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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4155 Introduced in Senate (IS)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Lummis-Gillibrand Payment Stablecoin 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Algorithmic payment stablecoin.--The term ``algorithmic 
        payment stablecoin'' means a crypto asset that--
                    (A) is represented by the issuer, or is otherwise 
                designed to create the reasonable expectation, that the 
                crypto asset will maintain a stable value relative to 
                the value of a fixed amount of United States dollars; 
                and
                    (B) relies on the use of an algorithm that adjusts 
                the supply of the crypto asset in response to changes 
                in market demand for the crypto asset to maintain the 
                expectation that the crypto asset will maintain a 
                stable value.
            (2) Applicable payment stablecoin regulator.--The term 
        ``applicable payment stablecoin regulator'' means, with respect 
        to a payment stablecoin issuer--
                    (A) in the case of a depository institution that 
                issues a payment stablecoin under section 7, consistent 
                with section 11(s)--
                            (i) the Comptroller or State bank 
                        supervisor, as applicable; or
                            (ii) the Board; and
                    (B) in the case of a State non-depository trust 
                company that issues a payment stablecoin under section 
                6, the applicable State bank supervisor and the Board, 
                acting jointly.
            (3) Bank secrecy act.--The term ``Bank Secrecy Act'' 
        means--
                    (A) section 21 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1829b);
                    (B) chapter 2 of title I of Public Law 91-508 (12 
                U.S.C. 1951 et seq.); and
                    (C) subchapter II of chapter 53 of title 31, United 
                States Code.
            (4) Board.--The term ``Board'' means the Board of Governors 
        of the Federal Reserve System.
            (5) Comptroller.--The term ``Comptroller'' means the 
        Comptroller of the Currency.
            (6) Controlling interest.--The term ``controlling 
        interest'' means a circumstance when a person, directly or 
        indirectly, or acting through or in concert with 1 or more 
        persons--
                    (A) owns, controls, or has the power to vote 25 
                percent or more of any class of voting securities of a 
                depository institution or holding company thereof;
                    (B) controls in any manner the election of a 
                majority of the directors of a depository institution 
                or holding company thereof; or
                    (C) has the power to exercise a controlling 
                influence over the management or policies of the 
                depository institution or holding company thereof.
            (7) Crypto asset.--The term ``crypto asset'' means a 
        natively electronic asset that confers economic, proprietary, 
        or access rights or powers and is recorded using 
        cryptographically secured distributed ledger technology, or any 
        similar analog.
            (8) Depository institution.--The term ``depository 
        institution''--
                    (A) has the meaning given that term in section 
                19(b)(1) of the Federal Reserve Act (12 U.S.C. 
                461(b)(1)); and
                    (B) includes a depository institution operating 
                under subsection (a)(2) of section 5169 of the Revised 
                Statutes (12 U.S.C. 27), as amended by this Act, or a 
                substantially similar State law, which is exclusively 
                engaged in issuing payment stablecoins, providing 
                safekeeping, trust, or custodial services, or 
                activities incidental to the foregoing.
            (9) Distributed ledger.--The term ``distributed ledger'' 
        means technology that enables the operation and use of a ledger 
        that--
                    (A) is shared across a set of distributed nodes 
                that participate in a network and store a complete or 
                partial replica of the ledger, which may be public or 
                private;
                    (B) is synchronized between the nodes;
                    (C) has data appended to the ledger by following 
                the specified consensus mechanism of the ledger;
                    (D) may be accessible to anyone or restricted to a 
                subset of participants; and
                    (E) may require participants to have authorization 
                to perform certain actions or require no authorization.
            (10) Institution-affiliated party.--With respect to a 
        payment stablecoin issuer, the term ``institution-affiliated 
        party'' means--
                    (A) any director, officer, employee, or person with 
                a controlling interest in, or acting as an agent for, 
                the payment stablecoin issuer;
                    (B) a consultant, joint venture partner, and any 
                other person that participates in the conduct of the 
                affairs of the payment stablecoin issuer; or
                    (C) any independent contractor providing services 
                for the payment stablecoin issuer, including any 
                attorney, appraiser, or accountant.
            (11) Insured depository institution.--The term ``insured 
        depository institution'' means--
                    (A) an insured depository institution, as defined 
                in section 3 of the Federal Deposit Insurance Act (12 
                U.S.C. 1813); and
                    (B) an insured credit union, as defined in section 
                101 of the Federal Credit Union Act (12 U.S.C. 1752).
            (12) National payment stablecoin issuer.--The term 
        ``national payment stablecoin issuer'' means a depository 
        institution chartered by the Comptroller or a State bank 
        supervisor which is approved by the Board to conduct payment 
        stablecoin activities under section 7.
            (13) Payment stablecoin.--The term ``payment stablecoin'' 
        means crypto asset--
                    (A) that is, or is designed to be, used as a means 
                of payment or settlement;
                    (B) the issuer of which--
                            (i) is obligated to convert, redeem, or 
                        repurchase for a fixed amount of United States 
                        dollars; or
                            (ii) represents, or creates the reasonable 
                        expectation, that the crypto asset will 
                        maintain a stable value relative to the value 
                        of a fixed amount of United States dollars; and
                    (C) that is not--
                            (i) United States coins, a Federal Reserve 
                        note or other lawful money (as that term is 
                        used in the Federal Reserve Act (12 U.S.C. 
                        411)), money issued by a central bank, or money 
                        issued by an intergovernmental organization 
                        pursuant to an agreement by one or more 
                        governments; or
                            (ii) a security issued by an investment 
                        company registered under section 8(a) of the 
                        Investment Company Act of 1940 (15 U.S.C. 80a-
                        8(a)).
            (14) Payment stablecoin issuer.--The term ``payment 
        stablecoin issuer'' means--
                    (A) a non-depository trust company chartered by a 
                State bank supervisor that is registered, or required 
                to be registered, with the Board to issue payment 
                stablecoins; or
                    (B) a depository institution chartered by the 
                Comptroller or a State bank supervisor that is 
                authorized, or required to be authorized, to become a 
                national payment stablecoin issuer by the Board to 
                issue payment stablecoins, including a depository 
                institution subsidiary of an insured depository 
                institution or bank holding company.
            (15) State bank supervisor.--The term ``State bank 
        supervisor'' has the meaning given that term in section 3 of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813).
            (16) Subcustodian.--The term ``subcustodian'' means a 
        person that maintains actual possession or control of the 
        private keys relating to a payment stablecoin and has a 
        contractual relationship with the custodian of record of the 
        payment stablecoin.

SEC. 3. GENERAL REQUIREMENTS FOR PAYMENT STABLECOIN ISSUERS.

    (a) Stablecoins Generally.--
            (1) Issue.--A payment stablecoin may only be issued 
        directly or indirectly in the United States by--
                    (A) a non-depository trust company that has 
                registered with the Board consistent with section 6 and 
                for which the nominal value of all outstanding payment 
                stablecoins does not exceed $10,000,000,000, as 
                adjusted under subsection (b); or
                    (B) by a depository institution that has been 
                authorized as a national payment stablecoin issuer 
                consistent with section 7.
            (2) Prohibition on issuance.--Except as otherwise provided 
        under paragraph (1), it shall be unlawful for any person to 
        engage in the business of issuing a payment stablecoin, 
        directly or indirectly, in the United States, through any means 
        or instruments of transportation or communication in the United 
        States, or to a person in the United States.
            (3) Offers or sales.--
                    (A) In general.--Except as otherwise provided in 
                this section, it shall be unlawful for any person to 
                offer or sell a payment stablecoin through the use of 
                any medium or by any means of access in interstate 
                commerce in the United States or to offer or sell a 
                payment stablecoin to a United States person living in 
                the United States.
                    (B) Exception.--Subparagraph (A) does not apply to 
                the sale of a payment stablecoin by a United States 
                person living in the United States.
    (b) Adjustment of Threshold.--Not less frequently than once every 4 
years, the Board shall issue rules adjusting the threshold under 
subsection (a)(1)(A) solely to account for inflation.
    (c) Algorithmic Payment Stablecoins.--It shall be unlawful for any 
person to engage in the business of issuing, creating, or originating 
an algorithmic payment stablecoin.
    (d) Safe Harbors.--
            (1) In general.--The Board shall issue regulations 
        providing limited safe harbors from this section that are 
        consistent with the purposes of this Act.
            (2) Regulation requirements.--Regulations issued pursuant 
        to paragraph (1) shall provide that any safe harbors applicable 
        to a payment stablecoin issuer shall be made available on an 
        equal basis to any issuer chartered by either the Comptroller 
        or a State bank supervisor.
            (3) Safe harbors.--Safe harbors under this section may 
        include--
                    (A) a pilot program allowing for limited issuance 
                of payment stablecoins by entities not otherwise 
                authorized under this section, subject to appropriate 
                safeguards and oversight, in order to foster 
                responsible innovation and competition in the payment 
                stablecoin market; and
                    (B) a safe harbor for payment a payment stablecoin 
                issuer that is subject to comprehensive regulation and 
                supervision by a foreign financial regulatory authority 
                in a jurisdiction with an equivalent regulatory 
                framework to the United States, as determined by the 
                Board, in consultation with the Comptroller and State 
                bank supervisors.
    (e) Extraterritorial Effect.--This section is intended to have 
extraterritorial effect.

SEC. 4. PRUDENTIAL REQUIREMENTS APPLICABLE TO ALL PAYMENT STABLECOIN 
              ISSUERS.

    (a) Customer Protection and Segregation.--A person who provides 
custodial services, including subcustodian or other safekeeping 
services, for payment stablecoins shall--
            (1) treat and deal with the payment stablecoins and cash of 
        a customer as belonging to the customer; and
            (2) take appropriate steps to protect the payment 
        stablecoins and cash of a customer from any claims of creditors 
        of the person.
    (b) Further Requirements Relating to Segregation.--
            (1) In general.--A person described in subsection (a) may, 
        for convenience, commingle and deposit the payment stablecoins 
        and cash of a customer in an account holding the payment 
        stablecoins and cash of more than 1 customer, but which is 
        separate from the proprietary assets of the issuer.
            (2) Transactions.--Such share of the payment stablecoins 
        and cash of a customer in an account described in paragraph (1) 
        that shall be necessary to transfer, adjust, or settle a 
        transaction or transfer of assets may be withdrawn and applied 
        to such purposes, including the payment of commissions, taxes, 
        storage fees, and other charges lawfully accruing in connection 
        with the provision of custodial services.
            (3) Rule or order relating to commingling.--The Board, in 
        consultation with the Comptroller and State bank supervisors, 
        may prescribe, by rule or order, that customer payment 
        stablecoins or cash may be commingled and deposited in customer 
        accounts with any other assets received by a person described 
        in subsection (a) and required by the Board to be separately 
        accounted for, treated as, and dealt with as belonging to 
        customers.
    (c) Prohibition on Rehypothecation.--Payment stablecoin reserves 
required under sections 6(f) and 7(e) shall not be pledged, 
rehypothecated, or reused, except for the purpose of creating liquidity 
to meet reasonable expectations of requests to redeem payment 
stablecoins, such that reserves in the form of Treasury bills, bonds, 
or notes may be pledged as collateral for repurchase agreements with a 
maturity of not more than 7 days, if--
            (1) the repurchase agreements are cleared by a central 
        clearing counterparty that is approved by the Board; or
            (2) the payment stablecoin issuer has obtained the approval 
        of the Board and the Comptroller or State bank supervisor, as 
        applicable.
    (d) Disclosures of Assets.--
            (1) In general.--Not later than 10 business days after the 
        end of each month, a payment stablecoin issuer shall disclose, 
        in a publicly accessible manner, a summary description that 
        includes--
                    (A) the assets backing the payment stablecoin, the 
                value of the assets, and the number of outstanding 
                payment stablecoins, as of the last day of the month; 
                and
                    (B) a report of all instances in which the payment 
                stablecoin issuer failed to comply with any requirement 
                under section 6(f) or 7(e).
            (2) Filing with the board.--At the time of disclosure of 
        the summary description under paragraph (1), the chief 
        financial officer of a payment stablecoin issuer shall also 
        file the summary description with the Board under penalty of 
        perjury.
            (3) Publication by the board.--Not later than 10 business 
        days after receiving a filing under paragraph (2), the Board 
        shall make the filing available on a website of the Board.
            (4) Verification of disclosures.--The Comptroller or State 
        bank supervisor shall, as part of the regular examination of 
        the payment stablecoin issuer, verify the composition of the 
        assets and the accuracy of the summary description under 
        paragraph (1).
    (e) Disclosures to Customers.--A payment stablecoin issuer shall 
clearly disclose to customers that a payment stablecoin is not 
guaranteed by the United States Government and is not subject to 
deposit or share insurance by the Federal Deposit Insurance Corporation 
or the National Credit Union Administration.
    (f) Misrepresentation of Disclosures.--A payment stablecoin issuer 
that misrepresents a disclosure under subsection (d) or (e) shall be 
subject to the penalty under section 18(a)(4) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(a)(4)) or section 709 of title 18, United 
States Code, as applicable.
    (g) Redemptions.--Not later than 1 business day after the receipt 
of a redemption request of a customer, a payment stablecoin issuer 
shall redeem an outstanding payment stablecoin of that payment 
stablecoin issuer at par in legal tender, as defined in section 5103 of 
title 31, United States Code.
    (h) Limitation on Activities.--As determined by the Comptroller or 
State bank supervisor, in consultation with the Board, a payment 
stablecoin issuer may conduct only the following activities:
            (1) Management of required payment stablecoin reserves 
        under sections 6(f) and 7(e).
            (2) Custodial services.
            (3) Settlement and clearing.
            (4) Post-trade services.
            (5) Incidental activities relating to the issuance and 
        redemption of payment stablecoins and management of required 
        reserves.
    (i) Contracted Services.--
            (1) In general.--Except as otherwise provided under 
        paragraph (2), whenever a payment stablecoin issuer, or an 
        affiliate thereof, relies on or causes to be performed for 
        itself, by contract, any services or activities authorized 
        under this Act or that are necessary to the functioning of the 
        payment stablecoin, whether on or off its premises--
                    (A) the person that performs such services or 
                activities shall be subject to regulation and 
                supervision by the Comptroller or State bank supervisor 
                that supervises the payment stablecoin issuer, as 
                applicable, and the Board, solely with respect to the 
                limited scope of the performance of such services and 
                activities;
                    (B) the person that performs such services or 
                activities shall be subject to minimum financial 
                resource requirements established by the Board, in 
                consultation with the Comptroller and State bank 
                supervisors, and shall be deemed a financial 
                institution for purposes of title V of the Gramm-Leach-
                Bliley Act (15 U.S.C. 6801 et seq.);
                    (C) not later than the sooner of 30 days after 
                making a contract for the performance of such services 
                or activities or the date of the performance of such 
                services or activities, the payment stablecoin issuer 
                shall notify the Comptroller or State bank supervisor, 
                as applicable, and the Board of the existence of the 
                relationship;
                    (D) for the purpose of ensuring compliance with the 
                requirements under this subsection, the Board, after 
                making best efforts to obtain necessary information 
                from public sources and existing regulators, including 
                the primary Federal or State regulator of the person 
                performing such services or activities, if applicable, 
                may conduct examinations of and require reports from 
                such person solely with respect to the limited scope of 
                the performance of services and activities subject to 
                this subsection; and
                    (E) the Board shall enforce the requirements of 
                this subsection as if the person providing such 
                services or activities was a payment stablecoin issuer.
            (2) Limitations.--Paragraph (1) shall not apply to--
                    (A) a person performing the services or activities 
                described in that paragraph that is subject to 
                supervision or regulation by a primary financial 
                regulatory agency described in subparagraph (A), (B), 
                or (C) of section 2(12) of the Dodd-Frank Wall Street 
                Reform and Consumer Protection Act (12 U.S.C. 
                5301(12)), or a State bank supervisor; and
                    (B) a person that primarily engages in the business 
                of providing hardware or software to facilitate the 
                custody or safekeeping by a customer of the payment 
                stablecoins of that customer.
    (j) Treatment Under the Bank Secrecy Act.--
            (1) In general.--A payment stablecoin issuer or a person 
        providing contracted services under subsection (i) shall be 
        treated as a financial institution for purposes of the Bank 
        Secrecy Act.
            (2) Exception.--This subsection shall not apply to any 
        person that primarily engages in the business of providing 
        hardware or software to facilitate the custody or safekeeping 
        by a customer of the payment stablecoins of that customer.
    (k) Collateral Availability.--
            (1) In general.--The Board, in consultation with the 
        Comptroller, State bank supervisors, the Securities and 
        Exchange Commission, and the Commodity Futures Trading 
        Commission, shall monitor the use of assets authorized as 
        payment stablecoin reserves under sections 6(f) and 7(e), 
        including United States Treasury bills, bonds, and notes, and 
        the impact of the use of such assets on collateral availability 
        and the efficient functioning of the capital markets.
            (2) Rule of construction.--Nothing in this subsection shall 
        be construed as giving the Board supervisory or regulatory 
        authority not otherwise granted under this Act.

SEC. 5. HOLDING COMPANY SUPERVISION, AFFILIATES, MERGERS, AND 
              ACQUISITIONS OF PAYMENT STABLECOIN ISSUERS.

    (a) Holding Companies and Insured Depository Institutions.--
            (1) In general.--A bank holding company or insured 
        depository institution that has chartered a depository 
        institution as a payment stablecoin issuer under section 7 
        shall be considered a bank for purposes of the Bank Holding 
        Company Act of 1956 (12 U.S.C. 1841 et seq.).
            (2) Exception.--Paragraph (1) shall not apply to an insured 
        depository institution that is a savings association for the 
        purposes of section 10(a) of the Home Owners' Loan Act (12 
        U.S.C. 1467a(a)).
    (b) Holding Company Supervision for Other Depository 
Institutions.--
            (1) Requirements.--A person with a controlling interest in 
        a depository institution that is a payment stablecoin issuer 
        which is not subject to subsection (a) shall--
                    (A) annually submit to the Comptroller or State 
                bank supervisor, as applicable, and the Board--
                            (i) audited financial statements;
                            (ii) a description of all affiliated or 
                        parent entities and the relationship of the 
                        affiliated or parent entity with the payment 
                        stablecoin issuer; and
                            (iii) any other information the Board and 
                        the Comptroller or State bank supervisor, as 
                        applicable, may by rule reasonably require; and
                    (B) if required by the Comptroller or State bank 
                supervisor, as applicable, and the Board, execute a tax 
                allocation agreement with the depository institution 
                that--
                            (i) expressly states that an agency 
                        relationship exists between the person and the 
                        depository institution with respect to tax 
                        assets generated by the depository institution, 
                        and that the tax assets are held in trust by 
                        the person for the benefit of the depository 
                        institution and will be promptly remitted to 
                        the depository institution; and
                            (ii) may provide that the amount and timing 
                        of any payments or refunds to the depository 
                        institution by the person should be no less 
                        favorable than if the depository institution 
                        were a separate taxpayer.
            (2) Examination and divestiture.--
                    (A) In general.--If the Comptroller or State bank 
                supervisor, as applicable, and the Board determine it 
                would be manifestly in the public interest and that 
                reasonable cause exists to believe it is necessary to 
                protect the customers of a depository institution that 
                is a payment stablecoin issuer, the Comptroller or 
                State bank supervisor, as applicable, and the Board 
                may--
                            (i) conduct an examination of a person with 
                        controlling interest in the depository 
                        institution or otherwise reasonably require 
                        information from the person; and
                            (ii) require a person with a controlling 
                        interest in the depository institution to 
                        divest itself of or sever its relationship with 
                        the depository institution if necessary to 
                        maintain the safety and soundness of the 
                        depository institution, after consultation with 
                        the Secretary of the Treasury and an 
                        opportunity for a public hearing.
                    (B) Opportunity to remediate.--Divestiture shall 
                not be ordered under this section unless the 
                Comptroller or State bank supervisor, and the Board 
                provide the depository institution with a meaningful 
                opportunity to remediate findings relating to the 
                safety and soundness of the depository institution.
    (c) Requirement Relating to Controlling Interests.--A person shall 
be predominantly engaged in financial activities, as defined in section 
102(a)(6) of the Financial Stability Act of 2010 (12 U.S.C. 
5311(a)(6)), in order to have a controlling interest in a payment 
stablecoin issuer.
    (d) Affiliates.--
            (1) In general.--All subsidiaries and affiliates of a 
        payment stablecoin issuer that are not subject to subsection 
        (a) shall be engaged in activities that are financial in nature 
        (as described in section 4(k) of the Bank Holding Company Act 
        of 1956 (12 U.S.C. 1843(k))).
            (2) Exception.--Paragraph (1) shall not apply to a 
        subsidiary or affiliate that accounts for less than 25 percent 
        of the revenue of the holding company of the subsidiary or 
        affiliate.
            (3) Transactions with affiliates.--A payment stablecoin 
        issuer is subject to the same restrictions on transactions with 
        affiliates, to the same extent and subject to the same 
        exceptions and exemptions as a member bank under sections 23A 
        and 23B of the Federal Reserve Act (12 U.S.C. 371c, 371c-1).
    (e) Approval of Mergers and Acquisitions.--
            (1) In general.--No person may obtain a controlling 
        interest in a payment stablecoin issuer that is not subject to 
        section (a) without the approval of the Board and the 
        Comptroller or State bank supervisor, as applicable.
            (2) Rules.--The Board, in consultation with the Comptroller 
        and State bank supervisors, shall adopt rules to implement 
        paragraph (1) that, consistent with this section, shall be as 
        close as practicable to the process used by an appropriate 
        Federal banking agency (as defined in section 3(q) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1813(q))) in 
        evaluating and approving a change of control of an insured 
        depository institution under section 7(j) of such Act (12 
        U.S.C. 1817(j)).
            (3) Scope of rules.--Criteria for approval under the rules 
        adopted pursuant to paragraph (2) shall be exclusively limited 
        to the safety and soundness of the depository institution that 
        issues a payment stablecoin.

