An application may be denied only for unsafe or unsound activities
To provide for the regulation of payment stablecoins, and for other purposes, section 5, Sec. 5.
Written by .
An application may be denied only for unsafe or unsound activities
The document says “shall”Who acts: primary Federal payment stablecoin regulatorsHow: statuteSec. 5 in the PDF
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).”
That sentence, in plain words
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.
What this is about
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.
Guiding and Establishing National Innovation for U.S. Stablecoins Act, Public Law 119-27, sec. 5, 139 Stat. 439 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm
This page
“An application may be denied only for unsafe or unsound activities,” Guiding and Establishing National Innovation for U.S. Stablecoins Act, section 5, Sec. 5. Read the Mandate, https://readthemandate.org/guiding-establishing-national-innovation-u-s/proposal/sec05-grounds-for-denial/ (retrieved October 10, 2026).
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