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Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 6 › Proposal

Civil money penalties run at up to $100,000 for each day

To provide for the regulation of payment stablecoins, and for other purposes, section 6, Sec. 6. Written by .

Civil money penalties run at up to $100,000 for each day

The document says “shallWho acts: primary Federal payment stablecoin regulatorsHow: statuteSec. 6 in the PDF
What the document says

“Any person that issues a United States dollar-denominated payment stablecoin in violation of section 3, and any institution-affiliated party of such a person who knowingly participates in issuing such a payment stablecoin, shall be liable for a civil penalty of not more than $100,000 for each day during which such payment stablecoins are issued.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 6

Subsection (b)(5). Three tiers are set. The first covers issuing a dollar-denominated stablecoin in violation of section 3. The second covers a material violation of the Act, a regulation or order, or a written condition, at up to $100,000 for each day the violation continues. The third adds up to a further $100,000 a day where a person knowingly participates in a violation. Penalties are assessed and collected under section 8(i)(2) of the Federal Deposit Insurance Act or section 206(k)(2) of the Federal Credit Union Act.

What the document actually says

“Any person that issues a United States dollar-denominated payment stablecoin in violation of section 3, and any institution-affiliated party of such a person who knowingly participates in issuing such a payment stablecoin, shall be liable for a civil penalty of not more than $100,000 for each day during which such payment stablecoins are issued.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 6
That sentence, in plain words

Making a dollar coin against part three brings a penalty. It can reach a hundred thousand dollars a day. Someone at the firm who helps can be charged too.

What this is about

There are three levels of penalty. Each runs by the day. The top level applies when a person knew what they were doing.

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