This part sets out what the words in the law mean. It says what counts as a coin of this kind. It says who is allowed to make one. It names the groups that watch over them.
The document says “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“The term "digital asset" means any digital representation of value that is recorded on a cryptographically secured distributed ledger.”
Paragraph (6). The definition turns on two things: a digital representation of value, and a record of it on a cryptographically secured distributed ledger. Paragraph (8) defines distributed ledger as technology in which data is shared across a network that creates a public digital ledger of verified transactions or information among network participants, with cryptography used to link the data.
What the document actually says
“The term "digital asset" means any digital representation of value that is recorded on a cryptographically secured distributed ledger.”
That sentence, in plain words
A digital asset is value kept as a computer record. The record sits on a shared, locked ledger.
What this is about
A ledger is a list of who owns what. A shared ledger is kept on many computers at once. Math locks the list so old lines cannot be changed.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“means a person that, for compensation or profit, engages in the business in the United States (including on behalf of customers or users in the United States) of-- (i) exchanging digital assets for monetary value; (ii) exchanging digital assets for other digital assets; (iii) transferring digital assets to a third party; (iv) acting as a digital asset custodian; or (v) participating in financial services relating to digital asset issuance”
Paragraph (7)(A). The term reaches a person who does any of five things for compensation or profit as a business in the United States, including on behalf of customers or users in the United States. Subparagraph (B) then excludes five things from the term, recorded separately.
What the document actually says
“means a person that, for compensation or profit, engages in the business in the United States (including on behalf of customers or users in the United States) of-- (i) exchanging digital assets for monetary value; (ii) exchanging digital assets for other digital assets; (iii) transferring digital assets to a third party; (iv) acting as a digital asset custodian; or (v) participating in financial services relating to digital asset issuance”
That sentence, in plain words
This covers firms paid to work with digital coins. They swap coins for money or for other coins. They send coins to someone else. They hold coins for people. They help with making new coins.
What this is about
The law puts rules on these firms later on. So it has to say which firms are in and which are out. Being paid for the work is part of the test.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“does not include-- (i) a distributed ledger protocol; (ii) developing, operating, or engaging in the business of developing distributed ledger protocols or self-custodial software interfaces; (iii) an immutable and self-custodial software interface; (iv) developing, operating, or engaging in the business of validating transactions or operating a distributed ledger; or (v) participating in a liquidity pool”
Paragraph (7)(B). Five things are excluded from the term digital asset service provider: a distributed ledger protocol; developing, operating or engaging in the business of developing such protocols or self-custodial software interfaces; an immutable and self-custodial software interface; developing, operating or engaging in the business of validating transactions or operating a distributed ledger; and participating in a liquidity pool or other similar mechanism for the provisioning of liquidity for peer-to-peer transactions.
What the document actually says
“does not include-- (i) a distributed ledger protocol; (ii) developing, operating, or engaging in the business of developing distributed ledger protocols or self-custodial software interfaces; (iii) an immutable and self-custodial software interface; (iv) developing, operating, or engaging in the business of validating transactions or operating a distributed ledger; or (v) participating in a liquidity pool”
That sentence, in plain words
Some work is left out of the term. Writing the code is left out. So is running it. So is checking and recording trades. So is putting funds in a shared pool.
What this is about
Paragraph (9) says a protocol is public code put on a shared ledger. Smart contracts count as that code. A tool that lets people hold their own coins is also left out.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“means a digital asset-- (i) that is, or is designed to be, used as a means of payment or settlement; and (ii) the issuer of which-- (I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value”
Paragraph (22)(A). The term reaches a digital asset that is used, or designed to be used, as a means of payment or settlement, where the issuer is obligated to convert, redeem or repurchase it for a fixed amount of monetary value, and represents that it will maintain, or creates the reasonable expectation that it will maintain, a stable value relative to a fixed amount of monetary value.
What the document actually says
“means a digital asset-- (i) that is, or is designed to be, used as a means of payment or settlement; and (ii) the issuer of which-- (I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value”
That sentence, in plain words
This is a digital coin used to pay for things. The maker owes you a set amount of money for it. You can hand the coin back and get that money.
