,,ii #aahth ,,congress #b;d ,session ,s4 #daee ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #ag1 #bjbd,ms4 ,lummis 7for herself and ,mrs4 ,gillibrand7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to provide for effective regulation of payment stablecoins1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,lummis-,gillibrand ,payment ,stablecoin ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,algorithmic payment stablecoin ,the term algorithmic payment stablecoin means a crypto asset that-- 7,a7 is represented by the issuer1 or is otherwise designed to create the reasonable expectation1 that the crypto asset will maintain a stable value relative to the value of a fixed amount of ,united ,states dollars2 and 7,b7 relies on the use of an algorithm that adjusts the supply of the crypto asset in response to changes in market demand for the crypto asset to maintain the expectation that the crypto asset will maintain a stable value4 7#b7 ,applicable payment stablecoin regulator ,the term applicable payment stablecoin regulator means1 with respect to a payment stablecoin issuer-- 7,a7 in the case of a depository institution that issues a payment stablecoin under section #g1 consistent with section #aa7s7-- 7i7 the ,comptroller or ,state bank supervisor1 as applicable2 or 7ii7 the ,board2 and 7,b7 in the case of a ,state non-depository trust company that issues a payment stablecoin under section #f1 the applicable ,state bank supervisor and the ,board1 acting jointly4 7#c7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act means-- 7,a7 section #ba of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 chapter #b of title ,i of ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 and 7,c7 subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code4 7#d7 ,board ,the term ,board means the ,board of ,governors of the ,federal ,reserve ,system4 7#e7 ,comptroller ,the term ,comptroller means the ,comptroller of the ,currency4 7#f7 ,controlling interest ,the term controlling interest means a circumstance when a person1 directly or indirectly1 or acting through or in concert with #a or more persons-- 7,a7 owns1 controls1 or has the power to vote #be percent or more of any class of voting securities of a depository institution or holding company thereof2 7,b7 controls in any manner the election of a majority of the directors of a depository institution or holding company thereof2 or 7,c7 has the power to exercise a controlling influence over the management or policies of the depository institution or holding company thereof4 7#g7 ,crypto asset ,the term crypto asset means a natively electronic asset that confers economic1 proprietary1 or access rights or powers and is recorded using cryptographically secured distributed ledger technology1 or any similar analog4 7#h7 ,depository institution ,the term depository institution-- 7,a7 has the meaning given that term in section #ai7;b77#a7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a772 and 7,b7 includes a depository institution operating under subsection 7a77#b7 of section #eafi of the ,revised ,statutes 7#ab ,u4,s4,c4 #bg71 as amended by this ,act1 or a substantially similar ,state law1 which is exclusively engaged in issuing payment stablecoins1 providing safekeeping1 trust1 or custodial services1 or activities incidental to the foregoing4 7#i7 ,distributed ledger ,the term distributed ledger means technology that enables the operation and use of a ledger that-- 7,a7 is shared across a set of distributed nodes that participate in a network and store a complete or partial replica of the ledger1 which may be public or private2 7,b7 is synchronized between the nodes2 7,c7 has data appended to the ledger by following the specified consensus mechanism of the ledger2 7,d7 may be accessible to anyone or restricted to a subset of participants2 and 7,e7 may require participants to have authorization to perform certain actions or require no authorization4 7#aj7 ,institution-affiliated party ,with respect to a payment stablecoin issuer1 the term institution-affiliated party means-- 7,a7 any director1 officer1 employee1 or person with a controlling interest in1 or acting as an agent for1 the payment stablecoin issuer2 7,b7 a consultant1 joint venture partner1 and any other person that participates in the conduct of the affairs of the payment stablecoin issuer2 or 7,c7 any independent contractor providing services for the payment stablecoin issuer1 including any attorney1 appraiser1 or accountant4 7#aa7 ,insured depository institution ,the term insured depository institution means-- 7,a7 an insured depository institution1 as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 an insured credit union1 as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#ab7 ,national payment stablecoin issuer ,the term national payment stablecoin issuer means a depository institution chartered by the ,comptroller or a ,state bank supervisor which is approved by the ,board to conduct payment stablecoin activities under section #g4 7#ac7 ,payment stablecoin ,the term payment stablecoin means crypto asset-- 7,a7 that is1 or is designed to be1 used as a means of payment or settlement2 7,b7 the issuer of which-- 7i7 is obligated to convert1 redeem1 or repurchase for a fixed amount of ,united ,states dollars2 or 7ii7 represents1 or creates the reasonable expectation1 that the crypto asset will maintain a stable value relative to the value of a fixed amount of ,united ,states dollars2 and 7,c7 that is not-- 7i7 ,united ,states coins1 a ,federal ,reserve note or other lawful money 7as that term is used in the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #daa771 money issued by a central bank1 or money issued by an intergovernmental organization pursuant to an agreement by one or more governments2 or 7ii7 a security issued by an investment company registered under section #h7;a7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#h7;a774 7#ad7 ,payment stablecoin issuer ,the term payment stablecoin issuer means-- 7,a7 a non-depository trust company chartered by a ,state bank supervisor that is registered1 or required to be registered1 with the ,board to issue payment stablecoins2 or 7,b7 a depository institution chartered by the ,comptroller or a ,state bank supervisor that is authorized1 or required to be authorized1 to become a national payment stablecoin issuer by the ,board to issue payment stablecoins1 including a depository institution subsidiary of an insured depository institution or bank holding company4 7#ae7 ,state bank supervisor ,the term ,state bank supervisor has the meaning given that term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#af7 ,subcustodian ,the term subcustodian means a person that maintains actual possession or control of the private keys relating to a payment stablecoin and has a contractual relationship with the custodian of record of the payment stablecoin4 #c4 ,general requirements for payment stablecoin issuers 7a7 ,stablecoins generally 7#a7 ,issue ,a payment stablecoin may only be issued directly or indirectly in the ,united ,states by-- 7,a7 a non-depository trust company that has registered with the ,board consistent with section #f and for which the nominal value of all outstanding payment stablecoins does not exceed #aj1jjj1jjj1jjj1 as adjusted under subsection 7b72 or 7,b7 by a depository institution that has been authorized as a national payment stablecoin issuer consistent with section #g4 7#b7 ,prohibition on issuance ,except as otherwise provided under paragraph 7#a71 it shall be unlawful for any person to engage in the business of issuing a payment stablecoin1 directly or indirectly1 in the ,united ,states1 through any means or instruments of transportation or communication in the ,united ,states1 or to a person in the ,united ,states4 7#c7 ,offers or sales 7,a7 ,in general ,except as otherwise provided in this section1 it shall be unlawful for any person to offer or sell a payment stablecoin through the use of any medium or by any means of access in interstate commerce in the ,united ,states or to offer or sell a payment stablecoin to a ,united ,states person living in the ,united ,states4 7,b7 ,exception ,subparagraph 7,a7 does not apply to the sale of a payment stablecoin by a ,united ,states person living in the ,united ,states4 7b7 ,adjustment of threshold ,not less frequently than once every #d years1 the ,board shall issue rules adjusting the threshold under subsection 7a77#a77;,a7 solely to account for inflation4 7c7 ,algorithmic payment stablecoins ,it shall be unlawful for any person to engage in the business of issuing1 creating1 or originating an algorithmic payment stablecoin4 7d7 ,safe harbors 7#a7 ,in general ,the ,board shall issue regulations providing limited safe harbors from this section that are consistent with the purposes of this ,act4 7#b7 ,regulation requirements ,regulations issued pursuant to paragraph 7#a7 shall provide that any safe harbors applicable to a payment stablecoin issuer shall be made available on an equal basis to any issuer chartered by either the ,comptroller or a ,state bank supervisor4 7#c7 ,safe harbors ,safe harbors under this section may include-- 7,a7 a pilot program allowing for limited issuance of payment stablecoins by entities not otherwise authorized under this section1 subject to appropriate safeguards and oversight1 in order to foster responsible innovation and competition in the payment stablecoin market2 and 7,b7 a safe harbor for payment a payment stablecoin issuer that is subject to comprehensive regulation and supervision by a foreign financial regulatory authority in a jurisdiction with an equivalent regulatory framework to the ,united ,states1 as determined by the ,board1 in consultation with the ,comptroller and ,state bank supervisors4 7e7 ,extraterritorial effect ,this section is intended to have extraterritorial effect4 #d4 ,prudential requirements applicable to all payment stablecoin issuers 7a7 ,customer protection and segregation ,a person who provides custodial services1 including subcustodian or other safekeeping services1 for payment stablecoins shall-- 7#a7 treat and deal with the payment stablecoins and cash of a customer as belonging to the customer2 and 7#b7 take appropriate steps to protect the payment stablecoins and cash of a customer from any claims of creditors of the person4 7b7 ,further requirements relating to segregation 7#a7 ,in general ,a person described in subsection 7a7 may1 for convenience1 commingle and deposit the payment stablecoins and cash of a customer in an account holding the payment stablecoins and cash of more than #a customer1 but which is separate from the proprietary assets of the issuer4 7#b7 ,transactions ,such share of the payment stablecoins and cash of a customer in an account described in paragraph 7#a7 that shall be necessary to transfer1 adjust1 or settle a transaction or transfer of assets may be withdrawn and applied to such purposes1 including the payment of commissions1 taxes1 storage fees1 and other charges lawfully accruing in connection with the provision of custodial services4 7#c7 ,rule or order relating to commingling ,the ,board1 in consultation with the ,comptroller and ,state bank supervisors1 may prescribe1 by rule or order1 that customer payment stablecoins or cash may be commingled and deposited in customer accounts with any other assets received by a person described in subsection 7a7 and required by the ,board to be separately accounted for1 treated as1 and dealt with as belonging to customers4 7c7 ,prohibition on rehypothecation ,payment stablecoin reserves required under sections #f7;f7 and #g7;e7 shall not be pledged1 rehypothecated1 or reused1 except for the purpose of creating liquidity to meet reasonable expectations of requests to redeem payment stablecoins1 such that reserves in the form of ,treasury bills1 bonds1 or notes may be pledged as collateral for repurchase agreements with a maturity of not more than #g days1 if-- 7#a7 the repurchase agreements are cleared by a central clearing counterparty that is approved by the ,board2 or 7#b7 the payment stablecoin issuer has obtained the approval of the ,board and the ,comptroller or ,state bank supervisor1 as applicable4 7d7 ,disclosures of assets 7#a7 ,in general ,not later than #aj business days after the end of each month1 a payment stablecoin issuer shall disclose1 in a publicly accessible manner1 a summary description that includes-- 7,a7 the assets backing the payment stablecoin1 the value of the assets1 and the number of outstanding payment stablecoins1 as of the last day of the month2 and 7,b7 a report of all instances in which the payment stablecoin issuer failed to comply with any requirement under section #f7;f7 or #g7;e74 7#b7 ,filing with the ,board ,at the time of disclosure of the summary description under paragraph 7#a71 the chief financial officer of a payment stablecoin issuer shall also file the summary description with the ,board under penalty of perjury4 7#c7 ,publication by the ,board ,not later than #aj business days after receiving a filing under paragraph 7#b71 the ,board shall make the filing available on a website of the ,board4 7#d7 ,verification of disclosures ,the ,comptroller or ,state bank supervisor shall1 as part of the regular examination of the payment stablecoin issuer1 verify the composition of the assets and the accuracy of the summary description under paragraph 7#a74 7e7 ,disclosures to customers ,a payment stablecoin issuer shall clearly disclose to customers that a payment stablecoin is not guaranteed by the ,united ,states ,government and is not subject to deposit or share insurance by the ,federal ,deposit ,insurance ,corporation or the ,national ,credit ,union ,administration4 7f7 ,misrepresentation of disclosures ,a payment stablecoin issuer that misrepresents a disclosure under subsection 7d7 or 7e7 shall be subject to the penalty under section #ah7;a77#d7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7;a77#d77 or section #gji of title #ah1 ,united ,states ,code1 as applicable4 7g7 ,redemptions ,not later than #a business day after the receipt of a redemption request of a customer1 a payment stablecoin issuer shall redeem an outstanding payment stablecoin of that payment stablecoin issuer at par in legal tender1 as defined in section #eajc of title #ca1 ,united ,states ,code4 7h7 ,limitation on activities ,as determined by the ,comptroller or ,state bank supervisor1 in consultation with the ,board1 a payment stablecoin issuer may conduct only the following activities3 7#a7 ,management of required payment stablecoin reserves under sections #f7;f7 and #g7;e74 7#b7 ,custodial services4 7#c7 ,settlement and clearing4 7#d7 ,post-trade services4 7#e7 ,incidental activities relating to the issuance and redemption of payment stablecoins and management of required reserves4 7i7 ,contracted services 7#a7 ,in general ,except as otherwise provided under paragraph 7#b71 whenever a payment stablecoin issuer1 or an affiliate thereof1 relies on or causes to be performed for itself1 by contract1 any services or activities authorized under this ,act or that are necessary to the functioning of the payment stablecoin1 whether on or off its premises-- 7,a7 the person that performs such services or activities shall be subject to regulation and supervision by the ,comptroller or ,state bank supervisor that supervises the payment stablecoin issuer1 as applicable1 and the ,board1 solely with respect to the limited scope of the performance of such services and activities2 7,b7 the person that performs such services or activities shall be subject to minimum financial resource requirements established by the ,board1 in consultation with the ,comptroller and ,state bank supervisors1 and shall be deemed a financial institution for purposes of title ,v of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhja et seq472 7,c7 not later than the sooner of #cj days after making a contract for the performance of such services or activities or the date of the performance of such services or activities1 the payment stablecoin issuer shall notify the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board of the existence of the relationship2 7,d7 for the purpose of ensuring compliance with the requirements under this subsection1 the ,board1 after making best efforts to obtain necessary information from public sources and existing regulators1 including the primary ,federal or ,state regulator of the person performing such services or activities1 if applicable1 may conduct examinations of and require reports from such person solely with respect to the limited scope of the performance of services and activities subject to this subsection2 and 7,e7 the ,board shall enforce the requirements of this subsection as if the person providing such services or activities was a payment stablecoin issuer4 7#b7 ,limitations ,paragraph 7#a7 shall not apply to-- 7,a7 a person performing the services or activities described in that paragraph that is subject to supervision or regulation by a primary financial regulatory agency described in subparagraph 7,a71 7,b71 or 7,c7 of section #b7ab7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecja7ab771 or a ,state bank supervisor2 and 7,b7 a person that primarily engages in the business of providing hardware or software to facilitate the custody or safekeeping by a customer of the payment stablecoins of that customer4 7j7 ,treatment under the ,bank ,secrecy ,act 7#a7 ,in general ,a payment stablecoin issuer or a person providing contracted services under subsection 7i7 shall be treated as a financial institution for purposes of the ,bank ,secrecy ,act4 7#b7 ,exception ,this subsection shall not apply to any person that primarily engages in the business of providing hardware or software to facilitate the custody or safekeeping by a customer of the payment stablecoins of that customer4 7k7 ,collateral availability 7#a7 ,in general ,the ,board1 in consultation with the ,comptroller1 ,state bank supervisors1 the ,securities and ,exchange ,commission1 and the ,commodity ,futures ,trading ,commission1 shall monitor the use of assets authorized as payment stablecoin reserves under sections #f7;f7 and #g7;e71 including ,united ,states ,treasury bills1 bonds1 and notes1 and the impact of the use of such assets on collateral availability and the efficient functioning of the capital markets4 7#b7 ,rule of construction ,nothing in this subsection shall be construed as giving the ,board supervisory or regulatory authority not otherwise granted under this ,act4 #e4 ,holding company supervision1 affiliates1 mergers1 and acquisitions of payment stablecoin issuers 7a7 ,holding companies and insured depository institutions 7#a7 ,in general ,a bank holding company or insured depository institution that has chartered a depository institution as a payment stablecoin issuer under section #g shall be considered a bank for purposes of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda et seq474 7#b7 ,exception ,paragraph 7#a7 shall not apply to an insured depository institution that is a savings association for the purposes of section #aj7;a7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7a774 7b7 ,holding company supervision for other depository institutions 7#a7 ,requirements ,a person with a controlling interest in a depository institution that is a payment stablecoin issuer which is not subject to subsection 7a7 shall-- 7,a7 annually submit to the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board-- 7i7 audited financial statements2 7ii7 a description of all affiliated or parent entities and the relationship of the affiliated or parent entity with the payment stablecoin issuer2 and 7iii7 any other information the ,board and the ,comptroller or ,state bank supervisor1 as applicable1 may by rule reasonably require2 and 7,b7 if required by the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board1 execute a tax allocation agreement with the depository institution that-- 7i7 expressly states that an agency relationship exists between the person and the depository institution with respect to tax assets generated by the depository institution1 and that the tax assets are held in trust by the person for the benefit of the depository institution and will be promptly remitted to the depository institution2 and 7ii7 may provide that the amount and timing of any payments or refunds to the depository institution by the person should be no less favorable than if the depository institution were a separate taxpayer4 7#b7 ,examination and divestiture 7,a7 ,in general ,if the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board determine it would be manifestly in the public interest and that reasonable cause exists to believe it is necessary to protect the customers of a depository institution that is a payment stablecoin issuer1 the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board may-- 7i7 conduct an examination of a person with controlling interest in the depository institution or otherwise reasonably require information from the person2 and 7ii7 require a person with a controlling interest in the depository institution to divest itself of or sever its relationship with the depository institution if necessary to maintain the safety and soundness of the depository institution1 after consultation with the ,secretary of the ,treasury and an opportunity for a public hearing4 7,b7 ,opportunity to remediate ,divestiture shall not be ordered under this section unless the ,comptroller or ,state bank supervisor1 and the ,board provide the depository institution with a meaningful opportunity to remediate findings relating to the safety and soundness of the depository institution4 7c7 ,requirement relating to controlling interests ,a person shall be predominantly engaged in financial activities1 as defined in section #ajb7;a77#f7 of the ,financial ,stability ,act of #bjaj 7#ab ,u4,s4,c4 #ecaa7;a77#f771 in order to have a controlling interest in a payment stablecoin issuer4 7d7 ,affiliates 7#a7 ,in general ,all subsidiaries and affiliates of a payment stablecoin issuer that are not subject to subsection 7a7 shall be engaged in