U.S Code last checked for updates: Jul 27, 2025
All TitlesTitle 12Chapter 56
§ 5904.
Approval of subsidiaries of insured depository institutions and Federal qualified payment stablecoin issuers
(a)
Application
(1)
In general
Each primary Federal payment stablecoin regulator shall—
(A)
receive, review, and consider for approval applications from any insured depository institution that seeks to issue payment stablecoins through a subsidiary and any nonbank entity, Federal branch, or uninsured national bank that is chartered by the Comptroller pursuant to title LXII of the Revised Statutes, and that seeks to issue payment stablecoins as a Federal qualified payment stablecoin issuer; and
(B)
establish a process and framework for the licensing, regulation, examination, and supervision of such entities that prioritizes the safety and soundness of such entities.
(2)
Authority to issue regulations and process applications
The primary Federal payment stablecoin regulators shall, before the date described in section 5913 of this title—
(A)
issue regulations consistent with that section to carry out this section; and
(B)
pursuant to the regulations described in subparagraph (A), accept and process applications described in paragraph (1).
(3)
Mandatory approval process
(b)
Evaluation of applications
(c)
Factors to be considered
The factors described in this subsection are the following:
(1)
The ability of the applicant (or, in the case of an applicant that is an insured depository institution, the subsidiary of the applicant), based on financial condition and resources, to meet the requirements set forth under section 5903 of this title.
(2)
Whether an individual who has been convicted of a felony offense involving insider trading, embezzlement, cybercrime, money laundering, financing of terrorism, or financial fraud is serving as an officer or director of the applicant.
(3)
The competence, experience, and integrity of the officers, directors, and principal shareholders of the applicant, its subsidiaries, and parent company, including—
(A)
the record of those officers, directors, and principal shareholders of compliance with laws and regulations; and
(B)
the ability of those officers, directors, and principal shareholders to fulfill any commitments to, and any conditions imposed by, their primary Federal payment stablecoin regulator in connection with the application at issue and any prior applications.
(4)
Whether the redemption policy of the applicant meets the standards under section 5903(a)(1)(B) of this title.
(5)
Any other factors established by the primary Federal payment stablecoin regulator that are necessary to ensure the safety and soundness of the permitted payment stablecoin issuer.
(d)
Timing for decision; grounds for denial
(1)
Timing for decisions on applications
(A)
In general
(B)
Substantially complete
(i)
In general
(ii)
Notification
(iii)
Material change in circumstances
(2)
Denial of application
(A)
Grounds for denial
(i)
In general
(ii)
Issuance on open, public, or decentralized network not ground for denial
(B)
Explanation required
(C)
Opportunity for hearing; final determination
(i)
In general
(ii)
Timing
(iii)
Final determination
(iv)
Notice if no hearing
(3)
Failure to render a decision
(4)
Right to reapply
(e)
Reports on pending applications
Each primary Federal payment stablecoin regulator shall—
(1)
notify Congress upon beginning to process applications under this chapter; and
(2)
annually report to Congress on the applications that have been pending for 180 days or more since the date the initial application was filed and for which the applicant has been informed that the application remains incomplete, including documentation on the status of such applications and why such applications have not yet been approved.
(f)
Safe harbor for pending applications
The primary Federal payment stablecoin regulators may waive the application of the requirements of this chapter for a period not to exceed 12 months beginning on the effective date of this chapter, with respect to—
(1)
a subsidiary of an insured depository institution, if the insured depository institution has an application pending for the subsidiary to become a permitted payment stablecoin issuer on that effective date; or
(2)
a Federal qualified payment stablecoin issuer with a pending application on that effective date.
(g)
Rulemaking
(h)
Relation to other licensing requirements
(i)
Certification required
(1)
In general
(2)
Availability of certifications
(3)
Penalties
(A)
Approval revocation
(B)
Criminal penalty
(i)
In general
(ii)
Referral to Attorney General
(Pub. L. 119–27, § 5, July 18, 2025, 139 Stat. 439.)
cite as: 12 USC 5904
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