Exception for Foreign Payment Stablecoin Issuers and Reciprocity for Payment Stablecoins Issued in Overseas Jurisdictions
Section 18 · Sec. 18 ·
What this chapter is about
This part opens a door for coin makers set up abroad. Four things must all be true. Their home rules must be much like ours. They must sign up with a federal office. They must hold backing here. And their country must not be under wide sanctions.
The document says “shall not”Who 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”
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”
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.
The document says “can”Who acts: Secretary of the TreasuryHow: statuteSec. 18 in the PDF
What the document says
“The Secretary of the Treasury may make a determination as to whether a foreign country has a regulatory and supervisory regime that is comparable to the requirements established under this Act, including the requirements under section 4(a).”
Subsection (b)(1). The determination can be made only on a recommendation from each other member of the Stablecoin Certification Review Committee, which section 2(27) names as the Chair of the Federal Reserve Board and the Chair of the Federal Deposit Insurance Corporation. Before it takes effect the Secretary must publish a justification in the Federal Register explaining how the foreign regime is comparable. A foreign issuer or foreign regulator may request a determination, and the Secretary must decide within 210 days of a substantially complete request. Rules to carry out the section are due within one year of enactment.
What the document actually says
“The Secretary of the Treasury may make a determination as to whether a foreign country has a regulatory and supervisory regime that is comparable to the requirements established under this Act, including the requirements under section 4(a).”
That sentence, in plain words
The head of the Treasury may judge another country's rules. The test is whether they are much like the rules here. Part 4 is named as the key measure.
What this is about
The other two members of the panel must both back the call. The Treasury must then print why. A country or a maker may ask for a ruling. It comes within 210 days.
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 “can”Who acts: Secretary of the TreasuryHow: statuteSec. 18 in the PDF
What the document says
“The Secretary of the Treasury may, in consultation with the Federal payment stablecoin regulators, rescind a determination made under paragraph (1), if the Secretary determines that the regulatory regime of such foreign country is no longer comparable to the requirements established under this”
Subsection (b)(4). Before a rescission takes effect the Secretary must publish a justification in the Federal Register. Where a determination is rescinded, a digital asset service provider has 90 days before an offer or sale of that issuer's stablecoin is in violation of section 3. Under paragraph (5) the Secretary is to keep and make publicly available a current list of the countries for which a determination has been made.
What the document actually says
“The Secretary of the Treasury may, in consultation with the Federal payment stablecoin regulators, rescind a determination made under paragraph (1), if the Secretary determines that the regulatory regime of such foreign country is no longer comparable to the requirements established under this”
That sentence, in plain words
The Treasury may take back a call it made about a country. It does so if that country's rules no longer match. It must talk to the federal watchdogs first.
What this is about
It must print why before the change bites. Firms here then get 90 days. After that, selling those coins breaks part three.
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 “can”Who acts: foreign payment stablecoin issuersHow: statuteSec. 18 in the PDF
What the document says
“A foreign payment stablecoin issuer may offer or sell payment stablecoins using a digital asset service provider if the foreign payment stablecoin issuer is registered with the Comptroller.”
Subsection (c)(1). A registration filed in accordance with the section is deemed approved 30 days after the Comptroller receives it, unless the Comptroller notifies the issuer in writing that it has been rejected. Five things are considered in deciding whether to reject: the Secretary's final determination, the financial and managerial resources of the issuer's United States operations, whether the issuer will provide adequate information to the Comptroller, whether the stablecoin presents a risk to the financial stability of the United States, and whether the issuer presents illicit finance risks. A rejected issuer may appeal within 30 days by notifying the Comptroller. The Comptroller is to issue rules on the standards for approval and the appeal process, and to keep a public list of approved registrations.
What the document actually says
“A foreign payment stablecoin issuer may offer or sell payment stablecoins using a digital asset service provider if the foreign payment stablecoin issuer is registered with the Comptroller.”
That sentence, in plain words
A maker set up abroad may sell coins here through a digital coin firm. First it must sign up with a federal office.
What this is about
That office is the Comptroller of the Currency. Silence for 30 days counts as a yes. A no can be appealed within 30 days.
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: foreign payment stablecoin issuersHow: statuteSec. 18 in the PDF
What the document says
“(A) be subject to reporting, supervision, and examination requirements as determined by the Comptroller; and (B) consent to United States jurisdiction relating to the enforcement of this Act.”
