.— 

22 Subject to paragraphs (9) and (10) of this sub23 section and notwithstanding any other provision 

24 of Federal or State law (other than subsection 

25 (e)(9) of this section and section 13(e)of the 


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1 Federal Deposit Insurance Act (12 U.S.C. 

2 1823(e)), no person shall be stayed or prohib3 ited from exercising— 

4 (i) any right such person has to cause 

5 the termination, liquidation, or acceleration 

6 of any qualified financial contract with a 

7 payment stablecoin issuer which arises 

8 upon the appointment of the Corporation 

9 as receiver for such issuer at any time 

10 after such appointment; 

11 (ii) any right under any security 

12 agreement or arrangement or other credit 

13 enhancement related to one or more quali14 fied financial contracts described in clause 

15 (i); or 

16 (iii) any right to offset or net out any 

17 termination value, payment amount, or 

18 other transfer obligation arising under or 

19 in connection with 1 or more contracts and 

20 agreements described in clause (i), includ21 ing any master agreement for such con22 tracts or agreements. 

23 (B) APPLICABILITY OF OTHER PROVI24 SIONS.—Subsection (e)(12) shall apply in the 

25 case of any judicial action or proceeding 


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1 brought against the Corporation as receiver re2 ferred to in subparagraph (A), or the payment 

3 stablecoin issuer for which the Corporation was 

4 appointed receiver, by any party to a contract 

5 or agreement described in subparagraph (A)(i) 

6 with such institution. 

7 (C) CERTAIN TRANSFERS NOT AVOID8 ABLE.— 

9 (i) IN GENERAL.—Notwithstanding 

10 paragraph (11), section 5242 of the Re11 vised Statutes of the United States (12 

12 U.S.C. 91), or any other Federal or State 

13 law relating to the avoidance of pref14 erential or fraudulent transfers, the Cor15 poration, whether acting as such or as con16 servator or receiver of a payment 

17 stablecoin issuer, may not avoid any trans18 fer of money or other property in connec19 tion with any qualified financial contract 

20 with a payment stablecoin issuer. 

21 (ii) EXCEPTION FOR CERTAIN TRANS22 FERS.—Clause (i) shall not apply to any 

23 transfer of money or other property in con24 nection with any qualified financial con25 tract with a payment stablecoin issuer if 


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1 the Corporation determines that the trans2 feree had actual intent to hinder, delay, or 

3 defraud such institution, the creditors of 

4 such institution, or any conservator or re5 ceiver appointed for such institution. 

6 (D) CERTAIN CONTRACTS AND AGREE7 MENTS DEFINED.—For purposes of this sub8 section, the following definitions shall apply: 

9 (i) QUALIFIED FINANCIAL CON10 TRACT.—The term ‘‘qualified financial 

11 contract’’ means any securities contract, 

12 commodity contract, forward contract, re13 purchase agreement, swap agreement, and 

14 any similar agreement that the Corpora15 tion determines by regulation, resolution or 

16 order to be a qualified financial contract 

17 for purposes of this paragraph. 

18 (ii) SECURITIES CONTRACT.—The 

19 term ‘‘securities contract’’— 

20 (I) means a contract for the pur21 chase, sale, or loan of a security, a 

22 certificate of deposit, a mortgage loan, 

23 any interest in a mortgage loan, a 

24 group or index of securities, certifi25 cates of deposit, or mortgage loans or 


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1 interests therein (including any inter2 est therein or based on the value 

3 thereof) or any option on any of the 

4 foregoing, including any option to 

5 purchase or sell any such security, 

6 certificate of deposit, mortgage loan, 

7 interest, group or index, or option, 

8 and including any repurchase or re9 verse repurchase transaction on any 

10 such security, certificate of deposit, 

11 mortgage loan, interest, group or 

12 index, or option (whether or not such 

13 repurchase or reverse repurchase 

14 transaction is a repurchase agree15 ment); 

16 (II) does not include any pur17 chase, sale, or repurchase obligation 

18 under a participation in a commercial 

19 mortgage loan unless the Corporation 

20 determines by regulation, resolution, 

21 or order to include any such agree22 ment within the meaning of such 

23 term; 


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1 (III) means any option entered 

2 into on a national securities exchange 

3 relating to foreign currencies; 

4 (IV) means the guarantee (in5 cluding by novation) by or to any se6 curities clearing agency of any settle7 ment of cash, securities, certificates of 

8 deposit, mortgage loans or interests 

9 therein, group or index of securities, 

10 certificates of deposit, or mortgage 

11 loans or interests therein (including 

12 any interest therein or based on the 

13 value thereof) or option on any of the 

14 foregoing, including any option to 

15 purchase or sell any such security, 

16 certificate of deposit, mortgage loan, 

17 interest, group or index, or option 

18 (whether or not such settlement is in 

19 connection with any agreement or 

20 transaction referred to in subclauses 

21 (I) through (XII) (other than sub22 clause (II)); 

23 (V) means any margin loan; 


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1 (VI) means any extension of 

2 credit for the clearance or settlement 

3 of securities transactions; 

4 (VII) means any loan transaction 

5 coupled with a securities collar trans6 action, any prepaid securities forward 

7 transaction, or any total return swap 

8 transaction coupled with a securities 

9 sale transaction; 

10 (VIII) means any other agree11 ment or transaction that is similar to 

12 any agreement or transaction referred 

13 to in this clause; 

14 (IX) means any combination of 

15 the agreements or transactions re16 ferred to in this clause; 

17 (X) means any option to enter 

18 into any agreement or transaction re19 ferred to in this clause; 

20 (XI) means a master agreement 

21 that provides for an agreement or 

22 transaction referred to in subclause 

23 (I), (III), (IV), (V), (VI), (VII), 

24 (VIII), (IX), or (X), together with all 

25 supplements to any such master 


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1 agreement, without regard to whether 

2 the master agreement provides for an 

3 agreement or transaction that is not a 

4 securities contract under this clause, 

5 except that the master agreement 

6 shall be considered to be a securities 

7 contract under this clause only with 

8 respect to each agreement or trans9 action under the master agreement 

10 that is referred to in subclause (I), 

11 (III), (IV), (V), (VI), (VII), (VIII), 

12 (IX), or (X); and 

13 (XII) means any security agree14 ment or arrangement or other credit 

15 enhancement related to any agree16 ment or transaction referred to in this 

17 clause, including any guarantee or re18 imbursement obligation in connection 

19 with any agreement or transaction re20 ferred to in this clause. 

21 (iii) COMMODITY CONTRACT.—The 

22 term ‘‘commodity contract’’ means— 

23 (I) with respect to a futures com24 mission merchant, a contract for the 

25 purchase or sale of a commodity for 


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1 future delivery on, or subject to the 

2 rules of, a contract market or board 

3 of trade; 

4 (II) with respect to a foreign fu5 tures commission merchant, a foreign 

6 future; 

7 (III) with respect to a leverage 

8 transaction merchant, a leverage 

9 transaction; 

10 (IV) with respect to a clearing 

11 organization, a contract for the pur12 chase or sale of a commodity for fu13 ture delivery on, or subject to the 

14 rules of, a contract market or board 

15 of trade that is cleared by such clear16 ing organization, or commodity option 

17 traded on, or subject to the rules of, 

18 a contract market or board of trade 

19 that is cleared by such clearing orga20 nization; 

21 (V) with respect to a commodity 

22 options dealer, a commodity option; 

23 (VI) any other agreement or 

24 transaction that is similar to any 


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1 agreement or transaction referred to 

2 in this clause; 

3 (VII) any combination of the 

4 agreements or transactions referred to 

5 in this clause; 

6 (VIII) any option to enter into 

7 any agreement or transaction referred 

8 to in this clause; 

9 (IX) a master agreement that 

10 provides for an agreement or trans11 action referred to in subclause (I), 

12 (II), (III), (IV), (V), (VI), (VII), or 

13 (VIII), together with all supplements 

14 to any such master agreement, with15 out regard to whether the master 

16 agreement provides for an agreement 

17 or transaction that is not a com18 modity contract under this clause, ex19 cept that the master agreement shall 

20 be considered to be a commodity con21 tract under this clause only with re22 spect to each agreement or trans23 action under the master agreement 

24 that is referred to in subclause (I), 


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1 (II), (III), (IV), (V), (VI), (VII), or 

2 (VIII); or 

3 (X) any security agreement or 

4 arrangement or other credit enhance5 ment related to any agreement or 

6 transaction referred to in this clause, 

7 including any guarantee or reimburse8 ment obligation in connection with 

9 any agreement or transaction referred 

10 to in this clause. 

11 (iv) FORWARD CONTRACT.—The term 

12 ‘‘forward contract’’ means— 

13 (I) a contract (other than a com14 modity contract) for the purchase, 

15 sale, or transfer of a commodity or 

16 any similar good, article, service, 

17 right, or interest which is presently or 

18 in the future becomes the subject of 

19 dealing in the forward contract trade, 

20 or product or byproduct thereof, with 

21 a maturity date more than 2 days 

22 after the date the contract is entered 

23 into, including, a repurchase or re24 verse repurchase transaction (whether 

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1 purchase transaction is a repurchase 

2 agreement), consignment, lease, swap, 

3 hedge transaction, deposit, loan, op4 tion, allocated transaction, unallocated 

5 transaction, or any other similar 

6 agreement; 

7 (II) any combination of agree8 ments or transactions referred to in 

9 subclauses (I) and (III); 

10 (III) any option to enter into any 

11 agreement or transaction referred to 

12 in subclause (I) or (II); 

13 (IV) a master agreement that 

14 provides for an agreement or trans15 action referred to in subclause (I), 

16 (II), or (III), together with all supple17 ments to any such master agreement, 

18 without regard to whether the master 

19 agreement provides for an agreement 

20 or transaction that is not a forward 

21 contract under this clause, except that 

22 the master agreement shall be consid23 ered to be a forward contract under 

24 this clause only with respect to each 

25 agreement or transaction under the 


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1 master agreement that is referred to 

2 in subclause (I), (II), or (III); or 

3 (V) any security agreement or ar4 rangement or other credit enhance5 ment related to any agreement or 

6 transaction referred to in subclause 

7 (I), (II), (III), or (IV), including any 

8 guarantee or reimbursement obliga9 tion in connection with any agreement 

10 or transaction referred to in any such 

11 subclause. 