activities that are financial in nature 7as described in section #d7k7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdc7k7774 7#b7 ,exception ,paragraph 7#a7 shall not apply to a subsidiary or affiliate that accounts for less than #be percent of the revenue of the holding company of the subsidiary or affiliate4 7#c7 ,transactions with affiliates ,a payment stablecoin issuer is subject to the same restrictions on transactions with affiliates1 to the same extent and subject to the same exceptions and exemptions as a member bank under sections #bc;,a and #bc;,b of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #cga;c1 #cga;c-#a74 7e7 ,approval of mergers and acquisitions 7#a7 ,in general ,no person may obtain a controlling interest in a payment stablecoin issuer that is not subject to section 7a7 without the approval of the ,board and the ,comptroller or ,state bank supervisor1 as applicable4 7#b7 ,rules ,the ,board1 in consultation with the ,comptroller and ,state bank supervisors1 shall adopt rules to implement paragraph 7#a7 that1 consistent with this section1 shall be as close as practicable to the process used by an appropriate ,federal banking agency 7as defined in section #c7q7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7q777 in evaluating and approving a change of control of an insured depository institution under section #g7;j7 of such ,act 7#ab ,u4,s4,c4 #ahag7;j774 7#c7 ,scope of rules ,criteria for approval under the rules adopted pursuant to paragraph 7#b7 shall be exclusively limited to the safety and soundness of the depository institution that issues a payment stablecoin4 #f4 ,issuance of payment stablecoins by non-depository trust companies 7a7 ,in general 7#a7 ,in general ,a non-depository trust company may issue and redeem payment stablecoins and conduct other activities in accordance with this section and section #d7;g7 if the value of all outstanding payment stablecoins in total does not exceed #aj1jjj1jjj1jjj1 as adjusted under section #c7;b74 7#b7 ,issuance threshold exceeded ,if a non-depository trust company exceeds the threshold described in paragraph 7#a71 the non-depository trust company shall1 not later than #ahj days after exceeding the threshold-- 7,a7 consistent with subsection 7k71 file a completed application with the ,comptroller or ,state bank supervisor1 as applicable1 to convert to a depository institution charter under section #g and be approved as provided in that section2 or 7,b7 in consultation with the ,state bank supervisor1 implement a plan to appropriately limit activities below the threshold1 consistent with the safety and soundness of the non-depository trust company and customer protection4 7b7 ,authorization ,to issue payment stablecoin 7#a7 ,application 7,a7 ,in general ,a non-depository trust company shall submit to a ,state bank supervisor1 separately or as part of a charter application1 an application for authorization to issue payment stablecoins4 7,b7 ,standards for evaluation ,the ,state bank supervisor may consult with the ,board with respect to the following exclusive set of standards prior to approving an application under subparagraph 7,a73 7i7 ,the ability of the applicant to maintain required reserves backing the payment stablecoins4 7ii7 ,the financial resources1 managerial or technical expertise1 and governance of the applicant4 7iii7 ,the benefit to the public1 including relating to innovation and competition4 7iv7 ,the stability of the financial system of the ,united ,states4 7#b7 ,registration 7,a7 ,deadline 7i7 ,in general ,not later than #ahj days after the approval of an application under paragraph 7#a71 a non-depository trust company shall register with the ,board by submitting to the ,board a complete registration statement4 7ii7 ,extension ,the ,board may extend the deadline under clause 7i7 by an additional #ahj days1 if the ,board determines appropriate4 7,b7 ,contents of a complete registration statement 7i7 ,rules required ,consistent with section #ae of this ,act1 the ,board1 in consultation with ,state bank supervisors1 shall issue rules describing the content1 documents1 and materials required to be submitted to the ,board that constitute a complete registration statement1 which shall include materials required to be filed in an application to comply with the standards under paragraph 7#a77;,b74 7ii7 ,completeness ,if the ,state bank supervisor determines that an applicant has submitted all of the materials required under this subparagraph1 the registration shall be deemed complete4 7#c7 ,authorization to issue payment stablecoins 7,a7 ,effective date 7i7 ,in general ,an approval of an application under paragraph 7#a7 shall be deemed effective on the date that is #ij days after the date the applicant submits a complete registration statement to the ,board under paragraph 7#b71 unless the ,board1 by a vote of #b_/c of all members1 votes to deny the application by written order explaining the reasons for denial4 7ii7 ,extension ,upon the request of an applicant1 the ,board may extend the effective date under clause 7i74 7,b7 ,issue prohibited before effective date ,a non-depository trust company may not issue payment stablecoins before the effective date under subparagraph 7,a74 7#d7 ,request for additional information ,nothing in this subsection shall be construed as prohibiting the ,board from requesting further information from an applicant1 but any request by the ,board for further information from an applicant shall not affect the status of the registration statement as complete1 as provided under paragraph 7#b77;,b77ii74 7#e7 ,public availability of filings ,the ,board shall make each registration statement filed with the ,board under this section available to the public on the website of the ,board4 7#f7 ,consultation ,the ,board shall consult with the applicable ,state bank supervisor relating to a non-depository trust company registration under this section1 which may include sharing materials submitted as part of the application to issue a payment stablecoin4 7c7 ,supervision1 regulation1 and enforcement 7#a7 ,supervision authority ,upon the filing of a complete registration statement with the ,board1 a non-depository trust company shall be subject to supervision by the ,state bank supervisor1 and the ,board and ,state bank supervisor shall have enforcement authority as provided in section #aa4 7#b7 ,regular examinations ,the applicable ,state bank supervisor shall make regular examinations of a non-depository trust company authorized to issue a payment stablecoin under this section on a regular basis in order to inform such ,state bank supervisor of-- 7,a7 the nature of the operations and financial condition of the non-depository trust company and any affiliates2 7,b7 the financial1 operational1 and other risks within the non-depository trust company that may pose a threat to-- 7i7 the safety and soundness of the non-depository trust company2 or 7ii7 the stability of the financial system of the ,united ,states2 and 7,c7 the systems of the non-depository trust company for monitoring and controlling the risks described in subparagraph 7,b74 7d7 ,submission of reports ,at the frequency established by rule of the ,board1 in consultation with ,state bank supervisors1 each non-depository trust company subject to this section shall submit a report of condition under oath to the applicable ,state bank supervisor relating to-- 7#a7 the financial condition and status of systems for monitoring and controlling financial and operating risks of the non-depository trust company2 and 7#b7 compliance by the non-depository trust company1 and any subsidiary thereof1 with this ,act and other applicable laws4 7e7 ,existing reports and examinations 7#a7 ,in general ,in supervising a non-depository trust company under this section1 a ,state bank supervisor shall1 to the fullest extent possible1 use existing reports and other supervisory information and avoid duplication of examination activities1 reporting requirements1 and requests for information4 7#b7 ,reports to the ,board ,each ,state bank supervisor shall promptly provide to the ,board all reports under subsection 7d7 and reports of examinations under this section4 7f7 ,reserve requirements 7#a7 ,in general ,a non-depository trust company that issues a payment stablecoin under this section shall maintain reserves of not less than #ajj percent of the nominal value of all outstanding payment stablecoins issued by the non-depository trust company1 as of the end of each business day4 ,a non-depository trust company may maintain reserves comprised of-- 7,a7 ,united ,states coins1 currency1 or other instrument that is legal tender described in section #eajc of title #ca1 ,united ,states ,code2 7,b7 demand deposits at a depository institution1 except that deposits in an insured depository institution shall not exceed the limit of deposit or share insurance available for that account2 7,c7 ,united ,states ,treasury bills1 bonds1 or notes with a maturity date of #ij days or less from the date of purchase2 and 7,d7 repurchase agreements1 with a maturity date of #g days or less1 that are backed by ,united ,states ,treasury bills with a maturity date of #a year or less from the date of the repurchase agreement4 7g7 ,custody ,a non-depository trust company shall be the legal custodian of required payment stablecoin reserves under subsection 7f71 but the non-depository trust company shall use a depository institution as subcustodian to provide for the safekeeping of reserves4 7h7 ,relation to ,gramm-,leach-,bliley ,act ,a non-depository trust company that issues a payment stablecoin under this section shall be deemed to be a financial institution for the purposes of title ,v of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhja et seq474 7i7 ,rules 7#a7 ,in general ,the ,board1 in consultation with the ,state bank supervisors and the ,financial ,crimes ,enforcement ,network1 shall adopt rules to implement this section1 including-- 7,a7 a simplified capital treatment for non-depository trust companies under this section1 which shall be exceed the greater of the projected receivership costs of the non-depository trust company or the projected costs of operation of the non-depository trust company over a #c-year period2 7,b7 appropriate liquidity1 interest rate1 and risk management standards commensurate with the size of a non-depository trust company2 7,c7 management practices with respect to required payment stablecoin assets2 7,d7 appropriate operational1 compliance1 and information technology risk management1 including ,bank ,secrecy ,act and sanctions compliance2 and 7,e7 other rules required by this section4 7#b7 ,significant differences ,in determining capital requirements applicable to a non-depository trust company that has no material assets other than required payment stablecoin assets under this section-- 7,a7 the non-depository trust company shall not be subject to requirements similar to section #aga of the ,financial ,stability ,act of #bjaj 7#ab ,u4,s4,c4 #ecga72 and 7,b7 ,state bank supervisors and the ,board shall take into account the limited risks of the assets of the non-depository trust company4 7j7 ,rules of construction ,nothing in this section may be construed as-- 7#a7 preventing a ,state bank supervisor from imposing additional or more strict regulatory standards on a non-depository trust company for issuing payment stablecoins2 or 7#b7 affecting existing ,state laws governing interstate trust company business or permitting non-depository trust companies to conduct payment stablecoin activities on an interstate basis which are inconsistent with ,state laws governing interstate trust company business4 7k7 ,planning for conversion ,not later than #ahj days after the date that the nominal value of all outstanding payment stablecoins issued by a non-depository trust company first exceeds #i1jjj1jjj1jjj1 as adjusted under section #c7;b71 at the end of a business day1 the non-depository trust company shall1 in consultation with the applicable ,state bank supervisor1 develop a plan for the conversion of the non-depository trust company into a depository institution under section #g1 which may include capital planning1 management planning1 and third-party vendor management4 7l7 ,existing non-,depository trust companies ,a non-depository trust company shall only conduct payment stablecoin activities specified under this ,act within the trust company4 #g4 ,issuance of payment stablecoins by depository institutions 7a7 ,in general 7#a7 ,in general ,a depository institution may issue and redeem payment stablecoins and conduct other activities in accordance with this section and section #d7;g74 7#b7 ,charter of depository institutions 7,a7 ,in general ,an insured depository institution or bank holding company shall charter a separate depository institution to issue a payment stablecoin4 7,b7 ,threshold ,a payment stablecoin issuer with the nominal value of all outstanding units of the stablecoin which exceeds #aj1jjj1jjj1jjj 7as adjusted under section #c7;b77 shall be a depository institution under this section1 but nothing shall be construed as prohibiting a payment stablecoin issuer with less than #aj1jjj1jjj1jjj of nominal value of outstanding payment stablecoins from obtaining a depository institution charter under this section4 7b7 ,authorization ,to issue payment stablecoin 7#a7 ,application 7,a7 ,application to chartering authority ,a depository institution shall submit1 separately or as part of a charter application1 to the ,comptroller or a ,state bank supervisor1 as applicable1 an application for authorization to issue payment stablecoins4 7,b7 ,application to ,board as national payment stablecoin issuer ,at the same time as the filing of an application under paragraph 7#a71 a depository institution shall submit to the ,board an application for authorization as a national payment stablecoin issuer4 7#b7 ,standards for approval ,the following exclusive set of standards shall govern the decision of the ,comptroller or ,state bank supervisor1 as applicable1 with respect to an application under paragraph 7#a73 7,a7 ,the ability of the applicant to maintain required reserves backing the payment stablecoins required under this section4 7,b7 ,the financial resources1 managerial or technical expertise1 and governance of the applicant1 including risk management and compliance4 7,c7 ,the benefit to the public1 including relating to innovation and competition4 7,d7 ,the stability of the financial system of the ,united ,states4 7#c7 ,application contents 7,a7 ,rules required ,not later than #ahj days after the date of enactment of this ,act1 the ,board1 in consultation with the ,comptroller and ,state bank supervisors1 shall issue rules describing the content1 documents1 and materials required to be submitted to the ,board that constitute a complete application1 which shall include-- 7i7 a tailored recovery and resolution plan1 consistent with the standards adopted under subsection 7h77#a77;,e71 that would permit the orderly resumption of a safe and sound operation or the orderly wind-down of operations in the event of distress1 including the redemption of all outstanding payment stablecoins2 7ii7 a draft customer agreement2 7iii7 a flow of funds explanation2 7iv7 an information technology operations and security plan2 and 7v7 all materials required to comply with the standards under paragraph 7#b74 7,b7 ,completeness ,if the ,comptroller or ,state bank supervisor1 as applicable1 determines that an applicant has submitted all of the materials required under this paragraph1 the application shall be deemed complete4 7#d7 ,public notice 7,a7 ,in general ,the ,board shall provide a copy of each application under this section to the public 7with any confidential information redacted7 and provide for a #fj-;day public comment period during which the public may submit written comments on the application4 7,b7 ,exception ,the ,board may waive the public comment requirement under subparagraph 7,a7 if the ,board determines that it must act immediately to prevent the failure of a depository institution or the probable failure of an affiliate of the institution4 7#e7 ,written decision 7,a7 ,in general ,not later than #ahj days after receiving a complete application pursuant to paragraph 7#c71 the ,board shall render a written decision to approve or deny the national payment stablecoin issuer application under paragraph 7#a71 with appropriate findings1 and the ,comptroller or ,state bank supervisor shall render a decision on the charter application as otherwise provided by ,federal or ,state law4 7,b7 ,approval by majority vote ,the ,board shall not approve an application under paragraph 7#a7 unless a majority of its members vote to approve4 7,c7 ,extension ,upon the request of an applicant1 the ,board may extend the decision deadline of the ,board under subparagraph 7,a74 7#f7 ,requests for additional information ,nothing in this subsection shall be construed as prohibiting the ,board from requesting further information from an applicant1 but any request by the ,board for further information from an applicant shall not affect the status of the application as complete1 as provided under paragraph 7#c77;,b74 7c7 ,supervision ,upon authorization as a national payment stablecoin issuer under this section1 a depository institution shall be subject to prudential supervision and regulation by the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board1 as specified under this ,act4 7d7 ,required payment stablecoin assets 7#a7 ,in general ,a depository institution that issues a payment stablecoin under this section shall maintain reserves of not less than #ajj percent of the nominal value of all outstanding payment stablecoins1 as of the end of each business day4 7#b7 ,composition of reserves ,a depository institution may maintain reserves comprised of-- 7,a7 ,united ,states coins1 currency1 or other instrument that is legal tender described in section #eajc of title #ca1 ,united ,states ,code2 7,b7 demand deposits at a depository institution1 except that deposits in an insured depository institution shall not exceed the limit of deposit or share insurance available for that account2 7,c7 balances held at a ,federal ,reserve bank2 7,d7 ,united ,states ,treasury bills1 notes1 or bonds with a maturity date of #ij days or less after the date of purchase2 and 7,e7 repurchase agreements with a maturity date of #g days or less1 that are backed by ,united ,states ,treasury bills with a maturity date of #a year or less from the date of the repurchase agreement4 7e7 ,call report ,as applicable1 the ,comptroller or ,state bank supervisor and the ,board shall require a depository institution that issues a payment stablecoin to report1 in detail1 on the composition of the assets and liabilities in each periodic report of condition1 or in an alternative format approved by the ,federal ,financial ,institutions ,examination ,council1 at the frequency otherwise required by law for depository institutions4 7f7 ,examinations 7#a7 ,use of existing reports ,in supervising a depository institution under this section1 the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board shall1 to the fullest extent possible1 use existing reports and other supervisory information and avoid duplication of examination activities1 reporting requirements1 and requests for information4 7#b7 ,regular examinations ,the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board shall make regular examinations of a depository institution under this section on a regular basis in order to inform the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board of-- 7,a7 the nature of the operations and financial condition of the depository institution and any affiliates2 7,b7 the financial1 operational1 and other risks within the depository institution that may pose a threat to-- 7i7 the safety and soundness of the depository institution2 or 7ii7 the stability of the financial system of the ,united ,states2 and 7,c7 the systems of the depository institution for monitoring and controlling the risks described in subparagraph 7,b74 7g7 ,relation to ,gramm-,leach-,bliley ,act ,a depository institution that issues a payment stablecoin under this section shall be deemed to be a financial institution for the purposes of title ,v of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhja et seq474 7h7 ,rules 7#a7 ,in general ,the ,board1 in consultation with the ,comptroller1 ,state bank supervisors1 and the ,financial ,crimes ,enforcement ,network1 shall adopt rules to implement this section1 including-- 7,a7 capital treatment for depository institutions under this section1 which shall be not greater than the total sum of-- 7i7 the greater of-- 7,i7 projected receivership costs2 or 7,,ii7 projected costs of operation over a #c-year period2 and 7ii7 the sum of-- 7,i7 operational risk1 as provided under paragraph 7#b77;,c72 and 7,,ii7 collateral reasonably needed to address payment system risk2 7,b7 managing liquidity1 leverage1 and market and interest rate risk2 7,c7 management practices with respect to required payment stablecoin assets2 7,d7 appropriate operational1 compliance1 and information technology risk management1 including ,bank ,secrecy ,act and sanctions compliance2 7,e7 tailored recovery and resolution standards relating to payment stablecoins2 and 7,f7 third-party risk management1 including appropriate governance of relationships with crypto asset exchanges4 7#b7 ,significant differences ,in determining capital requirements applicable to a depository institution that has no material assets other than required payment stablecoin assets under this section-- 7,a7 the depository institution shall not be subject to section #aga of the ,financial ,stability ,act of #bjaj 7#ab ,u4,s4,c4 #ecga72 7,b7 the ,board1 in consultation with the ,comptroller and ,state bank supervisors1 shall take into account the significant differences between the risks of the assets of the institution and those of depository institutions with assets that consist primarily of commercial or consumer loans2 and 7,c7 assessment of operational risk shall occur commensurate with the size and complexity