A State qualified issuer is approved by a State regulator and is not a bank
What the document says“means an entity that-- (A) is legally established under the laws of a State and approved to issue payment stablecoins by a State payment stablecoin regulator; and (B) is not an uninsured national bank chartered by the Comptroller pursuant to title LXII of the Revised Statutes, a Federal branch, an insured depository institution, or a subsidiary of such national bank, Federal branch, or insured depository institution.”
Paragraph (31). The entity has to be established under the laws of a State and approved by a State payment stablecoin regulator, and it must not be one of the federally chartered or insured entities the definition lists. Paragraph (30) defines a State payment stablecoin regulator as a State agency with primary regulatory and supervisory authority in that State over entities that issue payment stablecoins. Paragraph (28) counts the District of Columbia and each territory as a State.
What the document actually says“means an entity that-- (A) is legally established under the laws of a State and approved to issue payment stablecoins by a State payment stablecoin regulator; and (B) is not an uninsured national bank chartered by the Comptroller pursuant to title LXII of the Revised Statutes, a Federal branch, an insured depository institution, or a subsidiary of such national bank, Federal branch, or insured depository institution.”
A state can clear a firm to make these coins. The firm must be set up under that state's laws. It must not be a national bank or a bank arm.
Each state names an agency for this job. The law calls it a state payment stablecoin regulator. Washington, D.C. and the territories count as states here.
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