,,ib ,union ,cal5d> ,no4 #fh #aai?      
,,congress  #a/ ,session  ,h4 ,r4 #bcib 
,report ,no4 #aai-id ,,9 ,,! ,,h\se ,,( 
,,repres5tatives  ,m>* #bf1 #bjbe,mr4   
,/eil 7= himself1 ,mr4 ,hill (          
,arkansas1 ,mr4 ,torres ( ,new ,york1   
,mr4 ,emm]1 ,mr4 ,huiz5ga1 ,mr4 ,meus]1 
,mrs4 ,kim1 ,mr4 ,moore ( ,nor? ,c>ol9a1
 ,mr4 ,d[n+1 ,mr4 ,h>idopolos1 ,mr4     
,got!im]1 & ,mr4 ,licc>do7 introduc$ !  
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,f9ancial ,s]vices  ,may  
#f1 #bjbe;,additional sponsors3 ,mr4    
,timmons1 ,mr4 ,lawl]1 ,mr4 ,nunn (     
,i[a1 ,mr4 ,rose1 ,mr4 ,/utzman1 & ,mr4 
,?an$>  ,may #f1 #bjbe,report$ ) an     
am5dm5t1 committ$ to ! ,committee ( !   
,:ole ,h\se on ! ,/ate ( ! ,union1 &    
ord]$ to be printed,strike out all aft] 
! enact+ clause & ins]t ! "p pr9t$ 9    
italic,for text ( introduc$ bill1 see   
copy ( bill z introduc$ on ,m>* #bf1    
#bjbe  ,a ,,bill  ,to provide = !       
regulation ( paym5t /ableco9s1 & = o!r  
purposes4  #a4 ,%ort title ,?is ,act may

 be cit$ z ! ,/ableco9 ,transp>5cy &    
,acc\ntability = a ,bett] ,l$g] ,economy
 ,act ( #bjbe or ! ,,/able ,act ( #bjbe4
  #b4 ,def9itions ,9 ?is ,act3 7#a7     
,appropriate ,f$]al bank+ ag5cy ,! t]m  
appropriate ,f$]al bank+ ag5cy has !    
mean+ giv5 t t]m "u section #c ( !      
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahac74  7#b7 ,bank ,secrecy  
,act ,! t]m ,bank ,secrecy ,act means-- 
7,a7 section #ba ( ! ,f$]al ,deposit    
,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72
  7,b7 *apt] #b ( title ,i ( ,public    
,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et    
seq472 &  7,c7 sub*apt] ,,ii ( *apt] #ec
 ( title #ca1 ,unit$ ,/ates ,code4  7#c7
 ,bo>d ,! t]m ,bo>d means ! ,bo>d (     
,gov]nors ( ! ,f$]al ,res]ve ,sy/em4    
7#d7 ,comptroll] ,! t]m ,comptroll]     
means ! ,comptroll] ( ! ,curr5cy4  7#e7 
,corporation ,! t]m ,corporation means !
 ,f$]al ,deposit ,insurance             
,corporation4  7#f7 ,cr$it union t]ms ,!
 t]ms ,f$]al cr$it union1 insur$ cr$it  
union1 & ,/ate cr$it union h ! mean+s   

giv5 ^? t]ms1 respectively1 9 section   
#aja ( ! ,f$]al ,cr$it ,union ,act 7#ab 
,u4,s4,c4 #ageb74  7#g7 ,digital asset  
,! t]m digital asset means any digital  
repres5tation ( value :i* is record$ on 
a cryptographically-secur$ di/ribut$    
l$g]4  7#h7 ,di/ribut$ l$g] ,! t]m      
di/ribut$ l$g] means te*nology :]e data 
is %>$ across a network t creates a     
public digital l$g] ( v]ifi$            
transactions or in=mation among network 
p>ticipants & ! data is l9k$ us+        
cryptography to ma9ta9 ! integrity ( !  
public digital l$g] & execute o!r       
functions4  7#i7 ,f$]al qualifi$ nonbank
 paym5t /ableco9 issu] ,! t]m ,f$]al    
qualifi$ nonbank paym5t /ableco9 issu]  
means a subsidi>y ( a nonbank entity    
approv$ by ! prim>y ,f$]al paym5t       
/ableco9 regulator1 pursuant to section 
#e1 to issue paym5t /ableco9s4  7#aj7   
,in/itution-affiliat$ p>ty ,) respect to
 a p]mitt$ paym5t /ableco9 issu]1 ! t]m 
in/itution-affiliat$ p>ty means any     
director1 (fic]1 employee1 or p]son 9   