of the depository institution4 7i7 ,rules of construction ,nothing in this ,act may be construed as-- 7#a7 preventing the ,comptroller or a ,state bank supervisor which charters a depository institution from imposing additional or more strict regulatory standards on the institution for issuing payment stablecoins2 7#b7 making inapplicable the provisions of section #bd7;j7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;a7j77 to a depository institution1 including the ability of a depository institution to operate under home ,state law on an interstate basis without further licensure1 registration1 or authorization1 as provided in that ,act2 or 7#c7 requiring a depository institution to obtain deposit insurance to issue a payment stablecoin under this section or to conduct incidental activities under this section4 7j7 ,conversion of a non-,depository trust company payment stablecoin issuer ,not later than #b years after the date of enactment of this ,act1 the ,board1 in consultation with the ,comptroller and ,state bank supervisors1 shall issue rules-- 7#a7 establishing a process for a non-depository trust company registered under section #f to convert to a depository institution under this section2 7#b7 setting forth an expedited process for approval that is consistent with this section2 and 7#c7 providing for the implementation of the plan required to be developed under subsection 7l7 of section #f of this ,act4 7k7 ,existing holding companies and depository institutions ,a bank holding company or insured depository institution shall only conduct payment stablecoin activities authorized by this ,act within a depository institution subsidiary of the insured depository institution or a bank holding company4 #h4 ,certificate of authority to commence banking for certain national associations ,section #eafi of the ,revised ,statutes 7#ab ,u4,s4,c4 #bg7 is amended-- 7#a7 in subsection 7a71 in the third sentence1 by striking to those of a non-depository trust company and activities related thereto4 and inserting 8to-- 7#a7 those of a non-depository trust company and fiduciary activities related thereto2 or 7#b7 those of a depository institution for the purposes of issuing a payment stablecoin and activities related thereto as a national payment stablecoin issuer under section #g of the ,lummis-,gillibrand ,payment ,stablecoin ,act4 2 and 7#b7 by adding at the end the following3 7c7 ,the ,comptroller may1 by rule1 establish assessments depository institutions engaged in issuing payment stablecoins4 4 #i4 ,appointment of ,,fdic as conservator or receiver of payment stablecoin issuers 7a7 ,definition ,as used in this section1 the term customer means a person1 or authorized representative of the person1 that-- 7#a7 utilized or is utilizing any service of a payment stablecoin issuer with respect to an account in the name of the person maintained by the payment stablecoin issuer2 or 7#b7 is in possession or control of a payment stablecoin issued by a payment stablecoin issuer for which the payment stablecoin issuer for which an open account with the issuer is needed to redeem the payment stablecoin4 7b7 ,funding 7#a7 ,in general ,a payment stablecoin issuer shall not be charged deposit insurance premiums for the purposes of this section1 but the ,federal ,deposit ,insurance ,corporation 7in this section referred to as the ,corporation7 may use the capital of the payment stablecoin issuer and any returns on required payment stablecoin reserves to fund the costs of a receivership or conservatorship4 7#b7 ,limitation ,the ,corporation shall not exercise borrowing authority under section #ad of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbd7 related to a receivership or conservatorship under this section4 7c7 ,liquidation as closing of payment stablecoin issuer ,for the purposes of this section1 a payment stablecoin issuer shall be deemed to have been closed on account or inability to meet the demands of its customers in any case in which it has been closed for the purpose of liquidation without adequate provision being made for payment of its customers4 7d7 ,appointment of ,corporation as conservator or receiver 7#a7 ,in general ,notwithstanding any other provision of ,federal law1 the law of any ,state1 or the constitution of any ,state1 the ,corporation may accept appointment and act as conservator or receiver for a payment stablecoin issuer upon appointment in the manner provided in paragraph 7#b7 or 7#c74 7#b7 ,,occ depository institutions 7,a7 ,appointment 7i7 ,conservator ,the ,corporation may1 at the discretion of the ,comptroller1 be appointed conservator of a payment stablecoin issuer which is a depository institution chartered by the ,comptroller and the ,corporation may accept such appointment4 7ii7 ,receiver ,the ,corporation shall be appointed receiver1 and shall accept such appointment1 whenever a receiver is appointed for the purpose of liquidation or winding up the affairs of a payment stablecoin issuer which is a depository institution chartered by the ,comptroller1 notwithstanding any other provision of ,federal law4 7,b7 ,additional powers ,in addition to and not in derogation of the powers conferred and the duties imposed by this section on the ,corporation as conservator or receiver1 the ,corporation1 to the extent not inconsistent with such powers and duties1 shall have any other power conferred on or any duty 7which is related to the exercise of such power7 imposed on a conservator or receiver for any ,federal depository institution under any other provision of law4 7,c7 ,corporation not subject to any other agency ,when acting as conservator or receiver pursuant to an appointment described in subparagraph 7,a71 the ,corporation shall not be subject to the direction or supervision of any other agency or department of the ,united ,states or any ,state in the exercise of the ,corporation's rights1 powers1 and privileges4 7,d7 ,depository institution in conservatorship subject to banking agency supervision ,notwithstanding subparagraph 7,c71 a payment stablecoin issuer which is a depository institution chartered by the ,comptroller for which the ,corporation has been appointed conservator shall remain subject to the supervision of the ,comptroller4 7#c7 ,state-chartered payment stablecoin issuers 7,a7 ,appointment by ,state bank supervisor ,whenever a ,state bank supervisor appoints a conservator or receiver for such institution and tenders appointment to the ,corporation1 the ,corporation may accept such appointment4 7,b7 ,additional powers ,in addition to the powers conferred and the duties related to the exercise of such powers imposed by ,state law on any conservator or receiver appointed under the law of such ,state1 the ,corporation1 as conservator or receiver pursuant to an appointment described in subparagraph 7,a71 shall have the powers conferred and the duties imposed by this section on the ,corporation as conservator or receiver4 7,c7 ,corporation not subject to any other agency ,when acting as conservator or receiver pursuant to an appointment described in subparagraph 7,a71 the ,corporation shall not be subject to the direction or supervision of any other agency or department of the ,united ,states or any ,state in the agency or department of the ,united ,states or any ,state in the exercise of its rights1 powers1 and privileges4 7,d7 ,issuer in conservatorship subject to banking agency supervision ,notwithstanding subparagraph 7,c71 a ,state-chartered payment stablecoin issuer for which the ,corporation has been appointed conservator shall remain subject to the supervision of the ,state bank supervisor4 7#d7 ,grounds for appointing conservator or receiver ,the grounds for appointing a conservator or receiver 7which may be the ,corporation7 for a payment stablecoin issuer are as follows3 7,a7 ,assets insufficient for obligations ,the issuer's assets are less than the issuer's obligations to its creditors and others4 7,b7 ,substantial dissipation ,substantial dissipation of assets or earnings due to-- 7i7 any violation of any statute or regulation2 or 7ii7 any unsafe or unsound practice4 7,c7 ,unsafe or unsound condition ,an unsafe or unsound condition to transact business4 7,d7 ,cease and desist orders ,any willful violation of a cease and desist order which has become final4 7,e7 ,concealment ,any concealment of the institution's books1 papers1 records1 or assets1 or any refusal to submit the institution's books1 papers1 records1 or affairs for inspection to any examiner or to any lawful agent of the ,comptroller1 ,state bank supervisor1 or the ,board4 7,f7 ,inability to meet obligations ,the issuer is likely to be unable to pay its obligations or meet its customers' demands in the normal course of business4 7,g7 ,losses ,the issuer has incurred or is likely to incur losses that will deplete all or substantially all of its capital1 and there is no reasonable prospect for the institution to come into compliance with capital requirements specified under this ,act1 consistent with ,board regulation4 7,h7 ,violations of law ,any violation of any law or regulation1 or any unsafe or unsound practice or condition that is likely to-- 7i7 cause insolvency or substantial dissipation of assets or earnings2 7ii7 weaken the issuer's condition2 or 7iii7 otherwise seriously prejudice the interests of the institution's customers4 7,i7 ,consent ,the issuer1 by resolution of its board of directors or its shareholders or members1 consents to the appointment4 7,j7 ,undercapitalization of institution ,the institution is undercapitalized as specified by ,board rule1 and-- 7i7 has no reasonable prospect of becoming adequately capitalized 7as defined by ,board rule72 7ii7 fails to become adequately capitalized when required to do so2 7iii7 fails to submit a capital restoration plan2 or 7iv7 materially fails to implement a capital restoration plan4 7,k7 ,undercapitalization of issuer ,the issuer-- 7i7 is critically undercapitalized1 as defined by ,board rule2 or 7ii7 otherwise has substantially insufficient capital4 7,l7 ,money laundering offense ,the ,attorney ,general notifies the ,board1 ,comptroller1 or ,state bank supervisor1 as applicable1 or the ,corporation in writing that the payment stablecoin issuer has been found guilty of a criminal offense under section #aief or #aieg of title #ah1 ,united ,states ,code1 or section #ecbb or #ecbd of title #ca1 ,united ,states ,code4 7#e7 ,directors not liable for acquiescing in appointment of conservator or receiver ,the members of the board of directors of a payment stablecoin issuer shall not be liable to the issuer's shareholders or creditors for acquiescing in or consenting in good faith to-- 7,a7 the appointment of the ,corporation as conservator or receiver for that issuer2 or 7,b7 an acquisition or combination in which the ,corporation requires the issuer to be acquired or combined with another payment stablecoin issuer4 7e7 ,powers and duties of ,corporation as conservator or receiver 7#a7 ,rulemaking authority of ,corporation ,the ,corporation may prescribe such regulations as the ,corporation determines to be appropriate regarding the conduct of conservatorships or receiverships of payment stablecoin issuers1 in consultation with the ,comptroller1 ,state bank supervisors1 and the ,board4 7#b7 ,general powers 7,a7 ,successor to institution ,the ,corporation shall1 as conservator or receiver1 and by operation of law1 succeed to-- 7i7 all rights1 titles1 powers1 and privileges of the payment stablecoin issuer1 and of any stockholder1 member1 accountholder1 depositor1 officer1 or director of such issuer with respect to the issuer and the assets of the issuer2 and 7ii7 title to the books1 records1 and assets of any previous conservator or other legal custodian of such institution4 7,b7 ,operate the institution ,the ,corporation may1 as conservator or receiver-- 7i7 take over the assets of and operate the payment stablecoin issuer with all the powers of the members or shareholders1 the directors1 and the officers of the issuer and conduct all business of the issuer2 7ii7 collect all obligations and money due to the institution2 7iii7 perform all functions of the issuer in the name of the issuer which are consistent with the appointment as conservator or receiver2 and 7iv7 preserve and conserve the assets and property of the issuer4 7,c7 ,functions of issuer's officers1 directors1 and shareholders ,the ,corporation may1 by regulation or order1 provide for the exercise of any function by any member or stockholder1 director1 or officer of any payment stablecoin issuer for which the ,corporation has been appointed conservator or receiver4 7,d7 ,powers as conservator ,the ,corporation may1 as conservator1 take such action as may be-- 7i7 necessary to put the payment stablecoin issuer in a sound and solvent condition2 and 7ii7 appropriate to carry on the business of the issuer and preserve and conserve the assets and property of the issuer4 7,e7 ,additional powers as receiver ,the ,corporation may1 as receiver1 place the payment stablecoin issuer in liquidation and proceed to realize upon the assets of the issuer1 having due regard to the conditions of credit in the locality4 7,f7 ,organization of new institutions ,the ,corporation may1 as receiver1 with respect to any payment stablecoin issuer1 organize a bridge payment stablecoin issuer under subsection 7m74 7,g7 ,merger2 transfer of assets and liabilities 7i7 ,in general ,the ,corporation may1 as conservator or receiver-- 7,i7 merge the payment stablecoin issuer with another payment stablecoin issuer2 or 7,,ii7 subject to clause 7ii71 transfer any asset or liability of the issuer in default without any approval1 assignment1 or consent with respect to such transfer4 7ii7 ,approval by appropriate regulator ,no transfer described in clause 7i77,,ii7 may be made to a payment stablecoin issuer or without the approval of the appropriate payment stablecoin regulator for such issuer4 7,h7 ,payment of valid obligations ,the ,corporation1 as conservator or receiver1 shall pay all valid obligations of the payment stablecoin issuer1 as determined by the ,corporation4 7,i7 ,subpoena authority 7i7 ,in general ,the ,corporation may1 as conservator1 receiver1 or exclusive manager and for purposes of carrying out any power1 authority1 or duty with respect to a payment stablecoin issuer 7including determining any claim against the issuer and determining and realizing upon any asset of any person in the course of collecting money due the issuer71 exercise any power established under section #h7n7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7n77 and the provisions of such section shall apply with respect to the exercise of any such power under this subparagraph in the same manner as such provisions apply under such section4 7ii7 ,authority of board of directors ,a subpoena or subpoena duces tecum may be issued under clause 7i7 only by1 or with the written approval of1 the ,board of ,directors of the ,corporation or their designees4 7iii7 ,rule of construction ,this subsection shall not be construed as limiting any rights that the ,corporation1 in any capacity1 may otherwise have under section #aj7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbj7;c774 7,j7 ,incidental powers ,the ,corporation may1 as conservator or receiver-- 7i7 exercise all powers and authorities necessary to conduct the conservatorship or receivership1 respectively1 and such incidental powers as shall be necessary to carry out such powers2 and 7ii7 take any action authorized by this section1 which the ,corporation determines is in the best interests of the payment stablecoin issuer1 its customers1 or the ,corporation4 7,k7 ,utilization of private sector ,in carrying out its responsibilities in the management and disposition of assets from payment stablecoin issuers1 as conservator1 receiver1 or in its corporate capacity1 the ,corporation shall utilize the services of private persons1 including property management1 auction marketing1 legal1 and brokerage services1 only if such services are available in the private sector and the ,corporation determines utilization of such services is the most practicable1 efficient1 and cost effective4 7#c7 ,authority of receiver to determine claims 7,a7 ,in general ,the ,corporation may1 as receiver1 determine claims in accordance with the requirements of this subsection and regulations prescribed under paragraph 7#d74 7,b7 ,notice requirements ,the ,corporation1 as receiver1 in any case involving the liquidation or winding up of the affairs of a closed payment stablecoin issuer1 shall-- 7i7 promptly publish a notice to the payment stablecoin issuer's creditors to present their claims1 together with proof1 to the receiver by a date specified in the notice which shall be not less than #ij days after the publication of such notice2 and 7ii7 republish such notice approximately #a month and #b months1 respectively1 after the publication under clause 7i74 7,c7 ,mailing required ,the ,corporation1 as receiver1 shall mail a notice similar to the notice published under subparagraph 7,b77i7 at the time of such publication to any creditor shown on the issuer's books-- 7i7 at the creditor's last address appearing in such books2 or 7ii7 upon discovery of the name and address of a claimant not appearing on the issuer's books within #cj days after the discovery of such name and address4 7#d7 ,rulemaking authority relating to determination of claims 7,a7 ,in general ,the ,corporation may prescribe regulations regarding the allowance or disallowance of claims by the ,corporation1 as receiver1 and providing for administrative determination of claims and review of such determination4 7,b7 ,final settlement payment procedure ,in the handling of receiverships of payment stablecoin issuers1 to maintain essential liquidity and to prevent financial disruption1 the ,corporation may1 after the declaration of an issuer's insolvency1 settle all unsecured claims on the receivership with a final settlement payment which shall constitute full payment and disposition of the ,corporation's obligations to such claimants4 7#e7 ,procedures for determination of claims 7,a7 ,determination period 7i7 ,in general ,before the end of the #ahj-;day period beginning on the date any claim against a payment stablecoin issuer is filed with the ,corporation as receiver1 the ,corporation shall determine whether to allow or disallow the claim and shall notify the claimant of any determination with respect to such claim4 7ii7 ,extension of time ,the period described in clause 7i7 may be extended by a written agreement between the claimant and the ,corporation4 7iii7 ,mailing of notice sufficient ,the requirements of clause 7i7 shall be deemed to be satisfied if the notice of any determination with respect to any claim is mailed to the last address of the claimant which appears-- 7,i7 on the payment stablecoin issuer's books2 7,,ii7 in the claim filed by the claimant2 or 7,,iii7 in documents submitted in proof of the claim4 7iv7 ,contents of notice of disallowance ,if any claim filed under clause 7i7 is disallowed1 the notice to the claimant shall contain-- 7,i7 a statement of each reason for the disallowance2 and 7,,ii7 the procedures available for obtaining agency review of the determination to disallow the claim or judicial determination of the claim4 7,b7 ,allowance of proven claims ,the ,corporation1 as receiver1 shall allow any claim received on or before the date specified in the notice published under paragraph 7#c77;,b77i7 by the receiver from any claimant which is proved to the satisfaction of the receiver4 7,c7 ,disallowance of claims filed after end of filing period 7i7 ,in general ,except as provided in clause 7ii71 claims filed after the date specified in the notice published under paragraph 7#c77;,b77i7 shall be disallowed and such disallowance shall be final4 7ii7 ,certain exceptions ,clause 7i7 shall not apply with respect to any claim filed by any claimant after the date specified in the notice published under paragraph 7#c77;,b77i7 and such claim may be considered by the ,corporation1 as receiver1 if-- 7,i7 the claimant did not receive notice of the appointment of the receiver in time to file such claim before such date2 and 7,,ii7 such claim is filed in time to permit payment of such claim4 7,d7 ,authority to disallow claims 7i7 ,in general ,the ,corporation1 as receiver1 may disallow any portion of any claim by a creditor or claim of security1 preference1 or priority which is not proved to the satisfaction of the receiver4 7ii7 ,payments to less than fully secured creditors ,in the case of a claim of a creditor against a payment stablecoin issuer which is secured by any property or other asset of such issuer1 the ,corporation1 as receiver-- 7,i7 may treat the portion of such claim which exceeds an amount equal to the fair market value of such property or other asset as an unsecured claim against the issuer2 and 7,,ii7 may not make any payment with respect to such unsecured portion of the claim other than in connection with the disposition of all claims of unsecured creditors of the issuer4 7,e7 ,no judicial review of determination ,no court may review the ,corporation's determination pursuant to subparagraph 7,d7 to disallow a claim4 7,f7 ,legal effect of filing 7i7 ,statute of limitations tolled ,for purposes of any applicable statute of limitations1 the filing of a claim with the ,corporation as receiver shall constitute a commencement of an action4 7ii7 ,no prejudice to other actions ,subject to paragraph 7#ab71 the filing of a claim with the ,corporation as receiver shall not prejudice any right of the claimant to continue any action which was filed before the appointment of the ,corporation as receiver4 7#f7 ,provision for agency review or judicial determination of claims 7,a7 ,in general ,before the end of the #fj-;day period beginning on the earlier of-- 7i7 the end of the period described in paragraph 7#e77;,a77i7 with respect to any claim against a payment stablecoin issuer for which the ,corporation is receiver2 or 7ii7 the date of any notice of disallowance of such claim pursuant to paragraph 7#e77;,a77i71 the claimant may request administrative review of the