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12 U.S.C. § 5904 — Approval of subsidiaries of insured depository institutions and Federal qualified payment stablecoin issuers
Federal law — U.S. Code and appendices · legal_authorities
**(a) Application**
(1) **In general** — Each primary Federal payment stablecoin regulator shall—
(A) receive, review, and consider for approval applications from any insured depository institution that seeks to issue payment stablecoins through a subsidiary and any nonbank entity, Federal branch, or uninsured national bank that is chartered by the Comptroller pursuant to title LXII of the Revised Statutes, and that seeks to issue payment stablecoins as a Federal qualified payment stablecoin issuer; and
(B) establish a process and framework for the licensing, regulation, examination, and supervision of such entities that prioritizes the safety and soundness of such entities.
(2) **Authority to issue regulations and process applications** — The primary Federal payment stablecoin regulators shall, before the date described in [section 5913 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5913&num=0&edition=prelim)—
(A) issue regulations consistent with that section to carry out this section; and
(B) pursuant to the regulations described in subparagraph (A), accept and process applications described in paragraph (1).
(3) **Mandatory approval process** — A primary Federal payment stablecoin regulator shall, upon receipt of a substantially complete application received under paragraph (1), evaluate and make a determination on each application based on the criteria established under this chapter.
**(b) Evaluation of applications** A substantially complete application received under subsection (a) shall be evaluated by the primary Federal payment stablecoin regulator using the factors described in subsection (c).
**(c) Factors to be considered** The factors described in this subsection are the following:
(1) The abili
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Source file: Laws/federal/codes/united-states-code/title-12/section-5904-approval-of-subsidiaries-of-insured-depository-institutions-and-federal--875184ecc8.md
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Source location: Title 12, Chapter 56, § 5904; chapter-056-regulation-of-payment-stablecoins.md
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**(a) Application**
(1) **In general** — Each primary Federal payment stablecoin regulator shall—
(A) receive, review, and consider for approval applications from any insured depository institution that seeks to issue payment stablecoins through a subsidiary and any nonbank entity, Federal branch, or uninsured national bank that is chartered by the Comptroller pursuant to title LXII of the Revised Statutes, and that seeks to issue payment stablecoins as a Federal qualified payment stablecoin issuer; and
(B) establish a process and framework for the licensing, regulation, examination, and supervision of such entities that prioritizes the safety and soundness of such entities.
(2) **Authority to issue regulations and process applications** — The primary Federal payment stablecoin regulators shall, before the date described in [section 5913 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5913&num=0&edition=prelim)—
(A) issue regulations consistent with that section to carry out this section; and
(B) pursuant to the regulations described in subparagraph (A), accept and process applications described in paragraph (1).
(3) **Mandatory approval process** — A primary Federal payment stablecoin regulator shall, upon receipt of a substantially complete application received under paragraph (1), evaluate and make a determination on each application based on the criteria established under this chapter.
**(b) Evaluation of applications** A substantially complete application received under subsection (a) shall be evaluated by the primary Federal payment stablecoin regulator using the factors described in subsection (c).
**(c) Factors to be considered** The factors described in this subsection are the following:
(1) 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 financial condition and resources, to meet the requirements set forth under [section 5903 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5903&num=0&edition=prelim).
(2) Whether an individual who has been convicted of a felony offense involving insider trading, embezzlement, cybercrime, money laundering, financing of terrorism, or financial fraud is serving as an officer or director of the applicant.
(3) The competence, experience, and integrity of the officers, directors, and principal shareholders of the applicant, its subsidiaries, and parent company, including—
(A) the record of those officers, directors, and principal shareholders of compliance with laws and regulations; and
(B) the ability of those officers, directors, and principal shareholders to fulfill any commitments to, and any conditions imposed by, their primary Federal payment stablecoin regulator in connection with the application at issue and any prior applications.
(4) Whether the redemption policy of the applicant meets the standards under [section 5903(a)(1)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5903/a/1/B&num=0&edition=prelim).
