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

No issuer may pay interest or yield on a payment stablecoin

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

No issuer may pay interest or yield on a payment stablecoin

The document says “shall notWho acts: permitted payment stablecoin issuers, foreign payment stablecoin issuersHow: statuteSec. 4 in the PDF
What the document says

“No permitted payment stablecoin issuer or foreign payment stablecoin issuer shall pay the holder of any payment stablecoin any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with the holding, use, or retention of such payment stablecoin.”

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

Subsection (a)(11). The bar reaches both permitted issuers and foreign issuers, and it covers any form of interest or yield, whether paid in cash, tokens or other consideration. It applies to payments made solely in connection with holding, using or retaining the stablecoin.

What the document actually says

“No permitted payment stablecoin issuer or foreign payment stablecoin issuer shall pay the holder of any payment stablecoin any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with the holding, use, or retention of such payment stablecoin.”

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

A maker may not pay a holder for keeping a coin. It may not pay in cash. It may not pay in more coins or in anything else.

What this is about

A bank pays interest on savings. This bars that here. The rule covers makers abroad as well as makers at home.

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The quotation is the document's own words, exactly as printed, and we check the page number against the Act itself before publishing. The paragraph underneath is our summary, not the document's words. So is the plain English version, which is why it sits beside the quotation rather than replacing it.

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