What this is about
The maker also says the coin will hold its value. Or it acts in a way that makes people expect that. The whole law is built on this one term.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“does not include a digital asset that-- (i) is a national currency; (ii) is a deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), including a deposit recorded using distributed ledger technology; or (iii) is a security, as defined in section 2 of the Securities Act of 1933 (15 U.S.C. 77b)”
Paragraph (22)(B). Three things are outside the term: a national currency, a deposit as defined in section 3 of the Federal Deposit Insurance Act including one recorded using distributed ledger technology, and a security as defined in the Securities Act of 1933, the Securities Exchange Act of 1934 or the Investment Company Act of 1940. The paragraph adds that no bond, note, evidence of indebtedness or investment contract issued by a permitted payment stablecoin issuer qualifies as a security solely by satisfying the conditions in subparagraph (A).
What the document actually says
“does not include a digital asset that-- (i) is a national currency; (ii) is a deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), including a deposit recorded using distributed ledger technology; or (iii) is a security, as defined in section 2 of the Securities Act of 1933 (15 U.S.C. 77b)”
That sentence, in plain words
Three things are not this kind of coin. Real money is not. Money in a bank account is not. A stock or bond is not.
What this is about
A bank deposit stays a deposit even if a shared ledger tracks it. Section 17 makes the same point about stocks and bonds. It changes six older laws to say so.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“The term "permitted payment stablecoin issuer" means a person formed in the United States that is-- (A) a subsidiary of an insured depository institution that has been approved to issue payment stablecoins under section 5; (B) a Federal qualified payment stablecoin issuer; or (C) a State qualified payment stablecoin issuer.”
Paragraph (23). Only a person formed in the United States can hold the status, and it must be one of three things: an approved subsidiary of an insured depository institution, a Federal qualified payment stablecoin issuer, or a State qualified payment stablecoin issuer. Section 3(a) makes it unlawful for anyone else to issue a payment stablecoin in the United States.
What the document actually says
“The term "permitted payment stablecoin issuer" means a person formed in the United States that is-- (A) a subsidiary of an insured depository institution that has been approved to issue payment stablecoins under section 5; (B) a Federal qualified payment stablecoin issuer; or (C) a State qualified payment stablecoin issuer.”
That sentence, in plain words
Only three kinds of firm may make these coins. All three must be set up in this country. Each one must first be cleared to do it.
What this is about
The first kind is a bank arm. The second is cleared by a federal office. The third is cleared by a state. Section 3 bars everyone else.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“means-- (A) a nonbank entity, other than a State qualified payment stablecoin issuer, approved by the Comptroller, pursuant to section 5, to issue payment stablecoins; (B) an uninsured national bank-- (i) that is chartered by the Comptroller, pursuant to title LXII of the Revised Statutes; and (ii) that is approved by the Comptroller, pursuant to section 5, to issue payment stablecoins”
Paragraph (11). Three kinds of entity fall in the term, and all three are approved by the Comptroller of the Currency under section 5: a nonbank entity that is not a State qualified payment stablecoin issuer, an uninsured national bank chartered by the Comptroller under title LXII of the Revised Statutes, and a Federal branch.
What the document actually says
“means-- (A) a nonbank entity, other than a State qualified payment stablecoin issuer, approved by the Comptroller, pursuant to section 5, to issue payment stablecoins; (B) an uninsured national bank-- (i) that is chartered by the Comptroller, pursuant to title LXII of the Revised Statutes; and (ii) that is approved by the Comptroller, pursuant to section 5, to issue payment stablecoins”
That sentence, in plain words
One federal office clears these firms. A firm that is not a bank can be cleared. So can a bank with a federal charter and no deposit cover.
What this is about
The office is the Comptroller of the Currency. It is part of the Treasury. Paragraph (4) gives that short name to it. Section 5 sets out how a firm asks.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“means an entity that-- (A) is legally established under the laws of a State and approved to issue payment stablecoins by a State payment stablecoin regulator; and (B) is not an uninsured national bank chartered by the Comptroller pursuant to title LXII of the Revised Statutes, a Federal branch, an insured depository institution, or a subsidiary of such national bank, Federal branch, or insured depository institution.”
