A regulator may waive the transition and leave a large issuer under State supervision
What the document says“the applicable primary Federal payment stablecoin regulator may permit a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of more than $10,000,000,000 to remain solely supervised by a State payment stablecoin regulator.”
Subsection (d)(3). Four exclusive criteria govern the decision: the capital the issuer maintains, its past operations and examination history, the State regulator's experience in supervising stablecoin and digital asset activities, and the State's supervisory framework. An issuer supervised by a State that had a prudential regime in place before the 90 day period ending on the date of enactment, has been certified under subsection (c), and has approved one or more issuers, is presumptively approved for a waiver unless the Federal regulator finds by clear and convincing evidence that the criteria are not substantially met or that the issuer poses significant safety and soundness risks. An issuer that does not get a waiver is still supervised by its State regulator jointly with the Federal one, and nothing requires it to convert to a Federal charter.
What the document actually says“the applicable primary Federal payment stablecoin regulator may permit a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of more than $10,000,000,000 to remain solely supervised by a State payment stablecoin regulator.”
A federal watchdog can let a big maker stay with its state. The maker keeps just the one watchdog. This holds even above the ten billion dollar line.
Four things decide it. They are the maker's capital, its record, the state's know how, and the state's rule book. Some states get a yes unless there is strong proof against.
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.