Custody of Payment Stablecoin Reserve and Collateral
Section 10 · Sec. 10 ·
What this chapter is about
This part covers firms that hold the assets behind these coins. Only a watched firm may do that work. It must treat what it holds as the customer's. It must keep those assets apart from its own. A customer's claim comes first.
The document says “may not”Who acts: CongressHow: statuteSec. 10 in the PDF
What the document says
“A person may only engage in the business of providing custodial or safekeeping services for the payment stablecoin reserve, the payment stablecoins used as collateral, or the private keys used to issue permitted payment stablecoins if the person-- (1) is subject to-- (A) supervision or regulation by a primary Federal payment stablecoin regulator or a primary financial regulatory agency”
Subsection (a). Two routes qualify a person: supervision or regulation by a primary Federal payment stablecoin regulator or by a primary financial regulatory agency described under subparagraph (B) or (C) of section 2(12) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301(12)), or supervision by a State bank supervisor or State credit union supervisor that makes the information under subsection (d) available to the Federal Reserve Board. The person must also comply with subsection (b), unless it holds the property under similar requirements set by a primary Federal payment stablecoin regulator, the Securities and Exchange Commission or the Commodity Futures Trading Commission.
What the document actually says
“A person may only engage in the business of providing custodial or safekeeping services for the payment stablecoin reserve, the payment stablecoins used as collateral, or the private keys used to issue permitted payment stablecoins if the person-- (1) is subject to-- (A) supervision or regulation by a primary Federal payment stablecoin regulator or a primary financial regulatory agency”
That sentence, in plain words
Only some firms may hold the assets behind these coins. The same goes for the keys used to make them. The firm must answer to a watchdog.
What this is about
A private key is the secret code that controls a coin. Whoever holds it controls the coin. So the law limits who may hold one for others.
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.
The document says “shall”Who acts: custodians of payment stablecoin reservesHow: statuteSec. 10 in the PDF
What the document says
“treat and deal with the payment stablecoins, private keys, cash, and other property of a person for whom or on whose behalf the person described in that subsection receives, acquires, or holds payment stablecoins, private keys, cash, and other property (hereinafter referred to in this section as the "customer") as belonging to such customer and not as the property of such person”
Subsection (b). Two duties run together: treat the property as the customer's rather than the custodian's, and take such steps as are appropriate to protect it from the claims of the custodian's creditors. The paragraph is where the section's use of the word customer is defined.
What the document actually says
“treat and deal with the payment stablecoins, private keys, cash, and other property of a person for whom or on whose behalf the person described in that subsection receives, acquires, or holds payment stablecoins, private keys, cash, and other property (hereinafter referred to in this section as the "customer") as belonging to such customer and not as the property of such person”
That sentence, in plain words
What the firm holds belongs to the customer. The firm may not treat it as its own. That covers coins, keys, cash and more.
What this is about
The firm must also guard those assets. If the firm owes money, its lenders should not reach them. Part 11 deals with a firm that fails.
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.
The document says “shall”Who acts: custodians of payment stablecoin reservesHow: statuteSec. 10 in the PDF
What the document says
“Payment stablecoin reserves, payment stablecoins, cash, and other property of a permitted payment stablecoin issuer or customer shall be separately accounted for by a person described in subsection (a) and shall be segregated from and not be commingled with the assets of the person.”
Subsection (c)(1). Four exceptions follow. Property of more than one issuer or customer may be pooled for convenience in an omnibus account at a State chartered depository institution, an insured depository institution, national bank or trust company, and reserves held as a cash deposit are not subject to a separation requirement against the depository institution's own property. A share may be withdrawn and applied to transfer, adjust or settle a transaction, including commissions, taxes, storage and other lawful charges. Property may be commingled in issuer or customer accounts on terms a primary Federal payment stablecoin regulator prescribes. An insured depository institution providing custody may hold reserves as cash on deposit where that is consistent with Federal law.
What the document actually says
“Payment stablecoin reserves, payment stablecoins, cash, and other property of a permitted payment stablecoin issuer or customer shall be separately accounted for by a person described in subsection (a) and shall be segregated from and not be commingled with the assets of the person.”
