Sec. 2. Definitions

1,067 words·~5 min read·/bill/119/s/919/is/section-2

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

In this Act: The term Bank Secrecy Act means— section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); chapter 2 of title I of Public Law 91–508 ( 12 U.S.C. 1951 et seq. ); and subchapter II of chapter 53 of title 31, United States Code. The term Board means the Board of Governors of the Federal Reserve System. The term Comptroller means the Office of the Comptroller of the Currency. The term Comptroller-regulated entity means— any Federal qualified nonbank payment stablecoin issuer that is subject to regulation and supervision exclusively by the Comptroller, pursuant to section 4(a)(7); and any entity chartered by the Comptroller.

The term Corporation means the Federal Deposit Insurance Corporation. The term digital asset means any digital representation of value which is recorded on a cryptographically secured distributed ledger. The term distributed ledger means technology in which data is shared across a network that creates a public digital ledger of verified transactions or information among network participants and cryptography is used to link the data to maintain the integrity of the public ledger and execute other functions.

The term Federal qualified nonbank payment stablecoin issuer means a nonbank entity, other than a State qualified payment stablecoin issuer, approved by the Comptroller, pursuant to section 5, to issue payment stablecoins. With respect to a permitted payment stablecoin issuer, the term institution-affiliated party means any director, officer, employee, or controlling stockholder of the permitted payment stablecoin issuer. The term insured depository institution means— an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ); and an insured credit union, as defined in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 ).

The term monetary value means a national currency or deposit (as defined in section 3 of the Federal Deposit Insurance Act) denominated in a national currency. The term money means any financial instrument that is— legal tender; required to be received by a taxing authority in satisfaction of tax obligations; or widely accepted in an economy for the payment of goods or services. The term national currency means each of the following: A Federal Reserve note (as the term is used in the first undesignated paragraph of section 16 of the Federal Reserve Act ( 12 U.S.C. 411 )).

Money standing to the credit of an account with a Federal Reserve Bank. Money issued by a foreign central bank. Money issued by an intergovernmental organization pursuant to an agreement by 1 or more governments. The term nonbank entity means a person that is not a depository institution or subsidiary of a depository institution. The term payment stablecoin — means a digital asset— that is or is designed to be used as a means of payment or settlement; and the issuer of which— is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value; represents that such issuer will maintain or creates the reasonable expectation that it will maintain a stable value relative to the value of a fixed amount of monetary value; or has complied with the authorization requirements of this Act; and that— is not a national currency; is not a deposit (as defined in section 3 of the Federal Deposit Insurance Act), including a deposit recorded using distributed ledger technology; does not offer a payment of yield or interest; and is not a security, as defined in section 2 of the Securities Act of 1933 ( 15 U.S.C. 77b ), section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ), or section 2 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–2 ), other than a bond, note, evidence of indebtedness, or investment contract satisfying the conditions described in subparagraph (A).

The term permitted payment stablecoin issuer means a person incorporated in the United States that is— a subsidiary of an insured depository institution that has been approved to issue payment stablecoins under section 5; a Federal qualified nonbank payment stablecoin issuer that has been approved to issue payment stablecoins under section 5; or a State qualified payment stablecoin issuer. The term person means an individual, partnership, company, corporation, association, trust, estate, cooperative organization, or other business entity, incorporated or unincorporated.

The term primary Federal payment stablecoin regulator means— with respect to a subsidiary of an insured depository institution (other than an insured credit union), the appropriate Federal banking agency (as defined under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )) of such insured depository institution; with respect to an insured credit union or a subsidiary of an insured credit union, the National Credit Union Administration; with respect to a State chartered depository institution not specified under subparagraph (A), the Corporation, the Comptroller, or the Board; and with respect to a Federal qualified nonbank payment stablecoin issuer or any entity chartered by the Comptroller, the Comptroller.

The term registered public accounting firm has the meaning given that term under section 2 of the Sarbanes-Oxley Act of 2002 ( 15 U.S.C. 7201 ). The term State means each of the several States of the United States, the District of Columbia, and each territory of the United States. The term State qualified payment stablecoin issuer means an entity that is legally established under the laws of a State and approved to issue payment stablecoins by a State payment stablecoin regulator.

The term State payment stablecoin regulator means a State agency that has primary regulatory and supervisory authority in such State over entities that issue payment stablecoins. The term State chartered depository institution has the meaning given the term State depository institution in section 3(c) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(c) ). With respect to an insured credit union, the term subsidiary of an insured credit union means— an organization providing services to the insured credit union that are associated with the routine operations of credit unions, as described under section 107(7)(I) of the Federal Credit Union Act ( 12 U.S.C. 1757(7)(I) ); and a credit union service organization, as such term is used under part 712 of title 12, Code of Federal Regulations, with respect to which the insured credit union has an ownership interest or to which the insured credit union has extended a loan.

Connectionstraces to 9

Traces to 9 documents

U.S. Code