Treatment of insolvent payment stablecoin issuers

(a) In general In any insolvency proceeding, including any proceeding under title 11, United States Code, or any insolvency proceeding by a primary Federal payment stablecoin regulator or a State banking supervisor with respect to a payment stablecoin issuer, the claim of a person holding payment stablecoins issued by the payment stablecoin issuer shall have priority over all other claims against the payment stablecoin issuer. (b) Priority in bankruptcy proceedings Section 507 of title 11, United States Code, is amended— (1) in subsection (a), by striking The following and inserting Subject to subsection (e), the following; and (2) by adding at the end the following: (e) Notwithstanding subsection (a), any claim of a person holding payment stablecoins, as defined in section 2 of the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025, issued by a debtor shall have first priority over any other claim against the debtor under this title.. (c) Debtor A payment stablecoin issuer that is not a depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) may be considered a debtor under title 11, United States Code.