SEC. 6. ISSUANCE OF PAYMENT STABLECOINS BY NON-DEPOSITORY TRUST 
              COMPANIES.

    (a) In General.--
            (1) In general.--A non-depository trust company may issue 
        and redeem payment stablecoins and conduct other activities in 
        accordance with this section and section 4(g) if the value of 
        all outstanding payment stablecoins in total does not exceed 
        $10,000,000,000, as adjusted under section 3(b).
            (2) Issuance threshold exceeded.--If a non-depository trust 
        company exceeds the threshold described in paragraph (1), the 
        non-depository trust company shall, not later than 180 days 
        after exceeding the threshold--
                    (A) consistent with subsection (k), file a 
                completed application with the Comptroller or State 
                bank supervisor, as applicable, to convert to a 
                depository institution charter under section 7 and be 
                approved as provided in that section; or
                    (B) in consultation with the State bank supervisor, 
                implement a plan to appropriately limit activities 
                below the threshold, consistent with the safety and 
                soundness of the non-depository trust company and 
                customer protection.
    (b) Authorization To Issue Payment Stablecoin.--
            (1) Application.--
                    (A) In general.--A non-depository trust company 
                shall submit to a State bank supervisor, separately or 
                as part of a charter application, an application for 
                authorization to issue payment stablecoins.
                    (B) Standards for evaluation.--The State bank 
                supervisor may consult with the Board with respect to 
                the following exclusive set of standards prior to 
                approving an application under subparagraph (A):
                            (i) The ability of the applicant to 
                        maintain required reserves backing the payment 
                        stablecoins.
                            (ii) The financial resources, managerial or 
                        technical expertise, and governance of the 
                        applicant.
                            (iii) The benefit to the public, including 
                        relating to innovation and competition.
                            (iv) The stability of the financial system 
                        of the United States.
            (2) Registration.--
                    (A) Deadline.--
                            (i) In general.--Not later than 180 days 
                        after the approval of an application under 
                        paragraph (1), a non-depository trust company 
                        shall register with the Board by submitting to 
                        the Board a complete registration statement.
                            (ii) Extension.--The Board may extend the 
                        deadline under clause (i) by an additional 180 
                        days, if the Board determines appropriate.
                    (B) Contents of a complete registration 
                statement.--
                            (i) Rules required.--Consistent with 
                        section 15 of this Act, the Board, in 
                        consultation with State bank supervisors, shall 
                        issue rules describing the content, documents, 
                        and materials required to be submitted to the 
                        Board that constitute a complete registration 
                        statement, which shall include materials 
                        required to be filed in an application to 
                        comply with the standards under paragraph 
                        (1)(B).
                            (ii) Completeness.--If the State bank 
                        supervisor determines that an applicant has 
                        submitted all of the materials required under 
                        this subparagraph, the registration shall be 
                        deemed complete.
            (3) Authorization to issue payment stablecoins.--
                    (A) Effective date.--
                            (i) In general.--An approval of an 
                        application under paragraph (1) shall be deemed 
                        effective on the date that is 90 days after the 
                        date the applicant submits a complete 
                        registration statement to the Board under 
                        paragraph (2), unless the Board, by a vote of 
                        \2/3\ of all members, votes to deny the 
                        application by written order explaining the 
                        reasons for denial.
                            (ii) Extension.--Upon the request of an 
                        applicant, the Board may extend the effective 
                        date under clause (i).
                    (B) Issue prohibited before effective date.--A non-
                depository trust company may not issue payment 
                stablecoins before the effective date under 
                subparagraph (A).
            (4) Request for additional information.--Nothing in this 
        subsection shall be construed as prohibiting the Board from 
        requesting further information from an applicant, but any 
        request by the Board for further information from an applicant 
        shall not affect the status of the registration statement as 
        complete, as provided under paragraph (2)(B)(ii).
            (5) Public availability of filings.--The Board shall make 
        each registration statement filed with the Board under this 
        section available to the public on the website of the Board.
            (6) Consultation.--The Board shall consult with the 
        applicable State bank supervisor relating to a non-depository 
        trust company registration under this section, which may 
        include sharing materials submitted as part of the application 
        to issue a payment stablecoin.
    (c) Supervision, Regulation, and Enforcement.--
            (1) Supervision authority.--Upon the filing of a complete 
        registration statement with the Board, a non-depository trust 
        company shall be subject to supervision by the State bank 
        supervisor, and the Board and State bank supervisor shall have 
        enforcement authority as provided in section 11.
            (2) Regular examinations.--The applicable State bank 
        supervisor shall make regular examinations of a non-depository 
        trust company authorized to issue a payment stablecoin under 
        this section on a regular basis in order to inform such State 
        bank supervisor of--
                    (A) the nature of the operations and financial 
                condition of the non-depository trust company and any 
                affiliates;
                    (B) the financial, operational, and other risks 
                within the non-depository trust company that may pose a 
                threat to--
                            (i) the safety and soundness of the non-
                        depository trust company; or
                            (ii) the stability of the financial system 
                        of the United States; and
                    (C) the systems of the non-depository trust company 
                for monitoring and controlling the risks described in 
                subparagraph (B).
    (d) Submission of Reports.--At the frequency established by rule of 
the Board, in consultation with State bank supervisors, each non-
depository trust company subject to this section shall submit a report 
of condition under oath to the applicable State bank supervisor 
relating to--
            (1) the financial condition and status of systems for 
        monitoring and controlling financial and operating risks of the 
        non-depository trust company; and
            (2) compliance by the non-depository trust company, and any 
        subsidiary thereof, with this Act and other applicable laws.
    (e) Existing Reports and Examinations.--
            (1) In general.--In supervising a non-depository trust 
        company under this section, a State bank supervisor shall, to 
        the fullest extent possible, use existing reports and other 
        supervisory information and avoid duplication of examination 
        activities, reporting requirements, and requests for 
        information.
            (2) Reports to the board.--Each State bank supervisor shall 
        promptly provide to the Board all reports under subsection (d) 
        and reports of examinations under this section.
    (f) Reserve Requirements.--
            (1) In general.--A non-depository trust company that issues 
        a payment stablecoin under this section shall maintain reserves 
        of not less than 100 percent of the nominal value of all 
        outstanding payment stablecoins issued by the non-depository 
        trust company, as of the end of each business day. A non-
        depository trust company may maintain reserves comprised of--
                    (A) United States coins, currency, or other 
                instrument that is legal tender described in section 
                5103 of title 31, United States Code;
                    (B) demand deposits at a depository institution, 
                except that deposits in an insured depository 
                institution shall not exceed the limit of deposit or 
                share insurance available for that account;
                    (C) United States Treasury bills, bonds, or notes 
                with a maturity date of 90 days or less from the date 
                of purchase; and
                    (D) repurchase agreements, with a maturity date of 
                7 days or less, that are backed by United States 
                Treasury bills with a maturity date of 1 year or less 
                from the date of the repurchase agreement.
    (g) Custody.--A non-depository trust company shall be the legal 
custodian of required payment stablecoin reserves under subsection (f), 
but the non-depository trust company shall use a depository institution 
as subcustodian to provide for the safekeeping of reserves.
    (h) Relation to Gramm-Leach-Bliley Act.--A non-depository trust 
company that issues a payment stablecoin under this section shall be 
deemed to be a financial institution for the purposes of title V of the 
Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.).
    (i) Rules.--
            (1) In general.--The Board, in consultation with the State 
        bank supervisors and the Financial Crimes Enforcement Network, 
        shall adopt rules to implement this section, including--
                    (A) a simplified capital treatment for non-
                depository trust companies under this section, which 
                shall be exceed the greater of the projected 
                receivership costs of the non-depository trust company 
                or the projected costs of operation of the non-
                depository trust company over a 3-year period;
                    (B) appropriate liquidity, interest rate, and risk 
                management standards commensurate with the size of a 
                non-depository trust company;
                    (C) management practices with respect to required 
                payment stablecoin assets;
                    (D) appropriate operational, compliance, and 
                information technology risk management, including Bank 
                Secrecy Act and sanctions compliance; and
                    (E) other rules required by this section.
            (2) Significant differences.--In determining capital 
        requirements applicable to a non-depository trust company that 
        has no material assets other than required payment stablecoin 
        assets under this section--
                    (A) the non-depository trust company shall not be 
                subject to requirements similar to section 171 of the 
                Financial Stability Act of 2010 (12 U.S.C. 5371); and
                    (B) State bank supervisors and the Board shall take 
                into account the limited risks of the assets of the 
                non-depository trust company.
    (j) Rules of Construction.--Nothing in this section may be 
construed as--
            (1) preventing a State bank supervisor from imposing 
        additional or more strict regulatory standards on a non-
        depository trust company for issuing payment stablecoins; or
            (2) affecting existing State laws governing interstate 
        trust company business or permitting non-depository trust 
        companies to conduct payment stablecoin activities on an 
        interstate basis which are inconsistent with State laws 
        governing interstate trust company business.
    (k) Planning for Conversion.--Not later than 180 days after the 
date that the nominal value of all outstanding payment stablecoins 
issued by a non-depository trust company first exceeds $9,000,000,000, 
as adjusted under section 3(b), at the end of a business day, the non-
depository trust company shall, in consultation with the applicable 
State bank supervisor, develop a plan for the conversion of the non-
depository trust company into a depository institution under section 7, 
which may include capital planning, management planning, and third-
party vendor management.
    (l) Existing Non-Depository Trust Companies.--A non-depository 
trust company shall only conduct payment stablecoin activities 
specified under this Act within the trust company.

SEC. 7. ISSUANCE OF PAYMENT STABLECOINS BY DEPOSITORY INSTITUTIONS.

    (a) In General.--
            (1) In general.--A depository institution may issue and 
        redeem payment stablecoins and conduct other activities in 
        accordance with this section and section 4(g).
            (2) Charter of depository institutions.--
                    (A) In general.--An insured depository institution 
                or bank holding company shall charter a separate 
                depository institution to issue a payment stablecoin.
                    (B) Threshold.--A payment stablecoin issuer with 
                the nominal value of all outstanding units of the 
                stablecoin which exceeds $10,000,000,000 (as adjusted 
                under section 3(b)) shall be a depository institution 
                under this section, but nothing shall be construed as 
                prohibiting a payment stablecoin issuer with less than 
                $10,000,000,000 of nominal value of outstanding payment 
                stablecoins from obtaining a depository institution 
                charter under this section.
    (b) Authorization To Issue Payment Stablecoin.--
            (1) Application.--
                    (A) Application to chartering authority.--A 
                depository institution shall submit, separately or as 
                part of a charter application, to the Comptroller or a 
                State bank supervisor, as applicable, an application 
                for authorization to issue payment stablecoins.
                    (B) Application to board as national payment 
                stablecoin issuer.--At the same time as the filing of 
                an application under paragraph (1), a depository 
                institution shall submit to the Board an application 
                for authorization as a national payment stablecoin 
                issuer.
            (2) Standards for approval.--The following exclusive set of 
        standards shall govern the decision of the Comptroller or State 
        bank supervisor, as applicable, with respect to an application 
        under paragraph (1):
                    (A) The ability of the applicant to maintain 
                required reserves backing the payment stablecoins 
                required under this section.
                    (B) The financial resources, managerial or 
                technical expertise, and governance of the applicant, 
                including risk management and compliance.
                    (C) The benefit to the public, including relating 
                to innovation and competition.
                    (D) The stability of the financial system of the 
                United States.
            (3) Application contents.--
                    (A) Rules required.--Not later than 180 days after 
                the date of enactment of this Act, the Board, in 
                consultation with the Comptroller and State bank 
                supervisors, shall issue rules describing the content, 
                documents, and materials required to be submitted to 
                the Board that constitute a complete application, which 
                shall include--
                            (i) a tailored recovery and resolution 
                        plan, consistent with the standards adopted 
                        under subsection (h)(1)(E), that would permit 
                        the orderly resumption of a safe and sound 
                        operation or the orderly wind-down of 
                        operations in the event of distress, including 
                        the redemption of all outstanding payment 
                        stablecoins;
                            (ii) a draft customer agreement;
                            (iii) a flow of funds explanation;
                            (iv) an information technology operations 
                        and security plan; and
                            (v) all materials required to comply with 
                        the standards under paragraph (2).
                    (B) Completeness.--If the Comptroller or State bank 
                supervisor, as applicable, determines that an applicant 
                has submitted all of the materials required under this 
                paragraph, the application shall be deemed complete.
            (4) Public notice.--
                    (A) In general.--The Board shall provide a copy of 
                each application under this section to the public (with 
                any confidential information redacted) and provide for 
                a 60-day public comment period during which the public 
                may submit written comments on the application.
                    (B) Exception.--The Board may waive the public 
                comment requirement under subparagraph (A) if the Board 
                determines that it must act immediately to prevent the 
                failure of a depository institution or the probable 
                failure of an affiliate of the institution.
            (5) Written decision.--
                    (A) In general.--Not later than 180 days after 
                receiving a complete application pursuant to paragraph 
                (3), the Board shall render a written decision to 
                approve or deny the national payment stablecoin issuer 
                application under paragraph (1), with appropriate 
                findings, and the Comptroller or State bank supervisor 
                shall render a decision on the charter application as 
                otherwise provided by Federal or State law.
                    (B) Approval by majority vote.--The Board shall not 
                approve an application under paragraph (1) unless a 
                majority of its members vote to approve.
                    (C) Extension.--Upon the request of an applicant, 
                the Board may extend the decision deadline of the Board 
                under subparagraph (A).
            (6) Requests for additional information.--Nothing in this 
        subsection shall be construed as prohibiting the Board from 
        requesting further information from an applicant, but any 
        request by the Board for further information from an applicant 
        shall not affect the status of the application as complete, as 
        provided under paragraph (3)(B).
    (c) Supervision.--Upon authorization as a national payment 
stablecoin issuer under this section, a depository institution shall be 
subject to prudential supervision and regulation by the Comptroller or 
State bank supervisor, as applicable, and the Board, as specified under 
this Act.
    (d) Required Payment Stablecoin Assets.--
            (1) In general.--A depository institution that issues a 
        payment stablecoin under this section shall maintain reserves 
        of not less than 100 percent of the nominal value of all 
        outstanding payment stablecoins, as of the end of each business 
        day.
            (2) Composition of reserves.--A depository institution may 
        maintain reserves comprised of--
                    (A) United States coins, currency, or other 
                instrument that is legal tender described in section 
                5103 of title 31, United States Code;
                    (B) demand deposits at a depository institution, 
                except that deposits in an insured depository 
                institution shall not exceed the limit of deposit or 
                share insurance available for that account;
                    (C) balances held at a Federal Reserve bank;
                    (D) United States Treasury bills, notes, or bonds 
                with a maturity date of 90 days or less after the date 
                of purchase; and
                    (E) repurchase agreements with a maturity date of 7 
                days or less, that are backed by United States Treasury 
                bills with a maturity date of 1 year or less from the 
                date of the repurchase agreement.
    (e) Call Report.--As applicable, the Comptroller or State bank 
supervisor and the Board shall require a depository institution that 
issues a payment stablecoin to report, in detail, on the composition of 
the assets and liabilities in each periodic report of condition, or in 
an alternative format approved by the Federal Financial Institutions 
Examination Council, at the frequency otherwise required by law for 
depository institutions.
    (f) Examinations.--
            (1) Use of existing reports.--In supervising a depository 
        institution under this section, the Comptroller or State bank 
        supervisor, as applicable, and the Board shall, to the fullest 
        extent possible, use existing reports and other supervisory 
        information and avoid duplication of examination activities, 
        reporting requirements, and requests for information.
            (2) Regular examinations.--The Comptroller or State bank 
        supervisor, as applicable, and the Board shall make regular 
        examinations of a depository institution under this section on 
        a regular basis in order to inform the Comptroller or State 
        bank supervisor, as applicable, and the Board of--
                    (A) the nature of the operations and financial 
                condition of the depository institution and any 
                affiliates;
                    (B) the financial, operational, and other risks 
                within the depository institution that may pose a 
                threat to--
                            (i) the safety and soundness of the 
                        depository institution; or
                            (ii) the stability of the financial system 
                        of the United States; and
                    (C) the systems of the depository institution for 
                monitoring and controlling the risks described in 
                subparagraph (B).
    (g) Relation to Gramm-Leach-Bliley Act.--A depository institution 
that issues a payment stablecoin under this section shall be deemed to 
be a financial institution for the purposes of title V of the Gramm-
Leach-Bliley Act (15 U.S.C. 6801 et seq.).
    (h) Rules.--
            (1) In general.--The Board, in consultation with the 
        Comptroller, State bank supervisors, and the Financial Crimes 
        Enforcement Network, shall adopt rules to implement this 
        section, including--
                    (A) capital treatment for depository institutions 
                under this section, which shall be not greater than the 
                total sum of--
                            (i) the greater of--
                                    (I) projected receivership costs; 
                                or
                                    (II) projected costs of operation 
                                over a 3-year period; and
                            (ii) the sum of--
                                    (I) operational risk, as provided 
                                under paragraph (2)(C); and
                                    (II) collateral reasonably needed 
                                to address payment system risk;
                    (B) managing liquidity, leverage, and market and 
                interest rate risk;
                    (C) management practices with respect to required 
                payment stablecoin assets;
                    (D) appropriate operational, compliance, and 
                information technology risk management, including Bank 
                Secrecy Act and sanctions compliance;
                    (E) tailored recovery and resolution standards 
                relating to payment stablecoins; and
                    (F) third-party risk management, including 
                appropriate governance of relationships with crypto 
                asset exchanges.
            (2) Significant differences.--In determining capital 
        requirements applicable to a depository institution that has no 
        material assets other than required payment stablecoin assets 
        under this section--
                    (A) the depository institution shall not be subject 
                to section 171 of the Financial Stability Act of 2010 
                (12 U.S.C. 5371);
                    (B) the Board, in consultation with the Comptroller 
                and State bank supervisors, shall take into account the 
                significant differences between the risks of the assets 
                of the institution and those of depository institutions 
                with assets that consist primarily of commercial or 
                consumer loans; and
                    (C) assessment of operational risk shall occur 
                commensurate with the size and complexity of the 
                depository institution.
    (i) Rules of Construction.--Nothing in this Act may be construed 
as--
            (1) preventing the Comptroller or a State bank supervisor 
        which charters a depository institution from imposing 
        additional or more strict regulatory standards on the 
        institution for issuing payment stablecoins;
            (2) making inapplicable the provisions of section 24(j) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1831a(j)) to a 
        depository institution, including the ability of a depository 
        institution to operate under home State law on an interstate 
        basis without further licensure, registration, or 
        authorization, as provided in that Act; or
            (3) requiring a depository institution to obtain deposit 
        insurance to issue a payment stablecoin under this section or 
        to conduct incidental activities under this section.
    (j) Conversion of a Non-Depository Trust Company Payment Stablecoin 
Issuer.--Not later than 2 years after the date of enactment of this 
Act, the Board, in consultation with the Comptroller and State bank 
supervisors, shall issue rules--
            (1) establishing a process for a non-depository trust 
        company registered under section 6 to convert to a depository 
        institution under this section;
            (2) setting forth an expedited process for approval that is 
        consistent with this section; and
            (3) providing for the implementation of the plan required 
        to be developed under subsection (l) of section 6 of this Act.
    (k) Existing Holding Companies and Depository Institutions.--A bank 
holding company or insured depository institution shall only conduct 
payment stablecoin activities authorized by this Act within a 
depository institution subsidiary of the insured depository institution 
or a bank holding company.