12 (v) REPURCHASE AGREEMENT.—The 

13 term ‘‘repurchase agreement’’ (which defi14 nition also applies to a reverse repurchase 

15 agreement)— 

16 (I) means an agreement, includ17 ing related terms, which provides for 

18 the transfer of 1 or more certificates 

19 of deposit, mortgage related securities 

20 (as defined in section 3(a) of the Se21 curities Exchange Act of 1934 (15 

22 U.S.C. 78c(a)), mortgage loans, inter23 ests in mortgage-related securities or 

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1 ment securities or securities that are 

2 direct obligations of, or that are fully 

3 guaranteed by, the United States or 

4 any agency of the United States 

5 against the transfer of funds by the 

6 transferee of such certificates of de7 posit, eligible bankers’ acceptances, 

8 securities, mortgage loans, or interests 

9 with a simultaneous agreement by 

10 such transferee to transfer to the 

11 transferor thereof certificates of de12 posit, eligible bankers’ acceptances, 

13 securities, mortgage loans, or interests 

14 as described above, at a date certain 

15 not later than 1 year after such trans16 fers or on demand, against the trans17 fer of funds, or any other similar 

18 agreement; 

19 (II) does not include any repur20 chase obligation under a participation 

21 in a commercial mortgage loan unless 

22 the Corporation determines by regula23 tion, resolution, or order to include 

24 any such participation within the 

25 meaning of such term; 


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1 (III) means any combination of 

2 agreements or transactions referred to 

3 in subclauses (I) and (IV); 

4 (IV) means any option to enter 

5 into any agreement or transaction re6 ferred to in subclause (I) or (III); 

7 (V) means a master agreement 

8 that provides for an agreement or 

9 transaction referred to in subclause 

10 (I), (III), or (IV), together with all 

11 supplements to any such master 

12 agreement, without regard to whether 

13 the master agreement provides for an 

14 agreement or transaction that is not a 

15 repurchase agreement under this 

16 clause, except that the master agree17 ment shall be considered to be a re18 purchase agreement under this sub19 clause only with respect to each agree20 ment or transaction under the master 

21 agreement that is referred to in sub22 clause (I), (III), or (IV); and 

23 (VI) means any security agree24 ment or arrangement or other credit 

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1 ment or transaction referred to in 

2 subclause (I), (III), (IV), or (V), in3 cluding any guarantee or reimburse4 ment obligation in connection with 

5 any agreement or transaction referred 

6 to in any such subclause. 

7 For purposes of this clause, the term 

8 ‘‘qualified foreign government security’’ 

9 means a security that is a direct obligation 

10 of, or that is fully guaranteed by, the cen11 tral government of a member of the Orga12 nization for Economic Cooperation and 

13 Development (as determined by regulation 

14 or order adopted by the Board). 

15 (vi) SWAP AGREEMENT.—The term 

16 ‘‘swap agreement’’ means— 

17 (I) any agreement, including the 

18 terms and conditions incorporated by 

19 reference in any such agreement, 

20 which is an interest rate swap, option, 

21 future, or forward agreement, includ22 ing a rate floor, rate cap, rate collar, 

23 cross-currency rate swap, and basis 

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1 eign exchange, precious metals, or 

2 other commodity agreement; a cur3 rency swap, option, future, or forward 

4 agreement; an equity index or equity 

5 swap, option, future, or forward 

6 agreement; a debt index or debt swap, 

7 option, future, or forward agreement; 

8 a total return, credit spread or credit 

9 swap, option, future, or forward 

10 agreement; a commodity index or 

11 commodity swap, option, future, or 

12 forward agreement; weather swap, op13 tion, future, or forward agreement; an 

14 emissions swap, option, future, or for15 ward agreement; or an inflation swap, 

16 option, future, or forward agreement; 

17 (II) any agreement or transaction 

18 that is similar to any other agreement 

19 or transaction referred to in this 

20 clause and that is of a type that has 

21 been, is presently, or in the future be22 comes, the subject of recurrent deal23 ings in the swap or other derivatives 

24 markets (including terms and condi25 tions incorporated by reference in 


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•S 4155 IS

1 such agreement) and that is a for2 ward, swap, future, option, or spot 

3 transaction on one or more rates, cur4 rencies, commodities, equity securities 

5 or other equity instruments, debt se6 curities or other debt instruments, 

7 quantitative measures associated with 

8 an occurrence, extent of an occur9 rence, or contingency associated with 

10 a financial, commercial, or economic 

11 consequence, or economic or financial 

12 indices or measures of economic or fi13 nancial risk or value; 

14 (III) any combination of agree15 ments or transactions referred to in 

16 this clause; 

17 (IV) any option to enter into any 

18 agreement or transaction referred to 

19 in this clause; 

20 (V) a master agreement that pro21 vides for an agreement or transaction 

22 referred to in subclause (I), (II), (III), 

23 or (IV), together with all supplements 

24 to any such master agreement, with25 out regard to whether the master 


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•S 4155 IS

1 agreement contains an agreement or 

2 transaction that is not a swap agree3 ment under this clause, except that 

4 the master agreement shall be consid5 ered to be a swap agreement under 

6 this clause only with respect to each 

7 agreement or transaction under the 

8 master agreement that is referred to 

9 in subclause (I), (II), (III), or (IV); 

10 and 

11 (VI) any security agreement or 

12 arrangement or other credit enhance13 ment related to any agreements or 

14 transactions referred to in subclause 

15 (I), (II), (III), (IV), or (V), including 

16 any guarantee or reimbursement obli17 gation in connection with any agree18 ment or transaction referred to in any 

19 such subclause. 

20 Such term is applicable for purposes of 

21 this subsection only and shall not be con22 strued or applied so as to challenge or af23 fect the characterization, definition, or 

24 treatment of any swap agreement under 

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1 cluding the Gramm-Leach-Bliley Act (Pub2 lic Law 106–102; 113 Stat. 1338), the 

3 Legal Certainty for Bank Products Act of 

4 2000 (7 U.S.C. 27 et seq.), the securities 

5 laws (as defined in section 3(a) of the Se6 curities Exchange Act of 1934 (15 U.S.C. 

7 78c(a)), and the Commodity Exchange Act 

8 (7 U.S.C. 1 et seq.). 

9 (vii) TREATMENT OF MASTER AGREE10 MENT AS ONE AGREEMENT.—Any master 

11 agreement for any contract or agreement 

12 described in any preceding clause of this 

13 subparagraph (or any master agreement 

14 for such master agreement or agreements), 

15 together with all supplements to such mas16 ter agreement, shall be treated as a single 

17 agreement and a single qualified financial 

18 contract. If a master agreement contains 

19 provisions relating to agreements or trans20 actions that are not themselves qualified fi21 nancial contracts, the master agreement 

22 shall be deemed to be a qualified financial 

23 contract only with respect to those trans24 actions that are themselves qualified finan25 cial contracts. 


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1 (viii) TRANSFER.—The term ‘‘trans2 fer’’ means every mode, direct or indirect, 

3 absolute or conditional, voluntary or invol4 untary, of disposing of or parting with 

5 property or with an interest in property, 

6 including retention of title as a security in7 terest and foreclosure of the payment 

8 stablecoin issuer’s equity of redemption. 

9 (ix) PERSON.—The term ‘‘person’’ in10 cludes any governmental entity in addition 

11 to any entity included in the definition of 

12 such term in section 1 of title 1, United 

13 States Code. 

14 (E) CERTAIN PROTECTIONS IN EVENT OF

15 APPOINTMENT OF CONSERVATOR.—Notwith16 standing any other provision of Federal or 

17 State law (other than subsections (e)(9) and 

18 (f)(10) of this section, and section 13(e) of the 

19 Federal Deposit Insurance Act (12 U.S.C. 

20 1823(e))), no person shall be stayed or prohib21 ited from exercising— 

22 (i) any right such person has to cause 

23 the termination, liquidation, or acceleration 

24 of any qualified financial contract with a 

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1 ship based upon a default under such fi2 nancial contract which is enforceable under 

3 applicable non-insolvency law; 

4 (ii) any right under any security 

5 agreement or arrangement or other credit 

6 enhancement related to one or more quali7 fied financial contracts described in clause 

8 (i); or 

9 (iii) any right to offset or net out any 

10 termination values, payment amounts, or 

11 other transfer obligations arising under or 

12 in connection with such qualified financial 

13 contracts. 

14 (F) CLARIFICATION.—No provision of law 

15 shall be construed as limiting the right or 

16 power of the Corporation, or authorizing any 

17 court or agency to limit or delay, in any man18 ner, the right or power of the Corporation to 

19 transfer any qualified financial contract in ac20 cordance with paragraphs (9) and (10) of this 

21 subsection or to disaffirm or repudiate any such 

22 contract in accordance with paragraph (1). 

23 (G) WALKAWAY CLAUSES NOT EFFEC24 TIVE.— 


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1 (i) IN GENERAL.—Notwithstanding 

2 the provisions of subparagraphs (A) and 

3 (E), and sections 403 and 404 of the Fed4 eral Deposit Insurance Corporation Im5 provement Act of 1991 (12 U.S.C. 4403, 

6 4404), no walkaway clause shall be en7 forceable in a qualified financial contract 

8 of a payment stablecoin issuer in default. 

9 (ii) LIMITED SUSPENSION OF CERTAIN

10 OBLIGATIONS.—In the case of a qualified 

11 financial contract referred to in clause (i), 

12 any payment or delivery obligations other13 wise due from a party pursuant to the 

14 qualified financial contract shall be sus15 pended from the time the Corporation is 

16 appointed as receiver until the earlier of— 

17 (I) the time such party receives 

18 notice that such contract has been 

19 transferred pursuant to paragraph 

20 (9)(A); or 

21 (II) 5:00 p.m. (eastern time) on 

22 the business day following the date of 

23 the appointment of the Corporation as 

24 receiver. 


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1 (iii) WALKAWAY CLAUSE DEFINED.— 

2 For purposes of this subparagraph, the 

3 term ‘‘walkaway clause’’ means any provi4 sion in a qualified financial contract that 

5 suspends, conditions, or extinguishes a 

6 payment obligation of a party, in whole or 

7 in part, or does not create a payment obli8 gation of a party that would otherwise 

9 exist, solely because of such party’s status 

10 as a nondefaulting party in connection 

11 with the insolvency of a payment stablecoin 

12 issuer that is a party to the contract or the 

13 appointment of or the exercise of rights or 

14 powers by the Corporation as conservator 

15 or receiver of such issuer, and not as a re16 sult of a party’s exercise of any right to 

17 offset, setoff, or net obligations that exist 

18 under the contract, any other contract be19 tween those parties, or applicable law. 

20 (H) RECORDKEEPING REQUIREMENTS.— 

21 The Corporation, in consultation with the 

22 Board, Comptroller and State bank supervisors, 

23 may prescribe regulations requiring more de24 tailed recordkeeping by a payment stablecoin 

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1 tracts (including market valuations) if the con2 dition of such payment stablecoin issuer war3 rants it. 

4 (9) TRANSFER OF QUALIFIED FINANCIAL CON5 TRACTS.— 

6 (A) In general. In making any transfer of 

7 assets or liabilities of a payment stablecoin 

8 issuer in default which includes any qualified fi9 nancial contract, the Corporation as conservator 

10 or receiver for such issuer shall either— 

11 (i) transfer to one financial institu12 tion, other than a financial institution for 

13 which a conservator, receiver, trustee in 

14 bankruptcy, or other legal custodian has 

15 been appointed or which is otherwise the 

16 subject of a bankruptcy or insolvency pro17 ceeding— 

18 (I) all qualified financial con19 tracts between any person or any af20 filiate of such person and the payment 

21 stablecoin issuer in default; 

22 (II) all claims of such person or 

23 any affiliate of such person against 

24 such issuer under any such contract 

25 (other than any claim which, under 


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•S 4155 IS

1 the terms of any such contract, is 

2 subordinated to the claims of general 

3 unsecured creditors of such issuer); 

4 (III) all claims of such payment 

5 stablecoin issuer against such person 

6 or any affiliate of such person under 

7 any such contract; and 

8 (IV) all property securing or any 

9 other credit enhancement for any con10 tract described in subclause (I) or any 

11 claim described in subclause (II) or 

12 (III) under any such contract; or 

13 (ii) transfer none of the qualified fi14 nancial contracts, claims, property or other 

15 credit enhancement referred to in clause (i) 

16 (with respect to such person and any affil17 iate of such person). 

