This part says who may make these coins here. Only a cleared firm may. It also says who may sell them. Breaking the rule can mean a fine or prison. A coin from an uncleared maker does not count as cash.
The document says “shall not”Who acts: CongressHow: statuteSec. 3 in the PDF
What the document says
“It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States.”
Subsection (a). Permitted payment stablecoin issuer is defined in section 2(23) as one of three approved forms. Subsection (f) sets the penalty for knowing participation in a violation, and subsection (c) lets the Secretary of the Treasury create limited safe harbors from this subsection.
What the document actually says
“It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States.”
That sentence, in plain words
Only a cleared firm may make these coins here. If anyone else makes one, they break the law.
What this is about
Part two of the law says which firms are cleared. There are three kinds. Part five says how a firm asks to be one.
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The document says “shall not”Who acts: CongressHow: statuteSec. 3 in the PDF
What the document says
“Except as provided in subsection (c) and section 18, beginning on the date that is 3 years after the date of enactment of this Act, it shall be unlawful for a digital asset service provider to offer or sell a payment stablecoin to a person in the United States, unless the payment stablecoin is issued by a permitted payment stablecoin issuer.”
Subsection (b)(1). The Act was approved July 18, 2025, so the three year period runs from that date. The prohibition is on the service provider rather than the issuer, and it is subject to the safe harbors in subsection (c) and to the exception for foreign issuers in section 18.
What the document actually says
“Except as provided in subsection (c) and section 18, beginning on the date that is 3 years after the date of enactment of this Act, it shall be unlawful for a digital asset service provider to offer or sell a payment stablecoin to a person in the United States, unless the payment stablecoin is issued by a permitted payment stablecoin issuer.”
That sentence, in plain words
Three years after this law passed, a new ban starts. A digital coin firm may not sell one of these coins here. It may sell one only if a cleared firm made it.
What this is about
The law was signed on July 18, 2025. So the ban starts in July 2028. Part 18 sets out when a foreign maker's coin can still be sold.
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. 3 in the PDF
What the document says
“It shall be unlawful for any digital asset service provider to offer, sell, or otherwise make available in the United States a payment stablecoin issued by a foreign payment stablecoin issuer unless the foreign payment stablecoin issuer has the technological capability to comply, and will comply, with the terms of any lawful order and any reciprocal arrangement pursuant to section 18.”
Subsection (b)(2). Unlike the ban in paragraph (1), this one carries no delayed start date. Lawful order is defined in section 2(16), and section 18(d) provides for the reciprocal arrangements the sentence refers to.
What the document actually says
“It shall be unlawful for any digital asset service provider to offer, sell, or otherwise make available in the United States a payment stablecoin issued by a foreign payment stablecoin issuer unless the foreign payment stablecoin issuer has the technological capability to comply, and will comply, with the terms of any lawful order and any reciprocal arrangement pursuant to section 18.”
That sentence, in plain words
A digital coin firm may not put such a coin up for sale here. The coin comes from a maker set up abroad. That maker must be able to obey a court order. It must also agree to obey one.
What this is about
Part 18 lets the Treasury make deals with other countries. Those deals are named here too. A maker that cannot obey an order is shut 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 “can”Who acts: Secretary of the TreasuryHow: statuteSec. 3 in the PDF
What the document says
“The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are-- (A) consistent with the purposes of the Act; (B) limited in scope; and (C) apply to a de minimis volume of transactions, as determined by the Secretary of the Treasury.”
Subsection (c)(1). The safe harbor is from subsection (a), the ban on issuing without permission. Three conditions attach: consistency with the purposes of the Act, limited scope, and application to a de minimis volume of transactions as the Secretary determines.
What the document actually says
“The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are-- (A) consistent with the purposes of the Act; (B) limited in scope; and (C) apply to a de minimis volume of transactions, as determined by the Secretary of the Treasury.”
That sentence, in plain words
The head of the Treasury can write a rule that lets some people off. The rule must fit the aims of the law. It must be narrow. And it can cover only a tiny number of trades.
What this is about
A safe harbor is a carve out from a ban. Here the ban is on making these coins without clearance. The Treasury decides how small counts as tiny.
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: Secretary of the TreasuryHow: statuteSec. 3 in the PDF
What the document says
“Prior to issuing a limited safe harbor under this paragraph, the Secretary of the Treasury shall submit to the chairs and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a justification for the determination of the unusual and exigent circumstances, which may be contained in a classified annex, as applicable.”
Subsection (c)(2). If the Secretary determines that unusual and exigent circumstances exist, the Secretary may provide limited safe harbors from subsection (a), and before doing so must send the two named committees a justification for the determination, which may be contained in a classified annex.
What the document actually says
“Prior to issuing a limited safe harbor under this paragraph, the Secretary of the Treasury shall submit to the chairs and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a justification for the determination of the unusual and exigent circumstances, which may be contained in a classified annex, as applicable.”
That sentence, in plain words
First the Treasury must write to two groups in Congress. It must say why things are so odd and urgent. Part of that letter may be kept secret.
What this is about
This is a second kind of carve out. It is for a crisis. The law does not say what counts as one. The Treasury makes that call.
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: Secretary of the TreasuryHow: statuteSec. 3 in the PDF
What the document says
“Consistent with section 13, the Secretary of the Treasury shall issue regulations to implement this section, including regulations to define terms.”
Subsection (d). Section 13 sets the deadline: not later than one year after the date of enactment, through notice and comment rulemaking.