Paragraph (31). The entity has to be established under the laws of a State and approved by a State payment stablecoin regulator, and it must not be one of the federally chartered or insured entities the definition lists. Paragraph (30) defines a State payment stablecoin regulator as a State agency with primary regulatory and supervisory authority in that State over entities that issue payment stablecoins. Paragraph (28) counts the District of Columbia and each territory as a State.
What the document actually says
“means an entity that-- (A) is legally established under the laws of a State and approved to issue payment stablecoins by a State payment stablecoin regulator; and (B) is not an uninsured national bank chartered by the Comptroller pursuant to title LXII of the Revised Statutes, a Federal branch, an insured depository institution, or a subsidiary of such national bank, Federal branch, or insured depository institution.”
That sentence, in plain words
A state can clear a firm to make these coins. The firm must be set up under that state's laws. It must not be a national bank or a bank arm.
What this is about
Each state names an agency for this job. The law calls it a state payment stablecoin regulator. Washington, D.C. and the territories count as states here.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“means an issuer of a payment stablecoin that is-- (A) organized under the laws of or domiciled in a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands; and (B) not a permitted payment stablecoin issuer.”
Paragraph (12). The term catches an issuer organized under the laws of, or domiciled in, a foreign country or one of the named territories, that is not a permitted payment stablecoin issuer. Section 18 sets out when the prohibitions in section 3 do not apply to such an issuer.
What the document actually says
“means an issuer of a payment stablecoin that is-- (A) organized under the laws of or domiciled in a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands; and (B) not a permitted payment stablecoin issuer.”
That sentence, in plain words
This is a coin maker set up outside the states. It can be in another country. It can also be in a U.S. island area. And it has no clearance here.
What this is about
Puerto Rico, Guam, American Samoa and the Virgin Islands are named. Section 18 says when such a maker may still sell here.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“means any final and valid writ, process, order, rule, decree, command, or other requirement issued or promulgated under Federal law, issued by a court of competent jurisdiction or by an authorized Federal agency pursuant to its statutory authority, that-- (A) requires a person to seize, freeze, burn, or prevent the transfer of payment stablecoins issued by the person”
Paragraph (16). The order must be final and valid, issued under Federal law by a court of competent jurisdiction or by an authorized Federal agency acting under its statutory authority. It must require a person to seize, freeze, burn or prevent the transfer of payment stablecoins the person issued, specify the stablecoins or accounts subject to blocking with reasonable particularity, and be subject to judicial or administrative review or appeal as provided by law. Sections 4(a)(6)(B) and 8 turn on the term.
What the document actually says
“means any final and valid writ, process, order, rule, decree, command, or other requirement issued or promulgated under Federal law, issued by a court of competent jurisdiction or by an authorized Federal agency pursuant to its statutory authority, that-- (A) requires a person to seize, freeze, burn, or prevent the transfer of payment stablecoins issued by the person”
That sentence, in plain words
A court or a federal agency can send this kind of order. It tells a coin maker to hold, stop or destroy coins it made. The order must be final and valid.
What this is about
The order has to name which coins or accounts it hits. It also has to be open to appeal. Section 4 says a maker must be able to obey one.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“(A) with respect to a subsidiary of an insured depository institution (other than an insured credit union), the appropriate Federal banking agency of such insured depository institution; (B) with respect to an insured credit union or a subsidiary of an insured credit union, the National Credit Union Administration; (C) with respect to a State chartered depository institution not specified under subparagraph (A), the Corporation, the Comptroller, or the Board”
Paragraph (25). Which agency is the primary Federal payment stablecoin regulator depends on the form of the issuer. For a subsidiary of an insured depository institution other than a credit union it is that institution's appropriate Federal banking agency. For an insured credit union or its subsidiary it is the National Credit Union Administration. For a State chartered depository institution not covered by the first case it is the Federal Deposit Insurance Corporation, the Comptroller or the Federal Reserve Board. For a Federal qualified payment stablecoin issuer it is the Comptroller.