control (1 or ag5t =1 ! p]mitt$ paym5t  
/ableco9 issu]4  7#aa7 ,insur$          
depository in/itution ,! t]m insur$     
depository in/itution means-- 7,a7 an   
insur$ depository in/itution1 z def9$ 9 
section #c ( ! ,f$]al ,deposit          
,insurance ,act 7#ab ,u4,s4,c4 #ahac72 &
  7,b7 an insur$ cr$it union4  7#ab7    
,monet>y value ,! t]m monet>y value--   
7,a7 means-- 7i7 a national curr5cy2    
7ii7 a deposit 7z def9$ 9 section #c ( !
 ,f$]al ,deposit ,insurance ,act 7#ab   
,u4,s4,c4 #ahac77 t is d5om9at$ 9 a     
national curr5cy2 or  7iii7 an acc\nt 7z
 def9$ 9 section #aja ( ! ,f$]al ,cr$it 
,union ,act 7#ab ,u4,s4,c4 #ageb772 &   
7,b7 does n include any agricultural or 
o!r physical commodity 7z def9$ 9       
section #a;a ( ! ,commodity ,ex*ange    
,act 7#g ,u4,s4,c4 #a;a774  7#ac7       
,national curr5cy ,! t]m national       
curr5cy means a ,f$]al ,res]ve note 7z !
 t]m is us$ 9 ! fir/ undesignat$        
p>agraph ( section #af ( ! ,f$]al       
,res]ve ,act 7#ab ,u4,s4,c4 #daa771     

money /&+ to ! cr$it ( an acc\nt ) a    
,f$]al res]ve bank1 money issu$ by a    
c5tral bank1 & money issu$ by an        
int]gov]nm5tal organization pursuant to 
an agreem5t by "o or m gov]nm5ts4  7#ad7
 ,nonbank entity ,! t]m nonbank entity  
means a p]son t is n an insur$          
depository in/itution or subsidi>y ( an 
insur$ depository in/itution4  7#ae7    
,paym5t /ableco9 ,! t]m paym5t /ableco9 
means a digital asset-- 7,a7 t is or is 
design$ to be us$ z a means ( paym5t or 
settlem5t2  7,b7 t is d5om9at$ 9 a      
national curr5cy2  7,c7 ! issu] ( :i*-- 
7i7 is obligat$ to conv]t1 r$eem1 or    
repur*ase = a fix$ am\nt ( monet>y      
value2 or  7ii7 repres5ts t ! digital   
asset w ma9ta9 or creates ! reasonable  
expectation t ! digital asset w ma9ta9 a
 /able value relative to ! value ( a    
fix$ am\nt ( monet>y value2 &  7,d7 t is
 n-- 7i7 a national curr5cy2  7ii7 a    
security issu$ by-- 7,i7 an inve/m5t    
company regi/]$ "u section #h7;a7 ( !   
,inve/m5t ,company ,act ( #aidj 7#ae    

,u4,s4,c4 #hj;a-#h7;a772 or  7,,ii7 a   
p]son t w\ld be an inve/m5t company "u !
 ,inve/m5t ,company ,act ( #aidj b =    
p>agraphs 7#a7 & 7#g7 ( section #c7;c7 (
 t ,act 7#ae ,u4,s4,c4 #hj;a-#c7;c772   
7iii7 a deposit 7z def9$ "u section #c (
 ! ,f$]al ,deposit ,insurance ,act 7#ab 
,u4,s4,c4 #ahac771 reg>dless ( !        
te*nology us$ to record su* deposit2 or 
7iv7 an acc\nt 7z def9$ 9 section #aja (
 ! ,f$]al ,cr$it ,union ,act 7#ab       
,u4,s4,c4 #ageb771 reg>dless ( !        
te*nology us$ to record su* acc\nt4     
7#af7 ,p]mitt$ paym5t /ableco9 issu] ,! 
t]m p]mitt$ paym5t /ableco9 issu]       
means-- 7,a7 a subsidi>y ( an insur$    
depository in/itution t has be5 approv$ 
to issue paym5t /ableco9s "u section #e2
  7,b7 a ,f$]al qualifi$ nonbank paym5t 
/ableco9 issu]2 or  7,c7 a ,/ate        
qualifi$ paym5t /ableco9 issu]4  7#ag7  
,p]son ,! t]m p]son means an individual1
 p>tn]%ip1 company1 corporation1        
association 7incorporat$ or             
un9corporat$71 tru/1 e/ate1 coop]ative  

