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

Host State law applies to an out-of-State issuer only as it does to a Federal one

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

Host State law applies to an out-of-State issuer only as it does to a Federal one

The document says “shall applyWho acts: CongressHow: statuteSec. 7 in the PDF
What the document says

“Notwithstanding any other provision of law, the laws of a host State, including laws relating to consumer protection, shall only apply to the activities conducted in the host State by an out-of-State State qualified payment stablecoin issuer to the same extent as such laws apply to the activities conducted in the host State by an out-of-State Federal qualified payment stablecoin issuer.”

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

Subsection (f). Where a host State law is determined not to apply, the laws of the issuer's home State govern its activities in the host State. The subsection applies only to an issuer chartered, licensed or otherwise authorized by a State that has a certification in place pursuant to section 4(c), and it excludes host State laws governing chartering, licensure or other authorization to do business. Except for those laws, nothing in the Act preempts State consumer protection laws, including common law, and the remedies available under them.

What the document actually says

“Notwithstanding any other provision of law, the laws of a host State, including laws relating to consumer protection, shall only apply to the activities conducted in the host State by an out-of-State State qualified payment stablecoin issuer to the same extent as such laws apply to the activities conducted in the host State by an out-of-State Federal qualified payment stablecoin issuer.”

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

A maker cleared in one state may work in another. The second state's laws reach it only so far. They reach it no further than they reach a federal maker.

What this is about

The state where a firm is cleared is its home state. Another state it works in is a host state. If host law does not apply, home law does.

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