a violation of any provision of this Act, or any 
regulation or order issued thereunder, is liable 
for a civil penalty of up to an additional 
$100,000 for each day during which the viola-
tion continues. 
(D) PROCEDURE.—Any penalty imposed 
under this paragraph may be assessed and col-
lected 
by 
the 
primary 
Federal 
payment 
stablecoin regulator pursuant to the procedures 
set forth in section 8(i)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1818(i)(2)). 
(E) NOTICE AND ORDERS AFTER SEPARA-
TION
FROM
SERVICE.—The resignation, termi-
nation of employment or participation, or sepa-
ration of an institution-affiliated party (includ-
ing a separation caused by the closing of a per-
mitted payment stablecoin issuer) shall not affect 
the jurisdiction and authority of the primary 
Federal payment stablecoin regulator to issue 
any notice or order and proceed under this sub-
section against any such party, if such notice or 
order is served before the end of the six-year pe-
riod beginning on the date such party ceased to 
be an institution-affiliated party with respect to 
such permitted payment stablecoin issuer. 
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(6) NON-APPLICABILITY TO A STATE QUALIFIED 
PAYMENT STABLECOIN ISSUER.—This subsection shall 
not apply to a State qualified payment stablecoin 
issuer. 
SEC. 7. STATE QUALIFIED PAYMENT STABLECOIN ISSUERS. 
(a) IN GENERAL.—A State payment stablecoin regu-
lator shall have supervisory, examination, and enforcement 
authority over a State qualified payment stablecoin issuer 
of such State. 
(b) AUTHORITY TO ENTER INTO AGREEMENTS WITH 
THE BOARD.—A State payment stablecoin regulator may 
enter into a memorandum of understanding with the 
Board, by mutual agreement, under which the Board may 
carry out the supervision, examination, and enforcement 
authority with respect to the State qualified payment 
stablecoin issuers of such State. 
(c) SHARING
OF INFORMATION.—A State payment 
stablecoin regulator and the Board shall share information 
on an ongoing basis with respect to a State qualified pay-
ment stablecoin issuer of such State, including a copy of 
the initial application and any accompanying documents. 
(d) RULEMAKING.—The Board shall issue orders and 
rules under section 4 applicable to State qualified payment 
stablecoin issuers to the same extent as the primary Federal 
payment stablecoin regulators issue orders and rules under 
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section 4 applicable to permitted payment stablecoin issuers 
that are not a State qualified payment stablecoin issuers. 
(e) BOARD ENFORCEMENT AUTHORITY IN EXIGENT 
CIRCUMSTANCES.— 
(1) IN GENERAL.—In exigent circumstances, the 
Board may, after no less than 48 hours prior written 
notice to the applicable State payment stablecoin reg-
ulator, take an enforcement action against a State 
qualified payment stablecoin issuer or an institution- 
affiliated party of such issuer for violations of this 
Act. 
(2) RULEMAKING.—Not later than the end of the 
180-day period beginning on the date of enactment of 
this Act, the Board shall issue rules to set forth those 
exigent circumstances in which the Board may act 
under this subsection. 
(f) GRAMM-LEACH-BLILEY ACT.—For purposes of title 
V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) 
a State qualified payment stablecoin issuer is deemed a fi-
nancial institution. 
(g) EFFECT ON STATE LAW.—The provisions of this 
section do not preempt any law of a State and do not super-
sede any State licensing requirement. 
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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 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 Con-
sumer Protection Act (12 U.S.C. 5301(12)); or 
(B) supervision by a State bank supervisor, 
as defined under section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813) or a State credit 
union supervisor, as defined under section 6003 
of the Anti-Money Laundering Act of 2020, and 
such state bank supervisor or state credit union 
supervisor makes available to the Board such in-
formation as the Board determines necessary and 
relevant to the categories of information under 
subsection (d); and 
(2) complies with the segregation requirements 
under subsection (b), unless such person complies with 
similar requirements as required by a primary Fed-
eral payment stablecoin regulator, the Securities and 
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Exchange Commission, or the Commodity Futures 
Trading Commission. 
(b) SEGREGATION REQUIREMENT.—A person described 
in subsection (a) shall— 
(1) treat and deal with the payment stablecoins, 
private keys, cash, and other property of a person for 
whom or on whose behalf the person receives, acquires, 
or holds payment stablecoins, private keys, cash, and 
other property (hereinafter in this section referred to 
as the ‘‘customer’’) as belonging to such customer; and 
(2) take such steps as are appropriate to protect 
the payment stablecoins, private keys, cash, and other 
property of a customer from the claims of creditors of 
the person. 
(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) EXCEPTION.—Notwithstanding paragraph 
(1)— 
(A) the payment stablecoins, cash, and other 
property of a customer may, for convenience, be 
commingled and deposited in an omnibus ac-
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count holding the payment stablecoins, cash, and 
other property of more than one 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-
drawn and applied to such purposes, including 
the payment of commissions, taxes, storage, and 
other charges lawfully accruing in connection 
with the provision of services by a person de-
scribed in subsection (a); and 
(C) in accordance with such terms and con-
ditions as the Board may prescribe by rule, regu-
lation, 
or 
order, 
any 
customer 
payment 
stablecoin, cash, and other property described in 
this subsection may be commingled and depos-
ited 
in 
customer 
accounts 
with 
payment 
stablecoins, cash, and other property received by 
the person and required by the Board to be sepa-
rately accounted for, treated, and dealt with as 
belonging to customers. 
