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

The enforcement subsection does not apply to State qualified issuers

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

The enforcement subsection does not apply to State qualified issuers

The document says “shall notWho acts: CongressHow: statuteSec. 6 in the PDF
What the document says

“Notwithstanding anything in this subsection to the contrary, this subsection shall not apply to a State qualified payment stablecoin issuer.”

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

Subsection (b)(6). The whole of the enforcement subsection is switched off for State qualified payment stablecoin issuers. Section 7 sets out who supervises and enforces against them, and when the Federal Reserve Board or the Comptroller may act in unusual and exigent circumstances. Subsection (c) adds that nothing in the Act may be construed to modify any right or remedy under Federal consumer financial law.

What the document actually says

“Notwithstanding anything in this subsection to the contrary, this subsection shall not apply to a State qualified payment stablecoin issuer.”

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

None of this part reaches a state maker. The whole set of powers is switched off for them.

What this is about

Part 7 covers those makers instead. A state watchdog acts there. Two federal bodies may step in only in a crisis.

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