Federal regulators must study insolvency gaps and report within three years
To provide for the regulation of payment stablecoins, and for other purposes, section 11, Sec. 11.
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Federal regulators must study insolvency gaps and report within three years
The document says “shall”Who acts: primary Federal payment stablecoin regulatorsHow: statuteSec. 11 in the PDF
What the document says
“The primary Federal payment stablecoin regulators shall perform a study of the potential insolvency proceedings of permitted payment stablecoin issuers, including an examination of-- (A) existing gaps in the bankruptcy laws and rules for permitted payment stablecoin issuers”
Subsection (h). Three subjects are named: gaps in the bankruptcy laws and rules for these issuers, the ability of holders to be paid out in full where an issuer is insolvent, and the utility of orderly insolvency administration regimes and whether further authorities are needed. A report with all findings and any legislative recommendations is due to the two named committees within three years of enactment.
What the document actually says
“The primary Federal payment stablecoin regulators shall perform a study of the potential insolvency proceedings of permitted payment stablecoin issuers, including an examination of-- (A) existing gaps in the bankruptcy laws and rules for permitted payment stablecoin issuers”
That sentence, in plain words
The federal watchdogs must study what happens when a maker fails. One thing they look at is gaps in the law on failed firms.
What this is about
They also ask if holders would get all their money. They ask if a better wind up path is needed. A report is due in three years.
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.
Guiding and Establishing National Innovation for U.S. Stablecoins Act, Public Law 119-27, sec. 11, 139 Stat. 457 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm
This page
“Federal regulators must study insolvency gaps and report within three years,” Guiding and Establishing National Innovation for U.S. Stablecoins Act, section 11, Sec. 11. Read the Mandate, https://readthemandate.org/guiding-establishing-national-innovation-u-s/proposal/sec11-insolvency-study/ (retrieved October 10, 2026).
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