U.S Code last checked for updates: Jul 28, 2025
All TitlesTitle 12Chapter 56
§ 5906.
State qualified payment stablecoin issuers
(a)
In general
(b)
Authority to enter into agreements with the Board
(c)
Sharing of information
(d)
Rulemaking
(e)
Enforcement authority in unusual and exigent circumstances
(1)
Board
(A)
In general
(B)
Rulemaking
(C)
Limitations
If, after unusual and exigent circumstances are determined to exist pursuant to subparagraph (A), the Board determines that there is reasonable cause to believe that the continuation by a State qualified payment stablecoin issuer of any activity constitutes a serious risk to the financial safety, soundness, or stability of the State qualified payment stablecoin issuer, the Board may impose such restrictions as the Board determines to be necessary to address such risk during such unusual and exigent circumstances, which may include limitations on redemptions of payment stablecoins, and which shall be issued in the form of a directive, with the effect of a cease and desist order that has become final, to the State qualified payment stablecoin issuer and any of its affiliates, limiting—
(i)
transactions between the State qualified payment stablecoin issuer, a holding company, and the subsidiaries or affiliates of either the State qualified payment stablecoin issuer or the holding company; and
(ii)
any activities of the State qualified payment stablecoin issuer that might create a serious risk that the liabilities of a holding company and the affiliates of the holding company may be imposed on the State qualified payment stablecoin issuer.
(D)
Review of directive
(i)
Administrative review
(I)
In general
(II)
Automatic lapse of directive
(ii)
Judicial review
(I)
In general
(II)
Relief for extraordinary cause
(2)
Comptroller
(A)
In general
(B)
Rulemaking
(C)
Limitations
If, after unusual and exigent circumstances are determined to exist under subparagraph (A), the Comptroller determines that there is reasonable cause to believe that the continuation of any activity by a State qualified payment stablecoin issuer that is a nonbank entity constitutes a serious risk to the financial safety, soundness, or stability of the State qualified payment stablecoin issuer that is a nonbank entity, the Comptroller shall impose such restrictions as the Comptroller determines to be necessary to address such risk during such unusual and exigent circumstances, which may include limitations on redemption of payment stablecoins, and which shall be issued in the form of a directive, with the effect of a cease and desist order that has become final, to the State qualified payment stablecoin issuer that is a nonbank entity and any of its affiliates, limiting—
(i)
transactions between the State qualified payment stablecoin issuer, a holding company, and the subsidiaries or affiliates of either the State qualified payment stablecoin issuer or the holding company; and
(ii)
any activities of the State qualified payment stablecoin issuer that might create a serious risk that the liabilities of a holding company and the affiliates of the holding company may be imposed on the State qualified payment stablecoin issuer.
(D)
Review of directive
(i)
Administrative review
(I)
In general
(II)
Automatic lapse of directive
(ii)
Judicial review
(I)
In general
(II)
Relief for extraordinary cause
(f)
Effect on State law
(1)
Host State law
(2)
Home State law
(3)
Applicability
(A)
In general
(B)
Exclusion
(4)
Rule of construction
(Pub. L. 119–27, § 7, July 18, 2025, 139 Stat. 447.)
cite as: 12 USC 5906
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