tified under section 4(b), such State qualified 
payment stablecoin issuer shall remain subject 
to applicable consumer protection laws of such 
host State, but only to the same extent as State 
qualified payment stablecoin issuers chartered 
or licensed in that host State. 
SEC. 8. CUSTOMER PROTECTION. 
(a) IN GENERAL.—A person may only engage in the 
business of providing custodial or safekeeping services for 
permitted payment stablecoins, reserves described in sec-
tion 4(a)(1)(A), or private keys of permitted payment 
stablecoins, if the person— 
(1) is subject to— 
(A) supervision or regulation by a primary 
Federal payment stablecoin regulator or a pri-
mary financial regulatory agency described 
under subparagraph (B) or (C) of section 2(12) 
of the Dodd-Frank Wall Street Reform and 
Consumer 
Protection 
Act 
(12 
U.S.C. 
5301(12)); or 
(B) supervision by a State bank super-
visor, as defined in section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813) or a 
State credit union supervisor, as defined in sec-
tion 6003 of the Anti-Money Laundering Act of 
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2020 (31 U.S.C. 5311 note), and such State 
bank supervisor or State credit union supervisor 
makes available to the Board such information 
as the Board determines necessary and relevant 
to the categories of information under sub-
section (d); and 
(2) complies with the segregation requirements 
under subsections (b), (c), and (d), unless such per-
son complies with similar requirements as required 
by the Board, the Comptroller, the Corporation, the 
Securities and Exchange Commission, or the Com-
modity Futures Trading Commission, as applicable. 
(b) CUSTOMER PROPERTY REQUIREMENTS.—A per-
son described in subsection (a) shall— 
(1) treat and deal with the payment stablecoins, 
private keys, cash, and other property of another 
person for whom or on whose behalf the person re-
ceives, acquires, or holds payment stablecoins, pri-
vate keys, cash, and other property (hereinafter in 
this section referred to as the ‘‘customer’’) as be-
longing to such customer and not as the property of 
such person; and 
(2) take such steps as are appropriate to pro-
tect the payment stablecoins, private keys, cash, and 
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other property of a customer from the claims of 
creditors of the person. 
(c) COMMINGLING PROHIBITED.— 
(1) IN GENERAL.—Payment stablecoins, cash, 
and other property of a customer shall be separately 
accounted for by a person described in subsection 
(a) and shall not be commingled with the funds of 
the person. 
(2) CUSTOMER PRIORITY.—The claims of a cus-
tomer with respect to property of the customer shall 
have priority over the claims of a payment stablecoin 
issuer or any creditor of a payment stablecoin issuer 
unless the customer expressly consents otherwise. 
(3) EXCEPTION.—Notwithstanding paragraph 
(1)— 
(A) the payment stablecoins, cash, and 
other property of a customer may be commin-
gled and deposited in an omnibus account hold-
ing the payment stablecoins, cash, and other 
property of more than 1 customer at an insured 
depository institution or trust company; 
(B) such share of the payment stablecoins, 
cash, and other property of the customer that 
shall be necessary to transfer, adjust, or settle 
a transaction or transfer of assets may be with-
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drawn and applied to such purposes, including 
the payment of commissions, taxes, storage, 
and other charges lawfully accruing in connec-
tion with the provision of services by a person 
described in subsection (a); and 
(C) in accordance with such terms and 
conditions as the Board may prescribe by rule, 
regulation, or order, any customer payment 
stablecoin, cash, and other property described 
in this subsection may be commingled and de-
posited in customer accounts with payment 
stablecoins, cash, and other property received 
by the person and required by the Board to be 
separately accounted for, treated, and dealt 
with as belonging to customers. 
(d) REGULATORY
INFORMATION.—A person de-
scribed under subsection (a) shall submit to the primary 
Federal payment stablecoin regulator (or, if the person 
does not have a primary Federal payment stablecoin regu-
lator, to the Board) information concerning the person’s 
business operations and processes to protect customer 
payment stablecoins, cash, and other property, in such 
form and manner as the primary Federal payment 
stablecoin regulator (or, if the person does not have a pri-
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mary Federal payment stablecoin regulator, the Board) 
shall determine. 
