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

The redemption policy and all fees must be disclosed publicly

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

The redemption policy and all fees must be disclosed publicly

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

“publicly, clearly, and conspicuously disclose in plain language all fees associated with purchasing or redeeming the payment stablecoins, provided that such fees can only be changed upon not less than 7 days' prior notice to consumers”

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

Subsection (a)(1)(B). The issuer must publicly disclose its redemption policy. The policy has to establish clear and conspicuous procedures for timely redemption, and any discretionary limitation on timely redemption may be imposed only by a State qualified payment stablecoin regulator, the Federal Deposit Insurance Corporation, the Comptroller or the Federal Reserve Board, consistent with section 7. Fees must be disclosed in plain language and may be changed only on at least seven days' notice.

What the document actually says

“publicly, clearly, and conspicuously disclose in plain language all fees associated with purchasing or redeeming the payment stablecoins, provided that such fees can only be changed upon not less than 7 days' prior notice to consumers”

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

The maker must post every fee it charges. It must use plain words. It must give buyers at least seven days' notice before a fee changes.

What this is about

The maker must also post how to hand a coin back for money. Only a watchdog may put limits on that. The maker may not do it on its own.

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