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

A regulator must examine an issuer and assess three things

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

A regulator must examine an issuer and assess three things

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

“The appropriate primary Federal payment stablecoin regulator shall examine a permitted payment stablecoin issuer described in paragraph (1) in order to assess-- (A) the nature of the operations and financial condition of the permitted payment stablecoin issuer”

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

Subsection (a)(3). The examination assesses the nature of the issuer's operations and financial condition, the financial, operational, technological and other risks within the issuer that may threaten its own safety and soundness or the stability of the financial system of the United States, and the issuer's systems for monitoring and controlling those risks.

What the document actually says

“The appropriate primary Federal payment stablecoin regulator shall examine a permitted payment stablecoin issuer described in paragraph (1) in order to assess-- (A) the nature of the operations and financial condition of the permitted payment stablecoin issuer”

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

The watchdog must check the maker itself. It looks at what the firm does. It looks at how the firm stands with money.

What this is about

It also looks for risks in the firm. Some risks could sink the firm. Some could hurt the wider system. It checks how the firm tracks them.

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.

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The quotation is the document's own words, exactly as printed, and we check the page number against the Act itself before publishing. The paragraph underneath is our summary, not the document's words. So is the plain English version, which is why it sits beside the quotation rather than replacing it.

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