claim in accordance with subparagraph 7,a7 or 7,b7 of paragraph 7#g7 or file suit on such claim 7or continue an action commenced before the appointment of the ,corporation as receiver in the district or territorial court of the ,united ,states for the district within which the payment stablecoin issuer's principal place of business is located or the ,united ,states ,district ,court for the ,district of ,columbia 7and such court shall have jurisdiction to hear such claim74 7,b7 ,statute of limitations ,if any claimant fails to-- 7i7 request administrative review of any claim in accordance with subparagraph 7,a7 or 7,b7 of paragraph 7#g72 or 7ii7 file suit on such claim 7or continue an action commenced before the appointment of the ,corporation as receiver71 before the end of the #fj-;day period described in subparagraph 7,a71 the claim shall be deemed to be disallowed 7other than any portion of such claim which was allowed by the receiver7 as of the end of such period1 such disallowance shall be final1 and the claimant shall have no further rights or remedies with respect to such claim4 7#g7 ,review of claims 7,a7 ,administrative hearing ,if any claimant requests review under this subparagraph in lieu of filing or continuing any action under paragraph 7#f7 and the ,corporation agrees to such request1 the ,corporation shall consider the claim after opportunity for a hearing on the record4 ,the final determination of the ,corporation with respect to such claim shall be subject to judicial review under chapter #g of title #e1 ,united ,states ,code4 7,b7 ,other review procedures 7i7 ,in general ,the ,corporation shall also establish such alternative dispute resolution processes as may be appropriate for the resolution of claims filed under paragraph 7#e77;,a77i74 7ii7 ,criteria ,in establishing alternative dispute resolution processes under clause 7i71 the ,corporation shall strive for procedures which are expeditious1 fair1 independent1 and low cost4 7iii7 ,voluntary binding or nonbinding procedures ,the ,corporation may establish both binding and nonbinding processes1 which may be conducted by any government or private party1 but all parties1 including the claimant and the ,corporation1 shall agree to the use of the process established under clause 7i7 in a particular case4 7iv7 ,consideration of incentives ,the ,corporation shall seek to develop incentives for claimants to participate in the alternative dispute resolution process established under clause 7i74 7#h7 ,expedited determination of claims 7,a7 ,establishment required ,the ,corporation shall establish a procedure for expedited relief outside of the routine claims process established under paragraph 7#e7 for claimants who-- 7i7 allege the existence of legally valid and enforceable or perfected security interests in assets of a payment stablecoin issuer for which the ,corporation has been appointed receiver2 and 7ii7 allege that irreparable injury will occur if the routine claims procedure is followed4 7,b7 ,determination period ,before the end of the #ij-;day period beginning on the date any claim is filed in accordance with the procedures established pursuant to subparagraph 7,a71 the ,corporation shall-- 7i7 determine-- 7,i7 whether to allow or disallow such claim2 or 7,,ii7 whether such claim should be determined pursuant to the procedures established pursuant to paragraph 7#e72 and 7ii7 notify the claimant of the determination1 and if the claim is disallowed1 provide a statement of each reason for the disallowance and the procedure for obtaining agency review or judicial determination4 7,c7 ,period for filing or renewing suit ,any claimant who files a request for expedited relief shall be permitted to file a suit1 or to continue a suit filed before the appointment of the receiver1 seeking a determination of the claimant's rights with respect to such security interest after the earlier of-- 7i7 the end of the #ij-;day period beginning on the date of the filing of a request for expedited relief2 or 7ii7 the date the ,corporation denies the claim4 7,d7 ,statute of limitations ,if an action described in subparagraph 7,c7 is not filed1 or the motion to renew a previously filed suit is not made1 before the end of the #cj-;day period beginning on the date on which such action or motion may be filed in accordance with subparagraph 7,b71 the claim shall be deemed to be disallowed as of the end of such period 7other than any portion of such claim which was allowed by the receiver71 such disallowance shall be final1 and the claimant shall have no further rights or remedies with respect to such claim4 7,e7 ,legal effect of filing 7i7 ,statute of limitations tolled ,for purposes of any applicable statute of limitations1 the filing of a claim with the ,corporation as receiver shall constitute a commencement of an action4 7ii7 ,no prejudice to other actions ,subject to paragraph 7#ab71 the filing of a claim with the receiver shall not prejudice any right of the claimant to continue any action which was filed before the appointment of the ,corporation as receiver4 7#i7 ,agreement as basis of claim ,any agreement which does not meet the requirements set forth in section #ac7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e771 shall not form the basis of1 or substantially comprise1 a claim against the ,corporation as receiver4 7#aj7 ,payment of claims 7,a7 ,in general ,the ,corporation as receiver may1 in the discretion of the ,corporation and to the extent funds are available1 pay creditor claims approved pursuant to a final determination pursuant to paragraph 7#g7 or 7#h71 or determined by the final judgment of any court of competent jurisdiction in such manner and amounts as are authorized under this section4 7,b7 ,payment of dividends on claims ,the ,corporation1 as receiver1 may1 in the sole discretion of the ,corporation1 pay dividends on proved claims at any time1 and no liability shall attach to the ,corporation 7in such ,corporation's corporate capacity or as receiver71 by reason of any such payment1 for failure to pay dividends to a claimant whose claim is not proved at the time of any such payment4 7,c7 ,rulemaking authority of ,corporation ,the ,corporation may prescribe such rules1 including definitions of terms1 as it deems appropriate to establish a single uniform interest rate for or to make payments of post insolvency interest to creditors holding proven claims against the receivership estates of payment stablecoin issuers following satisfaction by the ,corporation as receiver of the principal amount of all creditor claims4 7#aa7 ,customer preference 7,a7 ,in general ,subject to section #e7;e77#b77;,c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahae7;e77#b77;,c771 amounts realized from the liquidation or other resolution of a payment stablecoin issuer by the ,corporation as receiver shall be distributed to pay claims 7other than secured claims to the extent of any such security7 in the following order of priority3 7i7 ,administrative expenses of the ,corporation as receiver4 7ii7 ,outstanding payment stablecoin liabilities4 7iii7 ,any other general or senior liability of the issuer 7which is not a liability described in clause 7iv7 or 7v774 7iv7 ,any obligation subordinated to payment stablecoin liabilities or general creditors 7which is not an obligation described in clause 7v774 7v7 ,any obligation to shareholders or members arising as a result of their status as shareholders or members 7including any holding company or any shareholder or creditor of such company74 7,b7 ,rehypothecation of payment stablecoin reserves ,a person who violates section #d shall not be considered to have a secured claim under subparagraph 7,a7 or ,state law4 7,c7 ,effect on ,state law 7i7 ,in general ,the provisions of subparagraph 7,a7 shall not supersede the law of any ,state except to the extent such law is inconsistent with the provisions of such subparagraph1 and then only to the extent of the inconsistency4 7ii7 ,procedure for determination of inconsistency ,upon the ,corporation's own motion or upon the request of any person with a claim described in subparagraph 7,a7 or any ,state which is submitted to the ,corporation in accordance with procedures which the ,corporation shall prescribe1 the ,corporation shall determine whether any provision of the law of any ,state is inconsistent with any provision of subparagraph 7,a7 and the extent of any such inconsistency4 7iii7 ,judicial review ,the final determination of the ,corporation under clause 7ii7 shall be subject to judicial review under chapter #g of title #e1 ,united ,states ,code4 7,d7 ,accounting report ,any distribution by the ,corporation in connection with any claim described in subparagraph 7,a77v7 shall be accompanied by the accounting report required under paragraph 7#ae77;,b74 7#ab7 ,suspension of legal actions 7,a7 ,in general4 ,after the appointment of the ,corporation as conservator or receiver for a payment stablecoin issuer1 the ,corporation may request a stay for a period not to exceed-- 7i7 #de days1 in the case of the ,corporation as conservator2 and 7ii7 #ij days1 in the case of the ,corporation as receiver1 in any judicial action or proceeding to which the issuer is or becomes a party4 7,b7 ,grant of stay by all courts required ,upon receipt of a request by the ,corporation as conservator or receiver pursuant to subparagraph 7,a7 for a stay of any judicial action or proceeding in any court with jurisdiction of such action or proceeding1 the court shall grant such stay as to all parties4 7#ac7 ,additional rights and duties 7,a7 ,prior final adjudication ,the ,corporation shall abide by any final unappealable judgment of any court of competent jurisdiction which was rendered before the appointment of the ,corporation as conservator or receiver4 7,b7 ,rights and remedies of conservator or receiver ,in the event of any appealable judgment1 the ,corporation as conservator or receiver shall-- 7i7 have all the rights and remedies available to the payment stablecoin issuer 7before the appointment of such conservator or receiver7 and the ,corporation in its corporate capacity1 including removal to ,federal court and all appellate rights2 and 7ii7 not be required to post any bond in order to pursue such remedies4 7,c7 ,no attachment or execution ,no attachment or execution may issue by any court upon assets in the possession of the ,corporation as receiver4 7,d7 ,limitation on judicial review ,except as otherwise provided in this subsection1 no court shall have jurisdiction over-- 7i7 any claim or action for payment from1 or any action seeking a determination of rights with respect to1 the assets of a payment stablecoin issuer for which the ,corporation has been appointed receiver1 including assets which the ,corporation may acquire from itself as such receiver2 or 7ii7 any claim relating to any act or omission of such issuer or the ,corporation as receiver4 7,e7 ,disposition of assets ,in exercising any right1 power1 privilege1 or authority as conservator or receiver in connection with any sale or disposition of assets of any payment stablecoin issuer for which the ,corporation has been appointed conservator or receiver1 the ,corporation shall conduct its operations in a manner which-- 7i7 maximizes the net present value return from the sale or disposition of such assets2 7ii7 minimizes the amount of any loss realized in the resolution of cases2 7iii7 ensures adequate competition and fair and consistent treatment of offerors2 and 7iv7 prohibits discrimination on the basis of race1 sex1 or ethnic groups in the solicitation and consideration of offers4 7#ad7 ,statute of limitations for actions brought by conservator or receiver 7,a7 ,in general ,notwithstanding any provision of any contract1 the applicable statute of limitations with regard to any action brought by the ,corporation as conservator or receiver shall be-- 7i7 in the case of any contract claim1 the longer of-- 7,i7 the #f-year period beginning on the date the claim accrues2 or 7,,ii7 the period applicable under ,state law2 and 7ii7 in the case of any tort claim1 the longer of-- 7,i7 the #c-year period beginning on the date the claim accrues2 or 7,,ii7 the period applicable under ,state law4 7,b7 ,determination of the date on which a claim accrues ,for purposes of subparagraph 7,a71 the date on which the statute of limitations begins to run on any claim described in such subparagraph shall be the later of-- 7i7 the date of the appointment of the ,corporation as conservator or receiver2 or 7ii7 the date on which the cause of action accrues4 7,c7 ,revival of expired ,state causes of action 7i7 ,in general ,in the case of any tort claim described in clause 7ii7 for which the statute of limitations applicable under ,state law with respect to such claim has expired not more than #e years before the appointment of the ,corporation as conservator or receiver1 the ,corporation may bring an action as conservator or receiver on such claim without regard to the expiration of the statute of limitations applicable under ,state law4 7ii7 ,claims described ,a tort claim referred to in clause 7i7 is a claim arising from fraud1 intentional misconduct resulting in unjust enrichment1 or intentional misconduct resulting in substantial loss to the institution4 7#ae7 ,accounting and recordkeeping requirements 7,a7 ,in general ,the ,corporation as conservator or receiver shall1 consistent with the accounting and reporting practices and procedures established by the ,corporation1 maintain a full accounting of each conservatorship and receivership or other disposition of issuers in default4 7,b7 ,annual accounting or report ,with respect to each conservatorship or receivership to which the ,corporation was appointed1 the ,corporation shall make an annual accounting or report1 as appropriate1 available to the ,secretary of the ,treasury1 the ,comptroller ,general of the ,united ,states1 and the authority that appointed the ,corporation as conservator or receiver4 7,c7 ,availability of reports ,any report prepared pursuant to subparagraph 7,b7 shall be made available by the ,corporation upon request to any shareholder of the payment stablecoin issuer for which the ,corporation was appointed conservator or receiver or any other member of the public4 7,d7 ,recordkeeping requirement 7i7 ,in general ,except as provided in clause 7ii71 after the end of the #f-year period beginning on the date the ,corporation is appointed as receiver of a payment stablecoin issuer1 the ,corporation may destroy any records of such institution which the ,corporation1 in the ,corporation's discretion1 determines to be unnecessary unless directed not to do so by a court of competent jurisdiction or governmental agency1 or otherwise prohibited by law4 7ii7 ,old records ,notwithstanding clause 7i71 the ,corporation may destroy records of a payment stablecoin issuer which are at least #aj years old as of the date on which the ,corporation is appointed as the receiver of such payment stablecoin issuer in accordance with clause 7i7 at any time after such appointment is final1 without regard to the #f-year period of limitation contained in clause 7i74 7#af7 ,fraudulent transfers 7,a7 ,in general ,the ,corporation1 as conservator or receiver for a payment stablecoin issuer1 may avoid a transfer of any interest of an institution-affiliated party1 or any person who the ,corporation determines is a debtor of the issuer1 in property1 or any obligation incurred by such party or person1 that was made within #e years of the date on which the ,corporation was appointed conservator or receiver if such party or person voluntarily or involuntarily made such transfer or incurred such liability with the intent to hinder1 delay1 or defraud the payment stablecoin issuer1 the ,corporation1 ,board1 ,comptroller1 or a ,state bank supervisor4 7,b7 ,right of recovery ,to the extent a transfer is avoided under subparagraph 7,a71 the ,corporation may recover1 for the benefit of the payment stablecoin issuer1 the property transferred1 or1 if a court so orders1 the value of such property 7at the time of such transfer7 from-- 7i7 the initial transferee of such transfer or the institution-affiliated party or person for whose benefit such transfer was made2 or 7ii7 any immediate or mediate transferee of any such initial transferee4 7,c7 ,rights of transferee or obligee ,the ,corporation may not recover under subparagraph 7,b7 from-- 7i7 any transferee that takes for value1 including satisfaction or securing of a present or antecedent debt1 in good faith2 or 7ii7 any immediate or mediate good faith transferee of such transferee4 7,d7 ,rights in bankruptcy ,the rights under this paragraph of the ,corporation shall be superior to any rights of a trustee or any other party 7other than any party which is a ,federal agency7 under title #aa1 ,united ,states ,code4 7#ag7 ,attachment of assets and other injunctive relief ,subject to paragraph 7#ah71 any court of competent jurisdiction may1 at the request of the ,corporation 7in the ,corporation's capacity as conservator or receiver for any payment stablecoin issuer or in the ,corporation's corporate capacity with respect to any asset acquired or liability assumed by the ,corporation71 issue an order in accordance with ,rule #fe of the ,federal ,rules of ,civil ,procedure1 including an order placing the assets of any person designated by the ,corporation under the control of the court and appointing a trustee to hold such assets4 7#ah7 ,standards 7,a7 ,showing ,rule #fe of the ,federal ,rules of ,civil ,procedure shall apply with respect to any proceeding under paragraph 7#ag7 without regard to the requirement of such rule that the applicant show that the injury1 loss1 or damage is irreparable and immediate4 7,b7 ,state proceeding ,if1 in the case of any proceeding in a ,state court1 the court determines that rules of civil procedure available under the laws of such ,state provide substantially similar protections to such party's right to due process as ,rule #fe 7as modified with respect to such proceeding by subparagraph 7,a771 the relief sought by the ,corporation pursuant to paragraph 7#ag7 may be requested under the laws of such ,state4 7#ai7 ,treatment of claims arising from breach of contracts executed by the receiver or conservator 7,a7 ,in general ,notwithstanding any other provision of this subsection1 any final and unappealable judgment for monetary damages entered against the ,corporation as receiver or conservator for a payment stablecoin issuer for the breach of an agreement executed or approved by the ,corporation after the date of its appointment shall be paid as an administrative expense of the receiver or conservator4 7,b7 ,rule of construction ,nothing in this paragraph shall be construed to limit the power of the ,corporation as receiver or conservator to exercise any rights under contract or law1 including to terminate1 breach1 cancel1 or otherwise discontinue such agreement4 7f7 ,provisions relating to contracts entered into before appointment of conservator or receiver 7#a7 ,authority to repudiate contracts ,in addition to any other rights the ,corporation as conservator or receiver may have1 the ,corporation may disaffirm or repudiate any contract or lease-- 7,a7 to which the issuer is a party2 7,b7 the performance of which the ,corporation1 in the discretion of the ,corporation1 determines to be burdensome2 and 7,c7 the disaffirmance or repudiation of which the ,corporation determines1 in the discretion of the ,corporation1 will promote the orderly administration of the affairs of the issuer4 7#b7 ,timing of repudiation ,the ,corporation as conservator or receiver appointed for any payment stablecoin issuer in accordance with subsection 7d71 shall determine whether or not to exercise the rights of repudiation under this subsection within a reasonable period following such appointment4 7#c7 ,claims for damages for repudiation 7,a7 ,in general ,except as otherwise provided in subparagraph 7,c7 and paragraphs 7#d71 7#e71 and 7#f71 the liability of the ,corporation as conservator or receiver for the disaffirmance or repudiation of any contract pursuant to paragraph 7#a7 shall be-- 7i7 limited to actual direct compensatory damages2 and 7ii7 determined as of-- 7,i7 the date of the appointment of the ,corporation as conservator or receiver2 or 7,,ii7 in the case of any contract or agreement referred to in paragraph 7#h71 the date of the disaffirmance or repudiation of such contract or agreement4 7,b7 ,no liability for other damages ,for purposes of subparagraph 7,a71 the term actual direct compensatory damages does not include-- 7i7 punitive or exemplary damages2 7ii7 damages for lost profits or opportunity2 or 7iii7 damages for pain and suffering4 7,c7 ,measure of damages for repudiation of financial contracts ,in the case of any qualified financial contract or agreement to which paragraph 7#h7 applies1 compensatory damages shall be-- 7i7 deemed to include normal and reasonable costs of cover or other reasonable measures of damages utilized in the industries for such contract and agreement claims2 and 7ii7 paid in accordance with this subsection and subsection 7g7 except as otherwise specifically provided in this section4 7#d7 ,leases under which the issuer is the lessee 7,a7 ,in general ,if the ,corporation as conservator or receiver disaffirms or repudiates a lease under which the payment stablecoin issuer was the lessee1 the conservator or receiver shall not be liable for any damages 7other than damages determined pursuant to subparagraph 7,b77 for the disaffirmance or repudiation of such lease4 7,b7 ,payments of rent ,notwithstanding subparagraph 7,a71 the lessor under a lease to which such subparagraph applies shall-- 7i7 unless the lessor is in default or breach of the terms of the lease1 be entitled to the contractual rent accruing before the later of the date-- 7,i7 the notice of disaffirmance or repudiation is mailed2 or 7,,ii7 the disaffirmance or repudiation becomes effective2 7ii7 have no claim for damages under any acceleration clause or other penalty provision in the lease2 and 7iii7 have a claim for any unpaid rent1 subject to all appropriate offsets and defenses1 due as of the