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

Payment stablecoins are not government backed or federally insured

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

Payment stablecoins are not government backed or federally insured

The document says “shall not”Who acts: CongressHow: statuteSec. 4 in the PDF
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.”

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

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.”

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

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.

What this is about

Bank savings are insured up to a limit. These coins are not. Saying that they are breaks the law.

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.

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How to cite this
  1. The document itself

    Guiding and Establishing National Innovation for U.S. Stablecoins Act, Public Law 119-27, sec. 4, 139 Stat. 425 (2025).
    https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm

  2. This page

    “Payment stablecoins are not government backed or federally insured,” Guiding and Establishing National Innovation for U.S. Stablecoins Act, section 4, Sec. 4. Read the Mandate, https://readthemandate.org/guiding-establishing-national-innovation-u-s/proposal/sec04-no-federal-guarantee/ (retrieved October 10, 2026).

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