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Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 7 › Proposal

The Comptroller must act against a nonbank State issuer in exigent circumstances

To provide for the regulation of payment stablecoins, and for other purposes, section 7, Sec. 7. Written by .

The Comptroller must act against a nonbank State issuer in exigent circumstances

The document says “shallWho acts: Office of the Comptroller of the CurrencyHow: statuteSec. 7 in the PDF
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.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 7

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.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 7
That sentence, in plain words

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.

What this is about

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.

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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