SEC. 8. CERTIFICATE OF AUTHORITY TO COMMENCE BANKING FOR CERTAIN 
              NATIONAL ASSOCIATIONS.

    Section 5169 of the Revised Statutes (12 U.S.C. 27) is amended--
            (1) in subsection (a), in the third sentence, by striking 
        ``to those of a non-depository trust company and activities 
        related thereto.'' and inserting ``to--
            ``(1) those of a non-depository trust company and fiduciary 
        activities related thereto; or
            ``(2) those of a depository institution for the purposes of 
        issuing a payment stablecoin and activities related thereto as 
        a national payment stablecoin issuer under section 7 of the 
        Lummis-Gillibrand Payment Stablecoin Act.''; and
            (2) by adding at the end the following:
    ``(c) The Comptroller may, by rule, establish assessments 
depository institutions engaged in issuing payment stablecoins.''.

SEC. 9. APPOINTMENT OF FDIC AS CONSERVATOR OR RECEIVER OF PAYMENT 
              STABLECOIN ISSUERS.

    (a) Definition.--As used in this section, the term ``customer'' 
means a person, or authorized representative of the person, that--
            (1) utilized or is utilizing any service of a payment 
        stablecoin issuer with respect to an account in the name of the 
        person maintained by the payment stablecoin issuer; or
            (2) is in possession or control of a payment stablecoin 
        issued by a payment stablecoin issuer for which the payment 
        stablecoin issuer for which an open account with the issuer is 
        needed to redeem the payment stablecoin.
    (b) Funding.--
            (1) In general.--A payment stablecoin issuer shall not be 
        charged deposit insurance premiums for the purposes of this 
        section, but the Federal Deposit Insurance Corporation (in this 
        section referred to as the ``Corporation'') may use the capital 
        of the payment stablecoin issuer and any returns on required 
        payment stablecoin reserves to fund the costs of a receivership 
        or conservatorship.
            (2) Limitation.--The Corporation shall not exercise 
        borrowing authority under section 14 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1824) related to a receivership or 
        conservatorship under this section.
    (c) Liquidation as Closing of Payment Stablecoin Issuer.--For the 
purposes of this section, a payment stablecoin issuer shall be deemed 
to have been closed on account or inability to meet the demands of its 
customers in any case in which it has been closed for the purpose of 
liquidation without adequate provision being made for payment of its 
customers.
    (d) Appointment of Corporation as Conservator or Receiver.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, the law of any State, or the constitution of any 
        State, the Corporation may accept appointment and act as 
        conservator or receiver for a payment stablecoin issuer upon 
        appointment in the manner provided in paragraph (2) or (3).
            (2) OCC depository institutions.--
                    (A) Appointment.--
                            (i) Conservator.--The Corporation may, at 
                        the discretion of the Comptroller, be appointed 
                        conservator of a payment stablecoin issuer 
                        which is a depository institution chartered by 
                        the Comptroller and the Corporation may accept 
                        such appointment.
                            (ii) Receiver.--The Corporation shall be 
                        appointed receiver, and shall accept such 
                        appointment, whenever a receiver is appointed 
                        for the purpose of liquidation or winding up 
                        the affairs of a payment stablecoin issuer 
                        which is a depository institution chartered by 
                        the Comptroller, notwithstanding any other 
                        provision of Federal law.
                    (B) Additional powers.--In addition to and not in 
                derogation of the powers conferred and the duties 
                imposed by this section on the Corporation as 
                conservator or receiver, the Corporation, to the extent 
                not inconsistent with such powers and duties, shall 
                have any other power conferred on or any duty (which is 
                related to the exercise of such power) imposed on a 
                conservator or receiver for any Federal depository 
                institution under any other provision of law.
                    (C) Corporation not subject to any other agency.--
                When acting as conservator or receiver pursuant to an 
                appointment described in subparagraph (A), the 
                Corporation shall not be subject to the direction or 
                supervision of any other agency or department of the 
                United States or any State in the exercise of the 
                Corporation's rights, powers, and privileges.
                    (D) Depository institution in conservatorship 
                subject to banking agency supervision.--Notwithstanding 
                subparagraph (C), a payment stablecoin issuer which is 
                a depository institution chartered by the Comptroller 
                for which the Corporation has been appointed 
                conservator shall remain subject to the supervision of 
                the Comptroller.
            (3) State-chartered payment stablecoin issuers.--
                    (A) Appointment by state bank supervisor.--Whenever 
                a State bank supervisor appoints a conservator or 
                receiver for such institution and tenders appointment 
                to the Corporation, the Corporation may accept such 
                appointment.
                    (B) Additional powers.--In addition to the powers 
                conferred and the duties related to the exercise of 
                such powers imposed by State law on any conservator or 
                receiver appointed under the law of such State, the 
                Corporation, as conservator or receiver pursuant to an 
                appointment described in subparagraph (A), shall have 
                the powers conferred and the duties imposed by this 
                section on the Corporation as conservator or receiver.
                    (C) Corporation not subject to any other agency.--
                When acting as conservator or receiver pursuant to an 
                appointment described in subparagraph (A), the 
                Corporation shall not be subject to the direction or 
                supervision of any other agency or department of the 
                United States or any State in the agency or department 
                of the United States or any State in the exercise of 
                its rights, powers, and privileges.
                    (D) Issuer in conservatorship subject to banking 
                agency supervision.--Notwithstanding subparagraph (C), 
                a State-chartered payment stablecoin issuer for which 
                the Corporation has been appointed conservator shall 
                remain subject to the supervision of the State bank 
                supervisor.
            (4) Grounds for appointing conservator or receiver.--The 
        grounds for appointing a conservator or receiver (which may be 
        the Corporation) for a payment stablecoin issuer are as 
        follows:
                    (A) Assets insufficient for obligations.--The 
                issuer's assets are less than the issuer's obligations 
                to its creditors and others.
                    (B) Substantial dissipation.--Substantial 
                dissipation of assets or earnings due to--
                            (i) any violation of any statute or 
                        regulation; or
                            (ii) any unsafe or unsound practice.
                    (C) Unsafe or unsound condition.--An unsafe or 
                unsound condition to transact business.
                    (D) Cease and desist orders.--Any willful violation 
                of a cease and desist order which has become final.
                    (E) Concealment.--Any concealment of the 
                institution's books, papers, records, or assets, or any 
                refusal to submit the institution's books, papers, 
                records, or affairs for inspection to any examiner or 
                to any lawful agent of the Comptroller, State bank 
                supervisor, or the Board.
                    (F) Inability to meet obligations.--The issuer is 
                likely to be unable to pay its obligations or meet its 
                customers' demands in the normal course of business.
                    (G) Losses.--The issuer has incurred or is likely 
                to incur losses that will deplete all or substantially 
                all of its capital, and there is no reasonable prospect 
                for the institution to come into compliance with 
                capital requirements specified under this Act, 
                consistent with Board regulation.
                    (H) Violations of law.--Any violation of any law or 
                regulation, or any unsafe or unsound practice or 
                condition that is likely to--
                            (i) cause insolvency or substantial 
                        dissipation of assets or earnings;
                            (ii) weaken the issuer's condition; or
                            (iii) otherwise seriously prejudice the 
                        interests of the institution's customers.
                    (I) Consent.--The issuer, by resolution of its 
                board of directors or its shareholders or members, 
                consents to the appointment.
                    (J) Undercapitalization of institution.--The 
                institution is undercapitalized as specified by Board 
                rule, and--
                            (i) has no reasonable prospect of becoming 
                        adequately capitalized (as defined by Board 
                        rule);
                            (ii) fails to become adequately capitalized 
                        when required to do so;
                            (iii) fails to submit a capital restoration 
                        plan; or
                            (iv) materially fails to implement a 
                        capital restoration plan.
                    (K) Undercapitalization of issuer.--The issuer--
                            (i) is critically undercapitalized, as 
                        defined by Board rule; or
                            (ii) otherwise has substantially 
                        insufficient capital.
                    (L) Money laundering offense.--The Attorney General 
                notifies the Board, Comptroller, or State bank 
                supervisor, as applicable, or the Corporation in 
                writing that the payment stablecoin issuer has been 
                found guilty of a criminal offense under section 1956 
                or 1957 of title 18, United States Code, or section 
                5322 or 5324 of title 31, United States Code.
            (5) Directors not liable for acquiescing in appointment of 
        conservator or receiver.--The members of the board of directors 
        of a payment stablecoin issuer shall not be liable to the 
        issuer's shareholders or creditors for acquiescing in or 
        consenting in good faith to--
                    (A) the appointment of the Corporation as 
                conservator or receiver for that issuer; or
                    (B) an acquisition or combination in which the 
                Corporation requires the issuer to be acquired or 
                combined with another payment stablecoin issuer.
    (e) Powers and Duties of Corporation as Conservator or Receiver.--
            (1) Rulemaking authority of corporation.--The Corporation 
        may prescribe such regulations as the Corporation determines to 
        be appropriate regarding the conduct of conservatorships or 
        receiverships of payment stablecoin issuers, in consultation 
        with the Comptroller, State bank supervisors, and the Board.
            (2) General powers.--
                    (A) Successor to institution.--The Corporation 
                shall, as conservator or receiver, and by operation of 
                law, succeed to--
                            (i) all rights, titles, powers, and 
                        privileges of the payment stablecoin issuer, 
                        and of any stockholder, member, accountholder, 
                        depositor, officer, or director of such issuer 
                        with respect to the issuer and the assets of 
                        the issuer; and
                            (ii) title to the books, records, and 
                        assets of any previous conservator or other 
                        legal custodian of such institution.
                    (B) Operate the institution.--The Corporation may, 
                as conservator or receiver--
                            (i) take over the assets of and operate the 
                        payment stablecoin issuer with all the powers 
                        of the members or shareholders, the directors, 
                        and the officers of the issuer and conduct all 
                        business of the issuer;
                            (ii) collect all obligations and money due 
                        to the institution;
                            (iii) perform all functions of the issuer 
                        in the name of the issuer which are consistent 
                        with the appointment as conservator or 
                        receiver; and
                            (iv) preserve and conserve the assets and 
                        property of the issuer.
                    (C) Functions of issuer's officers, directors, and 
                shareholders.--The Corporation may, by regulation or 
                order, provide for the exercise of any function by any 
                member or stockholder, director, or officer of any 
                payment stablecoin issuer for which the Corporation has 
                been appointed conservator or receiver.
                    (D) Powers as conservator.--The Corporation may, as 
                conservator, take such action as may be--
                            (i) necessary to put the payment stablecoin 
                        issuer in a sound and solvent condition; and
                            (ii) appropriate to carry on the business 
                        of the issuer and preserve and conserve the 
                        assets and property of the issuer.
                    (E) Additional powers as receiver.--The Corporation 
                may, as receiver, place the payment stablecoin issuer 
                in liquidation and proceed to realize upon the assets 
                of the issuer, having due regard to the conditions of 
                credit in the locality.
                    (F) Organization of new institutions.--The 
                Corporation may, as receiver, with respect to any 
                payment stablecoin issuer, organize a bridge payment 
                stablecoin issuer under subsection (m).
                    (G) Merger; transfer of assets and liabilities.--
                            (i) In general.--The Corporation may, as 
                        conservator or receiver--
                                    (I) merge the payment stablecoin 
                                issuer with another payment stablecoin 
                                issuer; or
                                    (II) subject to clause (ii), 
                                transfer any asset or liability of the 
                                issuer in default without any approval, 
                                assignment, or consent with respect to 
                                such transfer.
                            (ii) Approval by appropriate regulator.--No 
                        transfer described in clause (i)(II) may be 
                        made to a payment stablecoin issuer or without 
                        the approval of the appropriate payment 
                        stablecoin regulator for such issuer.
                    (H) Payment of valid obligations.--The Corporation, 
                as conservator or receiver, shall pay all valid 
                obligations of the payment stablecoin issuer, as 
                determined by the Corporation.
                    (I) Subpoena authority.--
                            (i) In general.--The Corporation may, as 
                        conservator, receiver, or exclusive manager and 
                        for purposes of carrying out any power, 
                        authority, or duty with respect to a payment 
                        stablecoin issuer (including determining any 
                        claim against the issuer and determining and 
                        realizing upon any asset of any person in the 
                        course of collecting money due the issuer), 
                        exercise any power established under section 
                        8(n) of the Federal Deposit Insurance Act (12 
                        U.S.C. 1818(n)) and the provisions of such 
                        section shall apply with respect to the 
                        exercise of any such power under this 
                        subparagraph in the same manner as such 
                        provisions apply under such section.
                            (ii) Authority of board of directors.--A 
                        subpoena or subpoena duces tecum may be issued 
                        under clause (i) only by, or with the written 
                        approval of, the Board of Directors of the 
                        Corporation or their designees.
                            (iii) Rule of construction.--This 
                        subsection shall not be construed as limiting 
                        any rights that the Corporation, in any 
                        capacity, may otherwise have under section 
                        10(c) of the Federal Deposit Insurance Act (12 
                        U.S.C. 1820(c)).
                    (J) Incidental powers.--The Corporation may, as 
                conservator or receiver--
                            (i) exercise all powers and authorities 
                        necessary to conduct the conservatorship or 
                        receivership, respectively, and such incidental 
                        powers as shall be necessary to carry out such 
                        powers; and
                            (ii) take any action authorized by this 
                        section, which the Corporation determines is in 
                        the best interests of the payment stablecoin 
                        issuer, its customers, or the Corporation.
                    (K) Utilization of private sector.--In carrying out 
                its responsibilities in the management and disposition 
                of assets from payment stablecoin issuers, as 
                conservator, receiver, or in its corporate capacity, 
                the Corporation shall utilize the services of private 
                persons, including property management, auction 
                marketing, legal, and brokerage services, only if such 
                services are available in the private sector and the 
                Corporation determines utilization of such services is 
                the most practicable, efficient, and cost effective.
            (3) Authority of receiver to determine claims.--
                    (A) In general.--The Corporation may, as receiver, 
                determine claims in accordance with the requirements of 
                this subsection and regulations prescribed under 
                paragraph (4).
                    (B) Notice requirements.--The Corporation, as 
                receiver, in any case involving the liquidation or 
                winding up of the affairs of a closed payment 
                stablecoin issuer, shall--
                            (i) promptly publish a notice to the 
                        payment stablecoin issuer's creditors to 
                        present their claims, together with proof, to 
                        the receiver by a date specified in the notice 
                        which shall be not less than 90 days after the 
                        publication of such notice; and
                            (ii) republish such notice approximately 1 
                        month and 2 months, respectively, after the 
                        publication under clause (i).
                    (C) Mailing required.--The Corporation, as 
                receiver, shall mail a notice similar to the notice 
                published under subparagraph (B)(i) at the time of such 
                publication to any creditor shown on the issuer's 
                books--
                            (i) at the creditor's last address 
                        appearing in such books; or
                            (ii) upon discovery of the name and address 
                        of a claimant not appearing on the issuer's 
                        books within 30 days after the discovery of 
                        such name and address.
            (4) Rulemaking authority relating to determination of 
        claims.--
                    (A) In general.--The Corporation may prescribe 
                regulations regarding the allowance or disallowance of 
                claims by the Corporation, as receiver, and providing 
                for administrative determination of claims and review 
                of such determination.
                    (B) Final settlement payment procedure.--In the 
                handling of receiverships of payment stablecoin 
                issuers, to maintain essential liquidity and to prevent 
                financial disruption, the Corporation may, after the 
                declaration of an issuer's insolvency, settle all 
                unsecured claims on the receivership with a final 
                settlement payment which shall constitute full payment 
                and disposition of the Corporation's obligations to 
                such claimants.
            (5) Procedures for determination of claims.--
                    (A) Determination period.--
                            (i) In general.--Before the end of the 180-
                        day period beginning on the date any claim 
                        against a payment stablecoin issuer is filed 
                        with the Corporation as receiver, the 
                        Corporation shall determine whether to allow or 
                        disallow the claim and shall notify the 
                        claimant of any determination with respect to 
                        such claim.
                            (ii) Extension of time.--The period 
                        described in clause (i) may be extended by a 
                        written agreement between the claimant and the 
                        Corporation.
                            (iii) Mailing of notice sufficient.--The 
                        requirements of clause (i) shall be deemed to 
                        be satisfied if the notice of any determination 
                        with respect to any claim is mailed to the last 
                        address of the claimant which appears--
                                    (I) on the payment stablecoin 
                                issuer's books;
                                    (II) in the claim filed by the 
                                claimant; or
                                    (III) in documents submitted in 
                                proof of the claim.
                            (iv) Contents of notice of disallowance.--
                        If any claim filed under clause (i) is 
                        disallowed, the notice to the claimant shall 
                        contain--
                                    (I) a statement of each reason for 
                                the disallowance; and
                                    (II) the procedures available for 
                                obtaining agency review of the 
                                determination to disallow the claim or 
                                judicial determination of the claim.
                    (B) Allowance of proven claims.--The Corporation, 
                as receiver, shall allow any claim received on or 
                before the date specified in the notice published under 
                paragraph (3)(B)(i) by the receiver from any claimant 
                which is proved to the satisfaction of the receiver.
                    (C) Disallowance of claims filed after end of 
                filing period.--
                            (i) In general.--Except as provided in 
                        clause (ii), claims filed after the date 
                        specified in the notice published under 
                        paragraph (3)(B)(i) shall be disallowed and 
                        such disallowance shall be final.
                            (ii) Certain exceptions.--Clause (i) shall 
                        not apply with respect to any claim filed by 
                        any claimant after the date specified in the 
                        notice published under paragraph (3)(B)(i) and 
                        such claim may be considered by the 
                        Corporation, as receiver, if--
                                    (I) the claimant did not receive 
                                notice of the appointment of the 
                                receiver in time to file such claim 
                                before such date; and
                                    (II) such claim is filed in time to 
                                permit payment of such claim.
                    (D) Authority to disallow claims.--
                            (i) In general.--The Corporation, as 
                        receiver, may disallow any portion of any claim 
                        by a creditor or claim of security, preference, 
                        or priority which is not proved to the 
                        satisfaction of the receiver.
                            (ii) Payments to less than fully secured 
                        creditors.--In the case of a claim of a 
                        creditor against a payment stablecoin issuer 
                        which is secured by any property or other asset 
                        of such issuer, the Corporation, as receiver--
                                    (I) may treat the portion of such 
                                claim which exceeds an amount equal to 
                                the fair market value of such property 
                                or other asset as an unsecured claim 
                                against the issuer; and
                                    (II) may not make any payment with 
                                respect to such unsecured portion of 
                                the claim other than in connection with 
                                the disposition of all claims of 
                                unsecured creditors of the issuer.
                    (E) No judicial review of determination.--No court 
                may review the Corporation's determination pursuant to 
                subparagraph (D) to disallow a claim.
                    (F) Legal effect of filing.--
                            (i) Statute of limitations tolled.--For 
                        purposes of any applicable statute of 
                        limitations, the filing of a claim with the 
                        Corporation as receiver shall constitute a 
                        commencement of an action.
                            (ii) No prejudice to other actions.--
                        Subject to paragraph (12), the filing of a 
                        claim with the Corporation as receiver shall 
                        not prejudice any right of the claimant to 
                        continue any action which was filed before the 
                        appointment of the Corporation as receiver.
            (6) Provision for agency review or judicial determination 
        of claims.--
                    (A) In general.--Before the end of the 60-day 
                period beginning on the earlier of--
                            (i) the end of the period described in 
                        paragraph (5)(A)(i) with respect to any claim 
                        against a payment stablecoin issuer for which 
                        the Corporation is receiver; or
                            (ii) the date of any notice of disallowance 
                        of such claim pursuant to paragraph (5)(A)(i),
                the claimant may request administrative review of the 
                claim in accordance with subparagraph (A) or (B) of 
                paragraph (7) or file suit on such claim (or continue 
                an action commenced before the appointment of the 
                Corporation as receiver in the district or territorial 
                court of the United States for the district within 
                which the payment stablecoin issuer's principal place 
                of business is located or the United States District 
                Court for the District of Columbia (and such court 
                shall have jurisdiction to hear such claim).
                    (B) Statute of limitations.--If any claimant fails 
                to--
                            (i) request administrative review of any 
                        claim in accordance with subparagraph (A) or 
                        (B) of paragraph (7); or
                            (ii) file suit on such claim (or continue 
                        an action commenced before the appointment of 
                        the Corporation as receiver),
                before the end of the 60-day period described in 
                subparagraph (A), the claim shall be deemed to be 
                disallowed (other than any portion of such claim which 
                was allowed by the receiver) as of the end of such 
                period, such disallowance shall be final, and the 
                claimant shall have no further rights or remedies with 
                respect to such claim.
            (7) Review of claims.--
                    (A) Administrative hearing.--If any claimant 
                requests review under this subparagraph in lieu of 
                filing or continuing any action under paragraph (6) and 
                the Corporation agrees to such request, the Corporation 
                shall consider the claim after opportunity for a 
                hearing on the record. The final determination of the 
                Corporation with respect to such claim shall be subject 
                to judicial review under chapter 7 of title 5, United 
                States Code.
                    (B) Other review procedures.--
                            (i) In general.--The Corporation shall also 
                        establish such alternative dispute resolution 
                        processes as may be appropriate for the 
                        resolution of claims filed under paragraph 
                        (5)(A)(i).
                            (ii) Criteria.--In establishing alternative 
                        dispute resolution processes under clause (i), 
                        the Corporation shall strive for procedures 
                        which are expeditious, fair, independent, and 
                        low cost.
                            (iii) Voluntary binding or nonbinding 
                        procedures.--The Corporation may establish both 
                        binding and nonbinding processes, which may be 
                        conducted by any government or private party, 
                        but all parties, including the claimant and the 
                        Corporation, shall agree to the use of the 
                        process established under clause (i) in a 
                        particular case.
                            (iv) Consideration of incentives.--The 
                        Corporation shall seek to develop incentives 
                        for claimants to participate in the alternative 
                        dispute resolution process established under 
                        clause (i).
            (8) Expedited determination of claims.--
                    (A) Establishment required.--The Corporation shall 
                establish a procedure for expedited relief outside of 
                the routine claims process established under paragraph 
                (5) for claimants who--
                            (i) allege the existence of legally valid 
                        and enforceable or perfected security interests 
                        in assets of a payment stablecoin issuer for 
                        which the Corporation has been appointed 
                        receiver; and
                            (ii) allege that irreparable injury will 
                        occur if the routine claims procedure is 
                        followed.
                    (B) Determination period.--Before the end of the 
                90-day period beginning on the date any claim is filed 
                in accordance with the procedures established pursuant 
                to subparagraph (A), the Corporation shall--
                            (i) determine--
                                    (I) whether to allow or disallow 
                                such claim; or
                                    (II) whether such claim should be 
                                determined pursuant to the procedures 
                                established pursuant to paragraph (5); 
                                and
                            (ii) notify the claimant of the 
                        determination, and if the claim is disallowed, 
                        provide a statement of each reason for the 
                        disallowance and the procedure for obtaining 
                        agency review or judicial determination.
                    (C) Period for filing or renewing suit.--Any 
                claimant who files a request for expedited relief shall 
                be permitted to file a suit, or to continue a suit 
                filed before the appointment of the receiver, seeking a 
                determination of the claimant's rights with respect to 
                such security interest after the earlier of--
                            (i) the end of the 90-day period beginning 
                        on the date of the filing of a request for 
                        expedited relief; or
                            (ii) the date the Corporation denies the 
                        claim.
                    (D) Statute of limitations.--If an action described 
                in subparagraph (C) is not filed, or the motion to 
                renew a previously filed suit is not made, before the 
                end of the 30-day period beginning on the date on which 
                such action or motion may be filed in accordance with 
                subparagraph (B), the claim shall be deemed to be 
                disallowed as of the end of such period (other than any 
                portion of such claim which was allowed by the 
                receiver), such disallowance shall be final, and the 
                claimant shall have no further rights or remedies with 
                respect to such claim.
                    (E) Legal effect of filing.--
                            (i) Statute of limitations tolled.--For 
                        purposes of any applicable statute of 
                        limitations, the filing of a claim with the 
                        Corporation as receiver shall constitute a 
                        commencement of an action.
                            (ii) No prejudice to other actions.--
                        Subject to paragraph (12), the filing of a 
                        claim with the receiver shall not prejudice any 
                        right of the claimant to continue any action 
                        which was filed before the appointment of the 
                        Corporation as receiver.
            (9) Agreement as basis of claim.--Any agreement which does 
        not meet the requirements set forth in section 13(e) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1823(e)), shall not 
        form the basis of, or substantially comprise, a claim against 
        the Corporation as receiver.
            (10) Payment of claims.--
                    (A) In general.--The Corporation as receiver may, 
                in the discretion of the Corporation and to the extent 
                funds are available, pay creditor claims approved 
                pursuant to a final determination pursuant to paragraph 
                (7) or (8), or determined by the final judgment of any 
                court of competent jurisdiction in such manner and 
                amounts as are authorized under this section.
                    (B) Payment of dividends on claims.--The 
                Corporation, as receiver, may, in the sole discretion 
                of the Corporation, pay dividends on proved claims at 
                any time, and no liability shall attach to the 
                Corporation (in such Corporation's corporate capacity 
                or as receiver), by reason of any such payment, for 
                failure to pay dividends to a claimant whose claim is 
