Sec. 8. Customer protection
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/bill/119/hr/2392/rh/section-8A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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— is subject to— supervision or regulation by a primary Federal payment stablecoin regulator or a primary financial regulatory agency described under subparagraph
(B)or
(C)of section 2(12) of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301(12) ); or supervision by a State bank supervisor, as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ) or a State credit 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 supervisor 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 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 Securities and Exchange Commission, or the Commodity Futures Trading Commission, as applicable. A person described in subsection
(a)shall— treat and deal with the payment stablecoins, private keys, cash, and other property of another person 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 take such steps as are appropriate to protect the payment stablecoins, private keys, cash, and other property of a customer from the claims of creditors of the person. 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. 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 expenses, against the payment stablecoin issuer. Notwithstanding paragraph (1)— 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; 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 withdrawn 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 described in subsection (a); in accordance with such terms and conditions as the Board may prescribe by rule, regulation, or order, any customer payment stablecoin, cash, and other property described in this subsection may be commingled and deposited in customer accounts with payment stablecoins, cash, and other property received by the person and required by the Board to be separately accounted for, treated, and dealt with as belonging to customers; and 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. 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 operations and processes to protect customer payment stablecoins, cash, and other property, in such form and manner as the primary Federal payment stablecoin regulator (or, if the person does not have a primary Federal payment stablecoin regulator, the Board) shall determine. 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.
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