date of the appointment which shall be paid in accordance with this subsection and subsection 7g74 7#e7 ,leases under which the issuer is the lessor 7,a7 ,in general ,if the ,corporation as conservator or receiver repudiates an unexpired written lease of real property of the payment stablecoin issuer under which the issuer is the lessor and the lessee is not1 as of the date of such repudiation1 in default1 the lessee under such lease may either-- 7i7 treat the lease as terminated by such repudiation2 or 7ii7 remain in possession of the leasehold interest for the balance of the term of the lease unless the lessee defaults under the terms of the lease after the date of such repudiation4 7,b7 ,provisions applicable to lessee remaining in possession ,if any lessee under a lease described in subparagraph 7,a7 remains in possession of a leasehold interest pursuant to clause 7ii7 of such subparagraph-- 7i7 the lessee-- 7,i7 shall continue to pay the contractual rent pursuant to the terms of the lease after the date of the repudiation of such lease2 and 7,,ii7 may offset against any rent payment which accrues after the date of the repudiation of the lease1 any damages which accrue after such date due to the nonperformance of any obligation of the payment stablecoin issuer under the lease after such date2 and 7ii7 the ,corporation as conservator or receiver shall not be liable to the lessee for any damages arising after such date as a result of the repudiation other than the amount of any offset allowed under clause 7i77,,ii74 7#f7 ,contracts for the sale of real property 7,a7 ,in general ,if the ,corporation as conservator or receiver repudiates any contract 7which meets the requirements of each paragraph of section #ac7;e7of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e77 for the sale of real property and the purchaser of such real property under such contract is in possession and is not1 as of the date of such repudiation1 in default1 such purchaser may either-- 7i7 treat the contract as terminated by such repudiation2 or 7ii7 remain in possession of such real property4 7,b7 ,provisions applicable to purchaser remaining in possession ,if any purchaser of real property under any contract described in subparagraph 7,a7 remains in possession of such property pursuant to clause 7ii7 of such subparagraph-- 7i7 the purchaser-- 7,i7 shall continue to make all payments due under the contract after the date of the repudiation of the contract2 and 7,,ii7 may offset against any such payments any damages which accrue after such date due to the nonperformance 7after such date7 of any obligation of the payment stablecoin issuer under the contract2 and 7ii7 the ,corporation as conservator or receiver shall-- 7,i7 not be liable to the purchaser for any damages arising after such date as a result of the repudiation other than the amount of any offset allowed under clause 7i77,,ii72 7,,ii7 deliver title to the purchaser in accordance with the provisions of the contract2 and 7,,iii7 have no obligation under the contract other than the performance required under subclause 7,,ii74 7,c7 ,assignment and sale allowed 7i7 ,in general ,no provision of this paragraph shall be construed as limiting the right of the ,corporation as conservator or receiver to assign the contract described in subparagraph 7,a7 and sell the property subject to the contract and the provisions of this paragraph4 7ii7 ,no liability after assignment and sale ,if an assignment and sale described in clause 7i7 is consummated1 the ,corporation as conservator or receiver shall have no further liability under the contract described in subparagraph 7,a7 or with respect to the real property which was the subject of such contract4 7#g7 ,provisions applicable to service contracts 7,a7 ,services performed before appointment ,in the case of any contract for services between any person and any payment stablecoin issuer for which the ,corporation has been appointed conservator or receiver1 any claim of such person for services performed before the appointment of the ,corporation shall be-- 7i7 a claim to be paid in accordance with subsections 7e7 and 7g72 and 7ii7 deemed to have arisen as of the date the ,corporation was appointed conservator or receiver4 7,b7 ,services performed after appointment and prior to repudiation ,if1 in the case of any contract for services described in subparagraph 7,a71 the conservator or receiver accepts performance by the other person before the ,corporation as conservator or receiver makes any determination to exercise the right of repudiation of such contract under this section-- 7i7 the other party shall be paid under the terms of the contract for the services performed2 and 7ii7 the amount of such payment shall be treated as an administrative expense of the conservatorship or receivership4 7,c7 ,acceptance of performance no bar to subsequent repudiation ,the acceptance by the ,corporation as conservator or receiver of services referred to in subparagraph 7,b7 in connection with a contract described in such subparagraph shall not affect the right of the ,corporation as conservator or receiver to repudiate such contract under this section at any time after such performance4 7#h7 ,certain qualified financial contracts 7,a7 ,rights of parties to contracts ,subject to paragraphs 7#i7 and 7#aj7 of this subsection and notwithstanding any other provision of ,federal or ,state law 7other than subsection 7e77#i7 of this section and section #ac7;e7of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e771 no person shall be stayed or prohibited from exercising-- 7i7 any right such person has to cause the termination1 liquidation1 or acceleration of any qualified financial contract with a payment stablecoin issuer which arises upon the appointment of the ,corporation as receiver for such issuer at any time after such appointment2 7ii7 any right under any security agreement or arrangement or other credit enhancement related to one or more qualified financial contracts described in clause 7i72 or 7iii7 any right to offset or net out any termination value1 payment amount1 or other transfer obligation arising under or in connection with #a or more contracts and agreements described in clause 7i71 including any master agreement for such contracts or agreements4 7,b7 ,applicability of other provisions ,subsection 7e77#ab7 shall apply in the case of any judicial action or proceeding brought against the ,corporation as receiver referred to in subparagraph 7,a71 or the payment stablecoin issuer for which the ,corporation was appointed receiver1 by any party to a contract or agreement described in subparagraph 7,a77i7 with such institution4 7,c7 ,certain transfers not avoidable 7i7 ,in general ,notwithstanding paragraph 7#aa71 section #ebdb of the ,revised ,statutes of the ,united ,states 7#ab ,u4,s4,c4 #ia71 or any other ,federal or ,state law relating to the avoidance of preferential or fraudulent transfers1 the ,corporation1 whether acting as such or as conservator or receiver of a payment stablecoin issuer1 may not avoid any transfer of money or other property in connection with any qualified financial contract with a payment stablecoin issuer4 7ii7 ,exception for certain transfers ,clause 7i7 shall not apply to any transfer of money or other property in connection with any qualified financial contract with a payment stablecoin issuer if the ,corporation determines that the transferee had actual intent to hinder1 delay1 or defraud such institution1 the creditors of such institution1 or any conservator or receiver appointed for such institution4 7,d7 ,certain contracts and agreements defined ,for purposes of this subsection1 the following definitions shall apply3 7i7 ,qualified financial contract ,the term qualified financial contract means any securities contract1 commodity contract1 forward contract1 repurchase agreement1 swap agreement1 and any similar agreement that the ,corporation determines by regulation1 resolution or order to be a qualified financial contract for purposes of this paragraph4 7ii7 ,securities contract ,the term securities contract-- 7,i7 means a contract for the purchase1 sale1 or loan of a security1 a certificate of deposit1 a mortgage loan1 any interest in a mortgage loan1 a group or index of securities1 certificates of deposit1 or mortgage loans or interests therein 7including any interest therein or based on the value thereof7 or any option on any of the foregoing1 including any option to purchase or sell any such security1 certificate of deposit1 mortgage loan1 interest1 group or index1 or option1 and including any repurchase or reverse repurchase transaction on any such security1 certificate of deposit1 mortgage loan1 interest1 group or index1 or option 7whether or not such repurchase or reverse repurchase transaction is a repurchase agreement72 7,,ii7 does not include any purchase1 sale1 or repurchase obligation under a participation in a commercial mortgage loan unless the ,corporation determines by regulation1 resolution1 or order to include any such agreement within the meaning of such term2 7,,iii7 means any option entered into on a national securities exchange relating to foreign currencies2 7,,iv7 means the guarantee 7including by novation7 by or to any securities clearing agency of any settlement of cash1 securities1 certificates of deposit1 mortgage loans or interests therein1 group or index of securities1 certificates of deposit1 or mortgage loans or interests therein 7including any interest therein or based on the value thereof7 or option on any of the foregoing1 including any option to purchase or sell any such security1 certificate of deposit1 mortgage loan1 interest1 group or index1 or option 7whether or not such settlement is in connection with any agreement or transaction referred to in subclauses 7,i7 through 7,,xii7 7other than subclause 7,,ii772 7,v7 means any margin loan2 7,,vi7 means any extension of credit for the clearance or settlement of securities transactions2 7,,vii7 means any loan transaction coupled with a securities collar transaction1 any prepaid securities forward transaction1 or any total return swap transaction coupled with a securities sale transaction2 7,,viii7 means any other agreement or transaction that is similar to any agreement or transaction referred to in this clause2 7,,ix7 means any combination of the agreements or transactions referred to in this clause2 7,x7 means any option to enter into any agreement or transaction referred to in this clause2 7,,xi7 means a master agreement that provides for an agreement or transaction referred to in subclause 7,i71 7,,iii71 7,,iv71 7,v71 7,,vi71 7,,vii71 7,,viii71 7,,ix71 or 7,x71 together with all supplements to any such master agreement1 without regard to whether the master agreement provides for an agreement or transaction that is not a securities contract under this clause1 except that the master agreement shall be considered to be a securities contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause 7,i71 7,,iii71 7,,iv71 7,v71 7,,vi71 7,,vii71 7,,viii71 7,,ix71 or 7,x72 and 7,,xii7 means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause1 including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause4 7iii7 ,commodity contract ,the term commodity contract means-- 7,i7 with respect to a futures commission merchant1 a contract for the purchase or sale of a commodity for future delivery on1 or subject to the rules of1 a contract market or board of trade2 7,,ii7 with respect to a foreign futures commission merchant1 a foreign future2 7,,iii7 with respect to a leverage transaction merchant1 a leverage transaction2 7,,iv7 with respect to a clearing organization1 a contract for the purchase or sale of a commodity for future delivery on1 or subject to the rules of1 a contract market or board of trade that is cleared by such clearing organization1 or commodity option traded on1 or subject to the rules of1 a contract market or board of trade that is cleared by such clearing organization2 7,v7 with respect to a commodity options dealer1 a commodity option2 7,,vi7 any other agreement or transaction that is similar to any agreement or transaction referred to in this clause2 7,,vii7 any combination of the agreements or transactions referred to in this clause2 7,,viii7 any option to enter into any agreement or transaction referred to in this clause2 7,,ix7 a master agreement that provides for an agreement or transaction referred to in subclause 7,i71 7,,ii71 7,,iii71 7,,iv71 7,v71 7,,vi71 7,,vii71 or 7,,viii71 together with all supplements to any such master agreement1 without regard to whether the master agreement provides for an agreement or transaction that is not a commodity contract under this clause1 except that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause 7,i71 7,,ii71 7,,iii71 7,,iv71 7,v71 7,,vi71 7,,vii71 or 7,,viii72 or 7,x7 any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause1 including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in this clause4 7iv7 ,forward contract ,the term forward contract means-- 7,i7 a contract 7other than a commodity contract7 for the purchase1 sale1 or transfer of a commodity or any similar good1 article1 service1 right1 or interest which is presently or in the future becomes the subject of dealing in the forward contract trade1 or product or byproduct thereof1 with a maturity date more than #b days after the date the contract is entered into1 including1 a repurchase or reverse repurchase transaction 7whether or not such repurchase or reverse repurchase transaction is a repurchase agreement71 consignment1 lease1 swap1 hedge transaction1 deposit1 loan1 option1 allocated transaction1 unallocated transaction1 or any other similar agreement2 7,,ii7 any combination of agreements or transactions referred to in subclauses 7,i7 and 7,,iii72 7,,iii7 any option to enter into any agreement or transaction referred to in subclause 7,i7 or 7,,ii72 7,,iv7 a master agreement that provides for an agreement or transaction referred to in subclause 7,i71 7,,ii71 or 7,,iii71 together with all supplements to any such master agreement1 without regard to whether the master agreement provides for an agreement or transaction that is not a forward contract under this clause1 except that the master agreement shall be considered to be a forward contract under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause 7,i71 7,,ii71 or 7,,iii72 or 7,v7 any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause 7,i71 7,,ii71 7,,iii71 or 7,,iv71 including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause4 7v7 ,repurchase agreement ,the term repurchase agreement 7which definition also applies to a reverse repurchase agreement7-- 7,i7 means an agreement1 including related terms1 which provides for the transfer of #a or more certificates of deposit1 mortgage related securities 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a771 mortgage loans1 interests in mortgage-related securities or mortgage loans1 eligible bankers' acceptances1 qualified foreign government securities or securities that are direct obligations of1 or that are fully guaranteed by1 the ,united ,states or any agency of the ,united ,states against the transfer of funds by the transferee of such certificates of deposit1 eligible bankers' acceptances1 securities1 mortgage loans1 or interests with a simultaneous agreement by such transferee to transfer to the transferor thereof certificates of deposit1 eligible bankers' acceptances1 securities1 mortgage loans1 or interests as described above1 at a date certain not later than #a year after such transfers or on demand1 against the transfer of funds1 or any other similar agreement2 7,,ii7 does not include any repurchase obligation under a participation in a commercial mortgage loan unless the ,corporation determines by regulation1 resolution1 or order to include any such participation within the meaning of such term2 7,,iii7 means any combination of agreements or transactions referred to in subclauses 7,i7 and 7,,iv72 7,,iv7 means any option to enter into any agreement or transaction referred to in subclause 7,i7 or 7,,iii72 7,v7 means a master agreement that provides for an agreement or transaction referred to in subclause 7,i71 7,,iii71 or 7,,iv71 together with all supplements to any such master agreement1 without regard to whether the master agreement provides for an agreement or transaction that is not a repurchase agreement under this clause1 except that the master agreement shall be considered to be a repurchase agreement under this subclause only with respect to each agreement or transaction under the master agreement that is referred to in subclause 7,i71 7,,iii71 or 7,,iv72 and 7,,vi7 means any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in subclause 7,i71 7,,iii71 7,,iv71 or 7,v71 including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause4 ,for purposes of this clause1 the term qualified foreign government security means a security that is a direct obligation of1 or that is fully guaranteed by1 the central government of a member of the ,organization for ,economic ,cooperation and ,development 7as determined by regulation or order adopted by the ,board74 7vi7 ,swap agreement ,the term swap agreement means-- 7,i7 any agreement1 including the terms and conditions incorporated by reference in any such agreement1 which is an interest rate swap1 option1 future1 or forward agreement1 including a rate floor1 rate cap1 rate collar1 cross-currency rate swap1 and basis swap2 a spot1 same day-tomorrow1 tomorrow-next1 forward1 or other foreign exchange1 precious metals1 or other commodity agreement2 a currency swap1 option1 future1 or forward agreement2 an equity index or equity swap1 option1 future1 or forward agreement2 a debt index or debt swap1 option1 future1 or forward agreement2 a total return1 credit spread or credit swap1 option1 future1 or forward agreement2 a commodity index or commodity swap1 option1 future1 or forward agreement2 weather swap1 option1 future1 or forward agreement2 an emissions swap1 option1 future1 or forward agreement2 or an inflation swap1 option1 future1 or forward agreement2 7,,ii7 any agreement or transaction that is similar to any other agreement or transaction referred to in this clause and that is of a type that has been1 is presently1 or in the future becomes1 the subject of recurrent dealings in the swap or other derivatives markets 7including terms and conditions incorporated by reference in such agreement7 and that is a forward1 swap1 future1 option1 or spot transaction on one or more rates1 currencies1 commodities1 equity securities or other equity instruments1 debt securities or other debt instruments1 quantitative measures associated with an occurrence1 extent of an occurrence1 or contingency associated with a financial1 commercial1 or economic consequence1 or economic or financial indices or measures of economic or financial risk or value2 7,,iii7 any combination of agreements or transactions referred to in this clause2 7,,iv7 any option to enter into any agreement or transaction referred to in this clause2 7,v7 a master agreement that provides for an agreement or transaction referred to in subclause 7,i71 7,,ii71 7,,iii71 or 7,,iv71 together with all supplements to any such master agreement1 without regard to whether the master agreement contains an agreement or transaction that is not a swap agreement under this clause1 except that the master agreement shall be considered to be a swap agreement under this clause only with respect to each agreement or transaction under the master agreement that is referred to in subclause 7,i71 7,,ii71 7,,iii71 or 7,,iv72 and 7,,vi7 any security agreement or arrangement or other credit enhancement related to any agreements or transactions referred to in subclause 7,i71 7,,ii71 7,,iii71 7,,iv71 or 7,v71 including any guarantee or reimbursement obligation in connection with any agreement or transaction referred to in any such subclause4 ,such term is applicable for purposes of this subsection only and shall not be construed or applied so as to challenge or affect the characterization1 definition1 or treatment of any swap agreement under any other statute1 regulation1 or rule1 including the ,gramm-,leach-,bliley ,act 7,public ,law #ajf-ajb2 #aac ,stat4 #acch71 the ,legal ,certainty for ,bank ,products ,act of #bjjj 7#g ,u4,s4,c4 #bg et seq471 the securities laws 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a771 and the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a et seq474 7vii7 ,treatment of master agreement as one agreement ,any master agreement for any contract or agreement described in any preceding clause of this subparagraph 7or any master agreement for such master agreement or agreements71 together with all supplements to such master agreement1 shall be treated as a single agreement and a single qualified financial contract4 ,if a master agreement contains provisions relating to agreements or transactions that are not themselves qualified financial contracts1 the master agreement shall be deemed to be a qualified financial contract only with respect to those transactions that are themselves qualified financial contracts4 7viii7 ,transfer ,the term transfer means every mode1 direct or indirect1 absolute or conditional1 voluntary or involuntary1 of disposing of or parting with property or with an interest in property1 including retention of title as a security interest and foreclosure of the payment stablecoin issuer's equity of redemption4 7ix7 ,person ,the term person includes any governmental entity in addition to any entity included in the definition of such term in section #a of title #a1 ,united ,states ,code4 7,e7 ,certain protections in event of appointment of conservator ,notwithstanding any other provision of ,federal or ,state law 7other than subsections 7e77#i7 and 7f77#aj7 of this section1 and section #ac7;e7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e7771 no person shall be stayed or prohibited from exercising-- 7i7 any right such person has to cause the termination1 liquidation1 or acceleration of any qualified financial contract with a payment stablecoin issuer in a conservatorship