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12 U.S.C. § 5902 — Issuance and treatment of payment stablecoins
Federal law — U.S. Code and appendices · legal_authorities
**(a) Limitation on issuers** It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States.
**(b) Prohibition on offers or sales**
(1) **In general** — Except as provided in subsection (c) and [section 5916 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5916&num=0&edition=prelim), beginning on the date that is 3 years after July 18, 2025, it shall be unlawful for a digital asset service provider to offer or sell a payment stablecoin to a person in the United States, unless the payment stablecoin is issued by a permitted payment stablecoin issuer.
(2) **Foreign payment stablecoin issuers** — It shall be unlawful for any digital asset service provider to offer, sell, or otherwise make available in the United States a payment stablecoin issued by a foreign payment stablecoin issuer unless the foreign payment stablecoin issuer has the technological capability to comply, and will comply, with the terms of any lawful order and any reciprocal arrangement pursuant to [section 5916 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5916&num=0&edition=prelim).
**(c) Limited safe harbors**
(1) **In general** — The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are—
(A) consistent with the purposes of the 11 So in original. Probably should be “this”. chapter;
(B) limited in scope; and
(C) apply 22 So in original. to a de minimis volume of transactions, as determined by the Secretary of the Treasury.
(2) **Unusual and exigent circumstances**
(A) *In general* — If the Secretary of the Treasury determines that unusual and exigent circumstances exist, the Secretar
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Stable record: federal_law:legal_authorities:record_usc_ded88856de94666c0e78e0e7
Source file: Laws/federal/codes/united-states-code/title-12/section-5902-issuance-and-treatment-of-payment-stablecoins--950f7e9367.md
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Passage SHA-256: 5209c82e106235fd0b43478fc4b239eac86f14f25ec17f36e4efef4d6adcea23
Source location: Title 12, Chapter 56, § 5902; chapter-056-regulation-of-payment-stablecoins.md
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**(a) Limitation on issuers** It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States.
**(b) Prohibition on offers or sales**
(1) **In general** — Except as provided in subsection (c) and [section 5916 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5916&num=0&edition=prelim), beginning on the date that is 3 years after July 18, 2025, it shall be unlawful for a digital asset service provider to offer or sell a payment stablecoin to a person in the United States, unless the payment stablecoin is issued by a permitted payment stablecoin issuer.
(2) **Foreign payment stablecoin issuers** — It shall be unlawful for any digital asset service provider to offer, sell, or otherwise make available in the United States a payment stablecoin issued by a foreign payment stablecoin issuer unless the foreign payment stablecoin issuer has the technological capability to comply, and will comply, with the terms of any lawful order and any reciprocal arrangement pursuant to [section 5916 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5916&num=0&edition=prelim).
**(c) Limited safe harbors**
(1) **In general** — The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are—
(A) consistent with the purposes of the 11 So in original. Probably should be “this”. chapter;
(B) limited in scope; and
(C) apply 22 So in original. to a de minimis volume of transactions, as determined by the Secretary of the Treasury.
(2) **Unusual and exigent circumstances**
(A) *In general* — If the Secretary of the Treasury determines that unusual and exigent circumstances exist, the Secretary may provide limited safe harbors from subsection (a).
(B) *Justification* — Prior to issuing a limited safe harbor under this paragraph, the Secretary of the Treasury shall submit to the chairs and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a justification for the determination of the unusual and exigent circumstances, which may be contained in a classified annex, as applicable.
**(d) 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 Secretary of the Treasury shall issue regulations to implement this section, including regulations to define terms.
**(e) Extraterritorial effect** This section is intended to have extraterritorial effect if conduct involves the offer or sale of a payment stablecoin to a person located in the United States.
**(f) Penalty for violation**
(1) **In general** — Whoever knowingly participates in a violation of subsection (a) shall be fined not more than $1,000,000 for each such violation, imprisoned for not more than 5 years, or both.
(2) **Referral to Attorney General** — If a primary Federal payment stablecoin regulator has reason to believe that any person has knowingly violated subsection (a), the primary Federal payment stablecoin regulator may refer the matter to the Attorney General.
