State qualified payment stablecoin issuers

(a) In general With respect to a State, a State payment stablecoin regulator shall have supervisory, examination, and enforcement authority over a State qualified payment stablecoin issuer of such State. (b) Authority To enter into agreements (1) In general A State payment stablecoin regulator may enter into a memorandum of understanding with the primary Federal banking agency and Comptroller setting out the manner in which the primary Federal banking agency and Comptroller may participate in the supervision, examination, and enforcement authority with respect to the State qualified payment stablecoin issuers of such State. (2) Rule of construction Nothing in this subsection or a memorandum entered into under this subsection may be construed to limit the authority of the primary Federal banking agency or Comptroller under subsection (e) or any other provision of law. (c) Sharing of information (1) In general A State payment stablecoin regulator and, as applicable, the Comptroller, the Board, the Corporation, or the National Credit Union Administration shall share information on an ongoing basis with respect to each State qualified payment stablecoin issuer of such State, including a copy of all initial applications and any accompanying documents. (2) Privileges not affected by sharing of information The sharing of information under paragraph (1) shall not be construed as waiving, destroying, or otherwise affecting any privilege applicable to such information under Federal or State law as to any person or entity other than the State payment stablecoin regulator, the Comptroller, the Board, the Corporation, and the National Credit Union Administration. (d) Rulemaking A State payment stablecoin regulator may, to the same extent as the primary Federal payment stablecoin regulators issue orders and rules under section 4 applicable to a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer, issue orders and rules related to the requirements under section 4 applicable to State qualified payment stablecoin issuers. (e) Back-Up enforcement authority (1) By the primary Federal banking agency (A) In general Subject to subparagraph (C), the primary Federal banking agency may, after not less than 48 hours prior written notice to any applicable State payment stablecoin regulator, take an enforcement action against a State qualified payment stablecoin issuer that is a subsidiary of an insured depository institution or an institution-affiliated party thereof for violations of this Act if— (i) the applicable State payment stablecoin regulator has not commenced an enforcement action to correct such violation; and (ii) failure to take such action would create a material risk of loss to holders of such issuer’s stablecoins or create a material threat to U.S. financial stability. (B) Rulemaking Not later than the end of the 180-day period beginning on the date of enactment of this Act, the primary Federal banking agencies shall issue rules to set forth the standards that would be used by the primary Federal bank agencies to exercise the back-up authority under this paragraph. (C) Back-up authority under section 6(b) Solely for purposes of carrying out this paragraph, section 6(b) shall apply to a State qualified payment stablecoin issuer that is a subsidiary of an insured depository institution as if the primary Federal banking agency were the primary Federal payment stablecoin regulator with respect to the State qualified payment stablecoin issuer. (D) Primary Federal banking agency defined In this section— (i) the term primary Federal banking agency means— (I) the appropriate Federal banking agency; and (II) the National Credit Union Administration, in the case of an insured credit union; and (ii) the term primary Federal banking agencies means the Board, the Comptroller, the Corporation, and the National Credit Union Administration. (2) By the Comptroller (A) In general Subject to subparagraph (C), the Comptroller may, after not less than 48 hours prior written notice to any applicable State payment stablecoin regulator, take an enforcement action against a State qualified payment stablecoin issuer that is a nonbank entity or an institution-affiliated party thereof for violations of this Act if— (i) the applicable State payment stablecoin regulator has not commenced an enforcement action to correct such violation; and (ii) failure to take such action would create a material risk of loss to holders of such issuer’s stablecoins or create a material threat to U.S. financial stability. (B) Rulemaking Not later than the end of the 180-day period beginning on the date of enactment of this Act, the Comptroller shall issue rules to set forth the standards that would be used by the Comptroller to exercise the back-up authority under this paragraph. (C) Back-up authority under section 6(b) Solely for purposes of carrying out this paragraph, section 6(b) shall apply to a State qualified payment stablecoin issuer that is a nonbank entity as if the Comptroller were the primary Federal payment stablecoin regulator with respect to the State qualified payment stablecoin