                not proved at the time of any such payment.
                    (C) Rulemaking authority of corporation.--The 
                Corporation may prescribe such rules, including 
                definitions of terms, as it deems appropriate to 
                establish a single uniform interest rate for or to make 
                payments of post insolvency interest to creditors 
                holding proven claims against the receivership estates 
                of payment stablecoin issuers following satisfaction by 
                the Corporation as receiver of the principal amount of 
                all creditor claims.
            (11) Customer preference.--
                    (A) In general.--Subject to section 5(e)(2)(C) of 
                the Federal Deposit Insurance Act (12 U.S.C. 
                1815(e)(2)(C)), amounts realized from the liquidation 
                or other resolution of a payment stablecoin issuer by 
                the Corporation as receiver shall be distributed to pay 
                claims (other than secured claims to the extent of any 
                such security) in the following order of priority:
                            (i) Administrative expenses of the 
                        Corporation as receiver.
                            (ii) Outstanding payment stablecoin 
                        liabilities.
                            (iii) Any other general or senior liability 
                        of the issuer (which is not a liability 
                        described in clause (iv) or (v)).
                            (iv) Any obligation subordinated to payment 
                        stablecoin liabilities or general creditors 
                        (which is not an obligation described in clause 
                        (v)).
                            (v) Any obligation to shareholders or 
                        members arising as a result of their status as 
                        shareholders or members (including any holding 
                        company or any shareholder or creditor of such 
                        company).
                    (B) Rehypothecation of payment stablecoin 
                reserves.--A person who violates section 4 shall not be 
                considered to have a secured claim under subparagraph 
                (A) or State law.
                    (C) Effect on state law.--
                            (i) In general.--The provisions of 
                        subparagraph (A) shall not supersede the law of 
                        any State except to the extent such law is 
                        inconsistent with the provisions of such 
                        subparagraph, and then only to the extent of 
                        the inconsistency.
                            (ii) Procedure for determination of 
                        inconsistency.--Upon the Corporation's own 
                        motion or upon the request of any person with a 
                        claim described in subparagraph (A) or any 
                        State which is submitted to the Corporation in 
                        accordance with procedures which the 
                        Corporation shall prescribe, the Corporation 
                        shall determine whether any provision of the 
                        law of any State is inconsistent with any 
                        provision of subparagraph (A) and the extent of 
                        any such inconsistency.
                            (iii) Judicial review.--The final 
                        determination of the Corporation under clause 
                        (ii) shall be subject to judicial review under 
                        chapter 7 of title 5, United States Code.
                    (D) Accounting report.--Any distribution by the 
                Corporation in connection with any claim described in 
                subparagraph (A)(v) shall be accompanied by the 
                accounting report required under paragraph (15)(B).
            (12) Suspension of legal actions.--
                    (A) In general. After the appointment of the 
                Corporation as conservator or receiver for a payment 
                stablecoin issuer, the Corporation may request a stay 
                for a period not to exceed--
                            (i) 45 days, in the case of the Corporation 
                        as conservator; and
                            (ii) 90 days, in the case of the 
                        Corporation as receiver,
                in any judicial action or proceeding to which the 
                issuer is or becomes a party.
                    (B) Grant of stay by all courts required.--Upon 
                receipt of a request by the Corporation as conservator 
                or receiver pursuant to subparagraph (A) for a stay of 
                any judicial action or proceeding in any court with 
                jurisdiction of such action or proceeding, the court 
                shall grant such stay as to all parties.
            (13) Additional rights and duties.--
                    (A) Prior final adjudication.--The Corporation 
                shall abide by any final unappealable judgment of any 
                court of competent jurisdiction which was rendered 
                before the appointment of the Corporation as 
                conservator or receiver.
                    (B) Rights and remedies of conservator or 
                receiver.--In the event of any appealable judgment, the 
                Corporation as conservator or receiver shall--
                            (i) have all the rights and remedies 
                        available to the payment stablecoin issuer 
                        (before the appointment of such conservator or 
                        receiver) and the Corporation in its corporate 
                        capacity, including removal to Federal court 
                        and all appellate rights; and
                            (ii) not be required to post any bond in 
                        order to pursue such remedies.
                    (C) No attachment or execution.--No attachment or 
                execution may issue by any court upon assets in the 
                possession of the Corporation as receiver.
                    (D) Limitation on judicial review.--Except as 
                otherwise provided in this subsection, no court shall 
                have jurisdiction over--
                            (i) any claim or action for payment from, 
                        or any action seeking a determination of rights 
                        with respect to, the assets of a payment 
                        stablecoin issuer for which the Corporation has 
                        been appointed receiver, including assets which 
                        the Corporation may acquire from itself as such 
                        receiver; or
                            (ii) any claim relating to any act or 
                        omission of such issuer or the Corporation as 
                        receiver.
                    (E) Disposition of assets.--In exercising any 
                right, power, privilege, or authority as conservator or 
                receiver in connection with any sale or disposition of 
                assets of any payment stablecoin issuer for which the 
                Corporation has been appointed conservator or receiver, 
                the Corporation shall conduct its operations in a 
                manner which--
                            (i) maximizes the net present value return 
                        from the sale or disposition of such assets;
                            (ii) minimizes the amount of any loss 
                        realized in the resolution of cases;
                            (iii) ensures adequate competition and fair 
                        and consistent treatment of offerors; and
                            (iv) prohibits discrimination on the basis 
                        of race, sex, or ethnic groups in the 
                        solicitation and consideration of offers.
            (14) Statute of limitations for actions brought by 
        conservator or receiver.--
                    (A) In general.--Notwithstanding any provision of 
                any contract, the applicable statute of limitations 
                with regard to any action brought by the Corporation as 
                conservator or receiver shall be--
                            (i) in the case of any contract claim, the 
                        longer of--
                                    (I) the 6-year period beginning on 
                                the date the claim accrues; or
                                    (II) the period applicable under 
                                State law; and
                            (ii) in the case of any tort claim, the 
                        longer of--
                                    (I) the 3-year period beginning on 
                                the date the claim accrues; or
                                    (II) the period applicable under 
                                State law.
                    (B) Determination of the date on which a claim 
                accrues.--For purposes of subparagraph (A), the date on 
                which the statute of limitations begins to run on any 
                claim described in such subparagraph shall be the later 
                of--
                            (i) the date of the appointment of the 
                        Corporation as conservator or receiver; or
                            (ii) the date on which the cause of action 
                        accrues.
                    (C) Revival of expired state causes of action.--
                            (i) In general.--In the case of any tort 
                        claim described in clause (ii) for which the 
                        statute of limitations applicable under State 
                        law with respect to such claim has expired not 
                        more than 5 years before the appointment of the 
                        Corporation as conservator or receiver, the 
                        Corporation may bring an action as conservator 
                        or receiver on such claim without regard to the 
                        expiration of the statute of limitations 
                        applicable under State law.
                            (ii) Claims described.--A tort claim 
                        referred to in clause (i) is a claim arising 
                        from fraud, intentional misconduct resulting in 
                        unjust enrichment, or intentional misconduct 
                        resulting in substantial loss to the 
                        institution.
            (15) Accounting and recordkeeping requirements.--
                    (A) In general.--The Corporation as conservator or 
                receiver shall, consistent with the accounting and 
                reporting practices and procedures established by the 
                Corporation, maintain a full accounting of each 
                conservatorship and receivership or other disposition 
                of issuers in default.
                    (B) Annual accounting or report.--With respect to 
                each conservatorship or receivership to which the 
                Corporation was appointed, the Corporation shall make 
                an annual accounting or report, as appropriate, 
                available to the Secretary of the Treasury, the 
                Comptroller General of the United States, and the 
                authority that appointed the Corporation as conservator 
                or receiver.
                    (C) Availability of reports.--Any report prepared 
                pursuant to subparagraph (B) shall be made available by 
                the Corporation upon request to any shareholder of the 
                payment stablecoin issuer for which the Corporation was 
                appointed conservator or receiver or any other member 
                of the public.
                    (D) Recordkeeping requirement.--
                            (i) In general.--Except as provided in 
                        clause (ii), after the end of the 6-year period 
                        beginning on the date the Corporation is 
                        appointed as receiver of a payment stablecoin 
                        issuer, the Corporation may destroy any records 
                        of such institution which the Corporation, in 
                        the Corporation's discretion, determines to be 
                        unnecessary unless directed not to do so by a 
                        court of competent jurisdiction or governmental 
                        agency, or otherwise prohibited by law.
                            (ii) Old records.--Notwithstanding clause 
                        (i), the Corporation may destroy records of a 
                        payment stablecoin issuer which are at least 10 
                        years old as of the date on which the 
                        Corporation is appointed as the receiver of 
                        such payment stablecoin issuer in accordance 
                        with clause (i) at any time after such 
                        appointment is final, without regard to the 6-
                        year period of limitation contained in clause 
                        (i).
            (16) Fraudulent transfers.--
                    (A) In general.--The Corporation, as conservator or 
                receiver for a payment stablecoin issuer, may avoid a 
                transfer of any interest of an institution-affiliated 
                party, or any person who the Corporation determines is 
                a debtor of the issuer, in property, or any obligation 
                incurred by such party or person, that was made within 
                5 years of the date on which the Corporation was 
                appointed conservator or receiver if such party or 
                person voluntarily or involuntarily made such transfer 
                or incurred such liability with the intent to hinder, 
                delay, or defraud the payment stablecoin issuer, the 
                Corporation, Board, Comptroller, or a State bank 
                supervisor.
                    (B) Right of recovery.--To the extent a transfer is 
                avoided under subparagraph (A), the Corporation may 
                recover, for the benefit of the payment stablecoin 
                issuer, the property transferred, or, if a court so 
                orders, the value of such property (at the time of such 
                transfer) from--
                            (i) the initial transferee of such transfer 
                        or the institution-affiliated party or person 
                        for whose benefit such transfer was made; or
                            (ii) any immediate or mediate transferee of 
                        any such initial transferee.
                    (C) Rights of transferee or obligee.--The 
                Corporation may not recover under subparagraph (B) 
                from--
                            (i) any transferee that takes for value, 
                        including satisfaction or securing of a present 
                        or antecedent debt, in good faith; or
                            (ii) any immediate or mediate good faith 
                        transferee of such transferee.
                    (D) Rights in bankruptcy.--The rights under this 
                paragraph of the Corporation shall be superior to any 
                rights of a trustee or any other party (other than any 
                party which is a Federal agency) under title 11, United 
                States Code.
            (17) Attachment of assets and other injunctive relief.--
        Subject to paragraph (18), any court of competent jurisdiction 
        may, at the request of the Corporation (in the Corporation's 
        capacity as conservator or receiver for any payment stablecoin 
        issuer or in the Corporation's corporate capacity with respect 
        to any asset acquired or liability assumed by the Corporation), 
        issue an order in accordance with Rule 65 of the Federal Rules 
        of Civil Procedure, including an order placing the assets of 
        any person designated by the Corporation under the control of 
        the court and appointing a trustee to hold such assets.
            (18) Standards.--
                    (A) Showing.--Rule 65 of the Federal Rules of Civil 
                Procedure shall apply with respect to any proceeding 
                under paragraph (17) without regard to the requirement 
                of such rule that the applicant show that the injury, 
                loss, or damage is irreparable and immediate.
                    (B) State proceeding.--If, in the case of any 
                proceeding in a State court, the court determines that 
                rules of civil procedure available under the laws of 
                such State provide substantially similar protections to 
                such party's right to due process as Rule 65 (as 
                modified with respect to such proceeding by 
                subparagraph (A)), the relief sought by the Corporation 
                pursuant to paragraph (17) may be requested under the 
                laws of such State.
            (19) Treatment of claims arising from breach of contracts 
        executed by the receiver or conservator.--
                    (A) In general.--Notwithstanding any other 
                provision of this subsection, any final and 
                unappealable judgment for monetary damages entered 
                against the Corporation as receiver or conservator for 
                a payment stablecoin issuer for the breach of an 
                agreement executed or approved by the Corporation after 
                the date of its appointment shall be paid as an 
                administrative expense of the receiver or conservator.
                    (B) Rule of construction.--Nothing in this 
                paragraph shall be construed to limit the power of the 
                Corporation as receiver or conservator to exercise any 
                rights under contract or law, including to terminate, 
                breach, cancel, or otherwise discontinue such 
                agreement.
    (f) Provisions Relating to Contracts Entered Into Before 
Appointment of Conservator or Receiver.--
            (1) Authority to repudiate contracts.--In addition to any 
        other rights the Corporation as conservator or receiver may 
        have, the Corporation may disaffirm or repudiate any contract 
        or lease--
                    (A) to which the issuer is a party;
                    (B) the performance of which the Corporation, in 
                the discretion of the Corporation, determines to be 
                burdensome; and
                    (C) the disaffirmance or repudiation of which the 
                Corporation determines, in the discretion of the 
                Corporation, will promote the orderly administration of 
                the affairs of the issuer.
            (2) Timing of repudiation.--The Corporation as conservator 
        or receiver appointed for any payment stablecoin issuer in 
        accordance with subsection (d), shall determine whether or not 
        to exercise the rights of repudiation under this subsection 
        within a reasonable period following such appointment.
            (3) Claims for damages for repudiation.--
                    (A) In general.--Except as otherwise provided in 
                subparagraph (C) and paragraphs (4), (5), and (6), the 
                liability of the Corporation as conservator or receiver 
                for the disaffirmance or repudiation of any contract 
                pursuant to paragraph (1) shall be--
                            (i) limited to actual direct compensatory 
                        damages; and
                            (ii) determined as of--
                                    (I) the date of the appointment of 
                                the Corporation as conservator or 
                                receiver; or
                                    (II) in the case of any contract or 
                                agreement referred to in paragraph (8), 
                                the date of the disaffirmance or 
                                repudiation of such contract or 
                                agreement.
                    (B) No liability for other damages.--For purposes 
                of subparagraph (A), the term ``actual direct 
                compensatory damages'' does not include--
                            (i) punitive or exemplary damages;
                            (ii) damages for lost profits or 
                        opportunity; or
                            (iii) damages for pain and suffering.
                    (C) Measure of damages for repudiation of financial 
                contracts.--In the case of any qualified financial 
                contract or agreement to which paragraph (8) applies, 
                compensatory damages shall be--
                            (i) deemed to include normal and reasonable 
                        costs of cover or other reasonable measures of 
                        damages utilized in the industries for such 
                        contract and agreement claims; and
                            (ii) paid in accordance with this 
                        subsection and subsection (g) except as 
                        otherwise specifically provided in this 
                        section.
            (4) Leases under which the issuer is the lessee.--
                    (A) In general.--If the Corporation as conservator 
                or receiver disaffirms or repudiates a lease under 
                which the payment stablecoin issuer was the lessee, the 
                conservator or receiver shall not be liable for any 
                damages (other than damages determined pursuant to 
                subparagraph (B)) for the disaffirmance or repudiation 
                of such lease.
                    (B) Payments of rent.--Notwithstanding subparagraph 
                (A), the lessor under a lease to which such 
                subparagraph applies shall--
                            (i) unless the lessor is in default or 
                        breach of the terms of the lease, be entitled 
                        to the contractual rent accruing before the 
                        later of the date--
                                    (I) the notice of disaffirmance or 
                                repudiation is mailed; or
                                    (II) the disaffirmance or 
                                repudiation becomes effective;
                            (ii) have no claim for damages under any 
                        acceleration clause or other penalty provision 
                        in the lease; and
                            (iii) have a claim for any unpaid rent, 
                        subject to all appropriate offsets and 
                        defenses, due as of the date of the appointment 
                        which shall be paid in accordance with this 
                        subsection and subsection (g).
            (5) Leases under which the issuer is the lessor.--
                    (A) In general.--If the Corporation as conservator 
                or receiver repudiates an unexpired written lease of 
                real property of the payment stablecoin issuer under 
                which the issuer is the lessor and the lessee is not, 
                as of the date of such repudiation, in default, the 
                lessee under such lease may either--
                            (i) treat the lease as terminated by such 
                        repudiation; or
                            (ii) remain in possession of the leasehold 
                        interest for the balance of the term of the 
                        lease unless the lessee defaults under the 
                        terms of the lease after the date of such 
                        repudiation.
                    (B) Provisions applicable to lessee remaining in 
                possession.--If any lessee under a lease described in 
                subparagraph (A) remains in possession of a leasehold 
                interest pursuant to clause (ii) of such subparagraph--
                            (i) the lessee--
                                    (I) shall continue to pay the 
                                contractual rent pursuant to the terms 
                                of the lease after the date of the 
                                repudiation of such lease; and
                                    (II) may offset against any rent 
                                payment which accrues after the date of 
                                the repudiation of the lease, any 
                                damages which accrue after such date 
                                due to the nonperformance of any 
                                obligation of the payment stablecoin 
                                issuer under the lease after such date; 
                                and
                            (ii) the Corporation as conservator or 
                        receiver shall not be liable to the lessee for 
                        any damages arising after such date as a result 
                        of the repudiation other than the amount of any 
                        offset allowed under clause (i)(II).
            (6) Contracts for the sale of real property.--
                    (A) In general.--If the Corporation as conservator 
                or receiver repudiates any contract (which meets the 
                requirements of each paragraph of section 13(e)of the 
                Federal Deposit Insurance Act (12 U.S.C. 1823(e)) for 
                the sale of real property and the purchaser of such 
                real property under such contract is in possession and 
                is not, as of the date of such repudiation, in default, 
                such purchaser may either--
                            (i) treat the contract as terminated by 
                        such repudiation; or
                            (ii) remain in possession of such real 
                        property.
                    (B) Provisions applicable to purchaser remaining in 
                possession.--If any purchaser of real property under 
                any contract described in subparagraph (A) remains in 
                possession of such property pursuant to clause (ii) of 
                such subparagraph--
                            (i) the purchaser--
                                    (I) shall continue to make all 
                                payments due under the contract after 
                                the date of the repudiation of the 
                                contract; and
                                    (II) may offset against any such 
                                payments any damages which accrue after 
                                such date due to the nonperformance 
                                (after such date) of any obligation of 
                                the payment stablecoin issuer under the 
                                contract; and
                            (ii) the Corporation as conservator or 
                        receiver shall--
                                    (I) not be liable to the purchaser 
                                for any damages arising after such date 
                                as a result of the repudiation other 
                                than the amount of any offset allowed 
                                under clause (i)(II);
                                    (II) deliver title to the purchaser 
                                in accordance with the provisions of 
                                the contract; and
                                    (III) have no obligation under the 
                                contract other than the performance 
                                required under subclause (II).
                    (C) Assignment and sale allowed.--
                            (i) In general.--No provision of this 
                        paragraph shall be construed as limiting the 
                        right of the Corporation as conservator or 
                        receiver to assign the contract described in 
                        subparagraph (A) and sell the property subject 
                        to the contract and the provisions of this 
                        paragraph.
                            (ii) No liability after assignment and 
                        sale.--If an assignment and sale described in 
                        clause (i) is consummated, the Corporation as 
                        conservator or receiver shall have no further 
                        liability under the contract described in 
                        subparagraph (A) or with respect to the real 
                        property which was the subject of such 
                        contract.
            (7) Provisions applicable to service contracts.--
                    (A) Services performed before appointment.--In the 
                case of any contract for services between any person 
                and any payment stablecoin issuer for which the 
                Corporation has been appointed conservator or receiver, 
                any claim of such person for services performed before 
                the appointment of the Corporation shall be--
                            (i) a claim to be paid in accordance with 
                        subsections (e) and (g); and
                            (ii) deemed to have arisen as of the date 
                        the Corporation was appointed conservator or 
                        receiver.
                    (B) Services performed after appointment and prior 
                to repudiation.--If, in the case of any contract for 
                services described in subparagraph (A), the conservator 
                or receiver accepts performance by the other person 
                before the Corporation as conservator or receiver makes 
                any determination to exercise the right of repudiation 
                of such contract under this section--
                            (i) the other party shall be paid under the 
                        terms of the contract for the services 
                        performed; and
                            (ii) the amount of such payment shall be 
                        treated as an administrative expense of the 
                        conservatorship or receivership.
                    (C) Acceptance of performance no bar to subsequent 
                repudiation.--The acceptance by the Corporation as 
                conservator or receiver of services referred to in 
                subparagraph (B) in connection with a contract 
                described in such subparagraph shall not affect the 
                right of the Corporation as conservator or receiver to 
                repudiate such contract under this section at any time 
                after such performance.
            (8) Certain qualified financial contracts.--
                    (A) Rights of parties to contracts.--Subject to 
                paragraphs (9) and (10) of this subsection and 
                notwithstanding any other provision of Federal or State 
                law (other than subsection (e)(9) of this section and 
                section 13(e)of the Federal Deposit Insurance Act (12 
                U.S.C. 1823(e)), no person shall be stayed or 
                prohibited from exercising--
                            (i) any right such person has to cause the 
                        termination, liquidation, or acceleration of 
                        any qualified financial contract with a payment 
                        stablecoin issuer which arises upon the 
                        appointment of the Corporation as receiver for 
                        such issuer at any time after such appointment;
                            (ii) any right under any security agreement 
                        or arrangement or other credit enhancement 
                        related to one or more qualified financial 
                        contracts described in clause (i); or
                            (iii) any right to offset or net out any 
                        termination value, payment amount, or other 
                        transfer obligation arising under or in 
                        connection with 1 or more contracts and 
                        agreements described in clause (i), including 
                        any master agreement for such contracts or 
                        agreements.
                    (B) Applicability of other provisions.--Subsection 
                (e)(12) shall apply in the case of any judicial action 
                or proceeding brought against the Corporation as 
                receiver referred to in subparagraph (A), or the 
                payment stablecoin issuer for which the Corporation was 
                appointed receiver, by any party to a contract or 
                agreement described in subparagraph (A)(i) with such 
                institution.
                    (C) Certain transfers not avoidable.--
                            (i) In general.--Notwithstanding paragraph 
                        (11), section 5242 of the Revised Statutes of 
                        the United States (12 U.S.C. 91), or any other 
                        Federal or State law relating to the avoidance 
                        of preferential or fraudulent transfers, the 
                        Corporation, whether acting as such or as 
                        conservator or receiver of a payment stablecoin 
                        issuer, may not avoid any transfer of money or 
                        other property in connection with any qualified 
                        financial contract with a payment stablecoin 
                        issuer.
                            (ii) Exception for certain transfers.--
                        Clause (i) shall not apply to any transfer of 
                        money or other property in connection with any 
                        qualified financial contract with a payment 
                        stablecoin issuer if the Corporation determines 
                        that the transferee had actual intent to 
                        hinder, delay, or defraud such institution, the 
                        creditors of such institution, or any 
                        conservator or receiver appointed for such 
                        institution.
                    (D) Certain contracts and agreements defined.--For 
                purposes of this subsection, the following definitions 
                shall apply:
                            (i) Qualified financial contract.--The term 
                        ``qualified financial contract'' means any 
                        securities contract, commodity contract, 
                        forward contract, repurchase agreement, swap 
                        agreement, and any similar agreement that the 
                        Corporation determines by regulation, 
                        resolution or order to be a qualified financial 
                        contract for purposes of this paragraph.
                            (ii) Securities contract.--The term 
                        ``securities contract''--
                                    (I) means a contract for the 
                                purchase, sale, or loan of a security, 
                                a certificate of deposit, a mortgage 
                                loan, any interest in a mortgage loan, 
                                a group or index of securities, 
                                certificates of deposit, or mortgage 
                                loans or interests therein (including 
                                any interest therein or based on the 
                                value thereof) or any option on any of 
                                the foregoing, including any option to 
                                purchase or sell any such security, 
                                certificate of deposit, mortgage loan, 
                                interest, group or index, or option, 
                                and including any repurchase or reverse 
                                repurchase transaction on any such 
                                security, certificate of deposit, 
                                mortgage loan, interest, group or 
                                index, or option (whether or not such 
                                repurchase or reverse repurchase 
                                transaction is a repurchase agreement);
                                    (II) does not include any purchase, 
                                sale, or repurchase obligation under a 
                                participation in a commercial mortgage 
                                loan unless the Corporation determines 
                                by regulation, resolution, or order to 
                                include any such agreement within the 
                                meaning of such term;
                                    (III) means any option entered into 
                                on a national securities exchange 
                                relating to foreign currencies;
                                    (IV) means the guarantee (including 
                                by novation) by or to any securities 
                                clearing agency of any settlement of 