18 (B) TRANSFER TO A FOREIGN BANK, FOR19 EIGN FINANCIAL INSTITUTION, OR BRANCH OR

20 AGENCY OF A FOREIGN BANK OR FINANCIAL IN21 STITUTION.—In transferring any qualified fi22 nancial contracts and related claims and prop23 erty under subparagraph (A)(i), the Corpora24 tion as conservator or receiver for the payment 

25 stablecoin issuer shall not make such transfer 


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•S 4155 IS

1 to a foreign bank, financial institution orga2 nized under the laws of a foreign country, or a 

3 branch or agency of a foreign bank or financial 

4 institution unless, under the law applicable to 

5 such bank, financial institution, branch or agen6 cy, to the qualified financial contracts, and to 

7 any netting contract, any security agreement or 

8 arrangement or other credit enhancement re9 lated to one or more qualified financial con10 tracts, the contractual rights of the parties to 

11 such qualified financial contracts, netting con12 tracts, security agreements or arrangements, or 

13 other credit enhancements are enforceable sub14 stantially to the same extent as permitted under 

15 this section. 

16 (C) TRANSFER OF CONTRACTS SUBJECT

17 TO THE RULES OF A CLEARING ORGANIZA18 TION.—In the event that the Corporation as 

19 conservator or receiver transfers any qualified 

20 financial contract and related claims, property, 

21 and credit enhancements pursuant to subpara22 graph (A)(i) and such contract is cleared by or 

23 subject to the rules of a clearing organization, 

24 the clearing organization shall not be required 


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•S 4155 IS

1 to accept the transferee as a member by virtue 

2 of the transfer. 

3 (D) DEFINITIONS.—For purposes of this 

4 paragraph— 

5 (i) the term ‘‘financial institution’’ 

6 means a broker or dealer, a depository in7 stitution, a futures commission merchant, 

8 or any other institution, as determined by 

9 the Corporation by regulation to be a fi10 nancial institution; and 

11 (ii) the term ‘‘clearing organization’’ 

12 has the meaning given the term in section 

13 402 of the Federal Deposit Insurance Cor14 poration Improvement Act of 1991 (12 

15 U.S.C. 4402). 

16 (10) NOTIFICATION OF TRANSFER.— 

17 (A) IN GENERAL.—If the Corporation as 

18 conservator or receiver for a payment stablecoin 

19 issuer in default makes any transfer of the as20 sets and liabilities of such institution, and the 

21 transfer includes any qualified financial con22 tract, the conservator or receiver shall notify 

23 any person who is a party to any such contract 

24 of such transfer by 5:00 p.m. (eastern time) on 

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1 pointment of the Corporation as receiver in the 

2 case of a receivership, or the business day fol3 lowing such transfer in the case of a con4 servatorship. 

5 (B) CERTAIN RIGHTS NOT ENFORCE6 ABLE.— 

7 (i) RECEIVERSHIP.—A person who is 

8 a party to a qualified financial contract 

9 with a payment stablecoin issuer may not 

10 exercise any right that such person has to 

11 terminate, liquidate, or net such contract 

12 under paragraph (8)(A) of this subsection 

13 or section 403 or 404 of the Federal De14 posit Insurance Corporation Improvement 

15 Act of 1991 (12 U.S.C. 4403, 4404), solely 

16 by reason of or incidental to the appoint17 ment of the Corporation as receiver for the 

18 payment stablecoin issuer (or the insol19 vency or financial condition of the issuer 

20 for which the receiver has been ap21 pointed)— 

22 (I) until 5:00 p.m. (eastern time) 

23 on the business day following the date 

24 of the appointment of the receiver; or 


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•S 4155 IS

1 (II) after the person has received 

2 notice that the contract has been 

3 transferred pursuant to paragraph 

4 (9)(A). 

5 (ii) CONSERVATORSHIP.—A person 

6 who is a party to a qualified financial con7 tract with a payment stablecoin issuer may 

8 not exercise any right that such person has 

9 to terminate, liquidate, or net such con10 tract under paragraph (8)(E) of this sub11 section or section 403 or 404 of the Fed12 eral Deposit Insurance Corporation Im13 provement Act of 1991 (12 U.S.C. 4403, 

14 4404), solely by reason of or incidental to 

15 the appointment of the Corporation as con16 servator for the payment stablecoin issuer 

17 (or the insolvency or financial condition of 

18 the issuer for which the Corporation has 

19 been appointed conservator). 

20 (iii) NOTICE.—For purposes of this 

21 paragraph, the Corporation as receiver or 

22 conservator of a payment stablecoin issuer 

23 shall be deemed to have notified a person 

24 who is a party to a qualified financial con25 tract with such issuer if the Corporation 


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•S 4155 IS

1 has taken steps that are reasonably cal2 culated to provide notice to such person by 

3 the time specified in subparagraph (A). 

4 (C) BUSINESS DAY DEFINED.—For pur5 poses of this paragraph, the term ‘‘business 

6 day’’ means any day other than any Saturday, 

7 Sunday, or any day on which either the New 

8 York Stock Exchange or the Federal Reserve 

9 Bank of New York is closed. 

10 (11) DISAFFIRMANCE OR REPUDIATION OF

11 QUALIFIED FINANCIAL CONTRACTS.—In exercising 

12 the rights of disaffirmance or repudiation of a con13 servator or receiver with respect to any qualified fi14 nancial contract to which a payment stablecoin 

15 issuer is a party, the Corporation as conservator or 

16 receiver for such issuer shall either— 

17 (A) disaffirm or repudiate all qualified fi18 nancial contracts between— 

19 (i) any person or any affiliate of such 

20 person; and 

21 (ii) the payment stablecoin issuer in 

22 default; or 

23 (B) disaffirm or repudiate none of the 

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1 paragraph (A) (with respect to such person or 

2 any affiliate of such person). 

3 (12) CERTAIN SECURITY INTERESTS NOT

4 AVOIDABLE.—No provision of this subsection shall 

5 be construed as permitting the avoidance of any le6 gally enforceable or perfected security interest in any 

7 of the assets of any payment stablecoin issuer except 

8 where such an interest is taken in contemplation of 

9 the issuer’s insolvency or with the intent to hinder, 

10 delay, or defraud the issuer or the creditors of such 

11 issuer. 

12 (13) AUTHORITY TO ENFORCE CONTRACTS.— 

13 (A) IN GENERAL.—The Corporation as 

14 conservator or receiver may enforce any con15 tract, other than a director’s or officer’s liabil16 ity insurance contract or a bond, entered into 

17 by the payment stablecoin issuer notwith18 standing any provision of the contract providing 

19 for termination, default, acceleration, or exer20 cise of rights upon, or solely by reason of, insol21 vency or the appointment of or the exercise of 

22 rights or powers by the Corporation as conser23 vator or receiver. 

24 (B) CERTAIN RIGHTS NOT AFFECTED.— 

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1 strued as impairing or affecting any right of the 

2 Corporation as conservator or receiver to en3 force or recover under a director’s or officer’s 

4 liability insurance contract or bond under other 

5 applicable law. 

6 (C) CONSENT REQUIREMENT.— 

7 (i) IN GENERAL.—Except as otherwise 

8 provided by this section or section 15 of 

9 the Federal Deposit Insurance Act (12 

10 U.S.C. 1825), no person may exercise any 

11 right or power to terminate, accelerate, or 

12 declare a default under any contract to 

13 which the payment stablecoin issuer is a 

14 party, or to obtain possession of or exercise 

15 control over any property of the issuer or 

16 affect any contractual rights of the issuer, 

17 without the consent of the Corporation as 

18 conservator or receiver, as appropriate, 

19 during the 45-day period beginning on the 

20 date of the appointment of the Corporation 

21 as conservator, or during the 90-day period 

22 beginning on the date of the appointment 

23 of the Corporation as receiver, as applica24 ble. 


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1 (ii) CERTAIN EXCEPTIONS.—No provi2 sion of this subparagraph shall apply to a 

3 director or officer liability insurance con4 tract or bond, to the rights of parties to 

5 certain qualified financial contracts pursu6 ant to paragraph (8), or to the rights of 

7 parties to netting contracts pursuant to 

8 subtitle A of title IV of the Federal De9 posit Insurance Corporation Improvement 

10 Act of 1991 (12 U.S.C. 4401 et seq.), or 

11 shall be construed as permitting the Cor12 poration as conservator or receiver to fail 

13 to comply with otherwise enforceable provi14 sions of such contract. 

15 (iii) RULE OF CONSTRUCTION.—Noth16 ing in this subparagraph shall be construed 

17 to limit or otherwise affect the applicability 

18 of title 11, United States Code. 

19 (14) SAVINGS CLAUSE.—The meanings of terms 

20 used in this subsection are applicable for purposes of 

21 this subsection only, and shall not be construed or 

22 applied so as to challenge or affect the characteriza23 tion, definition, or treatment of any similar terms 

24 under any other statute, regulation, or rule, includ25 ing the Gramm-Leach-Bliley Act (Public Law 106– 


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1 102; 113 Stat. 1338), the Legal Certainty for Bank 

2 Products Act of 2000 (7 U.S.C. 27 et seq.), the se3 curities laws (as defined in section 3(a) of the Secu4 rities Exchange Act of 1934 (15 U.S.C. 78c(a)), and 

5 the Commodity Exchange Act (7 U.S.C. 1 et seq.). 

6 (g) PAYMENT OF STABLECOIN LIABILITIES.— 

7 (1) IN GENERAL.—In case of the liquidation of, 

8 or other closing or winding up of the affairs of a 

9 payment stablecoin issuer, payment of the out10 standing payment stablecoin liabilities of the issuer 

11 shall be made by the Corporation as soon as pos12 sible, subject to the provisions of subsection (h), ei13 ther by cash or by making available to each deposi14 tor a transferred deposit in an insured depository in15 stitution. 

16 (2) PROOF OF CLAIMS.—The Corporation, in its 

17 discretion, may require proof of claims to be filed 

18 and may approve or reject such claims for payment 

19 stablecoin liabilities. 

20 (3) RESOLUTION OF DISPUTES.—A determina21 tion by the Corporation regarding any claim for pay22 ment of stablecoin liabilities shall be treated as a 

23 final determination for purposes of this section. In 

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1 lations prescribing procedures for resolving any dis2 puted claim. 

