Sec. 6. National limited payment stablecoin issuers
513 words·~2 min read·
/bill/117/s/5340/is/section-6A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Revised Statutes are amended by inserting after section 5244 ( 12 U.S.C. 43 ) the following: An entity may submit to the Comptroller of the Currency an application for a national limited payment stablecoin issuer license. A license for a national limited payment stablecoin issuer shall authorize the national limited payment stablecoin issuer to issue and redeem payment stablecoins and engage in any activities incidental to such issuance or redemption, including making a market in such payment stablecoin and holding and managing the reserve assets of such payment stablecoins.
A national limited payment stablecoin issuer shall not engage in any activities, such as making loans or other extensions of credit, other than those authorized by subsection (b). Except as provided in paragraph (2), the Comptroller of the Currency shall grant applications for national limited payment stablecoin issuer licenses not later than 90 days after the date on which the application is submitted. The Comptroller of the Currency may deny an application for a license under this subsection only if the Comptroller determines that the activities of the applicant would be unsafe or unsound based on the factors described in subparagraph (B).
The factors described in this subparagraph are as follows: The financial condition and business plan of the applicant. The general character and fitness of the management of the applicant. The risks presented and the potential benefits that could be delivered to consumers. If the Comptroller of the Currency fails to approve or deny an application before the expiration of the 90-day period under paragraph (1), the application shall be deemed to have been approved. If the Comptroller of the Currency denies an application under this section, the Comptroller shall respond to the applicant with a detailed written explanation for such denial.
A national limited payment stablecoin issuer may elect, by designating in the bylaws of the issuer, to follow the corporate governance provisions of— the law of the State in which the issuer is incorporated; the law of the State in which the main office of the issuer is located; chapter 1 of title 8 of the Delaware Code; or the Model Business Corporation Act. A license for a national limited payment stablecoin issuer shall permit supervision, examination, and regulation by the Comptroller of the Currency of only the legal entity that issues payment stablecoins.
The Office of the Comptroller of the Currency may establish only the following regulations, in accordance with section 553 of title 5, United States Code, for national limited payment stablecoin issuers: Capital requirements which shall not exceed 6 months of operating expenses. Liquidity requirements. Governance and risk-management requirements tailored to the business model and risk profile of national limited payment stablecoin issuers. If the Comptroller of the Currency determines that a national limited payment stablecoin issuer has violated the requirements of this subsection or any other applicable law (including regulations), the Comptroller of the Currency may issue a temporary order requiring the national limited payment stablecoin issuers to— cease and desist from any such violation; and take affirmative action to prevent or remedy such violation. .
Connectionstraces to 1
Traces to 1 document
Citation graph
cites case law
Sec. 6
National limited payment stablecoin issuers
Cites 1Cited by 0 across 0 sources