Sec. 4. Customer protection standards
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/bill/119/hr/8395/ih/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A registered covered provider shall maintain identifiable reserves backing outstanding payment obligations on at least a 1 to 1 basis, with reserves comprising— United States coins and currency (including Federal Reserve notes) or money standing to the credit of an account with a Federal Reserve Bank; funds held as demand deposits (or other deposits that may be withdrawn upon request at any time) or insured shares at an insured depository institution (including any foreign branches or agents, including correspondent banks, of an insured depository institution), subject to limitations established by the Corporation and the National Credit Union Administration, as applicable, to address safety and soundness risks of such insured depository institution; funds in transit to the registered covered provider that are owed by an insured depository institution or another registered covered provider, including funds from the automated clearinghouse system or funds receivable from a payment instrument;
Treasury bills, notes, or bonds— with a remaining maturity of 93 days or less; or issued with a maturity of 93 days or less; money received under repurchase agreements, with the registered covered provider acting as a seller of securities and with an overnight maturity, that are backed by Treasury bills with a maturity of 93 days or less; reverse repurchase agreements, with the registered covered provider acting as a purchaser of securities and with an overnight maturity, that are collateralized by Treasury notes, bills, or bonds on an overnight basis, subject to overcollateralization in line with standard market terms, that are— tri-party; centrally cleared through a clearing agency registered with the Securities and Exchange Commission; or bilateral with a counterparty that the issuer has determined to be adequately creditworthy even in the event of severe market stress; securities issued by an investment company registered under section 8(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–8(a) ), or other registered Government money market fund, and that are invested solely in underlying assets described in subparagraphs
(A)through (F); any other similarly liquid Federal Government-issued asset approved by the Comptroller; or any reserve described in subparagraphs
(A)through
(D)or subparagraphs
(G)through
(H)in tokenized form, provided that such reserves comply with all applicable laws and regulations. Reserves described under paragraph
(1)may not be pledged, rehypothecated, or reused, except for the purposes described in section 4(a)(2) of the GENIUS Act ( 12 U.S.C. 5903(a)(2) ). A registered covered provider providing access or custody services for monetary value shall segregate and separately account for such monetary value and may not commingle such monetary value with the assets of such provider. A registered covered provider shall maintain records of— outstanding payment obligations of the provider with respect to each customer of the provider; and reserves held pursuant to subsection (a). A registered covered provider that provides access or custody services for monetary value shall maintain beneficial ownership records with respect to each applicable account and customer.
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- 15 USC 80a–8(a)
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