3 (4) REVIEW OF CORPORATION DETERMINA4 TION.—A final determination made by the Corpora5 tion regarding any claim for payment of stablecoin 

6 liabilities shall be a final agency action reviewable in 

7 accordance with chapter 7 of title 5, United States 

8 Code, by the United States district court for the 

9 Federal judicial district where the principal place of 

10 business of the payment stablecoin issuer is located. 

11 (5) STATUTE OF LIMITATIONS.—Any request 

12 for review of a final determination by the Corpora13 tion regarding any claim regarding payment of 

14 stablecoin liabilities shall be filed with the appro15 priate United States district court not later than 60 

16 days after the date on which such determination is 

17 issued. 

18 (h) SUBROGATION OF CORPORATION.— 

19 (1) IN GENERAL.—Notwithstanding any other 

20 provision of Federal law, the law of any State, or the 

21 constitution of any State, the Corporation, upon the 

22 payment to any customer as provided in subsection 

23 (g) in connection with a payment stablecoin issuer 

24 described in such subsection or the assumption of 

25 payment stablecoin liabilities by another payment 


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1 stablecoin issuer pursuant to this section, shall be 

2 subrogated to all rights of the customer against such 

3 issuer to the extent of such payment or assumption. 

4 (2) DIVIDENDS ON SUBROGATED AMOUNTS.— 

5 The subrogation of the Corporation under paragraph 

6 (1) with respect to any payment stablecoin issuer 

7 shall include the right on the part of the Corporation 

8 to receive the same dividends from the proceeds of 

9 the assets of such issuer and recoveries on account 

10 of stockholders’ liability as would have been payable 

11 to the customer on a claim for the stablecoin liabil12 ity. 

13 (3) WAIVER OF CERTAIN CLAIMS.—With re14 spect to a payment stablecoin issuer, the Corpora15 tion shall waive, in favor only of any person against 

16 whom stockholders’ individual liability may be as17 serted, any claim on account of such liability in ex18 cess of the liability, if any, to the issuer or its credi19 tors, for the amount unpaid upon such stock in such 

20 issuer; but any such waiver shall be effected in such 

21 manner and on such terms and conditions as will 

22 not increase recoveries or dividends on account of 

23 claims to which the Corporation is not subrogated. 

24 (4) APPLICABILITY OF STATE LAW.—Subject to 

25 subsection (e)(11), if the Corporation is appointed 


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1 pursuant to subsection (d)(3), the rights of cus2 tomers and other creditors of any State-chartered 

3 payment stablecoin issuer shall be determined in ac4 cordance with the applicable provisions of State law. 

5 (i) VALUATION OF CLAIMS IN DEFAULT.— 

6 (1) IN GENERAL.—Notwithstanding any other 

7 provision of Federal law or the law of any State and 

8 regardless of the method which the Corporation de9 termines to utilize with respect to a payment 

10 stablecoin issuer in default or in danger of default, 

11 including transactions authorized under subsection 

12 (o), this subsection shall govern the rights of the 

13 creditors (other than customers) of such institution. 

14 (2) MAXIMUM LIABILITY.—The maximum li15 ability of the Corporation, acting as receiver or in 

16 any other capacity, to any person having a claim 

17 against the receiver or the payment stablecoin issuer 

18 for which such receiver is appointed shall equal the 

19 amount such claimant would have received if the 

20 Corporation had liquidated the assets and liabilities 

21 of such institution without exercising the Corpora22 tion’s authority under subsection (o) of this section. 

23 (j) LIMITATION ON COURT ACTION.—Except as pro24 vided in this section, no court may take any action, except 

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1 tion by regulation or order, to restrain or affect the exer2 cise of powers or functions of the Corporation as a conser3 vator or a receiver. 

4 (k) LIABILITY OF DIRECTORS AND OFFICERS.—A di5 rector or officer of a payment stablecoin issuer may be 

6 held personally liable for monetary damages in any civil 

7 action by, on behalf of, or at the request or direction of 

8 the Corporation, which action is prosecuted wholly or par9 tially for the benefit of the Corporation— 

10 (1) acting as conservator or receiver of such 

11 issuer; 

12 (2) acting based upon a suit, claim, or cause of 

13 action purchased from, assigned by, or otherwise 

14 conveyed by such receiver or conservator; or 

15 (3) for gross negligence, including any similar 

16 conduct or conduct that demonstrates a greater dis17 regard of a duty of care (than gross negligence) in18 cluding intentional tortious conduct, as such terms 

19 are defined and determined under applicable State 

20 law, provided that nothing in this paragraph shall 

21 impair or affect any right of the Corporation under 

22 other applicable law. 

23 (l) DAMAGES.—In any proceeding related to any 

24 claim against a payment stablecoin issuer’s director, offi25 cer, employee, agent, attorney, accountant, appraiser, or 


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1 any other party employed by or providing services to a 

2 payment stablecoin issuer, recoverable damages deter3 mined to result from the improvident or otherwise im4 proper use or investment of any payment stablecoin 

5 issuer’s assets shall include principal losses and appro6 priate interest. 

7 (m) BRIDGE PAYMENT STABLECOIN ISSUERS.— 

8 (1) ORGANIZATION.— 

9 (A) PURPOSE.—When 1 or more payment 

10 stablecoin issuers are in default, or when the 

11 Corporation anticipates that 1 or more payment 

12 stablecoin issuers may become in default, the 

13 Corporation may, in its discretion, organize, 

14 and the Office of the Comptroller of the Cur15 rency, with respect to 1 or more payment 

16 stablecoin issuers, shall charter, 1 or more de17 pository institutions, as appropriate, with re18 spect thereto with the powers and attributes of 

19 payment stablecoin issuers as applicable, sub20 ject to the provisions of this subsection, to be 

21 referred to as ‘‘bridge payment stablecoin 

22 issuers’’. 

23 (B) AUTHORITIES.—Upon the granting of 

24 a charter to a bridge payment stablecoin issuer, 

25 the bridge issuer may— 


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1 (i) assume such payment stablecoin 

2 assets and liabilities of the payment 

3 stablecoin issuer that is or are in default 

4 or in danger of default as the Corporation 

5 may, in its discretion, determine to be ap6 propriate; and 

7 (ii) perform any other temporary 

8 function which the Corporation may, in its 

9 discretion, prescribe in accordance with 

10 this the Federal Deposit Insurance Act (12 

11 U.S.C. 1811 et seq.). 

12 (C) ARTICLES OF ASSOCIATION.—The arti13 cles of association and organization certificate 

14 of a bridge payment stablecoin issuer as ap15 proved by the Corporation shall be executed by 

16 3 representatives designated by the Corpora17 tion. 

18 (D) INTERIM DIRECTORS.—A bridge pay19 ment stablecoin issuer shall have an interim 

20 board of directors consisting of not fewer than 

21 5 nor more than 10 members appointed by the 

22 Corporation. 

23 (E) NATIONAL BANK OR FEDERAL SAV24 INGS ASSOCIATION.—A bridge payment 

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1 tory institution under the National Bank Act 

2 (12 U.S.C. 21 et seq.). 

3 (2) CHARTERING.— 

4 (A) CONDITIONS.—A depository institution 

5 may be chartered by the Comptroller as a 

6 bridge payment stablecoin issuer only if the 

7 Board of Directors of the Corporation deter8 mines that— 

9 (i) the amount which is reasonably 

10 necessary to operate such bridge issuer will 

11 not exceed the amount which is reasonably 

12 necessary to save the cost of liquidating, 

13 including paying the liabilities of, 1 or 

14 more payment stablecoin issuers in default 

15 or in danger of default with respect to 

16 which the bridge payment stablecoin issuer 

17 is chartered; 

18 (ii) the continued operation of such 

19 payment stablecoin issuer or issuers in de20 fault or in danger of default with respect 

21 to which the bridge payment stablecoin 

22 issuer is chartered is essential to provide 

23 continued services to the customers of the 

24 issuer; or 


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1 (iii) the continued operation of such 

2 payment stablecoin issuer or issuers in de3 fault or in danger of default with respect 

4 to which the bridge issuer is chartered is 

5 in the best interest of the customer of such 

6 issuer or issuers in default or in danger of 

7 default or the public. 

8 (B) INSURED NATIONAL BANK OR FED9 ERAL SAVINGS ASSOCIATION.—A bridge deposi10 tory institution shall be a national payment 

11 stablecoin issuer from the time it is chartered 

12 by the Comptroller as a depository institution. 

13 (C) BRIDGE BANK TREATED AS BEING IN

14 DEFAULT FOR CERTAIN PURPOSES.—A bridge 

15 payment stablecoin issuer shall be treated as an 

16 issuer in default at such times and for such 

17 purposes as the Corporation may, in its discre18 tion, determine. 

19 (D) MANAGEMENT.—A bridge payment 

20 stablecoin issuer, upon the granting of its char21 ter, shall be under the management of a board 

22 of directors consisting of not fewer than 5 nor 

23 more than 10 members appointed by the Cor24 poration. 


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1 (E) BYLAWS.—The board of directors of a 

2 bridge payment stablecoin issuer shall adopt 

3 such bylaws as may be approved by the Cor4 poration. 

5 (3) TRANSFER OF ASSETS AND LIABILITIES.— 

6 (A) IN GENERAL.— 

7 (i) TRANSFER UPON GRANT OF CHAR8 TER.—Upon the granting of a charter to a 

9 bridge payment stablecoin issuer pursuant 

10 to this subsection, the Corporation, as re11 ceiver, or any other receiver appointed with 

12 respect to any payment stablecoin issuer in 

13 default with respect to which the bridge 

14 payment stablecoin issuer is chartered may 

15 transfer any assets and liabilities of such 

16 issuer in default to the bridge issuer in ac17 cordance with paragraph (1). 

18 (ii) SUBSEQUENT TRANSFERS.—At 

19 any time after a charter is granted to a 

20 bridge payment stablecoin issuer, the Cor21 poration, as receiver, or any other receiver 

22 appointed with respect to a payment 

23 stablecoin issuer in default may transfer 

24 any assets and liabilities of such issuer in 

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1 cretion, determine to be appropriate in ac2 cordance with paragraph (1). 

3 (iii) EFFECTIVE WITHOUT AP4 PROVAL.—The transfer of any assets or li5 abilities of a payment stablecoin issuer in 

6 default transferred to a bridge payment 

7 stablecoin issuer shall be effective without 

8 any further approval under Federal or 

9 State law, assignment, or consent with re10 spect thereto. 

11 (4) POWERS OF BRIDGE PAYMENT STABLECOIN

12 ISSUERS.—Each bridge payment stablecoin issue 

13 chartered under this subsection shall have all cor14 porate powers of, and be subject to the same provi15 sions of law as, a payment stablecoin issuer that is 

16 a depository institution chartered by the Comp17 troller, as appropriate, except that— 

18 (A) the Corporation may— 

19 (i) remove the interim directors and 

20 directors of a bridge issuer; 

21 (ii) fix the compensation of members 

22 of the interim board of directors and the 

23 board of directors and senior management, 

24 as determined by the Corporation in its 

25 discretion, of a bridge issuer; and 


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1 (iii) waive any requirement established 

2 under section 5145, 5146, 5147, 5148, or 

3 5149 of the Revised Statutes (relating to 

4 directors of national banks) or section 31 

5 of the Banking Act of 1933 (12 U.S.C. 