What the document actually says
“Consistent with section 13, the Secretary of the Treasury shall issue regulations to implement this section, including regulations to define terms.”
That sentence, in plain words
The head of the Treasury must write rules for this part. Some of the rules will say what words mean.
What this is about
Part 13 sets the clock. The rules are due one year after the law passed. The public gets to comment first.
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 apply”Who acts: CongressHow: statuteSec. 3 in the PDF
What the document says
“This section is intended to have extraterritorial effect if conduct involves the offer or sale of a payment stablecoin to a person located in the United States.”
Subsection (e). The trigger is the location of the buyer rather than the location of the seller: the section is intended to reach conduct wherever it takes place, if that conduct involves an offer or sale to a person located in the United States.
What the document actually says
“This section is intended to have extraterritorial effect if conduct involves the offer or sale of a payment stablecoin to a person located in the United States.”
That sentence, in plain words
This part is meant to reach acts done in other countries. It does so when the coin is put up for sale to someone here.
What this is about
Most laws stop at the border. This one says it does not. What matters is where the buyer is, not the seller.
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. 3 in the PDF
What the document says
“Whoever knowingly participates in a violation of subsection (a) shall be fined not more than $1,000,000 for each such violation, imprisoned for not more than 5 years, or both.”
Subsection (f)(1). The penalty attaches to knowing participation in a violation of subsection (a), the ban on issuing without permission. Under paragraph (2), a primary Federal payment stablecoin regulator that has reason to believe a person knowingly violated subsection (a) may refer the matter to the Attorney General.
What the document actually says
“Whoever knowingly participates in a violation of subsection (a) shall be fined not more than $1,000,000 for each such violation, imprisoned for not more than 5 years, or both.”
That sentence, in plain words
Someone who joins in this on purpose can be fined. The fine can reach one million dollars each time. They can also be locked up for up to five years.
What this is about
This is about the ban on making coins with no clearance. A federal watchdog may send the case on. It goes to the Attorney General.
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. 3 in the PDF
What the document says
“A payment stablecoin that is not issued by a permitted payment stablecoin issuer shall not be-- (1) treated as cash or as a cash equivalent for accounting purposes; (2) eligible as cash or as a cash equivalent margin and collateral for futures commission merchants, derivative clearing organizations, broker-dealers, registered clearing agencies, and swap dealers”
Subsection (g). Three things are barred for a stablecoin not issued by a permitted payment stablecoin issuer: treatment as cash or a cash equivalent for accounting purposes, eligibility as cash or cash equivalent margin and collateral for the five kinds of market participant named, and acceptance as a settlement asset to facilitate wholesale payments between banking organizations or by a payment infrastructure.
What the document actually says
“A payment stablecoin that is not issued by a permitted payment stablecoin issuer shall not be-- (1) treated as cash or as a cash equivalent for accounting purposes; (2) eligible as cash or as a cash equivalent margin and collateral for futures commission merchants, derivative clearing organizations, broker-dealers, registered clearing agencies, and swap dealers”
That sentence, in plain words
A coin from an uncleared maker does not count as cash. The books may not treat it that way. Traders may not post it as cover for a deal.
What this is about
Firms in markets must put up cover when they trade. This says which coins cannot be used for that. Banks also may not settle with such a coin.
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 apply”Who acts: CongressHow: statuteSec. 3 in the PDF
What the document says
“This section shall not apply to-- (A) the direct transfer of digital assets between 2 individuals acting on their own behalf and for their own lawful purposes, without the involvement of an intermediary; (B) to any transaction involving the receipt of digital assets by an individual between an account owned by the individual in the United States and an account owned by the individual abroad that are offered by the same parent company”
Subsection (h)(1). Three kinds of transaction are outside the section: a direct transfer between two individuals acting for themselves and for their own lawful purposes with no intermediary, a transfer by an individual between their own account here and their own account abroad at the same parent company, and any transaction by means of a software or hardware wallet that facilitates an individual's own custody of digital assets. Subsection (h)(2) adds that nothing in the Act alters the Secretary of the Treasury's existing authority to block, restrict or limit transactions involving dollar-denominated payment stablecoins subject to United States jurisdiction.
What the document actually says
“This section shall not apply to-- (A) the direct transfer of digital assets between 2 individuals acting on their own behalf and for their own lawful purposes, without the involvement of an intermediary; (B) to any transaction involving the receipt of digital assets by an individual between an account owned by the individual in the United States and an account owned by the individual abroad that are offered by the same parent company”
That sentence, in plain words
This part does not touch two people sending coins to each other. No middleman can be in the way. It also does not touch moving your own coins between your own accounts.
What this is about
A wallet you hold yourself is also left out. So is one you run on your own device. The Treasury keeps its old power to freeze coins.
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.
Each distinct thing the section does: the ban on issuing without permission, the ban on a digital asset service provider offering or selling an uncleared stablecoin, the separate ban on offering one from a foreign issuer, the two safe harbor powers given to the Secretary of the Treasury, the rulemaking duty, the statement of extraterritorial effect, the criminal penalty and the referral, the three ways an uncleared stablecoin may not be treated, and the transactions the section does not reach.
The section's internal cross references to sections 13 and 18 are named where they bear on what a person must do, and not recorded as separate requirements.
The prohibition in subsection (b)(1) begins three years after the date of enactment, which was July 18, 2025, and the Act itself takes effect on the earlier of the two dates set by section 20. The section does not say what happens to stablecoins already outstanding when those dates arrive.
