A stablecoin holder's claim to required reserves ranks first
What the document says“the claim of a person holding payment stablecoins issued by the permitted payment stablecoin issuer shall have priority, on a ratable basis with the claims of other persons holding such payment stablecoins, over the claims of the permitted payment stablecoin issuer and any other holder of claims against the permitted payment stablecoin issuer, with respect to required payment stablecoin reserves”
Subsection (a). The priority applies in any insolvency proceeding of a permitted payment stablecoin issuer under Federal or State law, including one administered by a State payment stablecoin regulator, and is subject to the new section 507(e) of title 11 that subsection (d) adds. Holders rank ratably among themselves. Under paragraph (2) a holder is deemed to hold a claim notwithstanding the definition of claim in section 101(5) of title 11, and under paragraph (3) the priority does not extend to claims other than those arising directly from holding stablecoins.
What the document actually says“the claim of a person holding payment stablecoins issued by the permitted payment stablecoin issuer shall have priority, on a ratable basis with the claims of other persons holding such payment stablecoins, over the claims of the permitted payment stablecoin issuer and any other holder of claims against the permitted payment stablecoin issuer, with respect to required payment stablecoin reserves”
People who hold the coins are paid first from the backing. They share it in line with what each one holds. Everyone else comes after them.
This holds in any case where a maker fails. It covers state cases too. Only claims from holding a coin get this place in line.
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