                                cash, securities, certificates of 
                                deposit, mortgage loans or interests 
                                therein, group or index of securities, 
                                certificates of deposit, or mortgage 
                                loans or interests therein (including 
                                any interest therein or based on the 
                                value thereof) or option on any of the 
                                foregoing, including any option to 
                                purchase or sell any such security, 
                                certificate of deposit, mortgage loan, 
                                interest, group or index, or option 
                                (whether or not such settlement is in 
                                connection with any agreement or 
                                transaction referred to in subclauses 
                                (I) through (XII) (other than subclause 
                                (II));
                                    (V) means any margin loan;
                                    (VI) means any extension of credit 
                                for the clearance or settlement of 
                                securities transactions;
                                    (VII) means any loan transaction 
                                coupled with a securities collar 
                                transaction, any prepaid securities 
                                forward transaction, or any total 
                                return swap transaction coupled with a 
                                securities sale transaction;
                                    (VIII) means any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    (IX) means any combination of the 
                                agreements or transactions referred to 
                                in this clause;
                                    (X) means any option to enter into 
                                any agreement or transaction referred 
                                to in this clause;
                                    (XI) means a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), (V), (VI), (VII), 
                                (VIII), (IX), or (X), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                securities contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a securities 
                                contract under this clause only with 
                                respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (III), (IV), (V), (VI), (VII), (VIII), 
                                (IX), or (X); and
                                    (XII) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in this clause, 
                                including any guarantee or 
                                reimbursement obligation in connection 
                                with any agreement or transaction 
                                referred to in this clause.
                            (iii) Commodity contract.--The term 
                        ``commodity contract'' means--
                                    (I) with respect to a futures 
                                commission merchant, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade;
                                    (II) with respect to a foreign 
                                futures commission merchant, a foreign 
                                future;
                                    (III) with respect to a leverage 
                                transaction merchant, a leverage 
                                transaction;
                                    (IV) with respect to a clearing 
                                organization, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade that is cleared by such clearing 
                                organization, or commodity option 
                                traded on, or subject to the rules of, 
                                a contract market or board of trade 
                                that is cleared by such clearing 
                                organization;
                                    (V) with respect to a commodity 
                                options dealer, a commodity option;
                                    (VI) any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    (VII) any combination of the 
                                agreements or transactions referred to 
                                in this clause;
                                    (VIII) any option to enter into any 
                                agreement or transaction referred to in 
                                this clause;
                                    (IX) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), (IV), (V), (VI), 
                                (VII), or (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                commodity contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a commodity 
                                contract under this clause only with 
                                respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (II), (III), (IV), (V), (VI), (VII), or 
                                (VIII); or
                                    (X) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in this clause, including 
                                any guarantee or reimbursement 
                                obligation in connection with any 
                                agreement or transaction referred to in 
                                this clause.
                            (iv) Forward contract.--The term ``forward 
                        contract'' means--
                                    (I) a contract (other than a 
                                commodity contract) for the purchase, 
                                sale, or transfer of a commodity or any 
                                similar good, article, service, right, 
                                or interest which is presently or in 
                                the future becomes the subject of 
                                dealing in the forward contract trade, 
                                or product or byproduct thereof, with a 
                                maturity date more than 2 days after 
                                the date the contract is entered into, 
                                including, a repurchase or reverse 
                                repurchase transaction (whether or not 
                                such repurchase or reverse repurchase 
                                transaction is a repurchase agreement), 
                                consignment, lease, swap, hedge 
                                transaction, deposit, loan, option, 
                                allocated transaction, unallocated 
                                transaction, or any other similar 
                                agreement;
                                    (II) any combination of agreements 
                                or transactions referred to in 
                                subclauses (I) and (III);
                                    (III) any option to enter into any 
                                agreement or transaction referred to in 
                                subclause (I) or (II);
                                    (IV) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), or (III), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                forward contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a forward contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), or (III); or
                                    (V) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in subclause (I), (II), 
                                (III), or (IV), including any guarantee 
                                or reimbursement obligation in 
                                connection with any agreement or 
                                transaction referred to in any such 
                                subclause.
                            (v) Repurchase agreement.--The term 
                        ``repurchase agreement'' (which definition also 
                        applies to a reverse repurchase agreement)--
                                    (I) means an agreement, including 
                                related terms, which provides for the 
                                transfer of 1 or more certificates of 
                                deposit, mortgage related securities 
                                (as defined in section 3(a) of the 
                                Securities Exchange Act of 1934 (15 
                                U.S.C. 78c(a)), mortgage loans, 
                                interests in mortgage-related 
                                securities or mortgage loans, eligible 
                                bankers' acceptances, qualified foreign 
                                government securities or securities 
                                that are direct obligations of, or that 
                                are fully guaranteed by, the United 
                                States or any agency of the United 
                                States against the transfer of funds by 
                                the transferee of such certificates of 
                                deposit, eligible bankers' acceptances, 
                                securities, mortgage loans, or 
                                interests with a simultaneous agreement 
                                by such transferee to transfer to the 
                                transferor thereof certificates of 
                                deposit, eligible bankers' acceptances, 
                                securities, mortgage loans, or 
                                interests as described above, at a date 
                                certain not later than 1 year after 
                                such transfers or on demand, against 
                                the transfer of funds, or any other 
                                similar agreement;
                                    (II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial mortgage 
                                loan unless the Corporation determines 
                                by regulation, resolution, or order to 
                                include any such participation within 
                                the meaning of such term;
                                    (III) means any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (IV);
                                    (IV) means any option to enter into 
                                any agreement or transaction referred 
                                to in subclause (I) or (III);
                                    (V) means a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), or (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                repurchase agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a repurchase 
                                agreement under this subclause only 
                                with respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (III), or (IV); and
                                    (VI) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), or (V), including any 
                                guarantee or reimbursement obligation 
                                in connection with any agreement or 
                                transaction referred to in any such 
                                subclause.
                        For purposes of this clause, the term 
                        ``qualified foreign government security'' means 
                        a security that is a direct obligation of, or 
                        that is fully guaranteed by, the central 
                        government of a member of the Organization for 
                        Economic Cooperation and Development (as 
                        determined by regulation or order adopted by 
                        the Board).
                            (vi) Swap agreement.--The term ``swap 
                        agreement'' means--
                                    (I) any agreement, including the 
                                terms and conditions incorporated by 
                                reference in any such agreement, which 
                                is an interest rate swap, option, 
                                future, or forward agreement, including 
                                a rate floor, rate cap, rate collar, 
                                cross-currency rate swap, and basis 
                                swap; a spot, same day-tomorrow, 
                                tomorrow-next, forward, or other 
                                foreign exchange, precious metals, or 
                                other commodity agreement; a currency 
                                swap, option, future, or forward 
                                agreement; an equity index or equity 
                                swap, option, future, or forward 
                                agreement; a debt index or debt swap, 
                                option, future, or forward agreement; a 
                                total return, credit spread or credit 
                                swap, option, future, or forward 
                                agreement; a commodity index or 
                                commodity swap, option, future, or 
                                forward agreement; weather swap, 
                                option, future, or forward agreement; 
                                an emissions swap, option, future, or 
                                forward agreement; or an inflation 
                                swap, option, future, or forward 
                                agreement;
                                    (II) any agreement or transaction 
                                that is similar to any other agreement 
                                or transaction referred to in this 
                                clause and that is of a type that has 
                                been, is presently, or in the future 
                                becomes, the subject of recurrent 
                                dealings in the swap or other 
                                derivatives markets (including terms 
                                and conditions incorporated by 
                                reference in such agreement) and that 
                                is a forward, swap, future, option, or 
                                spot transaction on one or more rates, 
                                currencies, commodities, equity 
                                securities or other equity instruments, 
                                debt securities or other debt 
                                instruments, quantitative measures 
                                associated with an occurrence, extent 
                                of an occurrence, or contingency 
                                associated with a financial, 
                                commercial, or economic consequence, or 
                                economic or financial indices or 
                                measures of economic or financial risk 
                                or value;
                                    (III) any combination of agreements 
                                or transactions referred to in this 
                                clause;
                                    (IV) any option to enter into any 
                                agreement or transaction referred to in 
                                this clause;
                                    (V) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), or (IV), together 
                                with all supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement contains an 
                                agreement or transaction that is not a 
                                swap agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a swap agreement 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), (III), or (IV); 
                                and
                                    (VI) any security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreements or 
                                transactions referred to in subclause 
                                (I), (II), (III), (IV), or (V), 
                                including any guarantee or 
                                reimbursement obligation in connection 
                                with any agreement or transaction 
                                referred to in any such subclause.
                        Such term is applicable for purposes of this 
                        subsection only and shall not be construed or 
                        applied so as to challenge or affect the 
                        characterization, definition, or treatment of 
                        any swap agreement under any other statute, 
                        regulation, or rule, including the Gramm-Leach-
                        Bliley Act (Public Law 106-102; 113 Stat. 
                        1338), the Legal Certainty for Bank Products 
                        Act of 2000 (7 U.S.C. 27 et seq.), the 
                        securities laws (as defined in section 3(a) of 
                        the Securities Exchange Act of 1934 (15 U.S.C. 
                        78c(a)), and the Commodity Exchange Act (7 
                        U.S.C. 1 et seq.).
                            (vii) Treatment of master agreement as one 
                        agreement.--Any master agreement for any 
                        contract or agreement described in any 
                        preceding clause of this subparagraph (or any 
                        master agreement for such master agreement or 
                        agreements), together with all supplements to 
                        such master agreement, shall be treated as a 
                        single agreement and a single qualified 
                        financial contract. If a master agreement 
                        contains provisions relating to agreements or 
                        transactions that are not themselves qualified 
                        financial contracts, the master agreement shall 
                        be deemed to be a qualified financial contract 
                        only with respect to those transactions that 
                        are themselves qualified financial contracts.
                            (viii) Transfer.--The term ``transfer'' 
                        means every mode, direct or indirect, absolute 
                        or conditional, voluntary or involuntary, of 
                        disposing of or parting with property or with 
                        an interest in property, including retention of 
                        title as a security interest and foreclosure of 
                        the payment stablecoin issuer's equity of 
                        redemption.
                            (ix) Person.--The term ``person'' includes 
                        any governmental entity in addition to any 
                        entity included in the definition of such term 
                        in section 1 of title 1, United States Code.
                    (E) Certain protections in event of appointment of 
                conservator.--Notwithstanding any other provision of 
                Federal or State law (other than subsections (e)(9) and 
                (f)(10) of this section, and section 13(e) of the 
                Federal Deposit Insurance Act (12 U.S.C. 1823(e))), no 
                person shall be stayed or prohibited from exercising--
                            (i) any right such person has to cause the 
                        termination, liquidation, or acceleration of 
                        any qualified financial contract with a payment 
                        stablecoin issuer in a conservatorship based 
                        upon a default under such financial contract 
                        which is enforceable under applicable non-
                        insolvency law;
                            (ii) any right under any security agreement 
                        or arrangement or other credit enhancement 
                        related to one or more qualified financial 
                        contracts described in clause (i); or
                            (iii) any right to offset or net out any 
                        termination values, payment amounts, or other 
                        transfer obligations arising under or in 
                        connection with such qualified financial 
                        contracts.
                    (F) Clarification.--No provision of law shall be 
                construed as limiting the right or power of the 
                Corporation, or authorizing any court or agency to 
                limit or delay, in any manner, the right or power of 
                the Corporation to transfer any qualified financial 
                contract in accordance with paragraphs (9) and (10) of 
                this subsection or to disaffirm or repudiate any such 
                contract in accordance with paragraph (1).
                    (G) Walkaway clauses not effective.--
                            (i) In general.--Notwithstanding the 
                        provisions of subparagraphs (A) and (E), and 
                        sections 403 and 404 of the Federal Deposit 
                        Insurance Corporation Improvement Act of 1991 
                        (12 U.S.C. 4403, 4404), no walkaway clause 
                        shall be enforceable in a qualified financial 
                        contract of a payment stablecoin issuer in 
                        default.
                            (ii) Limited suspension of certain 
                        obligations.--In the case of a qualified 
                        financial contract referred to in clause (i), 
                        any payment or delivery obligations otherwise 
                        due from a party pursuant to the qualified 
                        financial contract shall be suspended from the 
                        time the Corporation is appointed as receiver 
                        until the earlier of--
                                    (I) the time such party receives 
                                notice that such contract has been 
                                transferred pursuant to paragraph 
                                (9)(A); or
                                    (II) 5:00 p.m. (eastern time) on 
                                the business day following the date of 
                                the appointment of the Corporation as 
                                receiver.
                            (iii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        ``walkaway clause'' means any provision in a 
                        qualified financial contract that suspends, 
                        conditions, or extinguishes a payment 
                        obligation of a party, in whole or in part, or 
                        does not create a payment obligation of a party 
                        that would otherwise exist, solely because of 
                        such party's status as a nondefaulting party in 
                        connection with the insolvency of a payment 
                        stablecoin issuer that is a party to the 
                        contract or the appointment of or the exercise 
                        of rights or powers by the Corporation as 
                        conservator or receiver of such issuer, and not 
                        as a result of a party's exercise of any right 
                        to offset, setoff, or net obligations that 
                        exist under the contract, any other contract 
                        between those parties, or applicable law.
                    (H) Recordkeeping requirements.--The Corporation, 
                in consultation with the Board, Comptroller and State 
                bank supervisors, may prescribe regulations requiring 
                more detailed recordkeeping by a payment stablecoin 
                issuer with respect to qualified financial contracts 
                (including market valuations) if the condition of such 
                payment stablecoin issuer warrants it.
            (9) Transfer of qualified financial contracts.--
                    (A) In general. In making any transfer of assets or 
                liabilities of a payment stablecoin issuer in default 
                which includes any qualified financial contract, the 
                Corporation as conservator or receiver for such issuer 
                shall either--
                            (i) transfer to one financial institution, 
                        other than a financial institution for which a 
                        conservator, receiver, trustee in bankruptcy, 
                        or other legal custodian has been appointed or 
                        which is otherwise the subject of a bankruptcy 
                        or insolvency proceeding--
                                    (I) all qualified financial 
                                contracts between any person or any 
                                affiliate of such person and the 
                                payment stablecoin issuer in default;
                                    (II) all claims of such person or 
                                any affiliate of such person against 
                                such issuer under any such contract 
                                (other than any claim which, under the 
                                terms of any such contract, is 
                                subordinated to the claims of general 
                                unsecured creditors of such issuer);
                                    (III) all claims of such payment 
                                stablecoin issuer against such person 
                                or any affiliate of such person under 
                                any such contract; and
                                    (IV) all property securing or any 
                                other credit enhancement for any 
                                contract described in subclause (I) or 
                                any claim described in subclause (II) 
                                or (III) under any such contract; or
                            (ii) transfer none of the qualified 
                        financial contracts, claims, property or other 
                        credit enhancement referred to in clause (i) 
                        (with respect to such person and any affiliate 
                        of such person).
                    (B) Transfer to a foreign bank, foreign financial 
                institution, or branch or agency of a foreign bank or 
                financial institution.--In transferring any qualified 
                financial contracts and related claims and property 
                under subparagraph (A)(i), the Corporation as 
                conservator or receiver for the payment stablecoin 
                issuer shall not make such transfer to a foreign bank, 
                financial institution organized under the laws of a 
                foreign country, or a branch or agency of a foreign 
                bank or financial institution unless, under the law 
                applicable to such bank, financial institution, branch 
                or agency, to the qualified financial contracts, and to 
                any netting contract, any security agreement or 
                arrangement or other credit enhancement related to one 
                or more qualified financial contracts, the contractual 
                rights of the parties to such qualified financial 
                contracts, netting contracts, security agreements or 
                arrangements, or other credit enhancements are 
                enforceable substantially to the same extent as 
                permitted under this section.
                    (C) Transfer of contracts subject to the rules of a 
                clearing organization.--In the event that the 
                Corporation as conservator or receiver transfers any 
                qualified financial contract and related claims, 
                property, and credit enhancements pursuant to 
                subparagraph (A)(i) and such contract is cleared by or 
                subject to the rules of a clearing organization, the 
                clearing organization shall not be required to accept 
                the transferee as a member by virtue of the transfer.
                    (D) Definitions.--For purposes of this paragraph--
                            (i) the term ``financial institution'' 
                        means a broker or dealer, a depository 
                        institution, a futures commission merchant, or 
                        any other institution, as determined by the 
                        Corporation by regulation to be a financial 
                        institution; and
                            (ii) the term ``clearing organization'' has 
                        the meaning given the term in section 402 of 
                        the Federal Deposit Insurance Corporation 
                        Improvement Act of 1991 (12 U.S.C. 4402).
            (10) Notification of transfer.--
                    (A) In general.--If the Corporation as conservator 
                or receiver for a payment stablecoin issuer in default 
                makes any transfer of the assets and liabilities of 
                such institution, and the transfer includes any 
                qualified financial contract, the conservator or 
                receiver shall notify any person who is a party to any 
                such contract of such transfer by 5:00 p.m. (eastern 
                time) on the business day following the date of the 
                appointment of the Corporation as receiver in the case 
                of a receivership, or the business day following such 
                transfer in the case of a conservatorship.
                    (B) Certain rights not enforceable.--
                            (i) Receivership.--A person who is a party 
                        to a qualified financial contract with a 
                        payment stablecoin issuer may not exercise any 
                        right that such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(A) of this subsection or section 403 or 404 
                        of the Federal Deposit Insurance Corporation 
                        Improvement Act of 1991 (12 U.S.C. 4403, 4404), 
                        solely by reason of or incidental to the 
                        appointment of the Corporation as receiver for 
                        the payment stablecoin issuer (or the 
                        insolvency or financial condition of the issuer 
                        for which the receiver has been appointed)--
                                    (I) until 5:00 p.m. (eastern time) 
                                on the business day following the date 
                                of the appointment of the receiver; or
                                    (II) after the person has received 
                                notice that the contract has been 
                                transferred pursuant to paragraph 
                                (9)(A).
                            (ii) Conservatorship.--A person who is a 
                        party to a qualified financial contract with a 
                        payment stablecoin issuer may not exercise any 
                        right that such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(E) of this subsection or section 403 or 404 
                        of the Federal Deposit Insurance Corporation 
                        Improvement Act of 1991 (12 U.S.C. 4403, 4404), 
                        solely by reason of or incidental to the 
                        appointment of the Corporation as conservator 
                        for the payment stablecoin issuer (or the 
                        insolvency or financial condition of the issuer 
                        for which the Corporation has been appointed 
                        conservator).
                            (iii) Notice.--For purposes of this 
                        paragraph, the Corporation as receiver or 
                        conservator of a payment stablecoin issuer 
                        shall be deemed to have notified a person who 
                        is a party to a qualified financial contract 
                        with such issuer if the Corporation has taken 
                        steps that are reasonably calculated to provide 
                        notice to such person by the time specified in 
                        subparagraph (A).
                    (C) Business day defined.--For purposes of this 
                paragraph, the term ``business day'' means any day 
                other than any Saturday, Sunday, or any day on which 
                either the New York Stock Exchange or the Federal 
                Reserve Bank of New York is closed.
            (11) Disaffirmance or repudiation of qualified financial 
        contracts.--In exercising the rights of disaffirmance or 
        repudiation of a conservator or receiver with respect to any 
        qualified financial contract to which a payment stablecoin 
        issuer is a party, the Corporation as conservator or receiver 
        for such issuer shall either--
                    (A) disaffirm or repudiate all qualified financial 
                contracts between--
                            (i) any person or any affiliate of such 
                        person; and
                            (ii) the payment stablecoin issuer in 
                        default; or
                    (B) disaffirm or repudiate none of the qualified 
                financial contracts referred to in subparagraph (A) 
                (with respect to such person or any affiliate of such 
                person).
            (12) Certain security interests not avoidable.--No 
        provision of this subsection shall be construed as permitting 
        the avoidance of any legally enforceable or perfected security 
        interest in any of the assets of any payment stablecoin issuer 
        except where such an interest is taken in contemplation of the 
        issuer's insolvency or with the intent to hinder, delay, or 
        defraud the issuer or the creditors of such issuer.
            (13) Authority to enforce contracts.--
                    (A) In general.--The Corporation as conservator or 
                receiver may enforce any contract, other than a 
                director's or officer's liability insurance contract or 
                a bond, entered into by the payment stablecoin issuer 
                notwithstanding any provision of the contract providing 
                for termination, default, acceleration, or exercise of 
                rights upon, or solely by reason of, insolvency or the 
                appointment of or the exercise of rights or powers by 
                the Corporation as conservator or receiver.
                    (B) Certain rights not affected.--No provision of 
                this paragraph may be construed as impairing or 
                affecting any right of the Corporation as conservator 
                or receiver to enforce or recover under a director's or 
                officer's liability insurance contract or bond under 
                other applicable law.
                    (C) Consent requirement.--
                            (i) In general.--Except as otherwise 
                        provided by this section or section 15 of the 
                        Federal Deposit Insurance Act (12 U.S.C. 1825), 
                        no person may exercise any right or power to 
                        terminate, accelerate, or declare a default 
                        under any contract to which the payment 
                        stablecoin issuer is a party, or to obtain 
                        possession of or exercise control over any 
                        property of the issuer or affect any 
                        contractual rights of the issuer, without the 
                        consent of the Corporation as conservator or 
                        receiver, as appropriate, during the 45-day 
                        period beginning on the date of the appointment 
                        of the Corporation as conservator, or during 
                        the 90-day period beginning on the date of the 
                        appointment of the Corporation as receiver, as 
                        applicable.
                            (ii) Certain exceptions.--No provision of 
                        this subparagraph shall apply to a director or 
                        officer liability insurance contract or bond, 
                        to the rights of parties to certain qualified 
                        financial contracts pursuant to paragraph (8), 
                        or to the rights of parties to netting 
                        contracts pursuant to subtitle A of title IV of 
                        the Federal Deposit Insurance Corporation 
                        Improvement Act of 1991 (12 U.S.C. 4401 et 
                        seq.), or shall be construed as permitting the 
                        Corporation as conservator or receiver to fail 
