with respect to the State qualified payment 
stablecoin issuer. 
(D) PRIMARY
FEDERAL
BANKING
AGENCY 
DEFINED.—In this section— 
(i) the term ‘‘primary Federal banking 
agency’’ means— 
(I) the appropriate Federal bank-
ing agency; and 
(II) the National Credit Union 
Administration, in the case of an in-
sured credit union; and 
(ii) the term ‘‘primary Federal bank-
ing agencies’’ means the Board, the Comp-
troller, the Corporation, and the National 
Credit Union Administration. 
(2) BY THE COMPTROLLER.— 
(A) IN GENERAL.—Subject to subparagraph 
(C), the Comptroller may, after not less than 48 
hours prior written notice to any applicable 
State payment stablecoin regulator, take an en-
forcement action against a State qualified pay-
ment stablecoin issuer that is a nonbank entity 
or an institution-affiliated party thereof for vio-
lations of this Act if— 
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(i) the applicable State payment 
stablecoin regulator has not commenced an 
enforcement action to correct such violation; 
and 
(ii) failure to take such action would 
create a material risk of loss to holders of 
such issuer’s stablecoins or create a material 
threat to U.S. financial stability. 
(B) RULEMAKING.—Not later than the end 
of the 180-day period beginning on the date of 
enactment of this Act, the Comptroller shall issue 
rules to set forth the standards that would be 
used by the Comptroller to exercise the back-up 
authority under this paragraph. 
(C) BACK-UP AUTHORITY UNDER SECTION 
6(b).—Solely for purposes of carrying out this 
paragraph, section 6(b) shall apply to a State 
qualified payment stablecoin issuer that is a 
nonbank entity as if the Comptroller were the 
primary Federal payment stablecoin regulator 
with respect to the State qualified payment 
stablecoin issuer. 
(f) GRAMM-LEACH-BLILEY ACT.—For purposes of title 
V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) 
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a State qualified payment stablecoin issuer is deemed a fi-
nancial institution. 
(g) INTERSTATE PAYMENT STABLECOIN MARKET.— 
(1) DEFINITIONS.—For the purposes of this sub-
section— 
(A) the term ‘‘home State’’ means the State 
of a State qualified payment stablecoin issuer’s 
State payment stablecoin regulator; and 
(B) the term ‘‘host State’’ means a State 
other than that of the State qualified payment 
stablecoin issuer’s State payment stablecoin reg-
ulator. 
(2) AUTHORITY TO ISSUE PAYMENT STABLECOINS 
IN
HOST
STATES.—Subject to the requirements of 
paragraph (3), a State qualified payment stablecoin 
issuer may issue payment stablecoins in a host State 
without a charter or license to issue payment 
stablecoins from such host State. 
(3) STATE OBLIGATIONS.—Where a State quali-
fied payment stablecoin issuer issues a payment 
stablecoin in a host State pursuant to paragraph 
(2)— 
(A) such State qualified payment stablecoin 
issuer shall notify any State payment stablecoin 
regulator in such host State of the issuer’s inten-
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tion to do business in the host State not less than 
30 days before such issuer commences business in 
the host State and in a manner prescribed by the 
host State’s State payment stablecoin regulator 
or State banking regulator if such State does not 
have a regime certified under section 4(b), pro-
vided that such notice does not impose a de facto 
licensure or chartering requirement on such 
State qualified payment stablecoin issuer; 
(B) such State qualified payment stablecoin 
issuer shall comply with all requirements of the 
issuer’s home State regulatory regime when con-
ducting business in the host State, and where the 
host State maintains a payment stablecoin regu-
latory regime that is certified under section 4(b), 
such issuer shall comply with any obligations of 
the host State’s payment stablecoin regulatory 
regime that exceed those of such issuer’s home 
State regulatory regime; 
(C) where the host State does not maintain 
a payment stablecoin regulatory regime that is 
certified under section 4(b), such State qualified 
payment stablecoin issuer shall remain subject to 
all applicable consumer protection laws of such 
host State; and 
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(D) where the host State maintains a pay-
ment stablecoin regulatory regime that is cer-
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 quali-
fied payment stablecoin issuers chartered or li-
censed 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 
payment 
stablecoins 
issued 
by 
permitted 
payment 
stablecoin issuers, reserves described in section 4(a)(1)(A), 
or private keys of payment stablecoins issued by permitted 
payment stablecoin issuers, 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 in section 3 of the Federal Deposit In-
surance Act (12 U.S.C. 1813) or a State credit 
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union supervisor, as defined in section 6003 of 
the Anti-Money Laundering Act of 2020 (31 
U.S.C. 5311 note), and such State bank super-
visor 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 subsection (d); 
and 
(2) complies with the segregation requirements 
under subsections (b), (c), and (d), unless such person 
complies with similar requirements as required by the 
Board, the Comptroller, the Corporation, the Securi-
ties and Exchange Commission, or the Commodity 
Futures Trading Commission, as applicable. 
