An application may be denied only for unsafe or unsound activities
What the document says“A primary Federal payment stablecoin regulator shall only deny a substantially complete application received under subsection (a) if the regulator determines that the activities of the applicant would be unsafe or unsound based on the factors described in subsection (c).”
Subsection (d)(2)(A). Clause (ii) adds that the issuance of a payment stablecoin on an open, public or decentralized network is not a valid ground for denial.
What the document actually says“A primary Federal payment stablecoin regulator shall only deny a substantially complete application received under subsection (a) if the regulator determines that the activities of the applicant would be unsafe or unsound based on the factors described in subsection (c).”
There is one reason to turn a firm down. The watchdog must find the firm's work would be unsafe. It must base that on the five things named earlier.
The law names one more thing that is not a reason. A maker may put its coins on an open network. That alone cannot be held against it.
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.