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Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 3 › Proposal

An exigent safe harbor requires a justification to two committees

To provide for the regulation of payment stablecoins, and for other purposes, section 3, Sec. 3. Written by .

An exigent safe harbor requires a justification to two committees

The document says “shallWho acts: Secretary of the TreasuryHow: statuteSec. 3 in the PDF
What the document says

“Prior to issuing a limited safe harbor under this paragraph, the Secretary of the Treasury shall submit to the chairs and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a justification for the determination of the unusual and exigent circumstances, which may be contained in a classified annex, as applicable.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 3

Subsection (c)(2). If the Secretary determines that unusual and exigent circumstances exist, the Secretary may provide limited safe harbors from subsection (a), and before doing so must send the two named committees a justification for the determination, which may be contained in a classified annex.

What the document actually says

“Prior to issuing a limited safe harbor under this paragraph, the Secretary of the Treasury shall submit to the chairs and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a justification for the determination of the unusual and exigent circumstances, which may be contained in a classified annex, as applicable.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 3
That sentence, in plain words

First the Treasury must write to two groups in Congress. It must say why things are so odd and urgent. Part of that letter may be kept secret.

What this is about

This is a second kind of carve out. It is for a crisis. The law does not say what counts as one. The Treasury makes that call.

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