(e) EXCLUSION.—The requirements of this section 
shall not apply to any person solely on the basis that such 
person engages in the business of providing hardware or 
software to facilitate a customer’s own custody or safe-
keeping of the customer’s payment stablecoins or private 
keys. 
SEC. 9. RULE OF CONSTRUCTION. 
A digital asset shall not be construed to be a payment 
stablecoin, if it is— 
(1) redeemable by the issuer exclusively for 
other digital assets, provided that such digital assets 
for which it is redeemable are not primarily— 
(A) payment stablecoins; or 
(B) representations of permissible reserves 
described under section 4(a)(1)(A) or similar 
such assets; or 
(2) primarily used within a system controlled by 
such digital asset’s issuer as a means of accessing 
products, services, or loyalty rewards. 
SEC. 10. INTEROPERABILITY STANDARDS. 
(a) IN GENERAL.—The primary Federal payment 
stablecoin regulators, in consultation with the National In-
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stitute of Standards and Technology, other relevant stand-
ard setting organizations, and State governments— 
(1) shall assess compatibility and interoper-
ability standards for permitted payment stablecoin 
issuers; and 
(2) if necessary, may, pursuant to section 553 
of title 5 and in a manner consistent with the Na-
tional Technology Transfer and Advancement Act of 
1995 (Public Law 104–113), prescribe standards for 
payment stablecoin issuers to promote compatibility 
and interoperability. 
(b) AGREEMENTS WITH FOREIGN REGULATORS.— 
The Secretary of the Treasury shall seek to enter into 
agreements with foreign jurisdictions with comparable 
payment stablecoin regulatory regimes to facilitate inter-
national transactions and interoperability with any United 
States dollar-denominated payment stablecoins issued 
overseas. 
SEC. 
11. 
MORATORIUM 
ON 
ENDOGENOUSLY 
COLLATERALIZED STABLECOINS. 
(a) MORATORIUM.—During the 2-year period begin-
ning on the date of enactment of this Act, it shall be un-
lawful to issue an endogenously collateralized stablecoin 
not in existence on the date of enactment of this Act. 
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(b) ENDOGENOUSLY COLLATERALIZED STABLECOIN 
DEFINED.—In this section, the term ‘‘endogenously 
collateralized stablecoin’’ means any digital asset— 
(1) in which its issuer has represented will be 
converted, redeemed, or repurchased for a fixed 
amount of monetary value; and 
(2) that relies solely on the value of another 
digital asset created or maintained by the same 
originator to maintain the fixed price. 
SEC. 12. STUDIES AND REPORTS. 
(a) STUDY BY TREASURY.—The Secretary of the 
Treasury, in consultation with the Board, the Comptroller, 
the Corporation, the National Credit Union Administra-
tion, and the Securities and Exchange Commission, shall 
carry out a study of non-payment stablecoins, including 
decentralized stablecoins. 
(b) REPORT.—Not later than 365 days after the date 
of the enactment of this Act, the Secretary shall provide 
to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate a report that contains 
all findings made in carrying out the study under sub-
section (a), including an analysis of— 
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(1) the categories of non-payment stablecoins, 
including the benefits and risks of technological de-
sign features; 
(2) the participants in non-payment stablecoin 
arrangements; 
(3) utilization and potential utilization of non- 
payment stablecoins; 
(4) nature of reserve compositions; 
(5) governance structure, including aspects of 
decentralization; 
(6) nature of public promotion and advertising; 
and 
(7) clarity and availability of consumer notices 
disclosures. 
SEC. 13. REPORT ON RULEMAKING STATUS. 
Not later than 6 months after the date of enactment 
of this Act, the primary Federal payment stablecoin regu-
lators shall provide a status update on the development 
of the rulemaking under this Act to the Committee on Fi-
nancial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate. 
SEC. 14. AUTHORITY OF BANKING INSTITUTIONS. 
(a) RULE OF CONSTRUCTION.—Nothing in this Act 
may be construed to limit the authority of a depository 
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institution, Federal credit union, State credit union, or 
trust company to engage in activities permissible pursuant 
to applicable State and Federal law, including— 
(1) accepting or receiving deposits and issuing 
digital assets that represent deposits; 
(2) utilizing a distributed ledger for the books 
and records of the entity and to affect intrabank 
transfers; and 
(3) providing custodial services for payment 
stablecoins, private keys of payment stablecoins, or 
reserves backing payment stablecoins. 
