Knowing participation in issuing without permission carries a fine and prison term
To provide for the regulation of payment stablecoins, and for other purposes, section 3, Sec. 3.
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Knowing participation in issuing without permission carries a fine and prison term
The document says “shall”Who acts: CongressHow: statuteSec. 3 in the PDF
What the document says
“Whoever knowingly participates in a violation of subsection (a) shall be fined not more than $1,000,000 for each such violation, imprisoned for not more than 5 years, or both.”
Subsection (f)(1). The penalty attaches to knowing participation in a violation of subsection (a), the ban on issuing without permission. Under paragraph (2), a primary Federal payment stablecoin regulator that has reason to believe a person knowingly violated subsection (a) may refer the matter to the Attorney General.
What the document actually says
“Whoever knowingly participates in a violation of subsection (a) shall be fined not more than $1,000,000 for each such violation, imprisoned for not more than 5 years, or both.”
That sentence, in plain words
Someone who joins in this on purpose can be fined. The fine can reach one million dollars each time. They can also be locked up for up to five years.
What this is about
This is about the ban on making coins with no clearance. A federal watchdog may send the case on. It goes to the Attorney General.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Guiding and Establishing National Innovation for U.S. Stablecoins Act, Public Law 119-27, sec. 3, 139 Stat. 423 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm
This page
“Knowing participation in issuing without permission carries a fine and prison term,” Guiding and Establishing National Innovation for U.S. Stablecoins Act, section 3, Sec. 3. Read the Mandate, https://readthemandate.org/guiding-establishing-national-innovation-u-s/proposal/sec03-criminal-penalty/ (retrieved October 10, 2026).
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