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 amended”Who 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."”
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."”
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.
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
“Required reserves are excluded from the bankruptcy estate,” 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-reserves-out-of-estate/ (retrieved October 10, 2026).
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