The Comptroller must act against a nonbank State issuer in exigent circumstances
What the document says“under unusual and exigent circumstances determined to exist by the Comptroller, the Comptroller shall, after not less than 48 hours' prior written notice to the applicable State payment stablecoin regulator, take an enforcement action against a State qualified payment stablecoin issuer that is a nonbank entity for violations of this Act.”
Subsection (e)(2)(A). The provision runs in the same terms as the Board's, with two differences: it reaches only a State qualified issuer that is a nonbank entity, and it is written as a duty rather than a power. Where the Comptroller then finds reasonable cause to believe an activity is a serious risk, subparagraph (C) likewise says the Comptroller shall impose restrictions, which may include limitations on redemption. The Comptroller is to issue rules, consistent with section 13, on the circumstances in which it may act.
What the document actually says“under unusual and exigent circumstances determined to exist by the Comptroller, the Comptroller shall, after not less than 48 hours' prior written notice to the applicable State payment stablecoin regulator, take an enforcement action against a State qualified payment stablecoin issuer that is a nonbank entity for violations of this Act.”
The Comptroller must act against some state makers in a crisis. Those are the ones that are not banks. It must warn the state watchdog 48 hours ahead.
The Fed's version of this is a choice. This one is written as a duty. Both reach only what the law calls odd and urgent times.
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