**(g) Treatment** A payment stablecoin that is not issued by a permitted payment stablecoin issuer shall not be—
(1) treated as cash or as a cash equivalent for accounting purposes;
(2) eligible as cash or as a cash equivalent margin and collateral for futures commission merchants, derivative clearing organizations, broker-dealers, registered clearing agencies, and swap dealers; or
(3) acceptable as a settlement asset to facilitate wholesale payments between banking organizations or by a payment infrastructure to facilitate exchange and settlement among banking organizations.
**(h) Rules of construction**
(1) **Exempt transactions** — This section shall not apply to—
(A) the direct transfer of digital assets between 2 individuals acting on their own behalf and for their own lawful purposes, without the involvement of an intermediary;
(B) to 33 So in original. The word “to” probably should not appear. any transaction involving the receipt of digital assets by an individual between an account owned by the individual in the United States and an account owned by the individual abroad that are offered by the same parent company; or
(C) to 3 any transaction by means of a software or hardware wallet that facilitates an individual’s own custody of digital assets.
(2) **Treasury authority** — Nothing in this chapter shall alter the existing authority of the Secretary of the Treasury to block, restrict, or limit transactions involving payment stablecoins that reference or are denominated in United States dollars that are subject to the jurisdiction of the United States.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The prohibitions under [section 5902 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5902&num=0&edition=prelim) shall not apply to a foreign payment stablecoin issuer if all of the following apply:
(1) The foreign payment stablecoin issuer is subject to regulation and supervision by a foreign payment stablecoin regulator of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands that has a regulatory and supervisory regime with respect to payment stablecoins that the Secretary of the Treasury determines, pursuant to subsection (b), is comparable to the regulatory and supervisory regime established under this chapter, including, in particular, the requirements under [section 5903(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section5903/a&num=0&edition=prelim).
(2) The foreign payment stablecoin issuer is registered with the Comptroller pursuant to subsection (c).
(3) The foreign payment stablecoin issuer holds reserves in a United States financial institution sufficient to meet liquidity demands of United States customers, unless otherwise permitted under a reciprocal arrangement established pursuant to subsection (d).
(4) The foreign country in which the foreign payment stablecoin issuer is domiciled and regulated is not subject to comprehensive economic sanctions by the United States or in a jurisdiction that the Secretary of the Treasury has determined to be a jurisdiction of primary money laundering concern.
**(b) Treasury determination**
(1) **In general** — The Secretary of the Treasury may make a determination as to whether a foreign country has a regulatory and supervisory regime that is comparable to
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5916
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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) Supervision**
(1) **In general** — Each permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of less than $10,000,000,000 shall be subject to supervision by the appropriate primary Federal payment stablecoin regulator.
(2) **Submission of reports** — Each permitted payment stablecoin issuer described in paragraph (1) shall, upon request, submit to the appropriate primary Federal payment stablecoin regulator a report on—
(A) the financial condition of the permitted payment stablecoin issuer;
(B) the systems of the permitted payment stablecoin issuer for monitoring and controlling financial and operating risks;
(C) compliance by the permitted payment stablecoin issuer (and any subsidiary thereof) with this chapter; and
(D) the compliance of the Federal qualified nonbank payment stablecoin issuer with the requirements of the Bank Secrecy Act and with laws authorizing the imposition of sanctions and implemented by the Secretary of the Treasury.
(3) **Examinations** — The appropriate primary Federal payment stablecoin regulator shall examine a permitted payment stablecoin issuer described in paragraph (1) in order to assess—
(A) the nature of the operations and financial condition of the permitted payment stablecoin issuer;
(B) the financial, operational, technological, and other risks associated within the permitted payment stablecoin issuer that may pose a threat to—
(i) the safety and soundness of the permitted payment stablecoin issuer; or
(ii) the stability of the financial system of the United States; and
(C) the systems of the permitted payment stablecoin issuer for monitoring and controlling the risks described in sub
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 5905
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