                        to comply with otherwise enforceable provisions 
                        of such contract.
                            (iii) Rule of construction.--Nothing in 
                        this subparagraph shall be construed to limit 
                        or otherwise affect the applicability of title 
                        11, United States Code.
            (14) Savings clause.--The meanings of terms used in this 
        subsection are applicable for purposes of this subsection only, 
        and shall not be construed or applied so as to challenge or 
        affect the characterization, definition, or treatment of any 
        similar terms under any other statute, regulation, or rule, 
        including the Gramm-Leach-Bliley Act (Public Law 106-102; 113 
        Stat. 1338), the Legal Certainty for Bank Products Act of 2000 
        (7 U.S.C. 27 et seq.), the securities laws (as defined in 
        section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c(a)), and the Commodity Exchange Act (7 U.S.C. 1 et seq.).
    (g) Payment of Stablecoin Liabilities.--
            (1) In general.--In case of the liquidation of, or other 
        closing or winding up of the affairs of a payment stablecoin 
        issuer, payment of the outstanding payment stablecoin 
        liabilities of the issuer shall be made by the Corporation as 
        soon as possible, subject to the provisions of subsection (h), 
        either by cash or by making available to each depositor a 
        transferred deposit in an insured depository institution.
            (2) Proof of claims.--The Corporation, in its discretion, 
        may require proof of claims to be filed and may approve or 
        reject such claims for payment stablecoin liabilities.
            (3) Resolution of disputes.--A determination by the 
        Corporation regarding any claim for payment of stablecoin 
        liabilities shall be treated as a final determination for 
        purposes of this section. In its discretion, the Corporation 
        may promulgate regulations prescribing procedures for resolving 
        any disputed claim.
            (4) Review of corporation determination.--A final 
        determination made by the Corporation regarding any claim for 
        payment of stablecoin liabilities shall be a final agency 
        action reviewable in accordance with chapter 7 of title 5, 
        United States Code, by the United States district court for the 
        Federal judicial district where the principal place of business 
        of the payment stablecoin issuer is located.
            (5) Statute of limitations.--Any request for review of a 
        final determination by the Corporation regarding any claim 
        regarding payment of stablecoin liabilities shall be filed with 
        the appropriate United States district court not later than 60 
        days after the date on which such determination is issued.
    (h) Subrogation of Corporation.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, the law of any State, or the constitution of any 
        State, the Corporation, upon the payment to any customer as 
        provided in subsection (g) in connection with a payment 
        stablecoin issuer described in such subsection or the 
        assumption of payment stablecoin liabilities by another payment 
        stablecoin issuer pursuant to this section, shall be subrogated 
        to all rights of the customer against such issuer to the extent 
        of such payment or assumption.
            (2) Dividends on subrogated amounts.--The subrogation of 
        the Corporation under paragraph (1) with respect to any payment 
        stablecoin issuer shall include the right on the part of the 
        Corporation to receive the same dividends from the proceeds of 
        the assets of such issuer and recoveries on account of 
        stockholders' liability as would have been payable to the 
        customer on a claim for the stablecoin liability.
            (3) Waiver of certain claims.--With respect to a payment 
        stablecoin issuer, the Corporation shall waive, in favor only 
        of any person against whom stockholders' individual liability 
        may be asserted, any claim on account of such liability in 
        excess of the liability, if any, to the issuer or its 
        creditors, for the amount unpaid upon such stock in such 
        issuer; but any such waiver shall be effected in such manner 
        and on such terms and conditions as will not increase 
        recoveries or dividends on account of claims to which the 
        Corporation is not subrogated.
            (4) Applicability of state law.--Subject to subsection 
        (e)(11), if the Corporation is appointed pursuant to subsection 
        (d)(3), the rights of customers and other creditors of any 
        State-chartered payment stablecoin issuer shall be determined 
        in accordance with the applicable provisions of State law.
    (i) Valuation of Claims in Default.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law or the law of any State and regardless of the 
        method which the Corporation determines to utilize with respect 
        to a payment stablecoin issuer in default or in danger of 
        default, including transactions authorized under subsection 
        (o), this subsection shall govern the rights of the creditors 
        (other than customers) of such institution.
            (2) Maximum liability.--The maximum liability of the 
        Corporation, acting as receiver or in any other capacity, to 
        any person having a claim against the receiver or the payment 
        stablecoin issuer for which such receiver is appointed shall 
        equal the amount such claimant would have received if the 
        Corporation had liquidated the assets and liabilities of such 
        institution without exercising the Corporation's authority 
        under subsection (o) of this section.
    (j) Limitation on Court Action.--Except as provided in this 
section, no court may take any action, except at the request of the 
Board of Directors of the Corporation by regulation or order, to 
restrain or affect the exercise of powers or functions of the 
Corporation as a conservator or a receiver.
    (k) Liability of Directors and Officers.--A director or officer of 
a payment stablecoin issuer may be held personally liable for monetary 
damages in any civil action by, on behalf of, or at the request or 
direction of the Corporation, which action is prosecuted wholly or 
partially for the benefit of the Corporation--
            (1) acting as conservator or receiver of such issuer;
            (2) acting based upon a suit, claim, or cause of action 
        purchased from, assigned by, or otherwise conveyed by such 
        receiver or conservator; or
            (3) for gross negligence, including any similar conduct or 
        conduct that demonstrates a greater disregard of a duty of care 
        (than gross negligence) including intentional tortious conduct, 
        as such terms are defined and determined under applicable State 
        law, provided that nothing in this paragraph shall impair or 
        affect any right of the Corporation under other applicable law.
    (l) Damages.--In any proceeding related to any claim against a 
payment stablecoin issuer's director, officer, employee, agent, 
attorney, accountant, appraiser, or any other party employed by or 
providing services to a payment stablecoin issuer, recoverable damages 
determined to result from the improvident or otherwise improper use or 
investment of any payment stablecoin issuer's assets shall include 
principal losses and appropriate interest.
    (m) Bridge Payment Stablecoin Issuers.--
            (1) Organization.--
                    (A) Purpose.--When 1 or more payment stablecoin 
                issuers are in default, or when the Corporation 
                anticipates that 1 or more payment stablecoin issuers 
                may become in default, the Corporation may, in its 
                discretion, organize, and the Office of the Comptroller 
                of the Currency, with respect to 1 or more payment 
                stablecoin issuers, shall charter, 1 or more depository 
                institutions, as appropriate, with respect thereto with 
                the powers and attributes of payment stablecoin issuers 
                as applicable, subject to the provisions of this 
                subsection, to be referred to as ``bridge payment 
                stablecoin issuers''.
                    (B) Authorities.--Upon the granting of a charter to 
                a bridge payment stablecoin issuer, the bridge issuer 
                may--
                            (i) assume such payment stablecoin assets 
                        and liabilities of the payment stablecoin 
                        issuer that is or are in default or in danger 
                        of default as the Corporation may, in its 
                        discretion, determine to be appropriate; and
                            (ii) perform any other temporary function 
                        which the Corporation may, in its discretion, 
                        prescribe in accordance with this the Federal 
                        Deposit Insurance Act (12 U.S.C. 1811 et seq.).
                    (C) Articles of association.--The articles of 
                association and organization certificate of a bridge 
                payment stablecoin issuer as approved by the 
                Corporation shall be executed by 3 representatives 
                designated by the Corporation.
                    (D) Interim directors.--A bridge payment stablecoin 
                issuer shall have an interim board of directors 
                consisting of not fewer than 5 nor more than 10 members 
                appointed by the Corporation.
                    (E) National bank or federal savings association.--
                A bridge payment stablecoin issuer shall be organized 
                as a depository institution under the National Bank Act 
                (12 U.S.C. 21 et seq.).
            (2) Chartering.--
                    (A) Conditions.--A depository institution may be 
                chartered by the Comptroller as a bridge payment 
                stablecoin issuer only if the Board of Directors of the 
                Corporation determines that--
                            (i) the amount which is reasonably 
                        necessary to operate such bridge issuer will 
                        not exceed the amount which is reasonably 
                        necessary to save the cost of liquidating, 
                        including paying the liabilities of, 1 or more 
                        payment stablecoin issuers in default or in 
                        danger of default with respect to which the 
                        bridge payment stablecoin issuer is chartered;
                            (ii) the continued operation of such 
                        payment stablecoin issuer or issuers in default 
                        or in danger of default with respect to which 
                        the bridge payment stablecoin issuer is 
                        chartered is essential to provide continued 
                        services to the customers of the issuer; or
                            (iii) the continued operation of such 
                        payment stablecoin issuer or issuers in default 
                        or in danger of default with respect to which 
                        the bridge issuer is chartered is in the best 
                        interest of the customer of such issuer or 
                        issuers in default or in danger of default or 
                        the public.
                    (B) Insured national bank or federal savings 
                association.--A bridge depository institution shall be 
                a national payment stablecoin issuer from the time it 
                is chartered by the Comptroller as a depository 
                institution.
                    (C) Bridge bank treated as being in default for 
                certain purposes.--A bridge payment stablecoin issuer 
                shall be treated as an issuer in default at such times 
                and for such purposes as the Corporation may, in its 
                discretion, determine.
                    (D) Management.--A bridge payment stablecoin 
                issuer, upon the granting of its charter, shall be 
                under the management of a board of directors consisting 
                of not fewer than 5 nor more than 10 members appointed 
                by the Corporation.
                    (E) Bylaws.--The board of directors of a bridge 
                payment stablecoin issuer shall adopt such bylaws as 
                may be approved by the Corporation.
            (3) Transfer of assets and liabilities.--
                    (A) In general.--
                            (i) Transfer upon grant of charter.--Upon 
                        the granting of a charter to a bridge payment 
                        stablecoin issuer pursuant to this subsection, 
                        the Corporation, as receiver, or any other 
                        receiver appointed with respect to any payment 
                        stablecoin issuer in default with respect to 
                        which the bridge payment stablecoin issuer is 
                        chartered may transfer any assets and 
                        liabilities of such issuer in default to the 
                        bridge issuer in accordance with paragraph (1).
                            (ii) Subsequent transfers.--At any time 
                        after a charter is granted to a bridge payment 
                        stablecoin issuer, the Corporation, as 
                        receiver, or any other receiver appointed with 
                        respect to a payment stablecoin issuer in 
                        default may transfer any assets and liabilities 
                        of such issuer in default as the Corporation 
                        may, in its discretion, determine to be 
                        appropriate in accordance with paragraph (1).
                            (iii) Effective without approval.--The 
                        transfer of any assets or liabilities of a 
                        payment stablecoin issuer in default 
                        transferred to a bridge payment stablecoin 
                        issuer shall be effective without any further 
                        approval under Federal or State law, 
                        assignment, or consent with respect thereto.
            (4) Powers of bridge payment stablecoin issuers.--Each 
        bridge payment stablecoin issue chartered under this subsection 
        shall have all corporate powers of, and be subject to the same 
        provisions of law as, a payment stablecoin issuer that is a 
        depository institution chartered by the Comptroller, as 
        appropriate, except that--
                    (A) the Corporation may--
                            (i) remove the interim directors and 
                        directors of a bridge issuer;
                            (ii) fix the compensation of members of the 
                        interim board of directors and the board of 
                        directors and senior management, as determined 
                        by the Corporation in its discretion, of a 
                        bridge issuer; and
                            (iii) waive any requirement established 
                        under section 5145, 5146, 5147, 5148, or 5149 
                        of the Revised Statutes (relating to directors 
                        of national banks) or section 31 of the Banking 
                        Act of 1933 (12 U.S.C. 71a) which would 
                        otherwise be applicable with respect to 
                        directors of a bridge issuer by operation of 
                        paragraph (2)(B);
                    (B) the Corporation may indemnify the 
                representatives for purposes of paragraph (1)(B) and 
                the interim directors, directors, officers, employees, 
                and agents of a bridge payment stablecoin issuer on 
                such terms as the Corporation determines to be 
                appropriate;
                    (C) no requirement under any provision of law 
                relating to the capital of a payment stablecoin issuer 
                shall apply with respect to a bridge issuer;
                    (D) the Comptroller of the Currency may establish a 
                limitation on the extent to which any person may become 
                indebted to a bridge issuer without regard to the 
                amount of the bridge issuer's capital or surplus;
                    (E)(i) the board of directors of a bridge payment 
                stablecoin issuer shall elect a chairperson who may 
                also serve in the position of chief executive officer, 
                except that such person shall not serve either as 
                chairperson or as chief executive officer without the 
                prior approval of the Corporation; and
                    (ii) the board of directors of a bridge payment 
                stablecoin issuer may appoint a chief executive officer 
                who is not also the chairperson, except that such 
                person shall not serve as chief executive officer 
                without the prior approval of the Corporation;
                    (F) the Comptroller shall waive any requirement for 
                a fidelity bond with respect to a bridge payment 
                stablecoin issuer at the request of the Corporation;
                    (G) any judicial action to which a bridge payment 
                stablecoin issuer becomes a party by virtue of its 
                acquisition of any assets or assumption of any 
                liabilities of a payment stablecoin issuer in default 
                shall be stayed from further proceedings for a period 
                of up to 45 days at the request of the bridge issuer;
                    (H) no agreement which tends to diminish or defeat 
                the right, title or interest of a bridge payment 
                stablecoin issuer in any asset of a payment stablecoin 
                issuer in default acquired by it shall be valid against 
                the bridge issuer unless such agreement--
                            (i) is in writing;
                            (ii) was executed by such payment 
                        stablecoin issuer in default and the person or 
                        persons claiming an adverse interest 
                        thereunder, including the obligor, 
                        contemporaneously with the acquisition of the 
                        asset by such issuer in default;
                            (iii) was approved by the board of 
                        directors of such payment stablecoin issuer in 
                        default, which approval shall be reflected in 
                        the minutes of said board; and
                            (iv) has been, continuously from the time 
                        of its execution, an official record of such 
                        payment stablecoin issuer in default; and
                    (I) except with the prior approval of the 
                Corporation, a bridge payment stablecoin issuer may 
                not, in any transaction or series of transactions, 
                issue capital stock or be a party to any merger, 
                consolidation, disposition of assets or liabilities, 
                sale or exchange of capital stock, or similar 
                transaction, or change its charter.
            (5) Capital.--
                    (A) No capital required.--The Corporation shall not 
                be required to--
                            (i) issue any capital stock on behalf of a 
                        bridge payment stablecoin issuer chartered 
                        under this subsection; or
                            (ii) purchase any capital stock of a bridge 
                        payment stablecoin issuer.
                    (B) Capital of insolvent institution.--Upon the 
                organization of a bridge payment stablecoin issuer, the 
                capital of the insolvent payment stablecoin issuer 
                shall be used to fund the operations of the bridge 
                issuer.
                    (C) Authority to issue capital stock.--Whenever the 
                Board of Directors of the Corporation determines it is 
                advisable to do so, the Corporation shall cause capital 
                stock of a bridge payment stablecoin issuer to be 
                issued and offered for sale in such amounts and on such 
                terms and conditions as the Corporation may, in its 
                discretion, determine.
                    (D) Capital levels.--A bridge payment stablecoin 
                issuer shall not be considered undercapitalized under 
                any other provision of Federal law.
            (6) No federal status.--
                    (A) Agency status.--A bridge payment stablecoin 
                issuer shall not be considered an agency, 
                establishment, or instrumentality of the United States.
                    (B) Employee status.--Representatives for purposes 
                of paragraph (1)(C), interim directors, directors, 
                officers, employees, or agents of a bridge payment 
                stablecoin issuer shall not be considered, solely by 
                virtue of service in any such capacity, officers or 
                employees of the United States. Any employee of the 
                Corporation or of any Federal instrumentality who 
                serves at the request of the Corporation as a 
                representative for purposes of paragraph (1)(C), 
                interim director, director, officer, employee, or agent 
                of a bridge payment stablecoin issuer shall not--
                            (i) solely by virtue of service in any such 
                        capacity lose any existing status as an officer 
                        or employee of the United States for purposes 
                        of title 5, United States Code, or any other 
                        provision of law; or
                            (ii) receive any salary or benefits for 
                        service in any such capacity with respect to a 
                        bridge payment stablecoin issuer in addition to 
                        such salary or benefits as are obtained through 
                        employment with the Corporation or such Federal 
                        instrumentality.
            (7) Duration of bridge payment stablecoin issuer.--Subject 
        to paragraphs (8) and (9), the status of a bridge payment 
        stablecoin issuer as such shall terminate at the end of the 2-
        year period following the date it was granted a charter. The 
        Board of Directors of the Corporation may, in its discretion, 
        extend the status of the bridge payment stablecoin issuer as 
        such for 3 additional 1-year periods.
            (8) Termination of bridge payment stablecoin issuer 
        status.--The status of any bridge payment stablecoin issuer as 
        such shall terminate upon the earliest of--
                    (A) the merger or consolidation of the bridge 
                issuer with a payment stablecoin issuer that is not a 
                bridge issuer;
                    (B) at the election of the Corporation, the sale of 
                a majority of the capital stock of the bridge payment 
                stablecoin issuer to an entity other than the 
                Corporation and other than another bridge issuer;
                    (C) the sale of 80 percent, or more, of the capital 
                stock of the bridge payment stablecoin issuer to an 
                entity other than the Corporation and other than 
                another bridge issuer;
                    (D) at the election of the Corporation, either the 
                assumption of all or substantially all of the payment 
                stablecoin liabilities of the bridge payment stablecoin 
                issuer by another payment stablecoin issuer, or the 
                acquisition of all or substantially all of the assets 
                of the bridge issuer by a payment stablecoin issuer 
                that is not a bridge issuer, or other entity as 
                permitted under applicable law; and
                    (E) the expiration of the period provided in 
                paragraph (7), or the earlier dissolution of the bridge 
                payment stablecoin issuer as provided in paragraph 
                (10).
            (9) Effect of termination events.--
                    (A) Merger or consolidation.--A bridge payment 
                stablecoin issuer that participates in a merger or 
                consolidation as provided in paragraph (8)(A) shall be 
                for all purposes a payment stablecoin issuer that is a 
                depository institution under the supervision and 
                regulation of the Comptroller, as the case may be, with 
                all the rights, powers, and privileges thereof, and 
                such merger or consolidation shall be conducted in 
                accordance with, and shall have the effect provided in, 
                the provisions of applicable law.
                    (B) Charter conversion.--Following the sale of a 
                majority of the capital stock of the bridge payment 
                stablecoin issuer as provided in paragraph (8)(B), the 
                Corporation may amend the charter of the bridge payment 
                stablecoin issuer to reflect the termination of the 
                status of the bridge issuer as such, whereupon the 
                issuer shall remain a depository institution under the 
                supervision of the Comptroller, as the case may be, 
                with all of the rights, powers, and privileges thereof, 
                subject to all laws and regulations applicable thereto.
                    (C) Sale of stock.--Following the sale of 80 
                percent or more of the capital stock of a bridge 
                payment stablecoin issuer as provided in paragraph 
                (8)(C), the payment stablecoin issuer shall remain a 
                depository institution that is a payment stablecoin 
                issuer under the supervision of the Comptroller, with 
                all of the rights, powers, and privileges thereof, 
                subject to all laws and regulations applicable thereto.
                    (D) Assumption of liabilities and sale of assets.--
                Following the assumption of all or substantially all of 
                the liabilities of the bridge payment stablecoin 
                issuer, or the sale of all or substantially all of the 
                assets of the bridge issuer, as provided in paragraph 
                (8)(D), at the election of the Corporation, the bridge 
                issuer may retain its status as such for the period 
                provided in paragraph (7).
                    (E) Amendments to charter.--Following the 
                consummation of a transaction described in subparagraph 
                (A), (B), (C), or (D) of paragraph (8), the charter of 
                the resulting issuer shall be amended to reflect the 
                termination of bridge payment stablecoin issuer status, 
                if appropriate.
            (10) Dissolution of bridge payment stablecoin issuer.--
                    (A) In general.--Notwithstanding any other 
                provision of State or Federal law, if the bridge 
                payment stablecoin issuer's status as such has not 
                previously been terminated by the occurrence of an 
                event specified in subparagraph (A), (B), (C), or (D) 
                of paragraph (8)--
                            (i) the Board of Directors of the 
                        Corporation may, in its discretion, dissolve a 
                        bridge payment stablecoin issuer in accordance 
                        with this paragraph at any time; and
                            (ii) the Board of Directors of the 
                        Corporation shall promptly commence dissolution 
                        proceedings in accordance with this paragraph 
                        upon the expiration of the 2-year period 
                        following the date the bridge payment 
                        stablecoin issuer was chartered, or any 
                        extension thereof, as provided in paragraph 
                        (7).
                    (B) Procedures.--The Comptroller shall appoint the 
                Corporation as receiver for a bridge payment stablecoin 
                issuer upon certification by the Board of Directors of 
                the Corporation to the Comptroller of its determination 
                to dissolve the bridge issuer. The Corporation as such 
                receiver shall wind up the affairs of the bridge 
                issuer. With respect to any such bridge payment 
                stablecoin issuer, the Corporation as such receiver 
                shall have all the rights, powers, and privileges and 
                shall perform the duties related to the exercise of 
                such rights, powers, or privileges granted by law to a 
                receiver of payment stablecoin issuers and 
                notwithstanding any other provision of law in the 
                exercise of such rights, powers, and privileges the 
                Corporation shall not be subject to the direction or 
                supervision of any State agency or other Federal 
                agency.
            (11) Multiple bridge payment stablecoin issuers.--Subject 
        to paragraph (1)(B)(i), the Corporation may, in the 
        Corporation's discretion, organize 2 or more bridge payment 
        stablecoin issuers under this subsection to assume any payment 
        stablecoin liabilities, and purchase any assets of a single 
        payment stablecoin issuer in default.
    (n) Supervisory Records.--Whenever the Corporation has been 
appointed as receiver for a payment stablecoin issuer, the Comptroller 
or State bank supervisor, and the Board, shall make available all 
supervisory records to the receiver which may be used by the receiver 
in any manner the receiver determines to be appropriate.
    (o) Certain Sales of Assets Prohibited.--
            (1) Persons who engaged in improper conduct with, or caused 
        losses to, payment stablecoin issuers.--The Corporation shall 
        prescribe regulations which, at a minimum, shall prohibit the 
        sale of assets of a failed payment stablecoin issuer by the 
        Corporation to--
                    (A) any person who--
                            (i) has defaulted, or was a member of a 
                        partnership or an officer or director of a 
                        corporation that has defaulted, on 1 or more 
                        obligations the aggregate amount of which 
                        exceed $1,000,000, to such failed payment 
                        stablecoin issuer; and
                            (ii) proposes to purchase any such asset in 
                        whole or in part through the use of the 
                        proceeds of a loan or advance of credit from 
                        the Corporation or from any institution for 
                        which the Corporation has been appointed as 
                        conservator or receiver;
                    (B) any person who participated, as an officer or 
                director of such failed issuer or of any affiliate of 
                such issuer, in a material way in transactions that 
                resulted in a substantial loss to such failed issuer;
                    (C) any person who has been removed from, or 
                prohibited from participating in the affairs of, such 
                failed issuer pursuant to any final enforcement action 
                by the Comptroller, State bank supervisor or the Board; 
                or
                    (D) any person who has demonstrated a pattern or 
                practice of defalcation regarding obligations to such 
                failed issuer.
            (2) Convicted debtors.--Except as provided in paragraph 
        (3), any person who has been convicted of an offense under 
        section 215, 656, 657, 1005, 1006, 1007, 1008, 1014, 1032, 
        1341, 1343, or 1344 of title 18, United States Code, or of 
        conspiring to commit such an offense, affecting any payment 
        stablecoin issuer for which the Corporation was appointed 
        conservator or receiver, may not purchase any asset of such 
        institution from the Corporation as conservator or receiver.
            (3) Settlement of claims.--Paragraphs (1) and (2) shall not 
        apply to the sale or transfer by the Corporation of any asset 
        of any payment stablecoin issuer to any person if the sale or 
        transfer of the asset resolves or settles, or is part of the 
        resolution or settlement, of--
                    (A) 1 or more claims that have been, or could have 
                been, asserted by the Corporation against the person; 
                or
                    (B) obligations owed by the person to any payment 
                stablecoin issuer or the Corporation.
    (p) Expedited Procedures for Certain Claims.--
            (1) Time for filing notice of appeal.--The notice of appeal 
        of any order, whether interlocutory or final, entered in any 
        case brought by the Corporation against a payment stablecoin 
        issuer's director, officer, employee, agent, attorney, 
        accountant, or appraiser or any other person employed by or 
        providing services to a payment stablecoin issuer shall be 
        filed not later than 30 days after the date of entry of the 
        order. The hearing of the appeal shall be held not later than 
        120 days after the date of the notice of appeal. The appeal 
        shall be decided not later than 180 days after the date of the 
        notice of appeal.
            (2) Scheduling.--Consistent with section 1657 of title 28, 
        United States Code, a court of the United States shall expedite 
        the consideration of any case brought by the Corporation 
        against a payment stablecoin issuer's director, officer, 
        employee, agent, attorney, accountant, or appraiser or any 
        other person employed by or providing services to the issuer. 
        As far as practicable, the court shall give such case priority 
        on its docket.
            (3) Judicial discretion.--The court may modify the schedule 
        and limitations stated in paragraphs (1) and (2) in a 
        particular case, based on a specific finding that the ends of 
        justice that would be served by making such a modification 
        would outweigh the best interest of the public in having the 
        case resolved expeditiously.
    (q) Foreign Investigations.--The Corporation, as conservator or 
receiver of a payment stablecoin and for purposes of carrying out any 
power, authority, or duty with respect to an issuer--
            (1) may request the assistance of any foreign banking 
        authority and provide assistance to any foreign banking 
        authority in accordance with section 8(v) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1818(v)); and
            (2) may each maintain an office to coordinate foreign 
        investigations or investigations on behalf of foreign banking 
        authorities.
    (r) Prohibition on Entering Secrecy Agreements and Protective 
Orders.--The Corporation may not enter into any agreement or approve 
any protective order which prohibits the Corporation from disclosing 
the terms of any settlement of an administrative or other action for 
damages or restitution brought by the Corporation in its capacity as 
conservator or receiver for a payment stablecoin issuer.
    (s) Agencies May Share Information Without Waiving Privilege.--
            (1) In general.--A covered agency, in any capacity, shall 
        not be deemed to have waived any privilege applicable to any 
        information by transferring that information to or permitting 
        that information to be used by--
                    (A) any other covered agency, in any capacity; or
                    (B) any other agency of the Federal Government (as 
                defined in section 6 of title 18, United States Code).
            (2) Definitions.--For purposes of this subsection:
                    (A) Covered agency.--The term ``covered agency'' 
                means any of the following:
                            (i) Any Federal banking agency or State 
                        bank supervisor.
                            (ii) The Farm Credit Administration.
                            (iii) The Farm Credit System Insurance 
                        Corporation.
                            (iv) The National Credit Union 
                        Administration.
                            (v) The Government Accountability Office.
                            (vi) The Bureau of Consumer Financial 
                        Protection.
                            (vii) The Federal Housing Finance Agency.
                    (B) Privilege.--The term ``privilege'' includes any 
                work-product, attorney-client, or other privilege 
                recognized under Federal or State law.
            (3) Rule of construction.--Paragraph (1) shall not be 
        construed as implying that any person waives any privilege 
        applicable to any information because paragraph (1) does not 
        apply to the transfer or use of that information.