issuer. (f) Gramm-Leach-Bliley Act For purposes of title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) a State qualified payment stablecoin issuer is deemed a financial institution. (g) Interstate payment stablecoin market (1) Definitions For the purposes of this subsection— (A) the term home State means the State of a State qualified payment stablecoin issuer’s State payment stablecoin regulator; and (B) the term host State means a State other than that of the State qualified payment stablecoin issuer’s State payment stablecoin regulator. (2) Authority to issue payment stablecoins in host States Subject to the requirements of paragraph (3), a State qualified payment stablecoin issuer may issue payment stablecoins in a host State without a charter or license to issue payment stablecoins from such host State. (3) State obligations Where a State qualified payment stablecoin issuer issues a payment stablecoin in a host State pursuant to paragraph (2)— (A) such State qualified payment stablecoin issuer shall notify any State payment stablecoin regulator in such host State of the issuer’s intention to do business in the host State no less than 30 days before such issuer commences business in the host State and in a manner prescribed by the host State’s State payment stablecoin regulator or State banking regulator if such State does not have a regime certified under section 4(b), provided that such notice does not impose a de facto licensure or chartering requirement on such State qualified payment stablecoin issuer; (B) such State qualified payment stablecoin issuer shall comply with all requirements of the issuer’s home State regulatory regime when conducting business in the host State, and where the host State maintains a payment stablecoin regulatory regime that is certified under section 4(b), such issuer shall comply with any obligations of the host State’s payment stablecoin regulatory regime that exceed those of such issuer’s home State regulatory regime; (C) where the host State does not maintain a payment stablecoin regulatory regime that is certified under section 4(b), such State qualified payment stablecoin issuer shall remain subject to all applicable consumer protection laws of such host State; and (D) where the host State maintains a payment stablecoin regulatory regime that is certified under section 4(b), such State qualified payment stablecoin issuer shall remain subject to applicable consumer protection laws of such host State, but only to the same extent as State qualified payment stablecoin issuers chartered or licensed in that host State.

(a) In general With respect to a State, a State payment stablecoin regulator shall have supervisory, examination, and enforcement authority over a State qualified payment stablecoin issuer of such State. (b) Authority to enter into agreements (1) In general A State payment stablecoin regulator may enter into a memorandum of understanding with the primary Federal banking agency and Comptroller setting out the manner in which the primary Federal banking agency and Comptroller may participate in the supervision, examination, and enforcement authority with respect to the State qualified payment stablecoin issuers of such State. (2) Rule of construction Nothing in this subsection or a memorandum entered into under this subsection may be construed to limit the authority of the primary Federal banking agency or Comptroller under subsection (e) or any other provision of law. (c) Sharing of information (1) In general A State payment stablecoin regulator and, as applicable, the Comptroller, the Board, the Corporation, or the National Credit Union Administration shall share information on an ongoing basis with respect to each State qualified payment stablecoin issuer of such State, including a copy of all initial applications and any accompanying documents. (2) Privileges not affected by sharing of information The sharing of information under paragraph (1) shall not be construed as waiving, destroying, or otherwise affecting any privilege applicable to such information under Federal or State law as to any person or entity other than the State payment stablecoin regulator, the Comptroller, the Board, the Corporation, and the National Credit Union Administration. (d) Rulemaking A State payment stablecoin regulator may, to the same extent as the primary Federal payment stablecoin regulators issue orders and rules under section 4 applicable to a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer, issue orders and rules related to the requirements under section 4 applicable to State qualified payment stablecoin issuers. (e) Back-up enforcement authority (1) By the primary Federal banking agency (A) In general Subject to subparagraph (C), the primary Federal banking agency may, after not less than 48 hours prior written notice to any applicable State payment stablecoin regulator, take an enforcement action against a State qualified payment stablecoin issuer that is a subsidiary of an insured depository institution or an institution-affiliated party thereof for violations of this Act if— (i) the applicable State payment stablecoin regulator