Limitation on who may issue a payment stablecoin

(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) Limitation on offering or selling (1) In general After the end of the 2-year 18-month period beginning on the date of enactment of this Act, it shall be unlawful for any custodial intermediary to offer or sell a payment stablecoin in the United States unless the payment stablecoin was issued by a permitted payment stablecoin issuer. (2) Exceptions for comparable payment stablecoin regimes (A) In general Paragraph (1) and subsection (a) shall not apply to the offer or sale of a payment stablecoin if— (i) the payment stablecoin was issued by a foreign payment stablecoin issuer; (ii) the foreign payment stablecoin issuer is subject to regulation by a foreign payment stablecoin regulator of a nation with a payment stablecoin regulatory regime that the Secretary of the Treasury determines under subparagraph (B) is comparable to the requirements under this Act; and (iii) the foreign payment stablecoin issuer consents to be subject to reporting and examination requirements, as determined by— (I) the Comptroller, if the foreign payment stablecoin issuer is a nonbank; or (II) the Board, if the foreign payment stablecoin issuer is a banking institution or subsidiary thereof. (B) Determination With respect to a foreign nation, the Secretary of the Treasury shall determine, upon request of a foreign payment stablecoin issuer, a foreign payment stablecoin regulator, or on the Secretary’s own initiative, and in consultation with the Federal payment stablecoin regulators, whether the payment stablecoin regulatory regime of such nation is comparable to the requirements under this Act. (C) Public notice The Secretary shall make the list of nations for which a determination has been made under subparagraph (B) available to the public, and keep such list current. (D) Rescinding determinations (i) Secretarial action The Secretary may, in consultation with the primary Federal payment stablecoin regulators, rescind a determination made under subparagraph (B) with respect to a foreign nation, if the Secretary determines that the regulatory regime of such nation is no longer comparable to the requirements under this Act. (ii) Safeharbors If the Secretary rescinds a determination pursuant to clause (i), a custodial intermediary shall not be in violation of this subsection by reason of the offer or sale of a payment stablecoin issued by such nation’s foreign payment stablecoin issuer until 90 days after the determination is rescinded. (3) Penalty Any person who violates this subsection shall be subject to a civil penalty of not more than $100,000 for each day during which such violation continues. (c) Rulemaking Not later than 12 months after the date of enactment of this Act, the Secretary shall issue such rules as may be required to carry out this section. (d) Rule of construction This section does not apply to transactions in digital assets for an individual’s own lawful purposes by means of a software or hardware wallet that facilitates such individual’s own custody of digital assets.