(5) Any other factors established by the primary Federal payment stablecoin regulator that are necessary to ensure the safety and soundness of the permitted payment stablecoin issuer.
**(d) Timing for decision; grounds for denial**
(1) **Timing for decisions on applications**
(A) *In general* — Not later than 120 days after receiving a substantially complete application under subsection (a), a primary Federal payment stablecoin regulator shall render a decision on the application.
(B) *Substantially complete*
(i) *In general* — For purposes of subparagraph (A), an application shall be considered substantially complete if the application contains sufficient information for the primary Federal payment stablecoin regulator to render a decision on whether the applicant satisfies the factors described in subsection (c).
(ii) *Notification* — Not later than 30 days after receiving an application under subsection (a), a primary Federal payment stablecoin regulator shall notify the applicant as to whether the primary Federal payment stablecoin regulator considers the application to be substantially complete and, if the application is not substantially complete, the additional information the applicant shall provide in order for the application to be considered substantially complete.
(iii) *Material change in circumstances* — An application considered substantially complete under this subparagraph remains substantially complete unless there is a material change in circumstances that requires the primary Federal payment stablecoin regulator to treat the application as a new application.
(2) **Denial of application**
(A) *Grounds for denial*
(i) *In general* — A primary Federal payment stablecoin regulator shall only deny a substantially 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).
(ii) *Issuance on open, public, or decentralized network not ground for denial* — The issuance of a payment stablecoin on an open, public, or decentralized network shall not be a valid ground for denial of an application received under subsection (a).
(B) *Explanation required* — If a 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.
(C) *Opportunity for hearing; final determination*
(i) *In general* — 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.
(ii) *Timing* — Upon receipt of a timely request under clause (i), 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.
(iii) *Final determination* — Not later than 60 days after the date of a hearing under this subparagraph, the applicable primary Federal payment stablecoin regulator shall notify the applicant of a final determination, which shall contain a statement of the basis for that determination, with specific findings.
(iv) *Notice if no hearing* — 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.
(3) **Failure to render a decision** — If a 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.
(4) **Right to reapply** — The denial of an application under this section shall not prohibit the applicant from filing a subsequent application.
**(e) Reports on pending applications** Each primary Federal payment stablecoin regulator shall—
(1) notify Congress upon beginning to process applications under this chapter; and
(2) annually report to Congress on the applications that have been pending for 180 days or more since the date the initial application was filed and for which the applicant has been informed that the application remains incomplete, including documentation on the status of such applications and why such applications have not yet been approved.
**(f) Safe harbor for pending applications** The primary Federal payment stablecoin regulators may waive the application of the requirements of this chapter for a period not to exceed 12 months beginning on the effective date of this chapter, with respect to—
(1) a subsidiary of an insured depository institution, if the insured depository institution has an application pending for the subsidiary to become a permitted payment stablecoin issuer on that effective date; or
(2) a Federal qualified payment stablecoin issuer with a pending application on that effective date.
**(g) Rulemaking** Consistent with [section 5913 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5913&num=0&edition=prelim), the primary Federal payment stablecoin regulators shall issue rules necessary for the regulation of the issuance of payment stablecoins, but may not impose requirements in addition to the requirements specified under [section 5903 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5903&num=0&edition=prelim).
**(h) Relation to other licensing requirements** The provisions of this section supersede and preempt any State requirement for a charter, license, or other authorization to do business with respect to a Federal qualified payment stablecoin issuer or subsidiary of an insured depository institution or credit union that is approved under this section to be a permitted payment stablecoin issuer. Nothing in this subsection shall preempt or supersede the authority of a State to charter, license, supervise, or regulate an insured depository institution or credit union chartered in such State or to supervise a subsidiary of such insured depository institution or credit union that is approved under this section to be a permitted payment stablecoin issuer.
