SEC. 4 › (a)

(a) .— Standards for the Issuance of Payment Stablecoins

Bill Text

§4(a)

(a) .— Standards for the Issuance of Payment Stablecoins

§4(a)(1)

(1) .— In general

A permitted payment stablecoin issuer shall—

§4(a)(2)

(2) .— Prohibition on rehypothecation

Reserves required under paragraph (1)(A) may not be pledged, rehypothecated, or reused by the permitted payment stablecoin issuer, either directly or indirectly, except for the purpose of—

§4(a)(3)

(3) .— Monthly certification; examination of reports by registered public accounting firm

§4(a)(4)

(4) .— Capital, liquidity, and risk management requirements

§4(a)(5)

(5) .— Treatment under the bank secrecy act and sanctions laws

§4(a)(6)

(6) .— Coordination with permitted payment stablecoin issuers with respect to blocking of property and technological capabilities to comply with lawful orders

§4(a)(7)

(7) .— Limitation on payment stablecoin activities

§4(a)(8)

(8) .— Prohibition on tying

§4(a)(9)

(9) .— Prohibition on the use of deceptive names

§4(a)(10)

(10) .— Audits and reports

§4(a)(11)

(11) .— Prohibition on interest

No permitted payment stablecoin issuer or foreign payment stablecoin issuer shall pay the holder of any payment stablecoin any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with the holding, use, or retention of such payment stablecoin.

§4(a)(12)

(12) .— Non-financial services public companies

§4(a)(13)

(13) .— Eligibility

Nothing in this Act shall be construed as expanding or contracting legal eligibility to receive services available from a Federal Reserve bank or to make deposits with a Federal Reserve bank, in each case pursuant to the Federal Reserve Act.

§4(a)(14)

(14) .— Rule of construction

Compliance with this section does not alter or affect any additional requirement of a State payment stablecoin regulator that may apply relating to the offering of payment stablecoins.

Parent Section

SEC. 4

REQUIREMENTS FOR ISSUING PAYMENT STABLECOINS

Related Sections

Other sections under SEC. 4

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