Read theMandate

Guiding and Establishing National Innovation for U.S. Stablecoins ActSection 18 › Proposal

Four conditions lift the section 3 prohibitions for a foreign issuer

To provide for the regulation of payment stablecoins, and for other purposes, section 18, Sec. 18. Written by .

Four conditions lift the section 3 prohibitions for a foreign issuer

The document says “shall notWho acts: CongressHow: statuteSec. 18 in the PDF
What the document says

“The prohibitions under section 3 shall not apply to a foreign payment stablecoin issuer if all of the following apply: (1) The foreign payment stablecoin issuer is subject to regulation and supervision by a foreign payment stablecoin regulator of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 18

Subsection (a). All four conditions must hold. The first is regulation and supervision by a foreign regulator of a jurisdiction whose regime the Secretary of the Treasury has determined to be comparable to the regime under this Act, including in particular the requirements under section 4(a). The second is registration with the Comptroller under subsection (c). The third is holding reserves in a United States financial institution sufficient to meet the liquidity demands of United States customers, unless a reciprocal arrangement under subsection (d) permits otherwise. The fourth is that the issuer's country is not subject to comprehensive United States economic sanctions and is not a jurisdiction the Secretary has determined to be of primary money laundering concern.

What the document actually says

“The prohibitions under section 3 shall not apply to a foreign payment stablecoin issuer if all of the following apply: (1) The foreign payment stablecoin issuer is subject to regulation and supervision by a foreign payment stablecoin regulator of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands”

To provide for the regulation of payment stablecoins, and for other purposes, Sec. 18
That sentence, in plain words

The bans in part three can be lifted for a maker set up abroad. All four tests here must be met. The first is that a watchdog in its own country covers it.

What this is about

The next three tests follow. The maker must sign up with a federal office here. It must hold backing at a firm here. And its country must not be under wide sanctions.

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.

Share this page
How to cite this
  1. The document itself

    Guiding and Establishing National Innovation for U.S. Stablecoins Act, Public Law 119-27, sec. 18, 139 Stat. 463 (2025).
    https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm

  2. This page

    “Four conditions lift the section 3 prohibitions for a foreign issuer,” Guiding and Establishing National Innovation for U.S. Stablecoins Act, section 18, Sec. 18. Read the Mandate, https://readthemandate.org/guiding-establishing-national-innovation-u-s/proposal/sec18-four-conditions/ (retrieved August 26, 2026).

Cite the document when the claim is about what the document says. Cite this page when the indexing, the wording or the record of what has happened is what is being relied on.

How to Read This Page

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.

All proposals in this section →