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Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 10 › Proposal

A custodian must submit information about how it protects customer assets

To provide for the regulation of payment stablecoins, and for other purposes, section 10, Sec. 10. Written by .

A custodian must submit information about how it protects customer assets

The document says “shallWho acts: custodians of payment stablecoin reservesHow: statuteSec. 10 in the PDF
What the document says

“A person described under subsection (a) shall submit to the applicable primary Federal payment stablecoin regulator information concerning the person's business operations and processes to protect customer assets, in such form and manner as the primary regulator shall determine.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 10

Subsection (d). The regulator sets the form and manner. Under subsection (a)(1)(B), a State bank or credit union supervisor must make information in these categories available to the Federal Reserve Board for a person supervised by that State supervisor to qualify.

What the document actually says

“A person described under subsection (a) shall submit to the applicable primary Federal payment stablecoin regulator information concerning the person's business operations and processes to protect customer assets, in such form and manner as the primary regulator shall determine.”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 10
That sentence, in plain words

The firm must send in facts about how it works. It must show how it guards customer assets. The watchdog says what form to use.

What this is about

A firm watched by a state must share the same facts. Those go to the Fed. That is one of the two ways to qualify.

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