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Code · BILL · 119th Congress · H.R. 2392 (Reported in House) — To provide for the regulation of payment stablecoins, and for other purposes. · Sec. 6

Sec. 6. Supervision and enforcement with respect to subsidiaries of insured depository institutions and Federal qualified nonbank payment stablecoin issuers

1,462 words·~7 min read·/bill/119/hr/2392/rh/section-6

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Each permitted payment stablecoin issuer that is a subsidiary of an insured depository institution shall be subject to supervision by the primary Federal payment stablecoin regulator in the same manner as such insured depository institution. For purposes of title V of the Gramm-Leach-Bliley Act ( 15 U.S.C. 6801 et seq. ) each permitted payment stablecoin issuer that is a subsidiary of an insured depository institution shall be deemed a financial institution. Each Federal qualified nonbank payment stablecoin issuer shall, upon request, submit reports to the Comptroller as to— the financial condition of the Federal qualified nonbank payment stablecoin issuer; the systems of the Federal qualified nonbank payment stablecoin issuer for monitoring and controlling financial and operating risks; and compliance with this Act and regulations issued pursuant to this Act by the Federal qualified nonbank payment stablecoin issuer.
The Comptroller may examine a Federal qualified nonbank payment stablecoin issuer in order to inform the Comptroller of— the nature of the operations and financial condition of the Federal qualified nonbank payment stablecoin issuer; the financial, operational, and other risks within the Federal qualified nonbank payment stablecoin issuer that may pose a threat to— the safety and soundness of the Federal qualified nonbank payment stablecoin issuer; or the stability of the financial system of the United States; the systems of the Federal qualified nonbank payment stablecoin issuer for monitoring and controlling the risks described in clause (ii); the compliance of the Federal qualified nonbank payment stablecoin issuer with this Act and regulations issued pursuant to this Act; and the compliance of the Federal qualified nonbank payment stablecoin issuer with the requirements of the Bank Secrecy Act and laws authorizing the imposition of sanctions and implemented by the Secretary of the Treasury.
In supervising and examining a Federal qualified nonbank payment stablecoin issuer, the Comptroller shall, to the fullest extent possible, use existing reports and other supervisory information. The Comptroller shall, to the fullest extent possible, avoid duplication of examination activities, reporting requirements, and requests for information in carrying out this Act with respect to a Federal qualified nonbank payment stablecoin issuer. For purposes of title V of the Gramm-Leach-Bliley Act ( 15 U.S.C. 6801 et seq. ) each Federal qualified nonbank payment stablecoin issuer shall be deemed a financial institution.
The primary Federal payment stablecoin regulator may prohibit a permitted payment stablecoin issuer from issuing payment stablecoins, if the primary Federal payment stablecoin regulator determines that such permitted payment stablecoin issuer, or an institution-affiliated party of the permitted payment stablecoin issuer, is— materially violating or has materially violated this Act or any regulation or order issued under this Act, including the issuer’s obligations under the section 4(a)(6); or materially violating or has materially violated any condition imposed in writing by the primary Federal payment stablecoin regulator in connection with a written agreement entered into between the permitted payment stablecoin issuer and the primary Federal payment stablecoin regulator.
If the primary Federal payment stablecoin regulator has reasonable cause to believe that a permitted payment stablecoin issuer or any institution-affiliated party of a permitted payment stablecoin issuer is violating, has violated, or is attempting to violate this Act, any regulation or order issued under this Act, or any written agreement entered into with the primary Federal payment stablecoin regulator or condition imposed in writing by the primary Federal payment stablecoin regulator in connection with any application or other request, the primary Federal payment stablecoin regulator may order the permitted payment stablecoin issuer or institution-affiliated party of the permitted payment stablecoin issuer to— cease and desist from such violation or practice; or take affirmative action to correct the conditions resulting from any such violation or practice.
The primary Federal payment stablecoin regulator may remove an institution-affiliated party of a permitted payment stablecoin issuer from their position or office or prohibit further participation in the affairs of the permitted payment stablecoin issuer or all permitted payment stablecoin issuers by such institution-affiliated party, if the primary Federal payment stablecoin regulator determines that— the institution-affiliated party has, directly or indirectly, committed a violation or attempted violation of this Act or any regulation or order issued under this Act; or the institution-affiliated party has committed a violation of any provision of subchapter II of chapter 53 of title 31, United States Code.
