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

The Secretary of the Treasury may issue limited safe harbors

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

The Secretary of the Treasury may issue limited safe harbors

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

“The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are-- (A) consistent with the purposes of the Act; (B) limited in scope; and (C) apply to a de minimis volume of transactions, as determined by the Secretary of the Treasury.”

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

Subsection (c)(1). The safe harbor is from subsection (a), the ban on issuing without permission. Three conditions attach: consistency with the purposes of the Act, limited scope, and application to a de minimis volume of transactions as the Secretary determines.

What the document actually says

“The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are-- (A) consistent with the purposes of the Act; (B) limited in scope; and (C) apply to a de minimis volume of transactions, as determined by the Secretary of the Treasury.”

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

The head of the Treasury can write a rule that lets some people off. The rule must fit the aims of the law. It must be narrow. And it can cover only a tiny number of trades.

What this is about

A safe harbor is a carve out from a ban. Here the ban is on making these coins without clearance. The Treasury decides how small counts as tiny.

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