6 71a) which would otherwise be applicable 

7 with respect to directors of a bridge issuer 

8 by operation of paragraph (2)(B); 

9 (B) the Corporation may indemnify the 

10 representatives for purposes of paragraph 

11 (1)(B) and the interim directors, directors, offi12 cers, employees, and agents of a bridge pay13 ment stablecoin issuer on such terms as the 

14 Corporation determines to be appropriate; 

15 (C) no requirement under any provision of 

16 law relating to the capital of a payment 

17 stablecoin issuer shall apply with respect to a 

18 bridge issuer; 

19 (D) the Comptroller of the Currency may 

20 establish a limitation on the extent to which 

21 any person may become indebted to a bridge 

22 issuer without regard to the amount of the 

23 bridge issuer’s capital or surplus; 

24 (E)(i) the board of directors of a bridge 

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1 person who may also serve in the position of 

2 chief executive officer, except that such person 

3 shall not serve either as chairperson or as chief 

4 executive officer without the prior approval of 

5 the Corporation; and 

6 (ii) the board of directors of a bridge pay7 ment stablecoin issuer may appoint a chief ex8 ecutive officer who is not also the chairperson, 

9 except that such person shall not serve as chief 

10 executive officer without the prior approval of 

11 the Corporation; 

12 (F) the Comptroller shall waive any re13 quirement for a fidelity bond with respect to a 

14 bridge payment stablecoin issuer at the request 

15 of the Corporation; 

16 (G) any judicial action to which a bridge 

17 payment stablecoin issuer becomes a party by 

18 virtue of its acquisition of any assets or as19 sumption of any liabilities of a payment 

20 stablecoin issuer in default shall be stayed from 

21 further proceedings for a period of up to 45 

22 days at the request of the bridge issuer; 

23 (H) no agreement which tends to diminish 

24 or defeat the right, title or interest of a bridge 

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1 ment stablecoin issuer in default acquired by it 

2 shall be valid against the bridge issuer unless 

3 such agreement— 

4 (i) is in writing; 

5 (ii) was executed by such payment 

6 stablecoin issuer in default and the person 

7 or persons claiming an adverse interest 

8 thereunder, including the obligor, contem9 poraneously with the acquisition of the 

10 asset by such issuer in default; 

11 (iii) was approved by the board of di12 rectors of such payment stablecoin issuer 

13 in default, which approval shall be re14 flected in the minutes of said board; and 

15 (iv) has been, continuously from the 

16 time of its execution, an official record of 

17 such payment stablecoin issuer in default; 

18 and 

19 (I) except with the prior approval of the 

20 Corporation, a bridge payment stablecoin issuer 

21 may not, in any transaction or series of trans22 actions, issue capital stock or be a party to any 

23 merger, consolidation, disposition of assets or li24 abilities, sale or exchange of capital stock, or 

25 similar transaction, or change its charter. 


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1 (5) CAPITAL.— 

2 (A) NO CAPITAL REQUIRED.—The Cor3 poration shall not be required to— 

4 (i) issue any capital stock on behalf of 

5 a bridge payment stablecoin issuer char6 tered under this subsection; or 

7 (ii) purchase any capital stock of a 

8 bridge payment stablecoin issuer. 

9 (B) CAPITAL OF INSOLVENT INSTITU10 TION.—Upon the organization of a bridge pay11 ment stablecoin issuer, the capital of the insol12 vent payment stablecoin issuer shall be used to 

13 fund the operations of the bridge issuer. 

14 (C) AUTHORITY TO ISSUE CAPITAL

15 STOCK.—Whenever the Board of Directors of 

16 the Corporation determines it is advisable to do 

17 so, the Corporation shall cause capital stock of 

18 a bridge payment stablecoin issuer to be issued 

19 and offered for sale in such amounts and on 

20 such terms and conditions as the Corporation 

21 may, in its discretion, determine. 

22 (D) CAPITAL LEVELS.—A bridge payment 

23 stablecoin issuer shall not be considered under24 capitalized under any other provision of Federal 

25 law. 


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1 (6) NO FEDERAL STATUS.— 

2 (A) AGENCY STATUS.—A bridge payment 

3 stablecoin issuer shall not be considered an 

4 agency, establishment, or instrumentality of the 

5 United States. 

6 (B) EMPLOYEE STATUS.—Representatives 

7 for purposes of paragraph (1)(C), interim direc8 tors, directors, officers, employees, or agents of 

9 a bridge payment stablecoin issuer shall not be 

10 considered, solely by virtue of service in any 

11 such capacity, officers or employees of the 

12 United States. Any employee of the Corporation 

13 or of any Federal instrumentality who serves at 

14 the request of the Corporation as a representa15 tive for purposes of paragraph (1)(C), interim 

16 director, director, officer, employee, or agent of 

17 a bridge payment stablecoin issuer shall not— 

18 (i) solely by virtue of service in any 

19 such capacity lose any existing status as 

20 an officer or employee of the United States 

21 for purposes of title 5, United States Code, 

22 or any other provision of law; or 

23 (ii) receive any salary or benefits for 

24 service in any such capacity with respect to 

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1 tion to such salary or benefits as are ob2 tained through employment with the Cor3 poration or such Federal instrumentality. 

4 (7) DURATION OF BRIDGE PAYMENT

5 STABLECOIN ISSUER.—Subject to paragraphs (8) 

6 and (9), the status of a bridge payment stablecoin 

7 issuer as such shall terminate at the end of the 2- 

8 year period following the date it was granted a char9 ter. The Board of Directors of the Corporation may, 

10 in its discretion, extend the status of the bridge pay11 ment stablecoin issuer as such for 3 additional 1- 

12 year periods. 

13 (8) TERMINATION OF BRIDGE PAYMENT

14 STABLECOIN ISSUER STATUS.—The status of any 

15 bridge payment stablecoin issuer as such shall termi16 nate upon the earliest of— 

17 (A) the merger or consolidation of the 

18 bridge issuer with a payment stablecoin issuer 

19 that is not a bridge issuer; 

20 (B) at the election of the Corporation, the 

21 sale of a majority of the capital stock of the 

22 bridge payment stablecoin issuer to an entity 

23 other than the Corporation and other than an24 other bridge issuer; 


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1 (C) the sale of 80 percent, or more, of the 

2 capital stock of the bridge payment stablecoin 

3 issuer to an entity other than the Corporation 

4 and other than another bridge issuer; 

5 (D) at the election of the Corporation, ei6 ther the assumption of all or substantially all of 

7 the payment stablecoin liabilities of the bridge 

8 payment stablecoin issuer by another payment 

9 stablecoin issuer, or the acquisition of all or 

10 substantially all of the assets of the bridge 

11 issuer by a payment stablecoin issuer that is 

12 not a bridge issuer, or other entity as permitted 

13 under applicable law; and 

14 (E) the expiration of the period provided in 

15 paragraph (7), or the earlier dissolution of the 

16 bridge payment stablecoin issuer as provided in 

17 paragraph (10). 

18 (9) EFFECT OF TERMINATION EVENTS.— 

19 (A) MERGER OR CONSOLIDATION.—A 

20 bridge payment stablecoin issuer that partici21 pates in a merger or consolidation as provided 

22 in paragraph (8)(A) shall be for all purposes a 

23 payment stablecoin issuer that is a depository 

24 institution under the supervision and regulation 

25 of the Comptroller, as the case may be, with all 


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1 the rights, powers, and privileges thereof, and 

2 such merger or consolidation shall be conducted 

3 in accordance with, and shall have the effect 

4 provided in, the provisions of applicable law. 

5 (B) CHARTER CONVERSION.—Following 

6 the sale of a majority of the capital stock of the 

7 bridge payment stablecoin issuer as provided in 

8 paragraph (8)(B), the Corporation may amend 

9 the charter of the bridge payment stablecoin 

10 issuer to reflect the termination of the status of 

11 the bridge issuer as such, whereupon the issuer 

12 shall remain a depository institution under the 

13 supervision of the Comptroller, as the case may 

14 be, with all of the rights, powers, and privileges 

15 thereof, subject to all laws and regulations ap16 plicable thereto. 

17 (C) SALE OF STOCK.—Following the sale 

18 of 80 percent or more of the capital stock of a 

19 bridge payment stablecoin issuer as provided in 

20 paragraph (8)(C), the payment stablecoin issuer 

21 shall remain a depository institution that is a 

22 payment stablecoin issuer under the supervision 

23 of the Comptroller, with all of the rights, pow24 ers, and privileges thereof, subject to all laws 

25 and regulations applicable thereto. 


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1 (D) ASSUMPTION OF LIABILITIES AND

2 SALE OF ASSETS.—Following the assumption of 

3 all or substantially all of the liabilities of the 

4 bridge payment stablecoin issuer, or the sale of 

5 all or substantially all of the assets of the 

6 bridge issuer, as provided in paragraph (8)(D), 

7 at the election of the Corporation, the bridge 

8 issuer may retain its status as such for the pe9 riod provided in paragraph (7). 

10 (E) AMENDMENTS TO CHARTER.—Fol11 lowing the consummation of a transaction de12 scribed in subparagraph (A), (B), (C), or (D) 

13 of paragraph (8), the charter of the resulting 

14 issuer shall be amended to reflect the termi15 nation of bridge payment stablecoin issuer sta16 tus, if appropriate. 

17 (10) DISSOLUTION OF BRIDGE PAYMENT

18 STABLECOIN ISSUER.— 

19 (A) IN GENERAL.—Notwithstanding any 

20 other provision of State or Federal law, if the 

21 bridge payment stablecoin issuer’s status as 

22 such has not previously been terminated by the 

23 occurrence of an event specified in subpara24 graph (A), (B), (C), or (D) of paragraph (8)— 


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1 (i) the Board of Directors of the Cor2 poration may, in its discretion, dissolve a 

3 bridge payment stablecoin issuer in accord4 ance with this paragraph at any time; and 

5 (ii) the Board of Directors of the Cor6 poration shall promptly commence dissolu7 tion proceedings in accordance with this 

8 paragraph upon the expiration of the 2- 

9 year period following the date the bridge 

10 payment stablecoin issuer was chartered, 

11 or any extension thereof, as provided in 

12 paragraph (7). 

13 (B) PROCEDURES.—The Comptroller shall 

14 appoint the Corporation as receiver for a bridge 

15 payment stablecoin issuer upon certification by 

16 the Board of Directors of the Corporation to 

17 the Comptroller of its determination to dissolve 

18 the bridge issuer. The Corporation as such re19 ceiver shall wind up the affairs of the bridge 

20 issuer. With respect to any such bridge pay21 ment stablecoin issuer, the Corporation as such 

22 receiver shall have all the rights, powers, and 

23 privileges and shall perform the duties related 

24 to the exercise of such rights, powers, or privi25 leges granted by law to a receiver of payment 


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1 stablecoin issuers and notwithstanding any 

2 other provision of law in the exercise of such 

3 rights, powers, and privileges the Corporation 

4 shall not be subject to the direction or super5 vision of any State agency or other Federal 

6 agency. 