SEC. 10. CONFORMING AMENDMENTS.

    (a) Title 11.--Section 109(b)(2) of title 11, United States Code, 
is amended to read as follows:
            ``(2) a domestic insurance company, bank (as defined in 
        section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
        1813)), savings bank, cooperative bank, savings and loan 
        association, building and loan association, depository 
        institution, homestead association, a New Markets Venture 
        Capital company as defined in section 351 of the Small Business 
        Investment Act of 1958 (15 U.S.C. 689), a small business 
        investment company licensed by the Small Business 
        Administration under section 301 of the Small Business 
        Investment Act of 1958 (15 U.S.C. 681), credit union, payment 
        stablecoin issuer (as defined in section __01 of the Lummis-
        Gillibrand Payment Stablecoin Act), or industrial bank or 
        similar institution that is an insured bank (as defined in 
        section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(h)); or''.
    (b) Federal Deposit Insurance Act.--Section 13(e)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1823(e)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``or a payment stablecoin issuer'' after ``any insured 
        depository institution'';
            (2) in subparagraph (B), by inserting ``or the payment 
        stablecoin issuer'' after ``the depository institution'' each 
        place it appears;
            (3) in subparagraph (C), by striking the ``the depository 
        institution or its loan committee'' and inserting ``the 
        depository institution (or its loan committee) or a payment 
        stablecoin issuer''; and
            (4) in subparagraph (D), by inserting ``or the payment 
        stablecoin issuer'' after ``the depository institution''.