If the primary Federal payment stablecoin regulator identifies a violation or attempted violation of this Act or makes a determination under paragraph (1), (2), or (3), the primary Federal payment stablecoin regulator shall comply with the procedures set forth, as applicable, in— subsections
(b)and
(e)of sections 8 of the Federal Deposit Insurance Act ( 12 U.S.C. 1818 ); or subsections
(e)and
(g)of section 206 of the Federal Credit Union Act ( 12 U.S.C. 1786 ). A person aggrieved by a final action under this subsection may obtain judicial review of such action exclusively as provided, as applicable, in— section 8(h) of the Federal Deposit Insurance Act ( 12 U.S.C. 1818(h) ); or section 206(j) of the Federal Credit Union Act ( 12 U.S.C. 1786(j) ). The primary Federal payment stablecoin regulator may, in the discretion of the regulator, follow the procedures for judicial enforcement of any effective and outstanding notice or order issued under this subsection provided, as applicable, in— section 8(i)(1) of the Federal Deposit Insurance Act ( 12 U.S.C. 1818(i)(1) ); or section 206(k)(1) of the Federal Credit Union Act ( 12 U.S.C. 1786(k)(1) ). If the primary Federal payment stablecoin regulator determines that a violation or attempted violation of this Act or an action with respect to which a determination was made under paragraph (1), (2), or (3), or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of a permitted payment stablecoin issuer, or is likely to weaken the condition of the permitted payment stablecoin issuer or otherwise prejudice the interests of the customers of the permitted payment stablecoin issuer prior to the completion of the proceedings conducted under this paragraph, the primary Federal payment stablecoin regulator may follow the procedures provided, as applicable, in— section 8(c) of the Federal Deposit Insurance Act ( 12 U.S.C. 1818(c) ) to issue a temporary cease-and-desist order; or section 206(f) of the Federal Credit Union Act ( 12 U.S.C. 1786(f) ) to issue a temporary cease-and-desist order. Any person who issues a payment stablecoin and who is not a permitted payment stablecoin issuer, and any institution-affiliated party of such a person who knowingly participates in issuing such a payment stablecoin, shall be liable for a civil penalty of not more than $100,000 for each day during which such payment stablecoins are outstanding. Except as provided in subparagraph (A), a permitted payment stablecoin issuer or institution-affiliated party of such permitted payment stablecoin issuer that materially violates this Act or any regulation or order issued under this Act, or that materially violates any condition imposed in writing by the primary Federal payment stablecoin regulator in connection with a written agreement entered into between the permitted payment stablecoin issuer and the primary Federal payment stablecoin regulator, shall be liable for a civil penalty of up to $100,000 for each day during which the violation continues. Except as provided in subparagraph (A), and in addition to the penalties described under subparagraph (B), a permitted payment stablecoin issuer or institution-affiliated party of such permitted payment stablecoin issuer who knowingly participates in 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 violation continues. Any penalty imposed under this paragraph may be assessed and collected by the primary Federal payment stablecoin regulator pursuant to the procedures set forth, as applicable, in— section 8(i)(2) of the Federal Deposit Insurance Act ( 12 U.S.C. 1818(i)(2) ); or section 206(k)(2) of the Federal Credit Union Act ( 12 U.S.C. 1786(k)(2) ). The resignation, termination of employment or participation, or separation of an institution-affiliated party (including a separation caused by the closing of a permitted 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 subsection against any such party, if such notice or order is served before the end of the 6-year period beginning on the date such party ceased to be an institution-affiliated party with respect to such permitted payment stablecoin issuer. This subsection shall not apply to a State qualified payment stablecoin issuer, except as described in section 7(e). A State payment stablecoin regulator and the primary Federal payment stablecoin regulator shall share information on an ongoing basis with respect to a permitted payment stablecoin issuer that is a subsidiary of a State-chartered insured depository institution.
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Sec. 6
Supervision and enforcement with respect to subsidiaries of insured depository institutions and Federal qualified nonbank payment stablecoin issuers
U.S.C.§ 6801
U.S.C.§ 1818
U.S.C.§ 1786
Cites 3Cited by 0 across 0 sources
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