How an issuer is resolved depends on whether it is a depository institution
What the document says“(1) A depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall be resolved by the Federal Deposit Insurance Corporation, National Credit Union Administration, or State payment stablecoin regulator, as applicable.”
Subsection (g). A depository institution is resolved by one of the three bodies named, as applicable. A subsidiary of a depository institution, or a nonbank entity, may instead be a debtor under title 11 of the United States Code. The subsection opens by saying that this is in accordance with otherwise applicable law.
What the document actually says“(1) A depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall be resolved by the Federal Deposit Insurance Corporation, National Credit Union Administration, or State payment stablecoin regulator, as applicable.”
A bank that fails is wound up by an agency. Which one depends on the kind of bank. A state watchdog may do it instead.
A firm that is not a bank goes to a bankruptcy court. So can a bank arm. Which path a maker takes depends on what it is.
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.