The section preempts State licensing for approved Federal issuers
What the document says“The provisions of this section supersede and preempt any State requirement for a charter, license, or other authorization to do business with respect to a Federal qualified payment stablecoin issuer or subsidiary of an insured depository institution or credit union that is approved under this section to be a permitted payment stablecoin issuer.”
Subsection (h). The preemption is limited: nothing in the subsection preempts or supersedes a State's authority to charter, license, supervise or regulate a depository institution or credit union chartered in that State, or to supervise a subsidiary of such an institution that is approved under this section.
What the document actually says“The provisions of this section supersede and preempt any State requirement for a charter, license, or other authorization to do business with respect to a Federal qualified payment stablecoin issuer or subsidiary of an insured depository institution or credit union that is approved under this section to be a permitted payment stablecoin issuer.”
A state may not demand its own license from these firms. That holds for a federal maker. It also holds for a bank arm cleared under this part.
States keep their power over banks they charter. They may still watch a bank arm that makes coins. What they lose is the extra license step.
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