Authority of banking institutions

(a) Rule of construction Nothing in this Act may be construed to limit the authority of a depository institution, Federal credit union, State credit union, or trust company to engage in activities permissible pursuant to applicable State and Federal law, including— (1) accepting or receiving deposits and issuing digital assets that represent deposits; (2) utilizing a distributed ledger for the books and records of the entity and to affect intrabank transfers; and (3) providing custodial services for payment stablecoins, private keys of payment stablecoins, or reserves backing payment stablecoins. (b) Regulatory review The primary Federal payment stablecoin regulators shall review all existing regulations and guidance and, if necessary, amend such regulations or guidance or issue new regulations or guidance to clarify that regulated entities can engage in the payment stablecoin activities contemplated in, and in accordance with, this Act. (c) Treatment of custody activities The appropriate Federal banking agency, the National Credit Union Administration (in the case of a credit union), and the Securities and Exchange Commission may not require a depository institution, national bank, Federal credit union, State credit union, or trust company, or any affiliate thereof (the entity)— (1) to include assets held in custody that are not owned by the entity as a liability on the financial statement or balance sheet of the entity, including payment stablecoin custody or safekeeping activities; (2) to hold additional regulatory capital against assets in custody or safekeeping, except as necessary to mitigate against operational risks inherent with the custody or safekeeping services, as determined by— (A) the appropriate Federal banking agency; (B) the National Credit Union Administration (in the case of a credit union); (C) a State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)); or (D) a State credit union supervisor (as defined in section 6003 of the Anti-Money Laundering Act of 2020 (31 U.S.C. 5311 note)); (3) to recognize a liability for any obligations related to activities or services performed for digital assets that the entity does not own if that liability would exceed the expense recognized in the income statement as a result of the corresponding obligation. (d) Depository institution defined In this section, the term depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(a) Rule of construction Nothing in this Act may be construed to limit the authority of a depository institution, national bank, Federal credit union, State credit union, or trust company to engage in activities permissible pursuant to applicable State and Federal law, including— (1) accepting or receiving deposits and issuing digital assets that represent deposits; (2) utilizing a distributed ledger for the books and records of the entity and to affect intrabank transfers; and (3) providing custodial services for payment stablecoins, private keys of payment stablecoins, or reserves backing payment stablecoins. (b) Regulatory review The primary Federal payment stablecoin regulators shall review all existing regulations and guidance and, if necessary, amend such regulations or guidance or issue new regulations or guidance to clarify that regulated entities can engage in the payment stablecoin activities contemplated in, and in accordance with, this Act. (c) Treatment of custody activities The appropriate Federal banking agency, the National Credit Union Administration (in the case of a credit union), and the Securities and Exchange Commission may not require a depository institution, national bank, Federal credit union, State credit union, or trust company, or any affiliate thereof (the entity)— (1) to include assets held in custody that are not owned by the entity as a liability on the financial statement or balance sheet of the entity, including payment stablecoin custody or safekeeping services; (2) to hold regulatory capital against assets, including reserves backing such assets described in section 4(a)(1)(A), in custody or safekeeping, except as necessary to mitigate against operational risks inherent with the custody or safekeeping services, as determined by— (A) the appropriate Federal banking agency; (B) the National Credit Union Administration (in the case of a credit union); (C) a State bank supervisor (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)); or (D) a State credit union supervisor (as defined in section 6003 of the Anti-Money Laundering Act of 2020 (31 U.S.C. 5311 note)); and (3) to recognize a liability for any obligations related to activities or services performed with respect to digital assets that the entity does not own if that liability would exceed the expense recognized in the income statement as a result of the corresponding obligation. (d) Depository institution defined In this section, the term depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).