(b) CUSTOMER PROPERTY REQUIREMENTS.—A person 
described in subsection (a) shall— 
(1) treat and deal with the payment stablecoins, 
private keys, cash, and other property of another per-
son 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 not as the property of such person; and 
(2) take such steps as are appropriate to protect 
the payment stablecoins, private keys, cash, and other 
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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.—In any insolvency, 
claims against reserves of a payment stablecoin issuer 
from persons holding payment stablecoins issued by 
the payment stablecoin issuer shall have priority over 
all other claims, other than for administrative ex-
penses, against the payment stablecoin issuer. 
(3) EXCEPTION.—Notwithstanding paragraph 
(1)— 
(A) the payment stablecoins, cash, and other 
property of a customer may be commingled and 
deposited in an omnibus account holding the 
payment stablecoins, cash, and other property of 
more than 1 customer at a depository institution 
(as defined in section 3 of the Federal Deposit 
Insurance Act), trust company, Federal credit 
union, or State credit union; 
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(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); 
(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; and 
(D) an insured depository institution that 
provides custodial or safekeeping services for 
payment stablecoin reserves shall be permitted to 
hold payment stablecoin reserves in the form of 
cash on deposit. 
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(d) REGULATORY INFORMATION.—A person described 
under subsection (a) shall submit to the primary Federal 
payment stablecoin regulator (or, if the person does not 
have a primary Federal payment stablecoin regulator, to 
the Board) information concerning the person’s business op-
erations and processes to protect customer payment 
stablecoins, cash, and other property, in such form and 
manner as the primary Federal payment stablecoin regu-
lator (or, if the person does not have a primary 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 safekeeping 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 exclusively for other digital assets, 
provided that such digital assets for which it is re-
deemable are not primarily— 
(A) payment stablecoins; or 
(B) representations of permissible reserves 
described under section 4(a)(1)(A) or similar 
such assets; or 
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(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-
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, United States Code, and in a manner con-
sistent with the National Technology Transfer and 
Advancement Act of 1995 (Public Law 104–113), pre-
scribe 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 international 
transactions and interoperability with any United States 
dollar-denominated payment stablecoins issued overseas. 
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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 unlaw-
ful to issue an endogenously collateralized stablecoin not in 
existence on the date of enactment of this Act. 
(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 dig-
ital asset created or maintained by the same origi-
nator 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 de-
centralized 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 Rep-
resentatives and the Committee on Banking, Housing, and 
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Urban Affairs of the Senate a report that contains all find-
ings made in carrying out the study under subsection (a), 
including an analysis of— 
(1) the categories of non-payment stablecoins, in-
cluding the benefits and risks of technological design 
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 de-
centralization; 
(6) nature of public promotion and advertising; 
and 
(7) clarity and availability of consumer notices 
and disclosures. 
(c) IMPACT STUDY.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury, in consultation with the Board, the Comptroller, 
the Corporation, the National Credit Union Adminis-
tration, and the Securities and Exchange Commis-
sion, shall carry out a study on the impact of pay-
ment stablecoins. 
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