7 (11) MULTIPLE BRIDGE PAYMENT STABLECOIN

8 ISSUERS.—Subject to paragraph (1)(B)(i), the Cor9 poration may, in the Corporation’s discretion, orga10 nize 2 or more bridge payment stablecoin issuers 

11 under this subsection to assume any payment 

12 stablecoin liabilities, and purchase any assets of a 

13 single payment stablecoin issuer in default. 

14 (n) SUPERVISORY RECORDS.—Whenever the Cor15 poration has been appointed as receiver for a payment 

16 stablecoin issuer, the Comptroller or State bank super17 visor, and the Board, shall make available all supervisory 

18 records to the receiver which may be used by the receiver 

19 in any manner the receiver determines to be appropriate. 

20 (o) CERTAIN SALES OF ASSETS PROHIBITED.— 

21 (1) PERSONS WHO ENGAGED IN IMPROPER CON22 DUCT WITH, OR CAUSED LOSSES TO, PAYMENT

23 STABLECOIN ISSUERS.—The Corporation shall pre24 scribe regulations which, at a minimum, shall proVerDate Sep 11 2014 19:01 Apr 29, 2024 Jkt 049200 PO 00000 Frm 00151 Fmt 6652 Sfmt 6201 E:\BILLS\S4155.IS S4155

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1 hibit the sale of assets of a failed payment stablecoin 

2 issuer by the Corporation to— 

3 (A) any person who— 

4 (i) has defaulted, or was a member of 

5 a partnership or an officer or director of a 

6 corporation that has defaulted, on 1 or 

7 more obligations the aggregate amount of 

8 which exceed $1,000,000, to such failed 

9 payment stablecoin issuer; and 

10 (ii) proposes to purchase any such 

11 asset in whole or in part through the use 

12 of the proceeds of a loan or advance of 

13 credit from the Corporation or from any 

14 institution for which the Corporation has 

15 been appointed as conservator or receiver; 

16 (B) any person who participated, as an of17 ficer or director of such failed issuer or of any 

18 affiliate of such issuer, in a material way in 

19 transactions that resulted in a substantial loss 

20 to such failed issuer; 

21 (C) any person who has been removed 

22 from, or prohibited from participating in the af23 fairs of, such failed issuer pursuant to any final 

24 enforcement action by the Comptroller, State 

25 bank supervisor or the Board; or 


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1 (D) any person who has demonstrated a 

2 pattern or practice of defalcation regarding ob3 ligations to such failed issuer. 

4 (2) CONVICTED DEBTORS.—Except as provided 

5 in paragraph (3), any person who has been convicted 

6 of an offense under section 215, 656, 657, 1005, 

7 1006, 1007, 1008, 1014, 1032, 1341, 1343, or 1344 

8 of title 18, United States Code, or of conspiring to 

9 commit such an offense, affecting any payment 

10 stablecoin issuer for which the Corporation was ap11 pointed conservator or receiver, may not purchase 

12 any asset of such institution from the Corporation 

13 as conservator or receiver. 

14 (3) SETTLEMENT OF CLAIMS.—Paragraphs (1) 

15 and (2) shall not apply to the sale or transfer by the 

16 Corporation of any asset of any payment stablecoin 

17 issuer to any person if the sale or transfer of the 

18 asset resolves or settles, or is part of the resolution 

19 or settlement, of— 

20 (A) 1 or more claims that have been, or 

21 could have been, asserted by the Corporation 

22 against the person; or 

23 (B) obligations owed by the person to any 

24 payment stablecoin issuer or the Corporation. 


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1 (p) EXPEDITED PROCEDURES FOR CERTAIN

2 CLAIMS.— 

3 (1) TIME FOR FILING NOTICE OF APPEAL.— 

4 The notice of appeal of any order, whether interlocu5 tory or final, entered in any case brought by the 

6 Corporation against a payment stablecoin issuer’s 

7 director, officer, employee, agent, attorney, account8 ant, or appraiser or any other person employed by 

9 or providing services to a payment stablecoin issuer 

10 shall be filed not later than 30 days after the date 

11 of entry of the order. The hearing of the appeal shall 

12 be held not later than 120 days after the date of the 

13 notice of appeal. The appeal shall be decided not 

14 later than 180 days after the date of the notice of 

15 appeal. 

16 (2) SCHEDULING.—Consistent with section 

17 1657 of title 28, United States Code, a court of the 

18 United States shall expedite the consideration of any 

19 case brought by the Corporation against a payment 

20 stablecoin issuer’s director, officer, employee, agent, 

21 attorney, accountant, or appraiser or any other per22 son employed by or providing services to the issuer. 

23 As far as practicable, the court shall give such case 

24 priority on its docket. 


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1 (3) JUDICIAL DISCRETION.—The court may 

2 modify the schedule and limitations stated in para3 graphs (1) and (2) in a particular case, based on a 

4 specific finding that the ends of justice that would 

5 be served by making such a modification would out6 weigh the best interest of the public in having the 

7 case resolved expeditiously. 

8 (q) FOREIGN INVESTIGATIONS.—The Corporation, as 

9 conservator or receiver of a payment stablecoin and for 

10 purposes of carrying out any power, authority, or duty 

11 with respect to an issuer— 

12 (1) may request the assistance of any foreign 

13 banking authority and provide assistance to any for14 eign banking authority in accordance with section 

15 8(v) of the Federal Deposit Insurance Act (12 

16 U.S.C. 1818(v)); and 

17 (2) may each maintain an office to coordinate 

18 foreign investigations or investigations on behalf of 

19 foreign banking authorities. 

20 (r) PROHIBITION ON ENTERING SECRECY AGREE21 MENTS AND PROTECTIVE ORDERS.—The Corporation 

22 may not enter into any agreement or approve any protec23 tive order which prohibits the Corporation from disclosing 

24 the terms of any settlement of an administrative or other 

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1 tion in its capacity as conservator or receiver for a pay2 ment stablecoin issuer. 

3 (s) AGENCIES MAY SHARE INFORMATION WITHOUT

4 WAIVING PRIVILEGE.— 

5 (1) IN GENERAL.—A covered agency, in any ca6 pacity, shall not be deemed to have waived any privi7 lege applicable to any information by transferring 

8 that information to or permitting that information 

9 to be used by— 

10 (A) any other covered agency, in any ca11 pacity; or 

12 (B) any other agency of the Federal Gov13 ernment (as defined in section 6 of title 18, 

14 United States Code). 

15 (2) DEFINITIONS.—For purposes of this sub16 section: 

17 (A) COVERED AGENCY.—The term ‘‘cov18 ered agency’’ means any of the following: 

19 (i) Any Federal banking agency or 

20 State bank supervisor. 

21 (ii) The Farm Credit Administration. 

22 (iii) The Farm Credit System Insur23 ance Corporation. 

24 (iv) The National Credit Union Ad25 ministration. 


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1 (v) The Government Accountability 

2 Office. 

3 (vi) The Bureau of Consumer Finan4 cial Protection. 

5 (vii) The Federal Housing Finance 

6 Agency. 

7 (B) PRIVILEGE.—The term ‘‘privilege’’ in8 cludes any work-product, attorney-client, or 

9 other privilege recognized under Federal or 

10 State law. 

11 (3) RULE OF CONSTRUCTION.—Paragraph (1) 

12 shall not be construed as implying that any person 

13 waives any privilege applicable to any information 

14 because paragraph (1) does not apply to the transfer 

15 or use of that information. 

16 SEC. 10. CONFORMING AMENDMENTS. 

17 (a) TITLE 11.—Section 109(b)(2) of title 11, United 

18 States Code, is amended to read as follows: 

19 ‘‘(2) a domestic insurance company, bank (as 

20 defined in section 3 of the Federal Deposit Insur21 ance Act (12 U.S.C. 1813)), savings bank, coopera22 tive bank, savings and loan association, building and 

23 loan association, depository institution, homestead 

24 association, a New Markets Venture Capital com25 pany as defined in section 351 of the Small Business 


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1 Investment Act of 1958 (15 U.S.C. 689), a small 

2 business investment company licensed by the Small 

3 Business Administration under section 301 of the 

4 Small Business Investment Act of 1958 (15 U.S.C. 

5 681), credit union, payment stablecoin issuer (as de6 fined in section ll01 of the Lummis-Gillibrand 

7 Payment Stablecoin Act), or industrial bank or simi8 lar institution that is an insured bank (as defined in 

9 section 3(h) of the Federal Deposit Insurance Act 

10 (12 U.S.C. 1813(h)); or’’. 

11 (b) FEDERAL DEPOSIT INSURANCE ACT.—Section 

12 13(e)(1) of the Federal Deposit Insurance Act (12 U.S.C. 

13 1823(e)(1)) is amended— 

14 (1) in the matter preceding subparagraph (A), 

15 by inserting ‘‘or a payment stablecoin issuer’’ after 

16 ‘‘any insured depository institution’’; 

17 (2) in subparagraph (B), by inserting ‘‘or the 

18 payment stablecoin issuer’’ after ‘‘the depository in19 stitution’’ each place it appears; 

20 (3) in subparagraph (C), by striking the ‘‘the 

21 depository institution or its loan committee’’ and in22 serting ‘‘the depository institution (or its loan com23 mittee) or a payment stablecoin issuer’’; and 


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1 (4) in subparagraph (D), by inserting ‘‘or the 

2 payment stablecoin issuer’’ after ‘‘the depository in3 stitution’’. 

4 SEC. 11. ENFORCEMENT. 

5 (a) CIVIL ACTION.—The applicable payment 

6 stablecoin regulator may bring an action in the appro7 priate district court of the United States, or the court of 

8 any territory of the United States, to seek an order for 

9 the enforcement of this Act and such court shall have ju10 risdiction and power to order and require compliance here11 with, including through injunctive relief. 

12 (b) PROHIBITION ON UNAUTHORIZED PARTICIPA13 TION BY CONVICTED INDIVIDUALS.— 

14 (1) IN GENERAL.—No person who has been 

15 convicted of any criminal offense involving insider 

16 trading, embezzlement, cybercrime, money laun17 dering, or financing of terrorism, or of felony finan18 cial fraud may serve as an executive officer or a per19 son with control of more than 5 percent of the 

20 shares of a payment stablecoin issuer. 

21 (2) WAIVER; EXCEPTIONS.—The Board shall 

22 provide by rule a process to apply for a waiver of the 

23 prohibition under paragraph (1) and may provide for 

24 de minimis exceptions to the prohibition under such 

25 paragraph that would not require a waiver. 


