Sec. 5. Approval of subsidiaries of insured depository institutions and Federal qualified nonbank payment stablecoin issuers
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The primary Federal payment stablecoin regulator shall receive, review, and approve applications from any insured depository institution that seeks to issue payment stablecoins through a subsidiary and any nonbank entity that seeks to issue payment stablecoins. The primary Federal payment stablecoin regulator shall establish a process for the licensing and regulation of these entities. The primary Federal payment stablecoin regulators shall, before the effective date described in section 16— issue regulations to carry out this section; and pursuant to the regulations described in subparagraph (A), accept and process applications under this Act.
The primary Federal payment stablecoin regulator shall, upon receipt of a complete application, evaluate and make a determination on each application based on the criteria established under this Act. A complete application received under subsection
(a)shall be evaluated by the primary Federal payment stablecoin regulator using the factors described in subsection (c). The factors described in this subsection are the ability of the applicant (or, in the case of an applicant that is an insured depository institution, the subsidiary of the applicant), based on the financial condition and resources, to meet the requirements set forth in section 4. The primary Federal payment stablecoin regulator shall render a decision on an application no later than 120 days after informing the applicant that the application is complete. The primary Federal payment stablecoin regulator shall only deny a complete application received under subsection
(a)if the regulator determines that the activities of the applicant would be unsafe or unsound based on the factors described in subsection (c). If the primary Federal payment stablecoin regulator denies a complete application received under subsection (a), not later than 30 days after the date of such denial, the regulator shall provide the applicant with written notice explaining the denial with specificity, including all findings made by the regulator with respect to all identified material shortcomings in the application, including actionable recommendations on how the applicant could address the identified material shortcomings. Not later than 30 days after the date of receipt of any notice of the denial of an application under this section, the applicant may request, in writing, an opportunity for a written or oral hearing before the primary Federal payment stablecoin regulator to appeal the denial. Upon receipt of a timely request, the primary Federal payment stablecoin regulator shall notice a time (not later than 30 days after the date of receipt of the request) and place at which the applicant may appear, personally or through counsel, to submit written materials or provide oral testimony and oral argument). Not later than 60 days after the date of a hearing under this subparagraph, the primary Federal payment stablecoin regulator shall notify the applicant of the final determination of the Comptroller, which shall contain a statement of the basis for that determination, with specific findings. If an applicant does not make a timely request for a hearing under this subparagraph, the primary Federal payment stablecoin regulator shall notify the applicant, not later than 10 days after the date by which the applicant may request a hearing under this subparagraph, in writing, that the denial of the application is a final determination of the primary Federal payment stablecoin regulator. If the primary Federal payment stablecoin regulator fails to render a decision on a complete application within the time period specified in paragraph (1), the application shall be deemed approved. The denial of an application under this section shall not prohibit the applicant from filing a subsequent application. The Comptroller shall annually report to Congress on the applications that have been pending for 6 months or longer since the date of the initial application filed under subsection
(a)where the applicant has been informed that the application remains incomplete, including providing documentation on the status of the application and why the application has not yet been approved. The Comptroller shall issue rules necessary for the regulation of the issuance of payment stablecoins, but may not impose requirements inconsistent with the requirements specified under section 4.