12 USC 5905 - Supervision and enforcement with respect to Federal qualified payment stablecoin issuers and subsidiaries of insured depository institutions

U.S Code last checked for updates: Jul 28, 2025

§ 5905.

Supervision and enforcement with respect to Federal qualified payment stablecoin issuers and subsidiaries of insured depository institutions

(a)

Supervision

(1)

In general

(2)

Submission of reports

Each permitted payment stablecoin issuer described in paragraph (1) shall, upon request, submit to the appropriate primary Federal payment stablecoin regulator a report on—

(A)

the financial condition of the permitted payment stablecoin issuer;

(B)

the systems of the permitted payment stablecoin issuer for monitoring and controlling financial and operating risks;

(C)

compliance by the permitted payment stablecoin issuer (and any subsidiary thereof) with this chapter; and

(D)

the compliance of the Federal qualified nonbank payment stablecoin issuer with the requirements of the Bank Secrecy Act and with laws authorizing the imposition of sanctions and implemented by the Secretary of the Treasury.

(3)

Examinations

The appropriate primary Federal payment stablecoin regulator shall examine a permitted payment stablecoin issuer described in paragraph (1) in order to assess—

(A)

the nature of the operations and financial condition of the permitted payment stablecoin issuer;

(B)

the financial, operational, technological, and other risks associated within the permitted payment stablecoin issuer that may pose a threat to—

(i)

the safety and soundness of the permitted payment stablecoin issuer; or

(ii)

the stability of the financial system of the United States; and

(C)

the systems of the permitted payment stablecoin issuer for monitoring and controlling the risks described in subparagraph (B).

(4)

Requirements for efficiency

(A)

Use of existing reports

(B)

Avoidance of duplication

(C)

Consideration of burden

(b)

Enforcement

(1)

Suspension or revocation of registration

The primary Federal payment stablecoin regulator of a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of less than $10,000,000,000 may prohibit the permitted payment stablecoin issuer from issuing payment stablecoins, if the primary Federal payment stablecoin regulator determines that such permitted payment stablecoin issuer, or an institution-affiliated party of the permitted payment stablecoin issuer is willfully or recklessly violating or has willfully or recklessly violated—

(A)

this chapter or any regulation or order issued under this chapter; or

(B)

any condition imposed in writing by the primary Federal payment stablecoin regulator in connection with a written agreement entered into between the permitted payment stablecoin issuer and the primary Federal payment stablecoin regulator.

(2)

Cease-and-desist proceedings

If the primary Federal payment stablecoin regulator of a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of less than $10,000,000,000 has reasonable cause to believe that the permitted payment stablecoin issuer or any institution-affiliated party of the permitted payment stablecoin issuer is violating, has violated, or is attempting to violate this chapter, any regulation or order issued under this chapter, or any written agreement entered into with the primary Federal payment stablecoin regulator or condition imposed in writing by the primary Federal payment stablecoin regulator in connection with any application or other request, the primary Federal payment stablecoin regulator may, by provisions that are mandatory or otherwise, order the permitted payment stablecoin issuer or institution-affiliated party of the permitted payment stablecoin issuer to—

(A)

cease and desist from such violation or practice; or

(B)

take affirmative action to correct the conditions resulting from any such violation or practice.

(3)

Removal and prohibition authority

The primary Federal payment stablecoin regulator of a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer may remove an institution-affiliated party of the permitted payment stablecoin issuer from the position or office of that institution-affiliated party or prohibit further participation in the affairs of the permitted payment stablecoin issuer or of all such permitted payment stablecoin issuers by that institution-affiliated party, if the primary Federal payment stablecoin regulator determines that—

(A)

the institution-affiliated party has knowingly committed a violation or attempted violation of this chapter or any regulation or order issued under this chapter; or

(B)

the institution-affiliated party has knowingly committed a violation of any provision of subchapter II of chapter 53 of title 31.

(4)

Procedures

(A)

In general

(B)

Judicial review

(C)

Injunction

(D)

Temporary cease-and-desist proceedings

(5)

Civil money penalties

Unless otherwise specified in this chapter, the civil money penalties for violations of this chapter consist of the following:

(A)

Failure to be approved

(B)

First tier

(C)

Second tier

(D)

Procedure

(E)

Notice and orders after separation from service

(6)

Non-applicability to a State qualified payment stablecoin issuer

(c)

Rule of construction

(Pub. L. 119–27, § 6, July 18, 2025, 139 Stat. 443.)

cite as: 12 USC 5905