A State-chartered institution with an issuer subsidiary may operate in any State
What the document says“A depository institution chartered under the banking laws of a State, that has a subsidiary that is a permitted payment stablecoin issuer, may engage in the business of money transmission or provide custodial services through the permitted payment stablecoin issuer in any State”
Subsection (d)(1). The sentence continues with the conditions the State-chartered depository institution must meet; the quotation stops before that phrase because the printer breaks the word across a line. Two conditions attach, both set by the home State: the institution must be required by home State law or regulation to establish and maintain adequate liquidity, and adequate capital, each regularly reassessed by the home State banking supervisor to take account of changes in the institution's financial condition and risk profile, including any uninsured deposits. Nothing in the section limits a host State bank regulator's authority to examine the subsidiary or its activities to ensure compliance with host State consumer protection laws it has specific jurisdiction to enforce, consistent with section 7(f).
What the document actually says“A depository institution chartered under the banking laws of a State, that has a subsidiary that is a permitted payment stablecoin issuer, may engage in the business of money transmission or provide custodial services through the permitted payment stablecoin issuer in any State”
A bank chartered by a state may have an arm that makes these coins. Through that arm it may move money or hold assets. It may do so in any state.
Its home state must require it to hold enough cash. Its home state must require enough capital too. The home state must check both on a regular basis.
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