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1 (c) SUSPENSION OR REVOCATION.—The applicable 

2 payment stablecoin regulator may prohibit a payment 

3 stablecoin issuer from issuing payment stablecoins under 

4 a registration or authorization if the regulator determines 

5 that the payment stablecoin issuer, or an institution-affili6 ated party, is— 

7 (1) violating or has violated an applicable law, 

8 regulation, or order; 

9 (2) violating or has violated any condition im10 posed in writing by the Comptroller, State bank su11 pervisor, or Board in connection with a written 

12 agreement entered into between the payment 

13 stablecoin issuer and the appropriate regulator or a 

14 condition imposed in connection with any application 

15 or other request; or 

16 (3) operating in an unsafe or unsound manner. 

17 (d) CEASE-AND-DESIST PROCEEDINGS.—If the appli18 cable payment stablecoin regulator has reasonable cause 

19 to believe that a payment stablecoin issuer or any institu20 tion-affiliated party is violating or has violated this Act, 

21 any rule or order issued pursuant to this Act, or any writ22 ten agreement entered into with the Comptroller, State 

23 bank supervisor, or Board, or condition imposed in writing 

24 in connection with any application or other request, the 

25 applicable payment stablecoin regulator may, by provisions 


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1 that are mandatory or otherwise, order the payment 

2 stablecoin issuer or institution-affiliated party of the pay3 ment stablecoin issuer to— 

4 (1) cease and desist from such violation or 

5 practice; 

6 (2) take affirmative action to correct the condi7 tions resulting from any such violation or practice; 

8 or 

9 (3) take such other action, as determined to be 

10 appropriate. 

11 (e) REMOVAL AND PROHIBITION AUTHORITY.—The 

12 applicable payment stablecoin regulator may remove an in13 stitution-affiliated party from their position or office or 

14 prohibit further participation of the institution-affiliated 

15 party in the affairs of the payment stablecoin issuer or 

16 in the affairs of all payment stablecoin issuers if the appli17 cable payment stablecoin regulator determines that— 

18 (1) the institution-affiliated party has, directly 

19 or indirectly, committed a violation or attempted vio20 lation of this Act; 

21 (2) the institution-affiliated party has com22 mitted a violation of any provision of sub-chapter II 

23 of chapter 53 of title 31, United States Code; or 

24 (3) the institution-affiliated party is otherwise 

25 disqualified pursuant to subsection (b). 


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1 (f) ENFORCEMENT AND PENALTY AUTHORITIES

2 WITH RESPECT TO SAFETY AND SOUNDNESS.—With re3 spect to a payment stablecoin issuer, if the applicable pay4 ment stablecoin regulator has reasonable cause to believe 

5 that the payment stablecoin issuer or an institution-affili6 ated party of the payment stablecoin issuer is engaging 

7 or has engaged in an unsafe or unsound practice, the ap8 plicable payment stablecoin regulator shall have the same 

9 authorities and responsibilities as the Federal Deposit In10 surance Corporation with respect to an insured depository 

11 institution and an institution-affiliated party under section 

12 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818). 

13 (g) PROCEDURE.— 

14 (1) NOTICE.—For each violation or attempted 

15 violation of this Act, the applicable payment 

16 stablecoin regulator shall provide notice to the pay17 ment stablecoin issuer and any institution-affiliated 

18 party of the payment stablecoin issuer, which shall 

19 include— 

20 (A) a statement of facts constituting the 

21 identified violation or attempted violation; and 

22 (B) a notice of a hearing that will be held 

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1 ing, that is set not less than 30 days after the 

2 date of the notice. 

3 (2) HEARING.—A hearing described in para4 graph (1) shall be held in a Federal judicial district 

5 or in the territory in which the payment stablecoin 

6 issuer or institution-affiliated party is located, unless 

7 the issuer or institution-affiliated party consents to 

8 another place, and shall be conducted in accordance 

9 with the provisions of chapter 5 of title 5, United 

10 States Code. 

11 (3) WRITTEN DECISION.—Not later than 90 

12 days after the applicable payment stablecoin regu13 lator has notified the parties that the case has been 

14 submitted for a final decision, the applicable pay15 ment stablecoin regulator shall render a written de16 cision that includes a statement of the findings of 

17 fact upon which the decision is predicated and shall 

18 be served upon each party to the proceeding an 

19 order or orders consistent with the provisions of this 

20 section. 

21 (4) ORDERS.—An order issued under this sub22 section shall— 

23 (A) be effective as of the date set by the 

24 appropriate payment stablecoin regulator after 

25 the date of the decision, except in the case of 


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1 a cease-and-desist order issued upon consent, 

2 which shall become effective at the time speci3 fied therein; and 

4 (B) remain effective and enforceable as 

5 provided in the order, except to such extent as 

6 it is stayed, modified, terminated, or set aside 

7 by the action of a regulator or a reviewing 

8 court. 

9 (5) APPEARANCE.—Unless a payment 

10 stablecoin issuer or institution-affiliated party of 

11 such issuer appears at the hearing, personally or by 

12 a duly authorized representative, such issuer or 

13 party shall be deemed to have consented to the sus14 pension or revocation of registration or authoriza15 tion, a cease-and-desist order, or removal, as appli16 cable. 

17 (h) JUDICIAL REVIEW.— 

18 (1) IN GENERAL.—With respect to a final order 

19 under this section not issued by consent of a pay20 ment stablecoin issuer or an institution-affiliated 

21 party, an aggrieved person may, not later than 30 

22 days after the date of service of the order and writ23 ten decision, file a petition for review in an appro24 priate court of appeals of the United States, or in 

25 the United States Court of Appeals for the District 


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1 of Columbia Circuit to request that the order be 

2 modified, terminated, or set aside. 

3 (2) TRANSMISSION OF THE RECORD.—Upon the 

4 filing of a petition under paragraph (1) with the ap5 propriate court, the clerk of that court shall trans6 mit a copy of the petition to the applicable payment 

7 stablecoin regulator which shall transmit to the 

8 court the record of the proceeding relating to the pe9 tition, as provided in section 2112 of title 28, United 

10 States Code. 

11 (3) EXCLUSIVE JURISDICTION.— 

12 (A) IN GENERAL.—Upon the filing of a pe13 tition under paragraph (1) with the appropriate 

14 court, that court shall have exclusive jurisdic15 tion to— 

16 (i) review the final action, as provided 

17 in chapter 7 of title 5, United States Code; 

18 and 

19 (ii) affirm, modify, terminate, or set 

20 aside, in whole or in part, the applicable 

21 order. 

22 (B) FINAL JUDGEMENT.—Except upon re23 view by the Supreme Court upon writ of certio24 rari, as provided in section 1254 of title 28, 


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1 United States Code, the judgment and decree of 

2 the court is final. 

3 (i) COMMENCEMENT OF PROCEEDINGS NOT TREAT4 ED AS A STAY.— 

5 (1) IN GENERAL.—The commencement of pro6 ceedings for judicial review under subsection (h) 

7 shall not, unless specifically ordered by the appro8 priate court, operate as a stay of any order. 

9 (2) ENFORCEMENT.—The applicable payment 

10 stablecoin regulator may, in its discretion, apply to 

11 the appropriate United States district court or the 

12 United States court of any territory, for the enforce13 ment of any effective and outstanding notice or 

14 order issued under this section, and such court shall 

15 have jurisdiction and power to order and require 

16 compliance herewith, but, except as otherwise pro17 vided in this section, no court shall have jurisdiction 

18 to affect by injunction or otherwise the issuance or 

19 enforcement of any notice or order under this sec20 tion, or to review, modify, suspend, terminate, or set 

21 aside any such notice or order. 

22 (j) TEMPORARY CEASE AND DESIST PRO23 CEEDINGS.— 

24 (1) IN GENERAL.—If the applicable payment 

25 stablecoin regulator determines that a violation or 


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1 attempted violation identified under this section, or 

2 the continuation thereof, is likely to cause a receiver3 ship, insolvency, or significant dissipation of assets 

4 or earnings of a payment stablecoin issuer, or is 

5 likely to weaken the condition of the payment 

6 stablecoin issuer or otherwise prejudice the interests 

7 of its customers prior to the completion of the pro8 ceedings conducted pursuant to subsection (h), the 

9 applicable payment stablecoin regulator may issue a 

10 temporary order requiring a payment stablecoin 

11 issuer or institution-affiliated party to cease and de12 sist from any such violation or practice and to take 

13 affirmative action to prevent or remedy such receiv14 ership, insolvency, dissipation, condition, or preju15 dice pending completion of such proceedings. 

16 (2) EFFECTIVE DATE.—An order described 

17 under paragraph (1) shall become effective upon 

18 service on the payment stablecoin issuer or the insti19 tution-affiliated party and, unless set aside, limited, 

20 or suspended by a court, remain effective and en21 forceable pending the completion of the administra22 tive proceedings pursuant to such notice and until 

23 such time as the applicable payment stablecoin regu24 lator removes the suspension or the cease-and-desist 

25 order has expired. 


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1 (k) JUDICIAL REVIEW.—Not later than 10 days after 

2 the date a payment stablecoin issuer concerned or any in3 stitution-affiliated party has been served with a temporary 

4 cease-and-desist order, the payment stablecoin issuer or 

5 such party may apply to the appropriate United States 

6 district court, or the United States District Court for the 

7 District of Columbia, for an injunction setting aside, lim8 iting, or suspending the enforcement, operation, or effec9 tiveness of such order pending the completion of the ad10 ministrative proceeding pursuant to the notice of charges 

11 served upon the payment stablecoin issuer or such party 

12 under subsection (g)(4), and such court shall have juris13 diction to issue such injunction. 

14 (l) ENFORCEMENT OF TEMPORARY CEASE AND DE15 SIST ORDERS.—In the case of a violation or attempted 

16 violation of, or failure to obey, a temporary cease-and-de17 sist order issued pursuant to this section, the applicable 

18 payment stablecoin regulator may apply to the appropriate 

19 United States district court, or the United States court 

20 of any territory, for an injunction to enforce such order, 

21 and, if the court determines that there has been such vio22 lation or attempted violation or failure to obey, it shall 

23 be the duty of the court to issue such injunction. 

24 (m) FAILURE TO REGISTER OR BE AUTHORIZED.— 

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1 plicable registration or authorization under this Act, or an 

2 institution-affiliated party that knowingly participates in 

3 such a failure, shall be liable for a civil penalty of not more 

4 than $1,000,000 to the Board for each day during which 

5 such failure continues. The Board may also seek appro6 priate relief under subsection (a) for failure of a payment 

7 stablecoin issuer or other person to register or be author8 ized under section 6 or 7, as appropriate. 

9 (n) FIRST TIER CIVIL MONETARY PENALTIES.—Ex10 cept as provided in subsection (m), a payment stablecoin 

11 issuer or institution-affiliated party of such payment 

12 stablecoin issuer that violates this Act or any rule or order 

13 issued pursuant to this Act, or that violates any condition 

14 imposed in writing in connection with a written agreement 

15 entered into between the payment stablecoin issuer and 

16 the applicable payment stablecoin regulator, or a condition 

17 imposed in connection with any application or other re18 quest, shall be liable for a civil penalty of up to $100,000 

19 for each day during which the violation continues. 