(b) REGULATORY REVIEW.—The primary Federal 
payment stablecoin regulators shall review all existing reg-
ulations and guidance and, if necessary, amend such regu-
lations or guidance or issue new regulations or guidance 
to clarify that regulated entities can engage in the pay-
ment stablecoin activities contemplated in, and in accord-
ance with, this Act. 
(c) TREATMENT OF CUSTODY ACTIVITIES.—The ap-
propriate Federal banking agency, the National Credit 
Union Administration (in the case of a credit union), and 
the Securities and Exchange Commission may not require 
a depository institution, national bank, Federal credit 
union, State credit union, or trust company, or any affil-
iate thereof (the ‘‘entity’’)— 
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(1) to include assets held in custody that are 
not owned by the entity as a liability on the financial 
statement or balance sheet of the entity, including 
payment stablecoin custody or safekeeping activities; 
(2) to hold additional regulatory capital against 
assets in custody or safekeeping, except as necessary 
to mitigate against operational risks inherent with 
the custody or safekeeping services, as determined 
by— 
(A) the appropriate Federal banking agen-
cy; 
(B) the National Credit Union Administra-
tion (in the case of a credit union); 
(C) a State bank supervisor (as defined in 
section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813)); or 
(D) a State credit union supervisor (as de-
fined in section 6003 of the Anti-Money Laun-
dering Act of 2020 (31 U.S.C. 5311 note)); 
(3) to recognize a liability for any obligations 
related to activities or services performed for digital 
assets that the entity does not own if that liability 
would exceed the expense recognized in the income 
statement as a result of the corresponding obliga-
tion. 
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(d) DEPOSITORY INSTITUTION DEFINED.—In this 
section, the term ‘‘depository institution’’ has the meaning 
given that term in section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813). 
SEC. 15. AMENDMENTS TO CLARIFY THAT PAYMENT 
STABLECOINS ARE NOT SECURITIES. 
(a) INVESTMENT ADVISERS ACT OF 1940.—Section 
202(a)(18) of the Investment Advisers Act of 1940 (15 
U.S.C. 80b–2(a)(18)) is amended by adding at the end 
the following: ‘‘The term ‘security’ does not include a pay-
ment stablecoin issued by a permitted payment stablecoin 
issuer, as such terms are defined, respectively, in section 
2 of the STABLE Act of 2025.’’. 
(b) INVESTMENT COMPANY ACT OF 1940.—The In-
vestment Company Act of 1940 is amended— 
(1) in section 2(a)(36) (15 U.S.C. 80a– 
2(a)(36)), by adding at the end the following: ‘‘The 
term ‘security’ does not include a payment stablecoin 
issued by a permitted payment stablecoin issuer, as 
such terms are defined, respectively, in section 2 of 
the STABLE Act of 2025.’’; and 
(2) in section 3(c) (15 U.S.C. 80a–3(c)), by 
adding at the end the following: 
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‘‘(15) Any permitted payment stablecoin issuer, 
as such term is defined in section 2 of the STABLE 
Act of 2025.’’. 
(c) SECURITIES ACT OF 1933.—Section 2(a)(1) of 
the Securities Act of 1933 (15 U.S.C. 77b(a)(1)) is 
amended by adding at the end the following: ‘‘The term 
‘security’ does not include a payment stablecoin issued by 
a permitted payment stablecoin issuer, as such terms are 
defined, respectively, in section 2 of the STABLE Act of 
2025.’’. 
(d) SECURITIES EXCHANGE ACT OF 1934.—Section 
3(a)(10) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)(10)) is amended by adding at the end the 
following: ‘‘The term ‘security’ does not include a payment 
stablecoin issued by a permitted payment stablecoin 
issuer, as such terms are defined, respectively, in section 
2 of the STABLE Act of 2025.’’. 
(e) SECURITIES INVESTOR PROTECTION ACT
OF 
1970.—Section 16(14) of the Securities Investor Protec-
tion Act of 1970 (15 U.S.C. 78lll(14)) is amended by add-
ing at the end the following: ‘‘The term ‘security’ does 
not include a payment stablecoin issued by a permitted 
payment stablecoin issuer, as such terms are defined, re-
spectively, in section 2 of the STABLE Act of 2025.’’. 
Æ 
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