**(i) Certification required**
(1) **In general** — Not later than 180 days after the approval of an application, and on an annual basis thereafter, each permitted payment stablecoin issuer shall submit to its primary Federal payment stablecoin regulator, or in the case of a State qualified payment stablecoin issuer its State payment stablecoin regulator, a certification that the issuer has implemented anti-money laundering and economic sanctions compliance programs that are reasonably designed to prevent the permitted payment stablecoin issuer from facilitating money laundering, in particular, facilitating money laundering for cartels and organizations designated as foreign terrorist organizations under [section 1189 of title 8](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title8-section1189&num=0&edition=prelim) and the financing of terrorist activities, consistent with the requirements of this chapter.
(2) **Availability of certifications** — Federal payment stablecoin regulators and State payment stablecoin regulators shall make certifications described in paragraph (1) available to the Secretary of Treasury upon request.
(3) **Penalties**
(A) *Approval revocation* — The primary Federal payment stablecoin regulator or State payment stablecoin regulator of a permitted payment stablecoin issuer that does not submit a certification pursuant to paragraph (1) may revoke the approval of the payment stablecoin issuer under this section.
(B) *Criminal penalty*
(i) *In general* — Any person that knowingly submits a certification pursuant to paragraph (1) that is false shall be subject to the criminal penalties set forth under [section 1001 of title 18](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title18-section1001&num=0&edition=prelim).
(ii) *Referral to Attorney General* — If a Federal payment stablecoin regulator or State payment stablecoin regulator has reason to believe that any person has knowingly violated paragraph (1), the applicable regulator may refer the matter to the Attorney General or to the attorney general of the payment stablecoin issuer’s host State.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Designation**
(1) **In general** — The Secretary is authorized to designate an organization as a foreign terrorist organization in accordance with this subsection if the Secretary finds that—
(A) the organization is a foreign organization;
(B) the organization engages in terrorist activity (as defined in [section 1182(a)(3)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title8-section1182/a/3/B&num=0&edition=prelim) or terrorism (as defined in [section 2656f(d)(2) of title 22](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2656f/d/2&num=0&edition=prelim)), or retains the capability and intent to engage in terrorist activity or terrorism) 11 So in original. The closing parenthesis probably should follow “[section 1182(a)(3)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title8-section1182/a/3/B&num=0&edition=prelim)”.; and
(C) the terrorist activity or terrorism of the organization threatens the security of United States nationals or the national security of the United States.
(2) **Procedure**
(A) *Notice*
(i) *To congressional leaders* — Seven days before making a designation under this subsection, the Secretary shall, by classified communication, notify the Speaker and Minority Leader of the House of Representatives, the President pro tempore, Majority Leader, and Minority Leader of the Senate, and the members of the relevant committees of the House of Representatives and the Senate, in writing, of the intent to designate an organization under this subsection, together with the findings made under paragraph (1) with respect to that organization, and the factual basis therefor.
(ii) *Publication in Federal Register* — The Secretary shall publish th
Source: Supplied U.S. Code snapshot — release unconfirmed · 8 U.S.C. § 1189
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Standards for the issuance of payment stablecoins**
(1) **In general** — A permitted payment stablecoin issuer shall—
(A) maintain identifiable reserves backing the outstanding payment stablecoins of the permitted payment stablecoin issuer on an at least 1 to 1 basis, with reserves comprising—
(i) United States coins and currency (including Federal Reserve notes) or money standing to the credit of an account with a Federal Reserve Bank;
(ii) 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;
(iii) Treasury bills, notes, or bonds—
(I) with a remaining maturity of 93 days or less; or
(II) issued with a maturity of 93 days or less;
(iv) money received under repurchase agreements, with the permitted payment stablecoin issuer 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;
(v) reverse repurchase agreements, with the permitted payment stablecoin issuer 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—
(I) tri-party;
(II) centrally cleared through a clearing agency registered with the Securities and Exchange Commission; or
(III) bilateral with a co
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5903
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Federal law — U.S. Code and appendices · legal_authorities
In this chapter:
(1) **Appropriate Federal banking agency** — The term “appropriate Federal banking agency” has the meaning given that term in [section 1813 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1813&num=0&edition=prelim).