based upon a default under such financial contract which is enforceable under applicable non-insolvency law2 7ii7 any right under any security agreement or arrangement or other credit enhancement related to one or more qualified financial contracts described in clause 7i72 or 7iii7 any right to offset or net out any termination values1 payment amounts1 or other transfer obligations arising under or in connection with such qualified financial contracts4 7,f7 ,clarification ,no provision of law shall be construed as limiting the right or power of the ,corporation1 or authorizing any court or agency to limit or delay1 in any manner1 the right or power of the ,corporation to transfer any qualified financial contract in accordance with paragraphs 7#i7 and 7#aj7 of this subsection or to disaffirm or repudiate any such contract in accordance with paragraph 7#a74 7,g7 ,walkaway clauses not effective 7i7 ,in general ,notwithstanding the provisions of subparagraphs 7,a7 and 7,e71 and sections #djc and #djd of the ,federal ,deposit ,insurance ,corporation ,improvement ,act of #aiia 7#ab ,u4,s4,c4 #ddjc1 #ddjd71 no walkaway clause shall be enforceable in a qualified financial contract of a payment stablecoin issuer in default4 7ii7 ,limited suspension of certain obligations ,in the case of a qualified financial contract referred to in clause 7i71 any payment or delivery obligations otherwise due from a party pursuant to the qualified financial contract shall be suspended from the time the ,corporation is appointed as receiver until the earlier of-- 7,i7 the time such party receives notice that such contract has been transferred pursuant to paragraph 7#i77;,a72 or 7,,ii7 #e3jj p4m4 7eastern time7 on the business day following the date of the appointment of the ,corporation as receiver4 7iii7 ,walkaway clause defined ,for purposes of this subparagraph1 the term walkaway clause means any provision in a qualified financial contract that suspends1 conditions1 or extinguishes a payment obligation of a party1 in whole or in part1 or does not create a payment obligation of a party that would otherwise exist1 solely because of such party's status as a nondefaulting party in connection with the insolvency of a payment stablecoin issuer that is a party to the contract or the appointment of or the exercise of rights or powers by the ,corporation as conservator or receiver of such issuer1 and not as a result of a party's exercise of any right to offset1 setoff1 or net obligations that exist under the contract1 any other contract between those parties1 or applicable law4 7,h7 ,recordkeeping requirements ,the ,corporation1 in consultation with the ,board1 ,comptroller and ,state bank supervisors1 may prescribe regulations requiring more detailed recordkeeping by a payment stablecoin issuer with respect to qualified financial contracts 7including market valuations7 if the condition of such payment stablecoin issuer warrants it4 7#i7 ,transfer of qualified financial contracts 7,a7 ,in general4 ,in making any transfer of assets or liabilities of a payment stablecoin issuer in default which includes any qualified financial contract1 the ,corporation as conservator or receiver for such issuer shall either-- 7i7 transfer to one financial institution1 other than a financial institution for which a conservator1 receiver1 trustee in bankruptcy1 or other legal custodian has been appointed or which is otherwise the subject of a bankruptcy or insolvency proceeding-- 7,i7 all qualified financial contracts between any person or any affiliate of such person and the payment stablecoin issuer in default2 7,,ii7 all claims of such person or any affiliate of such person against such issuer under any such contract 7other than any claim which1 under the terms of any such contract1 is subordinated to the claims of general unsecured creditors of such issuer72 7,,iii7 all claims of such payment stablecoin issuer against such person or any affiliate of such person under any such contract2 and 7,,iv7 all property securing or any other credit enhancement for any contract described in subclause 7,i7 or any claim described in subclause 7,,ii7 or 7,,iii7 under any such contract2 or 7ii7 transfer none of the qualified financial contracts1 claims1 property or other credit enhancement referred to in clause 7i7 7with respect to such person and any affiliate of such person74 7,b7 ,transfer to a foreign bank1 foreign financial institution1 or branch or agency of a foreign bank or financial institution ,in transferring any qualified financial contracts and related claims and property under subparagraph 7,a77i71 the ,corporation as conservator or receiver for the payment stablecoin issuer shall not make such transfer to a foreign bank1 financial institution organized under the laws of a foreign country1 or a branch or agency of a foreign bank or financial institution unless1 under the law applicable to such bank1 financial institution1 branch or agency1 to the qualified financial contracts1 and to any netting contract1 any security agreement or arrangement or other credit enhancement related to one or more qualified financial contracts1 the contractual rights of the parties to such qualified financial contracts1 netting contracts1 security agreements or arrangements1 or other credit enhancements are enforceable substantially to the same extent as permitted under this section4 7,c7 ,transfer of contracts subject to the rules of a clearing organization ,in the event that the ,corporation as conservator or receiver transfers any qualified financial contract and related claims1 property1 and credit enhancements pursuant to subparagraph 7,a77i7 and such contract is cleared by or subject to the rules of a clearing organization1 the clearing organization shall not be required to accept the transferee as a member by virtue of the transfer4 7,d7 ,definitions ,for purposes of this paragraph-- 7i7 the term financial institution means a broker or dealer1 a depository institution1 a futures commission merchant1 or any other institution1 as determined by the ,corporation by regulation to be a financial institution2 and 7ii7 the term clearing organization has the meaning given the term in section #djb of the ,federal ,deposit ,insurance ,corporation ,improvement ,act of #aiia 7#ab ,u4,s4,c4 #ddjb74 7#aj7 ,notification of transfer 7,a7 ,in general ,if the ,corporation as conservator or receiver for a payment stablecoin issuer in default makes any transfer of the assets and liabilities of such institution1 and the transfer includes any qualified financial contract1 the conservator or receiver shall notify any person who is a party to any such contract of such transfer by #e3jj p4m4 7eastern time7 on the business day following the date of the appointment of the ,corporation as receiver in the case of a receivership1 or the business day following such transfer in the case of a conservatorship4 7,b7 ,certain rights not enforceable 7i7 ,receivership ,a person who is a party to a qualified financial contract with a payment stablecoin issuer may not exercise any right that such person has to terminate1 liquidate1 or net such contract under paragraph 7#h77;,a7 of this subsection or section #djc or #djd of the ,federal ,deposit ,insurance ,corporation ,improvement ,act of #aiia 7#ab ,u4,s4,c4 #ddjc1 #ddjd71 solely by reason of or incidental to the appointment of the ,corporation as receiver for the payment stablecoin issuer 7or the insolvency or financial condition of the issuer for which the receiver has been appointed7-- 7,i7 until #e3jj p4m4 7eastern time7 on the business day following the date of the appointment of the receiver2 or 7,,ii7 after the person has received notice that the contract has been transferred pursuant to paragraph 7#i77;,a74 7ii7 ,conservatorship ,a person who is a party to a qualified financial contract with a payment stablecoin issuer may not exercise any right that such person has to terminate1 liquidate1 or net such contract under paragraph 7#h77;,e7 of this subsection or section #djc or #djd of the ,federal ,deposit ,insurance ,corporation ,improvement ,act of #aiia 7#ab ,u4,s4,c4 #ddjc1 #ddjd71 solely by reason of or incidental to the appointment of the ,corporation as conservator for the payment stablecoin issuer 7or the insolvency or financial condition of the issuer for which the ,corporation has been appointed conservator74 7iii7 ,notice ,for purposes of this paragraph1 the ,corporation as receiver or conservator of a payment stablecoin issuer shall be deemed to have notified a person who is a party to a qualified financial contract with such issuer if the ,corporation has taken steps that are reasonably calculated to provide notice to such person by the time specified in subparagraph 7,a74 7,c7 ,business day defined ,for purposes of this paragraph1 the term business day means any day other than any ,saturday1 ,sunday1 or any day on which either the ,new ,york ,stock ,exchange or the ,federal ,reserve ,bank of ,new ,york is closed4 7#aa7 ,disaffirmance or repudiation of qualified financial contracts ,in exercising the rights of disaffirmance or repudiation of a conservator or receiver with respect to any qualified financial contract to which a payment stablecoin issuer is a party1 the ,corporation as conservator or receiver for such issuer shall either-- 7,a7 disaffirm or repudiate all qualified financial contracts between-- 7i7 any person or any affiliate of such person2 and 7ii7 the payment stablecoin issuer in default2 or 7,b7 disaffirm or repudiate none of the qualified financial contracts referred to in subparagraph 7,a7 7with respect to such person or any affiliate of such person74 7#ab7 ,certain security interests not avoidable ,no provision of this subsection shall be construed as permitting the avoidance of any legally enforceable or perfected security interest in any of the assets of any payment stablecoin issuer except where such an interest is taken in contemplation of the issuer's insolvency or with the intent to hinder1 delay1 or defraud the issuer or the creditors of such issuer4 7#ac7 ,authority to enforce contracts 7,a7 ,in general ,the ,corporation as conservator or receiver may enforce any contract1 other than a director's or officer's liability insurance contract or a bond1 entered into by the payment stablecoin issuer notwithstanding any provision of the contract providing for termination1 default1 acceleration1 or exercise of rights upon1 or solely by reason of1 insolvency or the appointment of or the exercise of rights or powers by the ,corporation as conservator or receiver4 7,b7 ,certain rights not affected ,no provision of this paragraph may be construed as impairing or affecting any right of the ,corporation as conservator or receiver to enforce or recover under a director's or officer's liability insurance contract or bond under other applicable law4 7,c7 ,consent requirement 7i7 ,in general ,except as otherwise provided by this section or section #ae of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbe71 no person may exercise any right or power to terminate1 accelerate1 or declare a default under any contract to which the payment stablecoin issuer is a party1 or to obtain possession of or exercise control over any property of the issuer or affect any contractual rights of the issuer1 without the consent of the ,corporation as conservator or receiver1 as appropriate1 during the #de-;day period beginning on the date of the appointment of the ,corporation as conservator1 or during the #ij-;day period beginning on the date of the appointment of the ,corporation as receiver1 as applicable4 7ii7 ,certain exceptions ,no provision of this subparagraph shall apply to a director or officer liability insurance contract or bond1 to the rights of parties to certain qualified financial contracts pursuant to paragraph 7#h71 or to the rights of parties to netting contracts pursuant to subtitle ,a of title ,,iv of the ,federal ,deposit ,insurance ,corporation ,improvement ,act of #aiia 7#ab ,u4,s4,c4 #ddja et seq471 or shall be construed as permitting the ,corporation as conservator or receiver to fail to comply with otherwise enforceable provisions of such contract4 7iii7 ,rule of construction ,nothing in this subparagraph shall be construed to limit or otherwise affect the applicability of title #aa1 ,united ,states ,code4 7#ad7 ,savings clause ,the meanings of terms used in this subsection are applicable for purposes of this subsection only1 and shall not be construed or applied so as to challenge or affect the characterization1 definition1 or treatment of any similar terms under any other statute1 regulation1 or rule1 including the ,gramm-,leach-,bliley ,act 7,public ,law #ajf-ajb2 #aac ,stat4 #acch71 the ,legal ,certainty for ,bank ,products ,act of #bjjj 7#g ,u4,s4,c4 #bg et seq471 the securities laws 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a771 and the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a et seq474 7g7 ,payment of stablecoin liabilities 7#a7 ,in general ,in case of the liquidation of1 or other closing or winding up of the affairs of a payment stablecoin issuer1 payment of the outstanding payment stablecoin liabilities of the issuer shall be made by the ,corporation as soon as possible1 subject to the provisions of subsection 7h71 either by cash or by making available to each depositor a transferred deposit in an insured depository institution4 7#b7 ,proof of claims ,the ,corporation1 in its discretion1 may require proof of claims to be filed and may approve or reject such claims for payment stablecoin liabilities4 7#c7 ,resolution of disputes ,a determination by the ,corporation regarding any claim for payment of stablecoin liabilities shall be treated as a final determination for purposes of this section4 ,in its discretion1 the ,corporation may promulgate regulations prescribing procedures for resolving any disputed claim4 7#d7 ,review of ,corporation determination ,a final determination made by the ,corporation regarding any claim for payment of stablecoin liabilities shall be a final agency action reviewable in accordance with chapter #g of title #e1 ,united ,states ,code1 by the ,united ,states district court for the ,federal judicial district where the principal place of business of the payment stablecoin issuer is located4 7#e7 ,statute of limitations ,any request for review of a final determination by the ,corporation regarding any claim regarding payment of stablecoin liabilities shall be filed with the appropriate ,united ,states district court not later than #fj days after the date on which such determination is issued4 7h7 ,subrogation of ,corporation 7#a7 ,in general ,notwithstanding any other provision of ,federal law1 the law of any ,state1 or the constitution of any ,state1 the ,corporation1 upon the payment to any customer as provided in subsection 7g7 in connection with a payment stablecoin issuer described in such subsection or the assumption of payment stablecoin liabilities by another payment stablecoin issuer pursuant to this section1 shall be subrogated to all rights of the customer against such issuer to the extent of such payment or assumption4 7#b7 ,dividends on subrogated amounts ,the subrogation of the ,corporation under paragraph 7#a7 with respect to any payment stablecoin issuer shall include the right on the part of the ,corporation to receive the same dividends from the proceeds of the assets of such issuer and recoveries on account of stockholders' liability as would have been payable to the customer on a claim for the stablecoin liability4 7#c7 ,waiver of certain claims ,with respect to a payment stablecoin issuer1 the ,corporation shall waive1 in favor only of any person against whom stockholders' individual liability may be asserted1 any claim on account of such liability in excess of the liability1 if any1 to the issuer or its creditors1 for the amount unpaid upon such stock in such issuer2 but any such waiver shall be effected in such manner and on such terms and conditions as will not increase recoveries or dividends on account of claims to which the ,corporation is not subrogated4 7#d7 ,applicability of ,state law ,subject to subsection 7e77#aa71 if the ,corporation is appointed pursuant to subsection 7d77#c71 the rights of customers and other creditors of any ,state-chartered payment stablecoin issuer shall be determined in accordance with the applicable provisions of ,state law4 7i7 ,valuation of claims in default 7#a7 ,in general ,notwithstanding any other provision of ,federal law or the law of any ,state and regardless of the method which the ,corporation determines to utilize with respect to a payment stablecoin issuer in default or in danger of default1 including transactions authorized under subsection 7o71 this subsection shall govern the rights of the creditors 7other than customers7 of such institution4 7#b7 ,maximum liability ,the maximum liability of the ,corporation1 acting as receiver or in any other capacity1 to any person having a claim against the receiver or the payment stablecoin issuer for which such receiver is appointed shall equal the amount such claimant would have received if the ,corporation had liquidated the assets and liabilities of such institution without exercising the ,corporation's authority under subsection 7o7 of this section4 7j7 ,limitation on court action ,except as provided in this section1 no court may take any action1 except at the request of the ,board of ,directors of the ,corporation by regulation or order1 to restrain or affect the exercise of powers or functions of the ,corporation as a conservator or a receiver4 7k7 ,liability of directors and officers ,a director or officer of a payment stablecoin issuer may be held personally liable for monetary damages in any civil action by1 on behalf of1 or at the request or direction of the ,corporation1 which action is prosecuted wholly or partially for the benefit of the ,corporation-- 7#a7 acting as conservator or receiver of such issuer2 7#b7 acting based upon a suit1 claim1 or cause of action purchased from1 assigned by1 or otherwise conveyed by such receiver or conservator2 or 7#c7 for gross negligence1 including any similar conduct or conduct that demonstrates a greater disregard of a duty of care 7than gross negligence7 including intentional tortious conduct1 as such terms are defined and determined under applicable ,state law1 provided that nothing in this paragraph shall impair or affect any right of the ,corporation under other applicable law4 7l7 ,damages ,in any proceeding related to any claim against a payment stablecoin issuer's director1 officer1 employee1 agent1 attorney1 accountant1 appraiser1 or any other party employed by or providing services to a payment stablecoin issuer1 recoverable damages determined to result from the improvident or otherwise improper use or investment of any payment stablecoin issuer's assets shall include principal losses and appropriate interest4 7m7 ,bridge payment stablecoin issuers 7#a7 ,organization 7,a7 ,purpose ,when #a or more payment stablecoin issuers are in default1 or when the ,corporation anticipates that #a or more payment stablecoin issuers may become in default1 the ,corporation may1 in its discretion1 organize1 and the ,office of the ,comptroller of the ,currency1 with respect to #a or more payment stablecoin issuers1 shall charter1 #a or more depository institutions1 as appropriate1 with respect thereto with the powers and attributes of payment stablecoin issuers as applicable1 subject to the provisions of this subsection1 to be referred to as bridge payment stablecoin issuers4 7,b7 ,authorities ,upon the granting of a charter to a bridge payment stablecoin issuer1 the bridge issuer may-- 7i7 assume such payment stablecoin assets and liabilities of the payment stablecoin issuer that is or are in default or in danger of default as the ,corporation may1 in its discretion1 determine to be appropriate2 and 7ii7 perform any other temporary function which the ,corporation may1 in its discretion1 prescribe in accordance with this the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq474 7,c7 ,articles of association ,the articles of association and organization certificate of a bridge payment stablecoin issuer as approved by the ,corporation shall be executed by #c representatives designated by the ,corporation4 7,d7 ,interim directors ,a bridge payment stablecoin issuer shall have an interim board of directors consisting of not fewer than #e nor more than #aj members appointed by the ,corporation4 7,e7 ,national bank or ,federal savings association ,a bridge payment stablecoin issuer shall be organized as a depository institution under the ,national ,bank ,act 7#ab ,u4,s4,c4 #ba et seq474 7#b7 ,chartering 7,a7 ,conditions ,a depository institution may be chartered by the ,comptroller as a bridge payment stablecoin issuer only if the ,board of ,directors of the ,corporation determines that-- 7i7 the amount which is reasonably necessary to operate such bridge issuer will not exceed the amount which is reasonably necessary to save the cost of liquidating1 including paying the liabilities of1 #a or more payment stablecoin issuers in default or in danger of default with respect to which the bridge payment stablecoin issuer is chartered2 7ii7 the continued operation of such payment stablecoin issuer or issuers in default or in danger of default with respect to which the bridge payment stablecoin issuer is chartered is essential to provide continued services to the customers of the issuer2 or 7iii7 the continued operation of such payment stablecoin issuer or issuers in default or in danger of default with respect to which the bridge issuer is chartered is in the best interest of the customer of such issuer or issuers in default or in danger of default or the public4 7,b7 ,insured national bank or ,federal savings association ,a bridge depository institution shall be a national payment stablecoin issuer from the time it is chartered by the ,comptroller as a depository institution4 7,c7 ,bridge bank treated as being in default for certain purposes ,a bridge payment stablecoin issuer shall be treated as an issuer in default at such times and for such purposes as the ,corporation may1 in its discretion1 determine4 7,d7 ,management ,a bridge payment stablecoin issuer1 upon the granting of its charter1 shall be under the management of a board of directors consisting of not fewer than #e nor more than #aj members appointed by the ,corporation4 7,e7 ,bylaws ,the board of directors of a bridge payment stablecoin issuer shall adopt such bylaws as may be approved by the ,corporation4 7#c7 ,transfer of assets and liabilities 7,a7 ,in general 7i7 ,transfer upon grant of charter ,upon the granting of a charter to a bridge payment stablecoin issuer pursuant to this subsection1 the ,corporation1 as receiver1 or any other receiver appointed with respect to any payment stablecoin issuer in default with respect to which the bridge payment stablecoin issuer is chartered may transfer any assets and liabilities of such issuer in default to the bridge issuer in accordance with paragraph 7#a74 7ii7 ,subsequent transfers ,at any time after a charter is granted to a bridge payment stablecoin issuer1 the ,corporation1 as receiver1 or any other receiver appointed with respect to a payment stablecoin issuer in default may transfer any assets and liabilities of such issuer in default as the ,corporation may1 in its discretion1 determine to be appropriate in accordance with paragraph 7#a74 7iii7 ,effective without approval ,the transfer of any assets or liabilities of a payment stablecoin issuer in default transferred to a bridge payment stablecoin issuer shall be effective without any further approval under ,federal or ,state law1 assignment1 or consent with respect thereto4 7#d7 ,powers of bridge payment stablecoin issuers ,each bridge payment stablecoin issue chartered under this subsection shall have all corporate powers of1 and be subject to the same provisions of law as1 a payment stablecoin issuer that is a depository institution chartered by the ,comptroller1 as appropriate1 except that-- 7,a7 the ,corporation may-- 7i7 remove the interim directors and directors of a bridge issuer2 7ii7 fix the compensation of members of the interim board of directors and the board of directors and senior management1 as determined by the ,corporation in its discretion1 of a bridge issuer2 and 7iii7 waive any requirement established under section #eade1 #eadf1 #eadg1 #eadh1 or #eadi of the ,revised ,statutes 7relating to directors of national banks7 or section #ca of the ,banking ,act of #aicc 7#ab ,u4,s4,c4 #ga;a7 which would otherwise be applicable with respect to directors of a bridge issuer by operation of paragraph 7#b77;,b72 7,b7 the ,corporation may indemnify the representatives for purposes of paragraph 7#a77;,b7 and the interim directors1 directors1 officers1 employees1 and agents of a bridge payment stablecoin issuer on such terms as the ,corporation determines to be appropriate2 7,c7 no requirement under any provision of law relating to the capital of a payment stablecoin issuer shall apply with respect to a bridge issuer2 7,d7 the ,comptroller of the ,currency may establish a limitation on the extent to which any person may become indebted to a bridge issuer without regard to the amount of the bridge issuer's capital or surplus2 7,e7 7i7 the board of directors of a bridge payment stablecoin issuer shall elect a chairperson who may also serve in the position of chief executive officer1 except that such person shall not serve either as chairperson or as chief executive officer without the prior approval of the ,corporation2 and 7ii7 the board of directors of a bridge payment stablecoin issuer may appoint a chief executive officer who is not also the chairperson1 except that such person shall not serve as chief executive officer without the prior approval of the ,corporation2 7,f7 the ,comptroller shall waive any requirement for a fidelity bond with respect to a bridge payment stablecoin issuer at the request of the ,corporation2 7,g7 any judicial action to which a bridge payment stablecoin issuer becomes a party by virtue of its acquisition of any assets or assumption of any liabilities of a payment stablecoin issuer in default shall be stayed from further proceedings for a period of up to #de days at the request of the bridge issuer2 7,h7 no agreement which tends to diminish or defeat the right1 title or interest of a bridge payment stablecoin issuer in any asset of a payment stablecoin issuer in default acquired by it shall be valid against the bridge issuer unless such agreement-- 7i7 is in writing2 7ii7 was executed by such payment stablecoin issuer in default and the person or persons claiming an adverse interest thereunder1 including the obligor1 contemporaneously with the acquisition of the asset by such issuer in default2 7iii7 was approved by the board of directors of such payment stablecoin issuer in default1 which approval shall be reflected in the minutes of said board2 and 7iv7 has been1 continuously from the time of its execution1 an official record of such payment stablecoin issuer in default2 and 7,i7 except with the prior approval of the ,corporation1 a bridge payment stablecoin issuer may not1 in any transaction or series of transactions1 issue capital stock or be a party to any merger1 consolidation1 disposition of assets or liabilities1 sale or exchange of capital stock1 or similar transaction1 or change its charter4 7#e7 ,capital 7,a7 ,no capital required ,the ,corporation shall not be required to-- 7i7 issue any capital stock on behalf of a bridge payment stablecoin issuer chartered under this subsection2 or 7ii7 purchase any capital stock of a bridge payment stablecoin issuer4 7,b7 ,capital of insolvent institution ,upon the organization of a bridge payment stablecoin issuer1 the capital of the insolvent payment stablecoin issuer shall be used to fund the operations of the bridge issuer4 7,c7 ,authority to issue capital stock ,whenever the ,board of ,directors of the ,corporation determines it is advisable to do so1 the ,corporation shall cause capital stock of a bridge payment stablecoin issuer to be issued and offered for sale in such amounts and on such terms and conditions as the ,corporation may1 in its discretion1 determine4 7,d7 ,capital levels ,a bridge payment stablecoin issuer shall not be considered undercapitalized under any other provision of ,federal law4 7#f7 ,no ,federal status 7,a7 ,agency status ,a bridge payment stablecoin issuer shall not be considered an agency1 establishment1 or instrumentality of the ,united ,states4 7,b7 ,employee status ,representatives for purposes of paragraph 7#a77;,c71 interim directors1 directors1 officers1 employees1 or agents of a bridge payment stablecoin issuer shall not be considered1 solely by virtue of service in any such capacity1 officers or employees of the ,united ,states4 ,any employee of the ,corporation or of any ,federal instrumentality who serves at the request of the ,corporation as a representative for purposes of paragraph 7#a77;,c71 interim director1 director1 officer1 employee1 or agent of a bridge payment stablecoin issuer shall not-- 7i7 solely by virtue of service in any such capacity lose any existing status as an officer or employee of the ,united ,states for purposes of title #e1 ,united ,states ,code1 or any other provision of law2 or 7ii7 receive any salary or benefits for service in any such capacity with respect to a bridge payment stablecoin issuer in addition to such salary or benefits as are obtained through employment with the ,corporation or such ,federal instrumentality4 7#g7 ,duration of bridge payment stablecoin issuer ,subject to paragraphs 7#h7 and 7#i71 the status of a bridge payment stablecoin issuer as such shall terminate at the end of the #b-year period following the date it was granted a charter4 ,the ,board of ,directors of the ,corporation may1 in its discretion1 extend the status of the bridge payment stablecoin issuer as such for #c additional #a-year periods4 7#h7 ,termination of bridge payment stablecoin issuer status ,the status of any bridge payment stablecoin issuer as such shall terminate upon the earliest of-- 7,a7 the merger or consolidation of the bridge issuer with a payment stablecoin issuer that is not a bridge issuer2 7,b7 at the election of the ,corporation1 the sale of a majority of the capital stock of the bridge payment stablecoin issuer to an entity other than the ,corporation and other than another bridge issuer2 7,c7 the sale of #hj percent1 or more1 of the capital stock of the bridge payment stablecoin issuer to an entity other than the ,corporation and other than another bridge issuer2 7,d7 at the election of the ,corporation1 either the assumption of all or substantially all of the payment stablecoin liabilities of the bridge payment stablecoin issuer by another payment stablecoin issuer1 or the acquisition of all or substantially all of the assets of the bridge issuer by a payment stablecoin issuer that is not a bridge issuer1 or other entity as permitted under applicable law2 and 7,e7 the expiration of the period provided in paragraph 7#g71 or the earlier dissolution of the bridge payment stablecoin issuer as provided in paragraph 7#aj74 7#i7 ,effect of termination events 7,a7 ,merger or consolidation ,a bridge payment stablecoin issuer that participates in a merger or consolidation as provided in paragraph 7#h77;,a7 shall be for all purposes a payment stablecoin issuer that is a depository institution under the supervision and regulation of the ,comptroller1 as the case may be1 with all the rights1 powers1 and privileges thereof1 and such merger or consolidation shall be conducted in accordance with1 and shall have the effect provided in1 the provisions of applicable law4 7,b7 ,charter conversion ,following the sale of a majority of the capital stock of the bridge payment stablecoin issuer as provided in paragraph 7#h77;,b71 the ,corporation may amend the charter of the bridge payment stablecoin issuer to reflect the termination of the status of the bridge issuer as such1 whereupon the issuer shall remain a depository institution under the supervision of the ,comptroller1 as the case may be1 with all of the rights1 powers1 and privileges thereof1 subject to all laws and regulations applicable thereto4 7,c7 ,sale of stock ,following the sale of #hj percent or more of the capital stock of a bridge payment stablecoin issuer as provided in paragraph 7#h77;,c71 the payment stablecoin issuer shall remain a depository institution that is a payment stablecoin issuer under the supervision of the ,comptroller1 with all of the rights1 powers1 and privileges thereof1 subject to all laws and regulations applicable thereto4 7,d7 ,assumption of liabilities and sale of assets ,following the assumption of all or substantially all of the liabilities of the bridge payment stablecoin issuer1 or the sale of all or substantially all of the assets of the bridge issuer1 as provided in paragraph 7#h77;,d71 at the election of the ,corporation1 the bridge issuer may retain its status as such for the period provided in paragraph 7#g74 7,e7 ,amendments to charter ,following the consummation of a transaction described in subparagraph 7,a71 7,b71 7,c71 or 7,d7 of paragraph 7#h71 the charter of the resulting issuer shall be amended to reflect the termination of bridge payment stablecoin issuer status1 if appropriate4 7#aj7 ,dissolution of bridge payment stablecoin issuer 7,a7 ,in general ,notwithstanding any other provision of ,state or ,federal law1 if the bridge payment stablecoin issuer's status as such has not previously been terminated by the occurrence of an event specified in subparagraph 7,a71 7,b71 7,c71 or 7,d7 of paragraph 7#h7-- 7i7 the ,board of ,directors of the ,corporation may1 in its discretion1 dissolve a bridge payment stablecoin issuer in accordance with this paragraph at any time2 and 7ii7 the ,board of ,directors of the ,corporation shall promptly commence dissolution proceedings in accordance with this paragraph upon the expiration of the #b-year period following the date the bridge payment stablecoin issuer was chartered1 or any extension thereof1 as provided in paragraph 7#g74 7,b7 ,procedures ,the ,comptroller shall appoint the ,corporation as receiver for a bridge payment stablecoin issuer upon certification by the ,board of ,directors of the ,corporation to the ,comptroller of its determination to dissolve the bridge issuer4 ,the ,corporation as such receiver shall wind up the affairs of the bridge issuer4 ,with respect to any such bridge payment stablecoin issuer1 the ,corporation as such receiver shall have all the rights1 powers1 and privileges and shall perform the duties related to the exercise of such rights1 powers1 or privileges granted by law to a receiver of payment stablecoin issuers and notwithstanding any other provision of law in the exercise of such rights1 powers1 and privileges the ,corporation shall not be subject to the direction or supervision of any ,state agency or other ,federal agency4 7#aa7 ,multiple bridge payment stablecoin issuers ,subject to paragraph 7#a77;,b77i71 the ,corporation may1 in the ,corporation's discretion1 organize #b or more bridge payment stablecoin issuers under this subsection to assume any payment stablecoin liabilities1 and purchase any assets of a single payment stablecoin issuer in default4 7n7 ,supervisory records ,whenever the ,corporation has been appointed as receiver for a payment stablecoin issuer1 the ,comptroller or ,state bank supervisor1 and the ,board1 shall make available all supervisory records to the receiver which may be used by the receiver in any manner the receiver determines to be appropriate4 7o7 ,certain sales of assets prohibited 7#a7 ,persons who engaged in improper conduct with1 or caused losses to1 payment stablecoin issuers ,the ,corporation shall prescribe regulations which1 at a minimum1 shall prohibit the sale of assets of a failed payment stablecoin issuer by the ,corporation to-- 7,a7 any person who-- 7i7 has defaulted1 or was a member of a partnership or an officer or director of a corporation that has defaulted1 on #a or more obligations the aggregate amount of which exceed #a1jjj1jjj1 to such failed payment stablecoin issuer2 and 7ii7 proposes to purchase any such asset in whole or in part through the use of the proceeds of a loan or advance of credit from the ,corporation or from any institution for which the ,corporation has been appointed as conservator or receiver2 7,b7 any person who participated1 as an officer or director of such failed issuer or of any affiliate of such issuer1 in a material way in transactions that resulted in a substantial loss to such failed issuer2 7,c7 any person who has been removed from1 or prohibited from participating in the affairs of1 such failed issuer pursuant to any final enforcement action by the ,comptroller1 ,state bank supervisor or the ,board2 or 7,d7 any person who has demonstrated a pattern or practice of defalcation regarding obligations to such failed issuer4 7#b7 ,convicted debtors ,except as provided in paragraph 7#c71 any person who has been convicted of an offense under section #bae1 #fef1 #feg1 #ajje1 #ajjf1 #ajjg1 #ajjh1 #ajad1 #ajcb1 #acda1 #acdc1 or #acdd of title #ah1 ,united ,states ,code1 or of conspiring to commit such an offense1 affecting any payment stablecoin issuer for which the ,corporation was appointed conservator or receiver1 may not purchase any asset of such institution from the ,corporation as conservator or receiver4 7#c7 ,settlement of claims ,paragraphs 7#a7 and 7#b7 shall not apply to the sale or transfer by the ,corporation of any asset of any payment stablecoin issuer to any person if the sale or transfer of the asset resolves or settles1 or is part of the resolution or settlement1 of-- 7,a7 #a or more claims that have been1 or could have been1 asserted by the ,corporation against the person2 or 7,b7 obligations owed by the person to any payment stablecoin issuer or the ,corporation4 7p7 ,expedited procedures for certain claims 7#a7 ,time for filing notice of appeal ,the notice of appeal of any order1 whether interlocutory or final1 entered in any case brought by the ,corporation against a payment stablecoin issuer's director1 officer1 employee1 agent1 attorney1 accountant1 or appraiser or any other person employed by or providing services to a payment stablecoin issuer shall be filed not later than #cj days after the date of entry of the order4 ,the hearing of the appeal shall be held not later than #abj days after the date of the notice of appeal4 ,the appeal shall be decided not later than #ahj days after the date of the notice of appeal4 7#b7 ,scheduling ,consistent with section #afeg of title #bh1 ,united ,states ,code1 a court of the ,united ,states shall expedite the consideration of any case brought by the ,corporation against a payment stablecoin issuer's director1 officer1 employee1 agent1 attorney1 accountant1 or appraiser or any other person employed by or providing services to the issuer4 ,as far as practicable1 the court shall give such case priority on its docket4 7#c7 ,judicial discretion ,the court may modify the schedule and limitations stated in paragraphs 7#a7 and 7#b7 in a particular case1 based on a specific finding that the ends of justice that would be served by making such a modification would outweigh the best interest of the public in having the case resolved expeditiously4 7q7 ,foreign investigations ,the ,corporation1 as conservator or receiver of a payment stablecoin and for purposes of carrying out any power1 authority1 or duty with respect to an issuer-- 7#a7 may request the assistance of any foreign banking authority and provide assistance to any foreign banking authority in accordance with section #h7v7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7v772 and 7#b7 may each maintain an office to coordinate foreign investigations or investigations on behalf of foreign banking authorities4 7r7 ,prohibition on entering secrecy agreements and protective orders ,the ,corporation may not enter into any agreement or approve any protective order which prohibits the ,corporation from disclosing the terms of any settlement of an administrative or other action for damages or restitution brought by the ,corporation in its capacity as conservator or receiver for a payment stablecoin issuer4 7s7 ,agencies may share information without waiving privilege 7#a7 ,in general ,a covered agency1 in any capacity1 shall not be deemed to have waived any privilege applicable to any information by transferring that information to or permitting that information to be used by-- 7,a7 any other covered agency1 in any capacity2 or 7,b7 any other agency of the ,federal ,government 7as defined in section #f of title #ah1 ,united ,states ,code74 7#b7 ,definitions ,for purposes of this subsection3 7,a7 ,covered agency ,the term covered agency means any of the following3 7i7 ,any ,federal banking agency or ,state bank supervisor4 7ii7 ,the ,farm ,credit ,administration4 7iii7 ,the ,farm ,credit ,system ,insurance ,corporation4 7iv7 ,the ,national ,credit ,union ,administration4 7v7 ,the ,government ,accountability ,office4 7vi7 ,the ,bureau of ,consumer ,financial ,protection4 7vii7 ,the ,federal ,housing ,finance ,agency4 7,b7 ,privilege ,the term privilege includes any work-product1 attorney-client1 or other privilege recognized under ,federal or ,state law4 7#c7 ,rule of construction ,paragraph 7#a7 shall not be construed as implying that any person waives any privilege applicable to any information because paragraph 7#a7 does not apply to the transfer or use of that information4 #aj4 ,conforming amendments 7a7 ,title #aa ,section #aji7;b77#b7 of title #aa1 ,united ,states ,code1 is amended to read as follows3 7#b7 a domestic insurance company1 bank 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac771 savings bank1 cooperative bank1 savings and loan association1 building and loan association1 depository institution1 homestead association1 a ,new ,markets ,venture ,capital company as defined in section #cea of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fhi71 a small business investment company licensed by the ,small ,business ,administration under section #cja of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fha71 credit union1 payment stablecoin issuer 7as defined in section #ja of the ,lummis-,gillibrand ,payment ,stablecoin ,act71 or industrial bank or similar institution that is an insured bank 7as defined in section #c7;h7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7;h772 or 4 7b7 ,federal ,deposit ,insurance ,act ,section #ac7;e77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;e77#a77 is amended-- 7#a7 in the matter preceding subparagraph 7,a71 by inserting or a payment stablecoin issuer after any insured depository institution2 7#b7 in subparagraph 7,b71 by inserting or the payment stablecoin issuer after the depository institution each place it appears2 7#c7 in subparagraph 7,c71 by striking the the depository institution or its loan committee and inserting the depository institution 7or its loan committee7 or a payment stablecoin issuer2 and 7#d7 in subparagraph 7,d71 by inserting or the payment stablecoin issuer after the depository institution4 #aa4 ,enforcement 7a7 ,civil action ,the applicable payment stablecoin regulator may bring an action in the appropriate district court of the ,united ,states1 or the court of any territory of the ,united ,states1 to seek an order for the enforcement of this ,act and such court shall have jurisdiction and power to order and require compliance herewith1 including through injunctive relief4 7b7 ,prohibition on unauthorized participation by convicted individuals 7#a7 ,in general ,no person who has been convicted of any criminal offense involving insider trading1 embezzlement1 cybercrime1 money laundering1 or financing of terrorism1 or of felony financial fraud may serve as an executive officer or a person with control of more than #e percent of the shares of a payment stablecoin issuer4 7#b7 ,waiver2 exceptions ,the ,board shall provide by rule a process to apply for a waiver of the prohibition under paragraph 7#a7 and may provide for de minimis exceptions to the prohibition under such paragraph that would not require a waiver4 7c7 ,suspension or revocation ,the applicable payment stablecoin regulator may prohibit a payment stablecoin issuer from issuing payment stablecoins under a registration or authorization if the regulator determines that the payment stablecoin issuer1 or an institution-affiliated party1 is-- 7#a7 violating or has violated an applicable law1 regulation1 or order2 7#b7 violating or has violated any condition imposed in writing by the ,comptroller1 ,state bank supervisor1 or ,board in connection with a written agreement entered into between the payment stablecoin issuer and the appropriate regulator or a condition imposed in connection with any application or other request2 or 7#c7 operating in an unsafe or unsound manner4 7d7 ,cease-and-,desist proceedings ,if the applicable payment stablecoin regulator has reasonable cause to believe that a payment stablecoin issuer or any institution-affiliated party is violating or has violated this ,act1 any rule or order issued pursuant to this ,act1 or any written agreement entered into with the ,comptroller1 ,state bank supervisor1 or ,board1 or condition imposed in writing in connection with any application or other request1 the applicable payment stablecoin regulator may1 by provisions that are mandatory or otherwise1 order the payment stablecoin issuer or institution-affiliated party of the payment stablecoin issuer to-- 7#a7 cease and desist from such violation or practice2 7#b7 take affirmative action to correct the conditions resulting from any such violation or practice2 or 7#c7 take such other action1 as determined to be appropriate4 7e7 ,removal and prohibition authority ,the applicable payment stablecoin regulator may remove an institution-affiliated party from their position or office or prohibit further participation of the institution-affiliated party in the affairs of the payment stablecoin issuer or in the affairs of all payment stablecoin issuers if the applicable payment stablecoin regulator determines that-- 7#a7 the institution-affiliated party has1 directly or indirectly1 committed a violation or attempted violation of this ,act2 7#b7 the institution-affiliated party has committed a violation of any provision of sub-chapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code2 or 7#c7 the institution-affiliated party is otherwise disqualified pursuant to subsection 7b74 7f7 ,enforcement and penalty authorities with respect to safety and soundness ,with respect to a payment stablecoin issuer1 if the applicable payment stablecoin regulator has reasonable cause to believe that the payment stablecoin issuer or an institution-affiliated party of the payment stablecoin issuer is engaging or has engaged in an unsafe or unsound practice1 the applicable payment stablecoin regulator shall have the same authorities and responsibilities as the ,federal ,deposit ,insurance ,corporation with respect to an insured depository institution and an institution-affiliated party under section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7g7 ,procedure 7#a7 ,notice ,for each violation or attempted violation of this ,act1 the applicable payment stablecoin regulator shall provide notice to the payment stablecoin issuer and any institution-affiliated party of the payment stablecoin issuer1 which shall include-- 7,a7 a statement of facts constituting the identified violation or attempted violation2 and 7,b7 a notice of a hearing that will be held with respect to the violation or attempted violation1 including the time and place of the hearing1 that is set not less than #cj days after the date of the notice4 7#b7 ,hearing ,a hearing described in paragraph 7#a7 shall be held in a ,federal judicial district or in the territory in which the payment stablecoin issuer or institution-affiliated party is located1 unless the issuer or institution-affiliated party consents to another place1 and shall be conducted in accordance with the provisions of chapter #e of title #e1 ,united ,states ,code4 7#c7 ,written decision ,not later than #ij days after the applicable payment stablecoin regulator has notified the parties that the case has been submitted for a final decision1 the applicable payment stablecoin regulator shall render a written decision that includes a statement of the findings of fact upon which the decision is predicated and shall be served upon each party to the proceeding an order or orders consistent with the provisions of this section4 7#d7 ,orders ,an order issued under this subsection shall-- 7,a7 be effective as of the date set by the appropriate payment stablecoin regulator after the date of the decision1 except in the case of a cease-and-desist order issued upon consent1 which shall become effective at the time specified therein2 and 7,b7 remain effective and enforceable as provided in the order1 except to such extent as it is stayed1 modified1 terminated1 or set aside by the action of a regulator or a reviewing court4 7#e7 ,appearance ,unless a payment stablecoin issuer or institution-affiliated party of such issuer appears at the hearing1 personally or by a duly authorized representative1 such issuer or party shall be deemed to have consented to the suspension or revocation of registration or authorization1 a cease-and-desist order1 or removal1 as applicable4 7h7 ,judicial review 7#a7 ,in general ,with respect to a final order under this section not issued by consent of a payment stablecoin issuer or an institution-affiliated party1 an aggrieved person may1 not later than #cj days after the date of service of the order and written decision1 file a petition for review in an appropriate court of appeals of the ,united ,states1 or in the ,united ,states ,court of ,appeals for the ,district of ,columbia ,circuit to request that the order be modified1 terminated1 or set aside4 7#b7 ,transmission of the record ,upon the filing of a petition under paragraph 7#a7 with the appropriate court1 the clerk of that court shall transmit a copy of the petition to the applicable payment stablecoin regulator which shall transmit to the court the record of the proceeding relating to the petition1 as provided in section #baab of title #bh1 ,united ,states ,code4 7#c7 ,exclusive jurisdiction 7,a7 ,in general ,upon the filing of a petition under paragraph 7#a7 with the appropriate court1 that court shall have exclusive jurisdiction to-- 7i7 review the final action1 as provided in chapter #g of title #e1 ,united ,states ,code2 and 7ii7 affirm1 modify1 terminate1 or set aside1 in whole or in part1 the applicable order4 7,b7 ,final judgement ,except upon review by the ,supreme ,court upon writ of certiorari1 as provided in section #abed of title #bh1 ,united ,states ,code1 the judgment and decree of the court is final4 7i7 ,commencement of proceedings not treated as a stay 7#a7 ,in general ,the commencement of proceedings for judicial review under subsection 7h7 shall not1 unless specifically ordered by the appropriate court1 operate as a stay of any order4 7#b7 ,enforcement ,the applicable payment stablecoin regulator may1 in its discretion1 apply to the appropriate ,united ,states district court or the ,united ,states court of any territory1 for the enforcement of any effective and outstanding notice or order issued under this section1 and such court shall have jurisdiction and power to order and require compliance herewith1 but1 except as otherwise provided in this section1 no court shall have jurisdiction to affect by injunction or otherwise the issuance or enforcement of any notice or order under this section1 or to review1 modify1 suspend1 terminate1 or set aside any such notice or order4 7j7 ,temporary cease and desist proceedings 7#a7 ,in general ,if the applicable payment stablecoin regulator determines that a violation or attempted violation identified under this section1 or the continuation thereof1 is likely to cause a receivership1 insolvency1 or significant dissipation of assets or earnings of a payment stablecoin issuer1 or is likely to weaken the condition of the payment stablecoin issuer or otherwise prejudice the interests of its customers prior to the completion of the proceedings conducted pursuant to subsection 7h71 the applicable payment stablecoin regulator may issue a temporary order requiring a payment stablecoin issuer or institution-affiliated party to cease and desist from any such violation or practice and to take affirmative action to prevent or remedy such receivership1 insolvency1 dissipation1 condition1 or prejudice pending completion of such proceedings4 7#b7 ,effective date ,an order described under paragraph 7#a7 shall become effective upon service on the payment stablecoin issuer or the institution-affiliated party and1 unless set aside1 limited1 or suspended by a court1 remain effective and enforceable pending the completion of the administrative proceedings pursuant to such notice and until such time as the applicable payment stablecoin regulator removes the suspension or the cease-and-desist order has expired4 7k7 ,judicial review ,not later than #aj days after the date a payment stablecoin issuer concerned or any institution-affiliated party has been served with a temporary cease-and-desist order1 the payment stablecoin issuer or such party may apply to the appropriate ,united ,states district court1 or the ,united ,states ,district ,court for the ,district of ,columbia1 for an injunction setting aside1 limiting1 or suspending the enforcement1 operation1 or effectiveness of such order pending the completion of the administrative proceeding pursuant to the notice of charges served upon the payment stablecoin issuer or such party under subsection 7g77#d71 and such court shall have jurisdiction to issue such injunction4 7l7 ,enforcement of temporary cease and desist orders ,in the case of a violation or attempted violation of1 or failure to obey1 a temporary cease-and-desist order issued pursuant to this section1 the applicable payment stablecoin regulator may apply to the appropriate ,united ,states district court1 or the ,united ,states court of any territory1 for an injunction to enforce such order1 and1 if the court determines that there has been such violation or attempted violation or failure to obey1 it shall be the duty of the court to issue such injunction4 7m7 ,failure ,to register or be authorized ,any payment stablecoin issuer that fails to obtain the applicable registration or authorization under this ,act1 or an institution-affiliated party that knowingly participates in such a failure1 shall be liable for a civil penalty of not more than #a1jjj1jjj to the ,board for each day during which such failure continues4 ,the ,board may also seek appropriate relief under subsection 7a7 for failure of a payment stablecoin issuer or other person to register or be authorized under section #f or #g1 as appropriate4 7n7 ,first tier civil monetary penalties ,except as provided in subsection 7m71 a payment stablecoin issuer or institution-affiliated party of such payment stablecoin issuer that violates this ,act or any rule or order issued pursuant to this ,act1 or that violates any condition imposed in writing in connection with a written agreement entered into between the payment stablecoin issuer and the applicable payment stablecoin regulator1 or a condition imposed in connection with any application or other request1 shall be liable for a civil penalty of up to #ajj1jjj for each day during which the violation continues4 7o7 ,second tier civil monetary penalties ,except as provided in subsection 7m71 a payment stablecoin issuer or any institution-affiliated party of such payment stablecoin issuer that knowingly participates in a violation of any provision of this ,act1 or any rule or order issued pursuant thereto1 is liable for a civil penalty of up to an additional #ajj1jjj for each day during which the violation continues4 7p7 ,civil monetary penalty procedure 7#a7 ,assessment and collection ,any civil monetary penalty imposed under this section may be assessed and collected by the applicable payment stablecoin regulator by following the procedure set forth under subsection 7g74 7#b7 ,deadline ,the applicable payment stablecoin regulator may commence an action for a civil penalty resulting from a violation of this ,act at any time before the end of the #f-year period beginning on the date of such violation4 7q7 ,enforcement of civil monetary penalties 7#a7 ,in general ,if a payment stablecoin issuer or institution-affiliated party fails to pay a civil monetary penalty assessed under this section1 the applicable payment stablecoin regulator shall recover the amount assessed by action in the appropriate ,united ,states district court4 ,the validity and appropriateness of a civil monetary penalty assessed under this section shall not be subject to review4 7#b7 ,restraining order ,in any action brought pursuant to this subsection1 or in an action brought in aid of1 or to enforce an order in1 any administrative or other civil action for money damages1 restitution1 or civil money penalties1 the court may1 upon application1 issue a restraining order that-- 7,a7 prohibits any person subject to the proceeding from withdrawing1 transferring1 removing1 dissipating1 or disposing of any assets2 and 7,b7 appoints a temporary receiver to administer the restraining order4 7r7 ,notice under this section after separation from service ,the resignation1 termination of employment or participation1 or separation of an institution-affiliated party 7including a separation caused by the closing of a payment stablecoin issuer7 shall not affect the jurisdiction and authority of the applicable payment stablecoin regulator to issue any notice or order and proceed under this section against any such party1 if such notice or order is served before the end of the #f-year period beginning on the date such party ceased to be an institution-affiliated party with respect to the payment stablecoin issuer4 7s7 ,exercise of authority 7#a7 ,in general ,in exercising authority under this section with respect to a depository institution that issues a payment stablecoin under section #g of this ,act1 the ,comptroller or ,state bank supervisor1 as applicable1 and the ,board shall endeavor to act jointly whenever possible4 7#b7 ,consultation 7,a7 ,initial consultation required ,prior to opening an investigation1 beginning the process of an enforcement action or exercising other authority under this section1 the applicable payment stablecoin regulator shall provide notice and consult with the other applicable regulator relating to the necessity and scope of the action4 7,b7 ,exercise of authority ,after an initial consultation under this paragraph1 the applicable payment stablecoin regulator may exercise authority independently under this section1 but shall keep the other applicable regulator reasonably informed about the progress of the action and shall provide not less than #g days' prior notice of the timing and scope of the final action4 #ab4 ,interoperability standards ,the ,board1 in consultation with the ,comptroller1 ,state bank supervisors1 the ,national ,institute of ,standards and ,technology and other relevant standard setting organizations1 shall assess and1 if necessary1 may1 pursuant to section #eec of title #e1 ,united ,states ,code1 and in a manner consistent with the utilization of consensus technical standards under section #ab7;d7 of the ,national ,technology ,transfer and ,advancement ,act of #aiie 7#ae ,u4,s4,c4 #bgb note71 prescribe standards for payment stablecoin issuers and payment stablecoin service providers to promote compatibility and interoperability among payment stablecoin systems and between payment stablecoin systems and other payment systems1 including mandatory or minimum technical or legal specifications that enable participants in one payment system to clear and settle payments across payment systems without participating directly in multiple payment systems4 #ac4 ,reservation of authority 7a7 ,limitation of authority ,nothing in this ,act shall limit the authority of the ,board1 ,comptroller1 ,state bank supervisors1 the ,secretary of the ,treasury1 the ,bureau of ,consumer ,financial ,protection1 the ,securities and ,exchange ,commission1 or the ,commodity ,futures ,trading ,commission under any provision of law with respect to any person subject to this ,act4 7b7 ,effect on ,state laws ,the provisions of this ,act and rules issued pursuant to this ,act shall not preempt a law of a ,state except to the extent such law conflicts with the provisions of this ,act1 and then only to the extent of such conflict4 7c7 ,antitrust savings clause ,nothing in this ,act shall be construed to modify1 impair1 or supersede the operation of any of the ,federal antitrust laws1 as defined in subsection 7a7 of the first section of the ,clayton ,act 7#ae ,u4,s4,c4 #ab7;a77 or statutes proscribing unfair or deceptive acts or practices1 as defined in section #e7;a77#d7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77#d774 7d7 ,insured depository institution savings clause ,nothing in this ,act shall be construed to limit the authority of an insured depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 to engage in activities permissible pursuant to applicable ,state and ,federal law1 including accepting or receiving deposits and issuing crypto assets that represent1 and have the same legal standing as1 deposits1 or to limit the authority of the ,federal banking agencies to interpret or establish limitations and conditions on such activities4 #ad4 ,accounting treatment of custodial assets ,crypto assets properly held in a custodial account shall not be considered assets or liabilities of the custodian for any purpose and shall be maintained on an off-balance sheet basis1 including for the purpose of accounting treatment for the custodian1 notwithstanding the form in which the assets are maintained1 and for the purposes of the capital calculations of depository institutions and all other financial institutions4 #ae4 ,effective date2 implementation and rules 7a7 ,effective date ,this ,act shall take effect on the earlier of-- 7#a7 the date that is #edj days after the date of enactment of this ,act2 or 7#b7 the date that is #ij days after the date on which the ,board-- 7,a7 issues final rules implementing this ,act2 and 7,b7 notifies ,congress and the public that final rules have been issued4 7b7 ,transitional provisions for existing non-,depository institutions 7#a7 ,application priority ,an application for authorization under this ,act of a ,state non-depository trust company1 or the holder of a ,state license that only persons engaged in crypto asset activities may obtain1 which was chartered or issued under the laws of a ,state and granted permission by its regulator to issue payment stablecoins before ,may #a1 #bjbd1 shall be approved by the ,board before an application from another entity that is filed on or after ,may #a1 #bjbd4 7#b7 ,approval ,an application described in paragraph 7#a71 shall be approved unless the ,board finds1 by unanimous vote of all members1 that the non-depository institution is unlikely to come into compliance with the requirements of section #f7;b7 not later than #a year after the effective date of this ,act under subsection 7a74 7#c7 ,issuance permitted ,a ,state non-depository trust company or holder of a ,state license to which this subsection applies may continue with issuance1 redemption and other similar activities relating to a payment stablecoin under this subsection under this subsection until its application is approved or denied by the ,board4 7c7 ,transitional provisions for existing depository institutions 7#a7 ,application priority ,the application of a depository institution for authorization to become a national payment stablecoin issuer under section #g of this ,act1 which was chartered and granted permission by its regulator to issue payment stablecoins before ,may #a1 #bjbd1 shall be decided upon by the ,board before any other application for authorization to become a national payment stablecoin issuer which is filed on or after ,may #a1 #bjbd4 7#b7 ,deemed approved ,the application described in paragraph 7#a7 shall be deemed approved unless the ,board finds1 by unanimous vote of all members1 that the depository institution is unlikely to come into compliance with the requirements of section #g7;b7 not later than #a year after the date of enactment of this ,act4 7#c7 ,issuance permitted ,a depository institution to which this subsection applies may continue with issuance1 redemption and other similar activities relating to a payment stablecoin under this subsection until its application is approved or denied by the ,board4 7d7 ,findings relating to certain activities ,congress finds the following3 7#a7 ,in determining whether an activity is financial in nature under the ,bank ,holding ,company ,act 7#ab ,u4,s4,c4 #ahda et seq471 ,congress has required the ,board under such ,act to-- 7,a7 consider changes or reasonably expected changes in the marketplace in which financial companies compete2 7,b7 consider changes or reasonably expected changes in the technology for delivering financial services2 and 7,c7 consider the ability of financial companies to compete effectively and efficiently to deliver information and services that are financial in nature through the use of technological means1 including any application necessary to protect the security or efficacy of systems for the transmission of data or financial transactions4 7#b7 ,lending1 exchanging1 transferring1 investing for others1 and safeguarding money and crypto assets1 and activities incidental to these functions1 are analogous to similar activities permissible for banks under the ,bank ,holding ,company ,act 7#ab ,u4,s4,c4 #ahda et seq474 7#c7 ,the activities described in paragraph 7#b7 shall be deemed financial in nature1 or incidental to a financial activity1 under the ,bank ,holding ,company ,act 7#ab ,u4,s4,c4 #ahda et seq47 for purposes of section #e of this ,act4 7e7 ,report on rulemaking status ,not later than #ahj days after the effective date of this ,act under subsection 7a71 the ,board shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a status update on the development of the rulemaking under this ,act4