What the document actually says
“(A) with respect to a subsidiary of an insured depository institution (other than an insured credit union), the appropriate Federal banking agency of such insured depository institution; (B) with respect to an insured credit union or a subsidiary of an insured credit union, the National Credit Union Administration; (C) with respect to a State chartered depository institution not specified under subparagraph (A), the Corporation, the Comptroller, or the Board”
That sentence, in plain words
Each kind of coin maker has its own federal watchdog. A bank arm keeps the bank's watchdog. A credit union has its own one. A state bank has one of three.
What this is about
The law gives each body a short name. The Board is the Fed. The Corporation is the FDIC. The last one is an office in the Treasury.
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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“(i) the Secretary of the Treasury shall serve as Chair; and (ii) the Chair of the Board (or the Vice Chair for Supervision, as delegated by the Chair of the Board), and the Chair of the Corporation shall serve as members; and (B) which, unless otherwise specified in this Act, shall act by \2/3\ vote of its members at any meeting called by the Chair or by unanimous written consent.”
Paragraph (27). The committee has three members: the Secretary of the Treasury as Chair, the Chair of the Federal Reserve Board or the Vice Chair for Supervision by delegation, and the Chair of the Federal Deposit Insurance Corporation. Unless the Act says otherwise it acts by two thirds vote at a meeting called by the Chair, or by unanimous written consent. Section 4(c) gives it the certification of State regimes, and section 4(a)(12) and section 18(b) require a unanimous vote or a recommendation from each member.
What the document actually says
“(i) the Secretary of the Treasury shall serve as Chair; and (ii) the Chair of the Board (or the Vice Chair for Supervision, as delegated by the Chair of the Board), and the Chair of the Corporation shall serve as members; and (B) which, unless otherwise specified in this Act, shall act by \2/3\ vote of its members at any meeting called by the Chair or by unanimous written consent.”
That sentence, in plain words
Three people sit on this group. The head of the Treasury leads it. The other two lead the Fed and the deposit insurer. Two of the three can act.
What this is about
This group has jobs later in the law. It signs off on state rules. It also votes on a few other things. Those votes must be by all 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 “means”Who acts: CongressHow: statuteSec. 2 in the PDF
What the document says
“The term "monetary value" means a national currency or deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) denominated in a national currency.”
Paragraph (17), read with paragraph (19). National currency covers a Federal Reserve note as that term is used in the first undesignated paragraph of section 16 of the Federal Reserve Act, money standing to the credit of an account with a Federal Reserve Bank, money issued by a foreign central bank, and money issued by an intergovernmental organization under an agreement by two or more governments. The definition of payment stablecoin in paragraph (22) turns on this term.
What the document actually says
“The term "monetary value" means a national currency or deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) denominated in a national currency.”
That sentence, in plain words
This means real money. It is cash a country puts out. It also means money in a bank account held in that cash.
What this is about
Paragraph (19) lists what counts as a country's money. Bills from the Federal Reserve count. So does money at a Federal Reserve bank. Money from other central banks counts too.
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 defined terms the rest of the Act turns on: digital asset, digital asset service provider, payment stablecoin, permitted payment stablecoin issuer, the three kinds of permitted issuer, foreign payment stablecoin issuer, lawful order, primary Federal payment stablecoin regulator, the Stablecoin Certification Review Committee, monetary value and national currency.
The definitions that do no more than point at a term already defined in another statute are not recorded one by one. Appropriate Federal banking agency, Bank Secrecy Act, Federal branch, insured credit union, insured depository institution, registered public accounting firm, State chartered depository institution and subsidiary all take their meaning from a named older law, and this Act adds nothing to them.
Several definitions borrow from statutes that are not indexed on this site, chiefly the Federal Deposit Insurance Act (12 U.S.C. 1813). What those statutes say is not recorded here, so a reader following one of those citations is leaving what the site can verify.
