Sec. 5. Holding company supervision, affiliates, mergers, and acquisitions of payment stablecoin issuers
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/bill/118/s/4155/is/section-5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A bank holding company or insured depository institution that has chartered a depository institution as a payment stablecoin issuer under section 7 shall be considered a bank for purposes of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 et seq. ). Paragraph
(1)shall not apply to an insured depository institution that is a savings association for the purposes of section 10(a) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(a) ). A person with a controlling interest in a depository institution that is a payment stablecoin issuer which is not subject to subsection
(a)shall— annually submit to the Comptroller or State bank supervisor, as applicable, and the Board— audited financial statements; a description of all affiliated or parent entities and the relationship of the affiliated or parent entity with the payment stablecoin issuer; and any other information the Board and the Comptroller or State bank supervisor, as applicable, may by rule reasonably require; and if required by the Comptroller or State bank supervisor, as applicable, and the Board, execute a tax allocation agreement with the depository institution that— expressly states that an agency relationship exists between the person and the depository institution with respect to tax assets generated by the depository institution, and that the tax assets are held in trust by the person for the benefit of the depository institution and will be promptly remitted to the depository institution; and may provide that the amount and timing of any payments or refunds to the depository institution by the person should be no less favorable than if the depository institution were a separate taxpayer. If the Comptroller or State bank supervisor, as applicable, and the Board determine it would be manifestly in the public interest and that reasonable cause exists to believe it is necessary to protect the customers of a depository institution that is a payment stablecoin issuer, the Comptroller or State bank supervisor, as applicable, and the Board may— conduct an examination of a person with controlling interest in the depository institution or otherwise reasonably require information from the person; and require a person with a controlling interest in the depository institution to divest itself of or sever its relationship with the depository institution if necessary to maintain the safety and soundness of the depository institution, after consultation with the Secretary of the Treasury and an opportunity for a public hearing. Divestiture shall not be ordered under this section unless the Comptroller or State bank supervisor, and the Board provide the depository institution with a meaningful opportunity to remediate findings relating to the safety and soundness of the depository institution. A person shall be predominantly engaged in financial activities, as defined in section 102(a)(6) of the Financial Stability Act of 2010 ( 12 U.S.C. 5311(a)(6) ), in order to have a controlling interest in a payment stablecoin issuer. All subsidiaries and affiliates of a payment stablecoin issuer that are not subject to subsection
(a)shall be engaged in activities that are financial in nature (as described in section 4(k) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1843(k) )). Paragraph
(1)shall not apply to a subsidiary or affiliate that accounts for less than 25 percent of the revenue of the holding company of the subsidiary or affiliate. A payment stablecoin issuer is subject to the same restrictions on transactions with affiliates, to the same extent and subject to the same exceptions and exemptions as a member bank under sections 23A and 23B of the Federal Reserve Act ( 12 U.S.C. 371c , 371c–1). No person may obtain a controlling interest in a payment stablecoin issuer that is not subject to section
(a)without the approval of the Board and the Comptroller or State bank supervisor, as applicable. The Board, in consultation with the Comptroller and State bank supervisors, shall adopt rules to implement paragraph
(1)that, consistent with this section, shall be as close as practicable to the process used by an appropriate Federal banking agency (as defined in section 3(q) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(q) )) in evaluating and approving a change of control of an insured depository institution under section 7(j) of such Act ( 12 U.S.C. 1817(j) ). Criteria for approval under the rules adopted pursuant to paragraph
(2)shall be exclusively limited to the safety and soundness of the depository institution that issues a payment stablecoin.
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Sec. 5
Holding company supervision, affiliates, mergers, and acquisitions of payment stablecoin issuers
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