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Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 11 › Proposal

Required reserves are excluded from the bankruptcy estate

To provide for the regulation of payment stablecoins, and for other purposes, section 11, Sec. 11. Written by .

Required reserves are excluded from the bankruptcy estate

The document says “is amendedWho acts: CongressHow: statuteSec. 11 in the PDF
What the document says

“"(11) required payment stablecoin reserves under section 4 of the GENIUS Act, provided that notwithstanding the exclusion of such reserves from the property of the estate, section 362 of this title shall apply to such reserves."”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 11

Subsection (e). The words are added as a new paragraph (11) of section 541(b) of title 11, United States Code. The proviso keeps section 362 of title 11, the automatic stay, applicable to the reserves even though they sit outside the estate.

What the document actually says

“"(11) required payment stablecoin reserves under section 4 of the GENIUS Act, provided that notwithstanding the exclusion of such reserves from the property of the estate, section 362 of this title shall apply to such reserves."”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 11
That sentence, in plain words

The backing this law requires is not part of the failed firm's pot. Even so, the freeze on acts still covers it.

What this is about

In a bankruptcy the firm's property forms a pot. It is split among those owed money. The backing is kept out of that pot.

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.

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The quotation is the document's own words, exactly as printed, and we check the page number against the Act itself before publishing. The paragraph underneath is our summary, not the document's words. So is the plain English version, which is why it sits beside the quotation rather than replacing it.

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