SEC. 11. ENFORCEMENT.

    (a) Civil Action.--The applicable payment stablecoin regulator may 
bring an action in the appropriate district court of the United States, 
or the court of any territory of the United States, to seek an order 
for the enforcement of this Act and such court shall have jurisdiction 
and power to order and require compliance herewith, including through 
injunctive relief.
    (b) Prohibition on Unauthorized Participation by Convicted 
Individuals.--
            (1) In general.--No person who has been convicted of any 
        criminal offense involving insider trading, embezzlement, 
        cybercrime, money laundering, or financing of terrorism, or of 
        felony financial fraud may serve as an executive officer or a 
        person with control of more than 5 percent of the shares of a 
        payment stablecoin issuer.
            (2) Waiver; exceptions.--The Board shall provide by rule a 
        process to apply for a waiver of the prohibition under 
        paragraph (1) and may provide for de minimis exceptions to the 
        prohibition under such paragraph that would not require a 
        waiver.
    (c) Suspension or Revocation.--The applicable payment stablecoin 
regulator may prohibit a payment stablecoin issuer from issuing payment 
stablecoins under a registration or authorization if the regulator 
determines that the payment stablecoin issuer, or an institution-
affiliated party, is--
            (1) violating or has violated an applicable law, 
        regulation, or order;
            (2) violating or has violated any condition imposed in 
        writing by the Comptroller, State bank supervisor, or Board in 
        connection with a written agreement entered into between the 
        payment stablecoin issuer and the appropriate regulator or a 
        condition imposed in connection with any application or other 
        request; or
            (3) operating in an unsafe or unsound manner.
    (d) Cease-and-Desist Proceedings.--If the applicable payment 
stablecoin regulator has reasonable cause to believe that a payment 
stablecoin issuer or any institution-affiliated party is violating or 
has violated this Act, any rule or order issued pursuant to this Act, 
or any written agreement entered into with the Comptroller, State bank 
supervisor, or Board, or condition imposed in writing in connection 
with any application or other request, the applicable payment 
stablecoin regulator may, by provisions that are mandatory or 
otherwise, order the payment stablecoin issuer or institution-
affiliated party of the payment stablecoin issuer to--
            (1) cease and desist from such violation or practice;
            (2) take affirmative action to correct the conditions 
        resulting from any such violation or practice; or
            (3) take such other action, as determined to be 
        appropriate.
    (e) Removal and Prohibition Authority.--The applicable payment 
stablecoin regulator may remove an institution-affiliated party from 
their position or office or prohibit further participation of the 
institution-affiliated party in the affairs of the payment stablecoin 
issuer or in the affairs of all payment stablecoin issuers if the 
applicable payment stablecoin regulator determines that--
            (1) the institution-affiliated party has, directly or 
        indirectly, committed a violation or attempted violation of 
        this Act;
            (2) the institution-affiliated party has committed a 
        violation of any provision of sub-chapter II of chapter 53 of 
        title 31, United States Code; or
            (3) the institution-affiliated party is otherwise 
        disqualified pursuant to subsection (b).
    (f) Enforcement and Penalty Authorities With Respect to Safety and 
Soundness.--With respect to a payment stablecoin issuer, if the 
applicable payment stablecoin regulator has reasonable cause to believe 
that the payment stablecoin issuer or an institution-affiliated party 
of the payment stablecoin issuer is engaging or has engaged in an 
unsafe or unsound practice, the applicable payment stablecoin regulator 
shall have the same authorities and responsibilities as the Federal 
Deposit Insurance Corporation with respect to an insured depository 
institution and an institution-affiliated party under section 8 of the 
Federal Deposit Insurance Act (12 U.S.C. 1818).
    (g) Procedure.--
            (1) Notice.--For each violation or attempted violation of 
        this Act, the applicable payment stablecoin regulator shall 
        provide notice to the payment stablecoin issuer and any 
        institution-affiliated party of the payment stablecoin issuer, 
        which shall include--
                    (A) a statement of facts constituting the 
                identified violation or attempted violation; and
                    (B) a notice of a hearing that will be held with 
                respect to the violation or attempted violation, 
                including the time and place of the hearing, that is 
                set not less than 30 days after the date of the notice.
            (2) Hearing.--A hearing described in paragraph (1) shall be 
        held in a Federal judicial district or in the territory in 
        which the payment stablecoin issuer or institution-affiliated 
        party is located, unless the issuer or institution-affiliated 
        party consents to another place, and shall be conducted in 
        accordance with the provisions of chapter 5 of title 5, United 
        States Code.
            (3) Written decision.--Not later than 90 days after the 
        applicable payment stablecoin regulator has notified the 
        parties that the case has been submitted for a final decision, 
        the applicable payment stablecoin regulator shall render a 
        written decision that includes a statement of the findings of 
        fact upon which the decision is predicated and shall be served 
        upon each party to the proceeding an order or orders consistent 
        with the provisions of this section.
            (4) Orders.--An order issued under this subsection shall--
                    (A) be effective as of the date set by the 
                appropriate payment stablecoin regulator after the date 
                of the decision, except in the case of a cease-and-
                desist order issued upon consent, which shall become 
                effective at the time specified therein; and
                    (B) remain effective and enforceable as provided in 
                the order, except to such extent as it is stayed, 
                modified, terminated, or set aside by the action of a 
                regulator or a reviewing court.
            (5) Appearance.--Unless a payment stablecoin issuer or 
        institution-affiliated party of such issuer appears at the 
        hearing, personally or by a duly authorized representative, 
        such issuer or party shall be deemed to have consented to the 
        suspension or revocation of registration or authorization, a 
        cease-and-desist order, or removal, as applicable.
    (h) Judicial Review.--
            (1) In general.--With respect to a final order under this 
        section not issued by consent of a payment stablecoin issuer or 
        an institution-affiliated party, an aggrieved person may, not 
        later than 30 days after the date of service of the order and 
        written decision, file a petition for review in an appropriate 
        court of appeals of the United States, or in the United States 
        Court of Appeals for the District of Columbia Circuit to 
        request that the order be modified, terminated, or set aside.
            (2) Transmission of the record.--Upon the filing of a 
        petition under paragraph (1) with the appropriate court, the 
        clerk of that court shall transmit a copy of the petition to 
        the applicable payment stablecoin regulator which shall 
        transmit to the court the record of the proceeding relating to 
        the petition, as provided in section 2112 of title 28, United 
        States Code.
            (3) Exclusive jurisdiction.--
                    (A) In general.--Upon the filing of a petition 
                under paragraph (1) with the appropriate court, that 
                court shall have exclusive jurisdiction to--
                            (i) review the final action, as provided in 
                        chapter 7 of title 5, United States Code; and
                            (ii) affirm, modify, terminate, or set 
                        aside, in whole or in part, the applicable 
                        order.
                    (B) Final judgement.--Except upon review by the 
                Supreme Court upon writ of certiorari, as provided in 
                section 1254 of title 28, United States Code, the 
                judgment and decree of the court is final.
    (i) Commencement of Proceedings Not Treated as a Stay.--
            (1) In general.--The commencement of proceedings for 
        judicial review under subsection (h) shall not, unless 
        specifically ordered by the appropriate court, operate as a 
        stay of any order.
            (2) Enforcement.--The applicable payment stablecoin 
        regulator may, in its discretion, apply to the appropriate 
        United States district court or the United States court of any 
        territory, for the enforcement of any effective and outstanding 
        notice or order issued under this section, and such court shall 
        have jurisdiction and power to order and require compliance 
        herewith, but, except as otherwise provided in this section, no 
        court shall have jurisdiction to affect by injunction or 
        otherwise the issuance or enforcement of any notice or order 
        under this section, or to review, modify, suspend, terminate, 
        or set aside any such notice or order.
    (j) Temporary Cease and Desist Proceedings.--
            (1) In general.--If the applicable payment stablecoin 
        regulator determines that a violation or attempted violation 
        identified under this section, or the continuation thereof, is 
        likely to cause a receivership, insolvency, or significant 
        dissipation of assets or earnings of a payment stablecoin 
        issuer, or is likely to weaken the condition of the payment 
        stablecoin issuer or otherwise prejudice the interests of its 
        customers prior to the completion of the proceedings conducted 
        pursuant to subsection (h), the applicable payment stablecoin 
        regulator may issue a temporary order requiring a payment 
        stablecoin issuer or institution-affiliated party to cease and 
        desist from any such violation or practice and to take 
        affirmative action to prevent or remedy such receivership, 
        insolvency, dissipation, condition, or prejudice pending 
        completion of such proceedings.
            (2) Effective date.--An order described under paragraph (1) 
        shall become effective upon service on the payment stablecoin 
        issuer or the institution-affiliated party and, unless set 
        aside, limited, or suspended by a court, remain effective and 
        enforceable pending the completion of the administrative 
        proceedings pursuant to such notice and until such time as the 
        applicable payment stablecoin regulator removes the suspension 
        or the cease-and-desist order has expired.
    (k) Judicial Review.--Not later than 10 days after the date a 
payment stablecoin issuer concerned or any institution-affiliated party 
has been served with a temporary cease-and-desist order, the payment 
stablecoin issuer or such party may apply to the appropriate United 
States district court, or the United States District Court for the 
District of Columbia, for an injunction setting aside, limiting, or 
suspending the enforcement, operation, or effectiveness of such order 
pending the completion of the administrative proceeding pursuant to the 
notice of charges served upon the payment stablecoin issuer or such 
party under subsection (g)(4), and such court shall have jurisdiction 
to issue such injunction.
    (l) Enforcement of Temporary Cease and Desist Orders.--In the case 
of a violation or attempted violation of, or failure to obey, a 
temporary cease-and-desist order issued pursuant to this section, the 
applicable payment stablecoin regulator may apply to the appropriate 
United States district court, or the United States court of any 
territory, for an injunction to enforce such order, and, if the court 
determines that there has been such violation or attempted violation or 
failure to obey, it shall be the duty of the court to issue such 
injunction.
    (m) Failure To Register or Be Authorized.--Any payment stablecoin 
issuer that fails to obtain the applicable registration or 
authorization under this Act, or an institution-affiliated party that 
knowingly participates in such a failure, shall be liable for a civil 
penalty of not more than $1,000,000 to the Board for each day during 
which such failure continues. The Board may also seek appropriate 
relief under subsection (a) for failure of a payment stablecoin issuer 
or other person to register or be authorized under section 6 or 7, as 
appropriate.
    (n) First Tier Civil Monetary Penalties.--Except as provided in 
subsection (m), a payment stablecoin issuer or institution-affiliated 
party of such payment stablecoin issuer that violates this Act or any 
rule or order issued pursuant to this Act, or that violates any 
condition imposed in writing in connection with a written agreement 
entered into between the payment stablecoin issuer and the applicable 
payment stablecoin regulator, or a condition imposed in connection with 
any application or other request, shall be liable for a civil penalty 
of up to $100,000 for each day during which the violation continues.
    (o) Second Tier Civil Monetary Penalties.--Except as provided in 
subsection (m), a payment stablecoin issuer or any institution-
affiliated party of such payment stablecoin issuer that knowingly 
participates in a violation of any provision of this Act, or any rule 
or order issued pursuant thereto, is liable for a civil penalty of up 
to an additional $100,000 for each day during which the violation 
continues.
    (p) Civil Monetary Penalty Procedure.--
            (1) Assessment and collection.--Any civil monetary penalty 
        imposed under this section may be assessed and collected by the 
        applicable payment stablecoin regulator by following the 
        procedure set forth under subsection (g).
            (2) Deadline.--The applicable payment stablecoin regulator 
        may commence an action for a civil penalty resulting from a 
        violation of this Act at any time before the end of the 6-year 
        period beginning on the date of such violation.
    (q) Enforcement of Civil Monetary Penalties.--
            (1) In general.--If a payment stablecoin issuer or 
        institution-affiliated party fails to pay a civil monetary 
        penalty assessed under this section, the applicable payment 
        stablecoin regulator shall recover the amount assessed by 
        action in the appropriate United States district court. The 
        validity and appropriateness of a civil monetary penalty 
        assessed under this section shall not be subject to review.
            (2) Restraining order.--In any action brought pursuant to 
        this subsection, or in an action brought in aid of, or to 
        enforce an order in, any administrative or other civil action 
        for money damages, restitution, or civil money penalties, the 
        court may, upon application, issue a restraining order that--
                    (A) prohibits any person subject to the proceeding 
                from withdrawing, transferring, removing, dissipating, 
                or disposing of any assets; and
                    (B) appoints a temporary receiver to administer the 
                restraining order.
    (r) Notice Under This Section After Separation From Service.--The 
resignation, termination of employment or participation, or separation 
of an institution-affiliated party (including a separation caused by 
the closing of a payment stablecoin issuer) shall not affect the 
jurisdiction and authority of the applicable payment stablecoin 
regulator to issue any notice or order and proceed under this section 
against any such party, if such notice or order is served before the 
end of the 6-year period beginning on the date such party ceased to be 
an institution-affiliated party with respect to the payment stablecoin 
issuer.
    (s) Exercise of Authority.--
            (1) In general.--In exercising authority under this section 
        with respect to a depository institution that issues a payment 
        stablecoin under section 7 of this Act, the Comptroller or 
        State bank supervisor, as applicable, and the Board shall 
        endeavor to act jointly whenever possible.
            (2) Consultation.--
                    (A) Initial consultation required.--Prior to 
                opening an investigation, beginning the process of an 
                enforcement action or exercising other authority under 
                this section, the applicable payment stablecoin 
                regulator shall provide notice and consult with the 
                other applicable regulator relating to the necessity 
                and scope of the action.
                    (B) Exercise of authority.--After an initial 
                consultation under this paragraph, the applicable 
                payment stablecoin regulator may exercise authority 
                independently under this section, but shall keep the 
                other applicable regulator reasonably informed about 
                the progress of the action and shall provide not less 
                than 7 days' prior notice of the timing and scope of 
                the final action.

SEC. 12. INTEROPERABILITY STANDARDS.

    The Board, in consultation with the Comptroller, State bank 
supervisors, the National Institute of Standards and Technology and 
other relevant standard setting organizations, shall assess and, if 
necessary, may, pursuant to section 553 of title 5, United States Code, 
and in a manner consistent with the utilization of consensus technical 
standards under section 12(d) of the National Technology Transfer and 
Advancement Act of 1995 (15 U.S.C. 272 note), prescribe standards for 
payment stablecoin issuers and payment stablecoin service providers to 
promote compatibility and interoperability among payment stablecoin 
systems and between payment stablecoin systems and other payment 
systems, including mandatory or minimum technical or legal 
specifications that enable participants in one payment system to clear 
and settle payments across payment systems without participating 
directly in multiple payment systems.

SEC. 13. RESERVATION OF AUTHORITY.

    (a) Limitation of Authority.--Nothing in this Act shall limit the 
authority of the Board, Comptroller, State bank supervisors, the 
Secretary of the Treasury, the Bureau of Consumer Financial Protection, 
the Securities and Exchange Commission, or the Commodity Futures 
Trading Commission under any provision of law with respect to any 
person subject to this Act.
    (b) Effect on State Laws.--The provisions of this Act and rules 
issued pursuant to this Act shall not preempt a law of a State except 
to the extent such law conflicts with the provisions of this Act, and 
then only to the extent of such conflict.
    (c) Antitrust Savings Clause.--Nothing in this Act shall be 
construed to modify, impair, or supersede the operation of any of the 
Federal antitrust laws, as defined in subsection (a) of the first 
section of the Clayton Act (15 U.S.C. 12(a)) or statutes proscribing 
unfair or deceptive acts or practices, as defined in section 5(a)(4) of 
the Federal Trade Commission Act (15 U.S.C. 45(a)(4)).
    (d) Insured Depository Institution Savings Clause.--Nothing in this 
Act shall be construed to limit the authority of an insured depository 
institution (as defined in section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813)) to engage in activities permissible pursuant to 
applicable State and Federal law, including accepting or receiving 
deposits and issuing crypto assets that represent, and have the same 
legal standing as, deposits, or to limit the authority of the Federal 
banking agencies to interpret or establish limitations and conditions 
on such activities.

SEC. 14. ACCOUNTING TREATMENT OF CUSTODIAL ASSETS.

    Crypto assets properly held in a custodial account shall not be 
considered assets or liabilities of the custodian for any purpose and 
shall be maintained on an off-balance sheet basis, including for the 
purpose of accounting treatment for the custodian, notwithstanding the 
form in which the assets are maintained, and for the purposes of the 
capital calculations of depository institutions and all other financial 
institutions.

SEC. 15. EFFECTIVE DATE; IMPLEMENTATION AND RULES.

    (a) Effective Date.--This Act shall take effect on the earlier of--
            (1) the date that is 540 days after the date of enactment 
        of this Act; or
            (2) the date that is 90 days after the date on which the 
        Board--
                    (A) issues final rules implementing this Act; and
                    (B) notifies Congress and the public that final 
                rules have been issued.
    (b) Transitional Provisions for Existing Non-Depository 
Institutions.--
            (1) Application priority.--An application for authorization 
        under this Act of a State non-depository trust company, or the 
        holder of a State license that only persons engaged in crypto 
        asset activities may obtain, which was chartered or issued 
        under the laws of a State and granted permission by its 
        regulator to issue payment stablecoins before May 1, 2024, 
        shall be approved by the Board before an application from 
        another entity that is filed on or after May 1, 2024.
            (2) Approval.--An application described in paragraph (1), 
        shall be approved unless the Board finds, by unanimous vote of 
        all members, that the non-depository institution is unlikely to 
        come into compliance with the requirements of section 6(b) not 
        later than 1 year after the effective date of this Act under 
        subsection (a).
            (3) Issuance permitted.--A State non-depository trust 
        company or holder of a State license to which this subsection 
        applies may continue with issuance, redemption and other 
        similar activities relating to a payment stablecoin under this 
        subsection under this subsection until its application is 
        approved or denied by the Board.
    (c) Transitional Provisions for Existing Depository Institutions.--
            (1) Application priority.--The application of a depository 
        institution for authorization to become a national payment 
        stablecoin issuer under section 7 of this Act, which was 
        chartered and granted permission by its regulator to issue 
        payment stablecoins before May 1, 2024, shall be decided upon 
        by the Board before any other application for authorization to 
        become a national payment stablecoin issuer which is filed on 
        or after May 1, 2024.
            (2) Deemed approved.--The application described in 
        paragraph (1) shall be deemed approved unless the Board finds, 
        by unanimous vote of all members, that the depository 
        institution is unlikely to come into compliance with the 
        requirements of section 7(b) not later than 1 year after the 
        date of enactment of this Act.
            (3) Issuance permitted.--A depository institution to which 
        this subsection applies may continue with issuance, redemption 
        and other similar activities relating to a payment stablecoin 
        under this subsection until its application is approved or 
        denied by the Board.
    (d) Findings Relating to Certain Activities.--Congress finds the 
following:
            (1) In determining whether an activity is financial in 
        nature under the Bank Holding Company Act (12 U.S.C. 1841 et 
        seq.), Congress has required the Board under such Act to--
                    (A) consider changes or reasonably expected changes 
                in the marketplace in which financial companies 
                compete;
                    (B) consider changes or reasonably expected changes 
                in the technology for delivering financial services; 
                and
                    (C) consider the ability of financial companies to 
                compete effectively and efficiently to deliver 
                information and services that are financial in nature 
                through the use of technological means, including any 
                application necessary to protect the security or 
                efficacy of systems for the transmission of data or 
                financial transactions.
            (2) Lending, exchanging, transferring, investing for 
        others, and safeguarding money and crypto assets, and 
        activities incidental to these functions, are analogous to 
        similar activities permissible for banks under the Bank Holding 
        Company Act (12 U.S.C. 1841 et seq.).
            (3) The activities described in paragraph (2) shall be 
        deemed financial in nature, or incidental to a financial 
        activity, under the Bank Holding Company Act (12 U.S.C. 1841 et 
        seq.) for purposes of section 5 of this Act.
    (e) Report on Rulemaking Status.--Not later than 180 days after the 
effective date of this Act under subsection (a), the Board shall submit 
to the Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of Representatives 
a status update on the development of the rulemaking under this Act.
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