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Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 4 › Proposal

An issuer may only issue, redeem, manage reserves and provide custody

To provide for the regulation of payment stablecoins, and for other purposes, section 4, Sec. 4. Written by .

An issuer may only issue, redeem, manage reserves and provide custody

The document says “may notWho acts: permitted payment stablecoin issuersHow: statuteSec. 4 in the PDF
What the document says

“A permitted payment stablecoin issuer may only-- (i) issue payment stablecoins; (ii) redeem payment stablecoins; (iii) manage related reserves, including purchasing, selling, and holding reserve assets or providing custodial services for reserve assets, consistent with State and Federal law”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 4

Subsection (a)(7)(A). Five activities are allowed: issuing, redeeming, managing reserves, providing custodial or safekeeping services for stablecoins, required reserves or private keys, and other activities that directly support those. Subparagraph (B) provides that nothing in subparagraph (A) limits an issuer from engaging in stablecoin or digital asset service provider activities specified by the Act, and activities incidental to them, that its regulator authorizes, provided that the claims of stablecoin holders rank senior to those of other creditors with respect to the reserve assets, consistent with section 11.

What the document actually says

“A permitted payment stablecoin issuer may only-- (i) issue payment stablecoins; (ii) redeem payment stablecoins; (iii) manage related reserves, including purchasing, selling, and holding reserve assets or providing custodial services for reserve assets, consistent with State and Federal law”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 4
That sentence, in plain words

A maker may do only a few things. It may put out coins. It may buy them back. It may look after the assets that back them.

What this is about

It may also hold coins and keys for other people. It may do work that directly supports those tasks. Its watchdog may clear a few more tasks.

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