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) Treatment of custody activities The appropriate Federal banking agency (as defined under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), 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— (1) to include assets held in custody as a liability on any financial statement or balance sheet, 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 under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)); or (D) a State credit union supervisor (as defined under section 6003 of the Anti-Money Laundering Act of 2020); (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. (c) Definitions In this section: (1) Depository institution The term depository institution has the meaning given that term under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (2) Credit union terms The terms Federal credit union and State credit union have the meaning given those terms, respectively, under section 101 of the Federal Credit Union Act.