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Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 2 › Proposal

A payment stablecoin is a digital asset the issuer must redeem at a fixed value

To provide for the regulation of payment stablecoins, and for other purposes, section 2, Sec. 2. Written by .

A payment stablecoin is a digital asset the issuer must redeem at a fixed value

The document says “meansWho acts: CongressHow: statuteSec. 2 in the PDF
What the document says

“means a digital asset-- (i) that is, or is designed to be, used as a means of payment or settlement; and (ii) the issuer of which-- (I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 2

Paragraph (22)(A). The term reaches a digital asset that is used, or designed to be used, as a means of payment or settlement, where the issuer is obligated to convert, redeem or repurchase it for a fixed amount of monetary value, and represents that it will maintain, or creates the reasonable expectation that it will maintain, a stable value relative to a fixed amount of monetary value.

What the document actually says

“means a digital asset-- (i) that is, or is designed to be, used as a means of payment or settlement; and (ii) the issuer of which-- (I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 2
That sentence, in plain words

This is a digital coin used to pay for things. The maker owes you a set amount of money for it. You can hand the coin back and get that money.

What this is about

The maker also says the coin will hold its value. Or it acts in a way that makes people expect that. The whole law is built on this one term.

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