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Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 8 › Proposal

The Secretary may waive or license secondary trading in three cases

To provide for the regulation of payment stablecoins, and for other purposes, section 8, Sec. 8. Written by .

The Secretary may waive or license secondary trading in three cases

The document says “canWho acts: Secretary of the TreasuryHow: statuteSec. 8 in the PDF
What the document says

“The Secretary of the Treasury may offer a waiver, general license, or specific license to any United States person engaging in secondary trading described in subsection (b)(1)(B) on a case-by-case basis if the Secretary determines that-- (A) prohibiting secondary trading would adversely affect the financial system of the United States”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 8

Subsection (c). The first ground is harm to the financial system of the United States; the second is that the foreign issuer is taking tangible steps to remedy the failure that led to the determination. The Secretary may also waive the trading restrictions, in consultation with the Director of National Intelligence and the Secretary of State, where the waiver is in the national security interest. The head of a department or agency may waive the section for intelligence activities subject to title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.) and for activities necessary to carry out or assist law enforcement activity.

What the document actually says

“The Secretary of the Treasury may offer a waiver, general license, or specific license to any United States person engaging in secondary trading described in subsection (b)(1)(B) on a case-by-case basis if the Secretary determines that-- (A) prohibiting secondary trading would adversely affect the financial system of the United States”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 8
That sentence, in plain words

The Treasury can let a person here keep trading. It looks at each case on its own. One reason is harm to the wider money system.

What this is about

A second reason is that the maker is fixing the problem. A waiver can also be given for national safety. Spy work and police work can be carved out too.

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