20 (o) SECOND TIER CIVIL MONETARY PENALTIES.— 

21 Except as provided in subsection (m), a payment 

22 stablecoin issuer or any institution-affiliated party of such 

23 payment stablecoin issuer that knowingly participates in 

24 a violation of any provision of this Act, or any rule or 

25 order issued pursuant thereto, is liable for a civil penalty 


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1 of up to an additional $100,000 for each day during which 

2 the violation continues. 

3 (p) CIVIL MONETARY PENALTY PROCEDURE.— 

4 (1) ASSESSMENT AND COLLECTION.—Any civil 

5 monetary penalty imposed under this section may be 

6 assessed and collected by the applicable payment 

7 stablecoin regulator by following the procedure set 

8 forth under subsection (g). 

9 (2) DEADLINE.—The applicable payment 

10 stablecoin regulator may commence an action for a 

11 civil penalty resulting from a violation of this Act at 

12 any time before the end of the 6-year period begin13 ning on the date of such violation. 

14 (q) ENFORCEMENT OF CIVIL MONETARY PEN15 ALTIES.— 

16 (1) IN GENERAL.—If a payment stablecoin 

17 issuer or institution-affiliated party fails to pay a 

18 civil monetary penalty assessed under this section, 

19 the applicable payment stablecoin regulator shall re20 cover the amount assessed by action in the appro21 priate United States district court. The validity and 

22 appropriateness of a civil monetary penalty assessed 

23 under this section shall not be subject to review. 

24 (2) RESTRAINING ORDER.—In any action 

25 brought pursuant to this subsection, or in an action 


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1 brought in aid of, or to enforce an order in, any ad2 ministrative or other civil action for money damages, 

3 restitution, or civil money penalties, the court may, 

4 upon application, issue a restraining order that— 

5 (A) prohibits any person subject to the 

6 proceeding from withdrawing, transferring, re7 moving, dissipating, or disposing of any assets; 

8 and 

9 (B) appoints a temporary receiver to ad10 minister the restraining order. 

11 (r) NOTICE UNDER THIS SECTION AFTER SEPARA12 TION FROM SERVICE.—The resignation, termination of 

13 employment or participation, or separation of an institu14 tion-affiliated party (including a separation caused by the 

15 closing of a payment stablecoin issuer) shall not affect the 

16 jurisdiction and authority of the applicable payment 

17 stablecoin regulator to issue any notice or order and pro18 ceed under this section against any such party, if such 

19 notice or order is served before the end of the 6-year pe20 riod beginning on the date such party ceased to be an in21 stitution-affiliated party with respect to the payment 

22 stablecoin issuer. 

23 (s) EXERCISE OF AUTHORITY.— 

24 (1) IN GENERAL.—In exercising authority 

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1 tution that issues a payment stablecoin under sec2 tion 7 of this Act, the Comptroller or State bank su3 pervisor, as applicable, and the Board shall endeavor 

4 to act jointly whenever possible. 

5 (2) CONSULTATION.— 

6 (A) INITIAL CONSULTATION REQUIRED.— 

7 Prior to opening an investigation, beginning the 

8 process of an enforcement action or exercising 

9 other authority under this section, the applica10 ble payment stablecoin regulator shall provide 

11 notice and consult with the other applicable reg12 ulator relating to the necessity and scope of the 

13 action. 

14 (B) EXERCISE OF AUTHORITY.—After an 

15 initial consultation under this paragraph, the 

16 applicable payment stablecoin regulator may ex17 ercise authority independently under this sec18 tion, but shall keep the other applicable regu19 lator reasonably informed about the progress of 

20 the action and shall provide not less than 7 

21 days’ prior notice of the timing and scope of the 

22 final action. 

23 SEC. 12. INTEROPERABILITY STANDARDS. 

24 The Board, in consultation with the Comptroller, 

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1 ards and Technology and other relevant standard setting 

2 organizations, shall assess and, if necessary, may, pursu3 ant to section 553 of title 5, United States Code, and in 

4 a manner consistent with the utilization of consensus tech5 nical standards under section 12(d) of the National Tech6 nology Transfer and Advancement Act of 1995 (15 U.S.C. 

7 272 note), prescribe standards for payment stablecoin 

8 issuers and payment stablecoin service providers to pro9 mote compatibility and interoperability among payment 

10 stablecoin systems and between payment stablecoin sys11 tems and other payment systems, including mandatory or 

12 minimum technical or legal specifications that enable par13 ticipants in one payment system to clear and settle pay14 ments across payment systems without participating di15 rectly in multiple payment systems. 

16 SEC. 13. RESERVATION OF AUTHORITY. 

17 (a) LIMITATION OF AUTHORITY.—Nothing in this 

18 Act shall limit the authority of the Board, Comptroller, 

19 State bank supervisors, the Secretary of the Treasury, the 

20 Bureau of Consumer Financial Protection, the Securities 

21 and Exchange Commission, or the Commodity Futures 

22 Trading Commission under any provision of law with re23 spect to any person subject to this Act. 

24 (b) EFFECT ON STATE LAWS.—The provisions of this 

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1 empt a law of a State except to the extent such law con2 flicts with the provisions of this Act, and then only to the 

3 extent of such conflict. 

4 (c) ANTITRUST SAVINGS CLAUSE.—Nothing in this 

5 Act shall be construed to modify, impair, or supersede the 

6 operation of any of the Federal antitrust laws, as defined 

7 in subsection (a) of the first section of the Clayton Act 

8 (15 U.S.C. 12(a)) or statutes proscribing unfair or decep9 tive acts or practices, as defined in section 5(a)(4) of the 

10 Federal Trade Commission Act (15 U.S.C. 45(a)(4)). 

11 (d) INSURED DEPOSITORY INSTITUTION SAVINGS

12 CLAUSE.—Nothing in this Act shall be construed to limit 

13 the authority of an insured depository institution (as de14 fined in section 3 of the Federal Deposit Insurance Act 

15 (12 U.S.C. 1813)) to engage in activities permissible pur16 suant to applicable State and Federal law, including ac17 cepting or receiving deposits and issuing crypto assets that 

18 represent, and have the same legal standing as, deposits, 

19 or to limit the authority of the Federal banking agencies 

20 to interpret or establish limitations and conditions on such 

21 activities. 

22 SEC. 14. ACCOUNTING TREATMENT OF CUSTODIAL ASSETS. 

23 Crypto assets properly held in a custodial account 

24 shall not be considered assets or liabilities of the custodian 

25 for any purpose and shall be maintained on an off-balance 


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1 sheet basis, including for the purpose of accounting treat2 ment for the custodian, notwithstanding the form in which 

3 the assets are maintained, and for the purposes of the cap4 ital calculations of depository institutions and all other fi5 nancial institutions. 

6 SEC. 15. EFFECTIVE DATE; IMPLEMENTATION AND RULES. 

7 (a) EFFECTIVE DATE.—This Act shall take effect on 

8 the earlier of— 

9 (1) the date that is 540 days after the date of 

10 enactment of this Act; or 

11 (2) the date that is 90 days after the date on 

12 which the Board— 

13 (A) issues final rules implementing this 

14 Act; and 

15 (B) notifies Congress and the public that 

16 final rules have been issued. 

17 (b) TRANSITIONAL PROVISIONS FOR EXISTING NON18 DEPOSITORY INSTITUTIONS.— 

19 (1) APPLICATION PRIORITY.—An application 

20 for authorization under this Act of a State non-de21 pository trust company, or the holder of a State li22 cense that only persons engaged in crypto asset ac23 tivities may obtain, which was chartered or issued 

24 under the laws of a State and granted permission by 

25 its regulator to issue payment stablecoins before 


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1 May 1, 2024, shall be approved by the Board before 

2 an application from another entity that is filed on or 

3 after May 1, 2024. 

4 (2) APPROVAL.—An application described in 

5 paragraph (1), shall be approved unless the Board 

6 finds, by unanimous vote of all members, that the 

7 non-depository institution is unlikely to come into 

8 compliance with the requirements of section 6(b) not 

9 later than 1 year after the effective date of this Act 

10 under subsection (a). 

11 (3) ISSUANCE PERMITTED.—A State non-depos12 itory trust company or holder of a State license to 

13 which this subsection applies may continue with 

14 issuance, redemption and other similar activities re15 lating to a payment stablecoin under this subsection 

16 under this subsection until its application is ap17 proved or denied by the Board. 

18 (c) TRANSITIONAL PROVISIONS FOR EXISTING DE19 POSITORY INSTITUTIONS.— 

20 (1) APPLICATION PRIORITY.—The application 

21 of a depository institution for authorization to be22 come a national payment stablecoin issuer under 

23 section 7 of this Act, which was chartered and 

24 granted permission by its regulator to issue payment 

25 stablecoins before May 1, 2024, shall be decided 


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1 upon by the Board before any other application for 

2 authorization to become a national payment 

3 stablecoin issuer which is filed on or after May 1, 

4 2024. 

5 (2) DEEMED APPROVED.—The application de6 scribed in paragraph (1) shall be deemed approved 

7 unless the Board finds, by unanimous vote of all 

8 members, that the depository institution is unlikely 

9 to come into compliance with the requirements of 

10 section 7(b) not later than 1 year after the date of 

11 enactment of this Act. 

12 (3) ISSUANCE PERMITTED.—A depository insti13 tution to which this subsection applies may continue 

14 with issuance, redemption and other similar activi15 ties relating to a payment stablecoin under this sub16 section until its application is approved or denied by 

17 the Board. 

18 (d) FINDINGS RELATING TO CERTAIN ACTIVITIES.— 

19 Congress finds the following: 

20 (1) In determining whether an activity is finan21 cial in nature under the Bank Holding Company Act 

22 (12 U.S.C. 1841 et seq.), Congress has required the 

23 Board under such Act to— 


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1 (A) consider changes or reasonably ex2 pected changes in the marketplace in which fi3 nancial companies compete; 

4 (B) consider changes or reasonably ex5 pected changes in the technology for delivering 

6 financial services; and 

7 (C) consider the ability of financial compa8 nies to compete effectively and efficiently to de9 liver information and services that are financial 

10 in nature through the use of technological 

11 means, including any application necessary to 

12 protect the security or efficacy of systems for 

13 the transmission of data or financial trans14 actions. 

15 (2) Lending, exchanging, transferring, investing 

16 for others, and safeguarding money and crypto as17 sets, and activities incidental to these functions, are 

18 analogous to similar activities permissible for banks 

19 under the Bank Holding Company Act (12 U.S.C. 

20 1841 et seq.). 

21 (3) The activities described in paragraph (2) 

22 shall be deemed financial in nature, or incidental to 

23 a financial activity, under the Bank Holding Com24 pany Act (12 U.S.C. 1841 et seq.) for purposes of 

25 section 5 of this Act. 


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1 (e) REPORT ON RULEMAKING STATUS.—Not later 

2 than 180 days after the effective date of this Act under 

3 subsection (a), the Board shall submit to the Committee 

4 on Banking, Housing, and Urban Affairs of the Senate 

5 and the Committee on Financial Services of the House of 

6 Representatives a status update on the development of the 

7 rulemaking under this Act. 

Æ 


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