(2) .— Prohibition on rehypothecation
Bill Text
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—
(A)
satisfying margin obligations in connection with investments in permitted reserves under clauses (iv) and (v) of paragraph (1)(A);
(B)
satisfying obligations associated with the use, receipt, or provision of standard custodial services; or
creating liquidity to meet reasonable expectations of requests to redeem payment stablecoins, such that reserves in the form of Treasury bills may be sold as purchased securities for repurchase agreements with a maturity of 93 days or less, provided that either—
Parent Section
SEC. 4(a) .— Standards for the Issuance of Payment St...
Related Sections
Other sections under SEC. 4 › (a)