Payment stablecoins are not government backed or federally insured
What the document says“Payment stablecoins shall not be backed by the full faith and credit of the United States, guaranteed by the United States Government, subject to deposit insurance by the Federal Deposit Insurance Corporation, or subject to share insurance by the National Credit Union Administration.”
Subsection (e)(1) and (2). It is unlawful to represent that payment stablecoins are backed by the full faith and credit of the United States, guaranteed by the Government, or subject to Federal deposit or share insurance. A violation counts as a violation of section 18(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1828(a)(4)) or section 709 of title 18, United States Code, as applicable.
What the document actually says“Payment stablecoins shall not be backed by the full faith and credit of the United States, guaranteed by the United States Government, subject to deposit insurance by the Federal Deposit Insurance Corporation, or subject to share insurance by the National Credit Union Administration.”
The government does not stand behind these coins. They are not covered like money in a bank. They are not covered like money in a credit union.
Bank savings are insured up to a limit. These coins are not. Saying that they are breaks the law.
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