That sentence, in plain words
The firm must keep a separate count of what it holds. Those assets must sit apart from its own. It may not mix the two.
What this is about
There are four ways around this. One lets many customers share one pooled account. One lets the firm take out what a trade costs. A bank may hold cash as a deposit.
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.
The document says “shall”Who acts: CongressHow: statuteSec. 10 in the PDF
What the document says
“With respect to payment stablecoins held by a person described in subsection (a) for a customer, with or without the segregation required under paragraph (1), the claims of the customer against such person with respect to such payment stablecoins shall have priority”
Subsection (c)(3). The customer's claim ranks ahead of the claims of any person other than another customer with respect to stablecoins held by the same custodian, unless the customer expressly consents to the priority of the other claim. The priority holds whether or not the segregation required by paragraph (1) was carried out.
What the document actually says
“With respect to payment stablecoins held by a person described in subsection (a) for a customer, with or without the segregation required under paragraph (1), the claims of the customer against such person with respect to such payment stablecoins shall have priority”
That sentence, in plain words
A customer's claim on coins held for them comes first. This holds even if the firm failed to keep them apart.
What this is about
Other customers of the same firm rank alongside. Everyone else ranks behind. A customer may agree to give up that place.
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.
The document says “shall”Who acts: custodians of payment stablecoin reservesHow: statuteSec. 10 in the PDF
What the document says
“A person described under subsection (a) shall submit to the applicable primary Federal payment stablecoin regulator information concerning the person's business operations and processes to protect customer assets, in such form and manner as the primary regulator shall determine.”
Subsection (d). The regulator sets the form and manner. Under subsection (a)(1)(B), a State bank or credit union supervisor must make information in these categories available to the Federal Reserve Board for a person supervised by that State supervisor to qualify.
What the document actually says
“A person described under subsection (a) shall submit to the applicable primary Federal payment stablecoin regulator information concerning the person's business operations and processes to protect customer assets, in such form and manner as the primary regulator shall determine.”
That sentence, in plain words
The firm must send in facts about how it works. It must show how it guards customer assets. The watchdog says what form to use.
What this is about
A firm watched by a state must share the same facts. Those go to the Fed. That is one of the two ways to qualify.
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.
The document says “shall not”Who acts: CongressHow: statuteSec. 10 in the PDF
What the document says
“The requirements of this section shall not apply to any person solely on the basis that such person engages in the business of providing hardware or software to facilitate a customer's own custody or safekeeping of the customer's payment stablecoins or private keys.”
Subsection (e). The exclusion turns on the word solely: providing the hardware or software alone does not bring a person within the section. Section 3(h)(1)(C) makes a similar point about transactions by means of a wallet that facilitates an individual's own custody.
What the document actually says
“The requirements of this section shall not apply to any person solely on the basis that such person engages in the business of providing hardware or software to facilitate a customer's own custody or safekeeping of the customer's payment stablecoins or private keys.”
That sentence, in plain words
This part does not reach a firm that only sells the tools. Those are the tools people use to hold their own coins or keys.
What this is about
A wallet is such a tool. It can be an app or a device. Making one does not by itself make a firm a keeper of assets.
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. 10, 139 Stat. 455 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm
This page
“Custody of Payment Stablecoin Reserve and Collateral,” Guiding and Establishing National Innovation for U.S. Stablecoins Act, section 10. Read the Mandate, https://readthemandate.org/guiding-establishing-national-innovation-u-s/section-10/ (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.
What This Page Covers, and What It Leaves Out
Each distinct thing the section requires: who may provide custody or safekeeping for reserves, stablecoins used as collateral or private keys, the duty to treat customer property as the customer's and to shield it from creditors, the bar on commingling and its four exceptions, the priority of a customer's claim, the information owed to the regulator, and the exclusion for hardware and software that supports self-custody.
The four commingling exceptions are recorded together in the summary of the commingling proposal rather than one by one, because each is a carve out from the same duty.
The eligibility test in subsection (a) points to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Federal Deposit Insurance Act and the Anti-Money Laundering Act of 2020 for the supervisors it names. None of those is indexed on this site, so what they say is not recorded here.