(2) **Bank Secrecy Act** — The term “Bank Secrecy Act” means—
(A) [section 1829b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1829b&num=0&edition=prelim);
(B) chapter 2 of title I of Public Law 91–508 ([12 U.S.C. 1951](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1951&num=0&edition=prelim) et seq.); and
(C) subchapter II of chapter 53 of title 31.
(3) **Board** — The term “Board” means the Board of Governors of the Federal Reserve System.
(4) **Comptroller** — The term “Comptroller” means the Office of the Comptroller of the Currency.
(5) **Corporation** — The term “Corporation” means the Federal Deposit Insurance Corporation.
(6) **Digital asset** — The term “digital asset” means any digital representation of value that is recorded on a cryptographically secured distributed ledger.
(7) **Digital asset service provider** — The term “digital asset service provider”—
(A) means a person that, for compensation or profit, engages in the business in the United States (including on behalf of customers or users in the United States) of—
(i) exchanging digital assets for monetary value;
(ii) exchanging digital assets for other digital assets;
(iii) transferring digital assets to a third party;
(iv) acting as a digital asset custodian; or
(v) participating in financial services relating to digital asset issuance; and
(B) does not include—
(i) a distributed ledger protocol;
(ii)
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5901
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** Not later than 1 year after July 18, 2025, each primary Federal payment stablecoin regulator, the Secretary of the Treasury, and each State payment stablecoin regulator shall promulgate regulations to carry out this chapter through appropriate notice and comment rulemaking.
**(b) Coordination** Federal payment stablecoin regulators, the Secretary of the Treasury, and State payment stablecoin regulators should coordinate, as appropriate, on the issuance of any regulations to implement this chapter.
**(c) Report required** Not later than 180 days after the effective date of this chapter, each Federal banking agency shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that confirms and describes the regulations promulgated to carry out this chapter.
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5913
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Except as otherwise provided in this section, whoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully—
(1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact;
(2) makes any materially false, fictitious, or fraudulent statement or representation; or
(3) makes or uses any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry;
shall be fined under this title, imprisoned not more than 5 years or, if the offense involves international or domestic terrorism (as defined in section 2331), imprisoned not more than 8 years, or both. If the matter relates to an offense under chapter 109A, 109B, 110, or 117, or section 1591, then the term of imprisonment imposed under this section shall be not more than 8 years.
**(b)** Subsection (a) does not apply to a party to a judicial proceeding, or that party’s counsel, for statements, representations, writings or documents submitted by such party or counsel to a judge or magistrate in that proceeding.
**(c)** With respect to any matter within the jurisdiction of the legislative branch, subsection (a) shall apply only to—
(1) administrative matters, including a claim for payment, a matter related to the procurement of property or services, personnel or employment practices, or support services, or a document required by law, rule, or regulation to be submitted to the Congress or any office or officer within the legislative branch; or
(2) any investigation or review, conducted pursuant to the authority of any committee, subcommittee, commission or office of the Congress, consistent with applicable rules of the House or Senate.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Annual reporting requirement** Beginning on the date that is 1 year after July 18, 2025, and annually thereafter, the primary Federal payment stablecoin regulators, in consultation with State payment stablecoin regulators, as necessary, shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate, the Committee on Financial Services of the House of Representatives, and the Director of the Office of Financial Research a report, which may include a classified annex, if applicable, on the status of the payment stablecoin industry, including—
(1) a summary of trends in payment stablecoin activities;
(2) a summary of the number of applications for approval as a permitted payment stablecoin issuer under [section 5904 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5904&num=0&edition=prelim), including aggregate approvals and rejections of applications; and
(3) a description of the potential financial stability risks posed to the safety and soundness of the broader financial system by payment stablecoin activities.
**(b) FSOC report** The Financial Stability Oversight Council shall incorporate the findings in the report under subsection (a) into the annual report of the Council required under [section 5322(a)(2)(N) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5322/a/2/N&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5914
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