Treatment of payment stablecoin issuers in insolvency proceedings

(a) In general In any insolvency proceeding of a permitted payment stablecoin issuer under Federal or State law, including any proceeding under title 11, United States Code, and any insolvency proceeding administered by a State payment stablecoin regulator with respect to a permitted payment stablecoin issuer, the claim of a person holding payment stablecoins issued by the permitted payment stablecoin issuer shall have priority over the claims of the permitted payment stablecoin issuer and any other creditor of the permitted payment stablecoin issuer, with respect to required payment stablecoin reserves, subject to section 507(e) of title 11, United States Code. (b) Definitions Section 101 of title 11, United States Code, is amended by adding after paragraph (40B) the following: (40C) The terms payment stablecoin and permitted payment stablecoin issuer have the meanings given those terms in section 2 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025.. (c) Automatic stay Section 362 of title 11, United States Code is amended— (1) in subsection (a)— (A) in paragraph (7), by striking and; (B) in paragraph (8), by striking the period and inserting; and; and (C) by adding at the end the following: (9) the redemption of payment stablecoins issued by the debtor, from payment stablecoin reserves required to be maintained under section 4 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025.; and (2) in subsection (d)— (A) in paragraph (3)(B)(ii), by striking or at the end; (B) in paragraph (4)(B), by striking the period at the end and inserting; or; and (C) by inserting after paragraph (4) the following: (5) with respect to the redemption of payment stablecoins held by a person, if the court finds, subject to the motion and attestation of the debtor on the petition date, there are payment stablecoin reserves available for distribution on a ratable basis to similarly situated payment stablecoin holders, provided that the court shall use best efforts to enter a final order to begin distributions under this paragraph not later than 14 days after the date of the required hearing.. (d) 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), if a payment stablecoin holder is not able to redeem all outstanding payment stablecoin claims from required payment stablecoin reserves maintained by the debtor, any remaining claim of a person holding a payment stablecoin issued by the debtor shall have first priority over any other claim, including over any expenses and claims that have priority under that subsection, to the extent compliance with section 4 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 would have required additional reserves to be maintained by the debtor for payment stablecoin holders.. (e) Payment stablecoin reserves Section 541(b) of title 11, United States Code, is amended— (1) in paragraph (9), in the flush text following subparagraph (B), by striking or at the end; (2) in paragraph (10)(C), by striking the period and inserting; or; and (3) by inserting after paragraph (10) the following: (11) required payment stablecoin reserves under section 4 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025.. (f) Intervention Section 1109 of title 11, United States Code, is amended by adding at the end the following: (c) The Comptroller of the Currency or State payment stablecoin regulator (as defined in section 2 of the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025) shall raise and shall appear and be heard on any issue, including the protection of customers, in a case under this chapter in which the debtor is a permitted payment stablecoin issuer.. (g) Application of existing insolvency law In accordance with otherwise applicable law, an insolvency proceeding with respect to a permitted payment stablecoin issuer shall occur as follows: (1) A depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall be resolved by the Federal Deposit Insurance Corporation, National Credit Union Administration, or State payment stablecoin regulator, as applicable. (2) A subsidiary of a depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or a nonbank entity may be considered a debtor under title 11, United States Code.