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Code · BILL · 117th Congress · S. 5340 (Introduced in Senate) — To provide a regulatory framework and consumer protections for the issuance of payment stablecoins, and for other pur... · Sec. 3

Sec. 3. Issuance of payment stablecoins

300 words·~1 min read·/bill/117/s/5340/is/section-3

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Except as provided in subsection (b), it shall be unlawful for any person to issue a payment stablecoin. Subsection
(a)shall not apply to— a money transmitting business, a non-depository trust company, or any other person that is authorized by a State banking supervisor to issue payment stablecoins; a national limited payment stablecoin issuer; a depository institution, as defined in section 19(b)(1) of the Federal Reserve Act (12 U.S.C 461(b)(1)); or a national trust bank. If a person is authorized by the appropriate Federal banking agency and the applicable State banking supervisor to issue payment stablecoins, the person shall be jointly supervised by the appropriate Federal banking agency and the State banking supervisor. A depository institution described in subsection (b)(3)— may become a member bank of the Federal Reserve System or obtain deposit or share insurance; and shall not be required to satisfy subparagraph
(A)as a condition to operate. The Comptroller of the Currency may bring an action in the appropriate district court of the United States or the court of any territory of the United States for the enforcement of this section and such courts shall have jurisdiction and power to order and require compliance herewith, including through injunctive relief. Each Federal Reserve bank shall, upon application from a national limited payment stablecoin issuer or a payment stablecoin issuer that only engages in the business of issuing and redeeming payment stablecoins and engaging in activities incidental to such issuance or redemption— establish and maintain an account for the payment stablecoin issuer; and provide to the payment stablecoin issuer— the services listed in section 11A(b) of the Federal Reserve Act ( 12 U.S.C. 248a(b) ); and a deposit account in accordance with the first undesignated paragraph of section 13 of the Federal Reserve Act ( 12 U.S.C. 342 ).
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