has not commenced an enforcement action to correct such violation; and (ii) failure to take such action would create a material risk of loss to holders of such issuer’s stablecoins or create a material threat to U.S. financial stability. (B) Rulemaking Not later than the end of the 180-day period beginning on the date of enactment of this Act, the primary Federal banking agencies shall issue rules to set forth the standards that would be used by the primary Federal banking agencies to exercise the back-up authority under this paragraph. (C) Back-up authority under section 6(b) Solely for purposes of carrying out this paragraph, section 6(b) shall apply to a State qualified payment stablecoin issuer that is a subsidiary of an insured depository institution as if the primary Federal banking agency were the primary Federal payment stablecoin regulator with respect to the State qualified payment stablecoin issuer. (D) Primary Federal banking agency defined In this section— (i) the term primary Federal banking agency means— (I) the appropriate Federal banking agency; and (II) the National Credit Union Administration, in the case of an insured credit union; and (ii) the term primary Federal banking agencies means the Board, the Comptroller, the Corporation, and the National Credit Union Administration. (2) By the Comptroller (A) In general Subject to subparagraph (C), the Comptroller may, after not less than 48 hours prior written notice to any applicable State payment stablecoin regulator, take an enforcement action against a State qualified payment stablecoin issuer that is a nonbank entity or an institution-affiliated party thereof for violations of this Act if— (i) the applicable State payment stablecoin regulator has not commenced an enforcement action to correct such violation; and (ii) failure to take such action would create a material risk of loss to holders of such issuer’s stablecoins or create a material threat to U.S. financial stability. (B) Rulemaking Not later than the end of the 180-day period beginning on the date of enactment of this Act, the Comptroller shall issue rules to set forth the standards that would be used by the Comptroller to exercise the back-up authority under this paragraph. (C) Back-up authority under section 6(b) Solely for purposes of carrying out this paragraph, section 6(b) shall apply to a State qualified payment stablecoin issuer that is a nonbank entity as if the Comptroller were the primary Federal payment stablecoin regulator with respect to the State qualified payment stablecoin issuer. (f) Gramm-Leach-Bliley Act For purposes of title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) a State qualified payment stablecoin issuer is deemed a financial institution. (g) Interstate payment stablecoin market (1) Definitions For the purposes of this subsection— (A) the term home State means the State of a State qualified payment stablecoin issuer’s State payment stablecoin regulator; and (B) the term host State means a State other than that of the State qualified payment stablecoin issuer’s State payment stablecoin regulator. (2) Authority to issue payment stablecoins in host States Subject to the requirements of paragraph (3), a State qualified payment stablecoin issuer may issue payment stablecoins in a host State without a charter or license to issue payment stablecoins from such host State. (3) State obligations Where a State qualified payment stablecoin issuer issues a payment stablecoin in a host State pursuant to paragraph (2)— (A) such State qualified payment stablecoin issuer shall notify any State payment stablecoin regulator in such host State of the issuer’s intention to do business in the host State not less than 30 days before such issuer commences business in the host State and in a manner prescribed by the host State’s State payment stablecoin regulator or State banking regulator if such State does not have a regime certified under section 4(b), provided that such notice does not impose a de facto licensure or chartering requirement on such State qualified payment stablecoin issuer; (B) such State qualified payment stablecoin issuer shall comply with all requirements of the issuer’s home State regulatory regime when conducting business in the host State, and where the host State maintains a payment stablecoin regulatory regime that is certified under section 4(b), such issuer shall comply with any obligations of the host State’s payment stablecoin regulatory regime that exceed those of such issuer’s home State regulatory regime; (C) where the host State does not maintain a payment stablecoin regulatory regime that is certified under section 4(b), such State qualified payment stablecoin issuer shall remain subject to all applicable consumer protection laws of such host State; and (D) where the host State maintains a payment stablecoin regulatory regime that is certified under section 4(b), such State qualified payment stablecoin issuer shall remain subject to applicable consumer protection laws of such host State, but only to the same extent as State qualified payment stablecoin issuers chartered or licensed in that host State.