(d) REGULATORY INFORMATION.—A person described 
under subsection (a) shall submit to the Board information 
concerning the person’s business operations and processes 
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to protect customer assets, in such form and manner as 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 safekeeping of the 
customer’s payment stablecoins or private keys. 
SEC. 9. INTEROPERABILITY STANDARDS. 
The primary Federal payment stablecoin regulators, 
in consultation with the National Institute of Standards 
and Technology, other relevant standard setting organiza-
tions, and State governments, shall assess and, if necessary, 
may, pursuant to section 553 of title 5 and in a manner 
consistent with the National Technology Transfer and Ad-
vancement Act of 1995 (Public Law 104–113), prescribe 
standards for payment stablecoin issuers to promote com-
patibility and interoperability. 
SEC. 
10. 
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 unlaw-
ful to issue, create, or originate an endogenously 
collateralized stablecoin not in existence on the date of en-
actment of this Act. 
(b) STUDY BY TREASURY.— 
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(1) STUDY.—The Secretary of the Treasury, in 
consultation with the Board, the Comptroller, the Cor-
poration, and the Securities and Exchange Commis-
sion, shall carry out a study of endogenously 
collateralized stablecoins. 
(2) 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 subsection (a), including an 
analysis of— 
(A) 
the 
categories 
of 
non-payment 
stablecoins, including the benefits and risks of 
technological design features; 
(B) 
the 
participants 
in 
non-payment 
stablecoin arrangements; 
(C) utilization and potential utilization of 
non-payment stablecoins; 
(D) nature of reserve compositions; 
(E) types of algorithms being employed; 
(F) governance structure, including aspects 
of decentralization; 
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(G) nature of public promotion and adver-
tising; and 
(H) clarity and availability of consumer 
notices disclosures. 
(c) ENDOGENOUSLY COLLATERALIZED STABLECOIN 
DEFINED.—In this section, the term ‘‘endogenously 
collateralized stablecoin’’ means any digital asset— 
(1) in which its originator 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 dig-
ital asset created or maintained by the same origi-
nator to maintain the fixed price. 
SEC. 11. 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 Finan-
cial Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the Sen-
ate. 
SEC. 12. AUTHORITY OF BANKING INSTITUTIONS. 
(a) RULE OF CONSTRUCTION.—Nothing in this Act 
may be construed to limit the authority of a depository in-
stitution, Federal credit union, State credit union, or trust 
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company to engage in activities permissible pursuant to ap-
plicable 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 re-
serves backing payment stablecoins. 
(b) TREATMENT OF CUSTODY ACTIVITIES.—The ap-
propriate Federal banking agency (as defined under section 
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), 
the National Credit Union Administration (in the case of 
a credit union), and the Securities and Exchange Commis-
sion may not require a depository institution, national 
bank, Federal credit union, State credit union, or trust 
company, or any affiliate thereof— 
(1) to include assets held in custody as a liabil-
ity on any financial statement or balance sheet, in-
cluding payment stablecoin custody or safekeeping ac-
tivities; 
(2) to hold additional regulatory capital against 
assets in custody or safekeeping, except as necessary 
to mitigate against operational risks inherent with 
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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 
under section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813)); or 
(D) a State credit union supervisor (as de-
fined under section 6003 of the Anti-Money 
Laundering Act of 2020); 
(3) to recognize a liability for any obligations re-
lated to activities or services performed for digital as-
sets that the entity does not own if that liability 
would exceed the expense recognized in the income 
statement as a result of the corresponding obligation. 
(c) DEFINITIONS.—In this section: 
(1) DEPOSITORY INSTITUTION.—The terms ‘‘de-
pository institution’’ has the meaning given that term 
under section 3 of the Federal Deposit Insurance Act. 
(2) CREDIT UNION TERMS.—The terms ‘‘Federal 
credit union’’ and ‘‘State credit union’’ have the 
meaning given those terms, respectively, under section 
101 of the Federal Credit Union Act. 
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‘‘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 Clarity 
for Payment Stablecoins Act of 2023.’’. 
(e) SECURITIES
INVESTOR
PROTECTION
ACT
OF 
1970.—Section 16(14) of the Securities Investor Protection 
Act of 1970 (15 U.S.C. 78lll(14)) is amended by adding 
at the end the following: ‘‘The term ‘security’ does not in-
clude a payment stablecoin issued by a permitted payment 
stablecoin issuer, as such terms are defined, respectively, in 
section 2 of the Clarity for Payment Stablecoins Act of 
2023.’’. 
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Union Calendar No. 408 
118TH CONGRESS 
2D SESSION 
H. R. 4766 
[Report No. 118–492] 
A BILL 
To provide for the regulation of payment 
stablecoins, and for other purposes. 
MAY 7, 2024 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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