Subsection (c)(2). Two duties follow registration: reporting, supervision and examination on terms the Comptroller determines, and consent to United States jurisdiction for enforcement of the Act.
What the document actually says
“(A) be subject to reporting, supervision, and examination requirements as determined by the Comptroller; and (B) consent to United States jurisdiction relating to the enforcement of this Act.”
That sentence, in plain words
A signed up maker must report and be checked. The federal office sets those terms. The maker must also agree to answer to courts here.
What this is about
Without that consent, a court here may have no hold on a firm abroad. Signing up is how the maker gives it.
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 “can”Who acts: Office of the Comptroller of the Currency, Secretary of the TreasuryHow: statuteSec. 18 in the PDF
What the document says
“The Comptroller may, in consultation with the Secretary of the Treasury, rescind approval of a registration of a foreign payment stablecoin issuer under this subsection if the Comptroller determines that the foreign payment stablecoin issuer is not in compliance with the requirements of this Act, including for maintaining insufficient reserves or posing an illicit finance risk or financial stability risk.”
Subsection (c)(3). Before a rescission takes effect the Comptroller must publish a justification in the Federal Register. Separately, the Secretary of the Treasury, in consultation with the Comptroller, may revoke a registration where reasonable grounds exist for concluding that the issuer presents economic sanctions evasion, money laundering or other illicit finance risks, or violations, or facilitation of them.
What the document actually says
“The Comptroller may, in consultation with the Secretary of the Treasury, rescind approval of a registration of a foreign payment stablecoin issuer under this subsection if the Comptroller determines that the foreign payment stablecoin issuer is not in compliance with the requirements of this Act, including for maintaining insufficient reserves or posing an illicit finance risk or financial stability risk.”
That sentence, in plain words
The federal office may pull a maker's sign up. It does so if the maker breaks this law. Too little backing is one reason. Crime risk is another.
What this is about
The Treasury can also pull it. That is for risks around sanctions and dirty money. The office must print why before a pull takes hold.
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 “can”Who acts: Secretary of the TreasuryHow: statuteSec. 18 in the PDF
What the document says
“The Secretary of the Treasury may create and implement reciprocal arrangements or other bilateral agreements between the United States and jurisdictions with payment stablecoin regulatory regimes that are comparable to the requirements established under this Act.”
Subsection (d). Three things are to be considered in deciding whether a jurisdiction's requirements qualify: whether they are similar to those under section 4(a), whether they include adequate anti-money laundering, counter-financing of terrorism and sanctions compliance standards, and whether the jurisdiction has adequate supervisory and enforcement capacity to facilitate international transactions and interoperability with dollar-denominated stablecoins issued overseas. Any arrangement is to be published in the Federal Register not later than 90 days before it enters into force, and the Secretary should complete the arrangements within two years of enactment.
What the document actually says
“The Secretary of the Treasury may create and implement reciprocal arrangements or other bilateral agreements between the United States and jurisdictions with payment stablecoin regulatory regimes that are comparable to the requirements established under this Act.”
That sentence, in plain words
The head of the Treasury may set up deals with other places. Each place must have rules much like ours. The deals are made one country at a time.
What this is about
Three things are weighed. They are how close the rules are, the checks on dirty money, and how well the place enforces them. A deal must be printed 90 days ahead.
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. 18, 139 Stat. 463 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm
This page
“Exception for Foreign Payment Stablecoin Issuers and Reciprocity for Payment Stablecoins Issued in Overseas Jurisdictions,” Guiding and Establishing National Innovation for U.S. Stablecoins Act, section 18. Read the Mandate, https://readthemandate.org/guiding-establishing-national-innovation-u-s/section-18/ (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 provides: the four conditions under which the section 3 prohibitions do not apply to a foreign issuer, the Secretary of the Treasury's comparability determination and how it is made, published, requested, timed and rescinded, the public list of countries, the registration with the Comptroller and when it is deemed approved, the standards for rejecting a registration and the appeal, the ongoing monitoring and consent to jurisdiction, the two ways a registration can be undone, and the reciprocal arrangements with their publication and completion date.
The rulemaking duties in subsections (b)(6) and (c)(1)(E) are recorded in the summaries of the determination and registration proposals rather than as separate entries.
The section turns on a comparison between this Act and the regulatory regime of a foreign country. Those foreign regimes are not indexed on this site, so the site records that the comparison is required and does not record its result.