organization1 or o!r entity4  7#ah7     
,prim>y ,f$]al paym5t /ableco9 regulator
  7,a7 ,9 g5]al ,! t]m prim>y ,f$]al    
paym5t /ableco9 regulator means-- 7i7 ) 
respect to an insur$ depository         
in/itution 7o!r ?an an insur$ cr$it     
union7 or a subsidi>y ( an insur$       
depository in/itution 7o!r ?an an insur$
 cr$it union71 ! appropriate ,f$]al     
bank+ ag5cy ( su* insur$ depository     
in/itution2  7ii7 ) respect to an insur$
 cr$it union or a subsidi>y ( an insur$ 
cr$it union1 ! ,national ,cr$it ,union  
,adm9i/ration2  7iii7 ) respect to a    
,f$]al qualifi$ nonbank paym5t /ableco9 
issu] & any nonbank entity t seeks to h 
a subsidi>y approv$ z a ,f$]al qualifi$ 
nonbank paym5t /ableco9 issu]1 !        
,comptroll]2 &  7iv7 ) respect to any   
entity *>t]$ by ! ,comptroll]1 !        
,comptroll]4  7,b7 ,prim>y ,f$]al paym5t
 /ableco9 regulators ,! t]m prim>y      
,f$]al paym5t /ableco9 regulators means 
! ,comptroll]1 ! ,bo>d1 ! ,corporation1 
& ! ,national ,cr$it ,union             

,adm9i/ration4  7#ai7 ,regi/]$ public   
acc\nt+ firm ,! t]m regi/]$ public      
acc\nt+ firm has ! mean+ giv5 t t]m "u  
section #b ( ! ,s>banes-,oxley ,act (   
#bjjb 7#ae ,u4,s4,c4 #gbja74  7#bj7     
,/ate ,! t]m ,/ate means ea* ( ! sev]al 
,/ates1 ! ,di/rict ( ,columbia1 & ea*   
t]ritory ( ! ,unit$ ,/ates4  7#ba7 ,/ate
 qualifi$ paym5t /ableco9 issu] ,! t]m  
,/ate qualifi$ paym5t /ableco9 issu]    
means an entity t-- 7,a7 is approv$ to  
issue paym5t /ableco9s by a ,/ate paym5t
 /ableco9 regulator2  7,b7 issues a     
paym5t /ableco9 9 compliance ) ! laws & 
regulations ( a ,/ate regulatory regime 
c]tifi$ "u section #d7;b72 &  7,c7 is   
n-- 7i7 *>t]$ by ! ,comptroll]2  7ii7 a 
,f$]al cr$it union2 or  7iii7 a         
subsidi>y ( a ,/ate cr$it union t-- 7,i7
 has at lea/ a p>tial own]%ip int]e/ or 
loan f a ,f$]al cr$it union2 or  7,,ii7 
has at lea/ a p>tial own]%ip int]e/ or  
loan f a ,/ate cr$it union t is organiz$
 9 a diff]5t ,/ate ?an su* subsidi>y4   
7#bb7 ,/ate paym5t /ableco9 regulator ,!

 t]m ,/ate paym5t /ableco9 regulator    
means-- 7,a7 a ,/ate ag5cy t has prim>y 
regulatory & sup]visory au?ority 9 su*  
,/ate ov] entities t issue paym5t       
/ableco9s2 &  7,b7 ) respect to a ,/ate 
qualifi$ paym5t /ableco9 issu] t is a   
subsidi>y ( a ,/ate-*>t]$ depository    
in/itution 7z def9$ 9 section #c ( !    
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahac77 or a ,/ate cr$it      
union1 ! ,/ate ag5cy t has prim>y       
regulatory & sup]visory au?ority ov]    
entities t issue paym5t /ableco9s 9 !   
,/ate 9 :i* su* ,/ate-*>t]$ depository  
in/itution or ,/ate cr$it union is      
*>t]$4  7#bc7 ,subsidi>y ( an insur$    
cr$it union ,) respect to an insur$     
cr$it union1 ! t]m subsidi>y ( an insur$
 cr$it union means-- 7,a7 an            
organization provid+ s]vices to ! insur$
 cr$it union t are associat$ ) ! r\t9e  
op]ations ( cr$it unions1 z describ$ "u 
section #ajg7g77;,i7 ( ! ,f$]al ,cr$it  
,union ,act 7#ab ,u4,s4,c4              
#ageg7g77;,i772  7,b7 a cr$it union     

s]vice organization1 z su* t]m is us$ "u
 "p #gab ( title #ab1 ,code ( ,f$]al    
,regulations1 ) respect to :i* ! insur$ 
cr$it union has an own]%ip int]e/ or to 
:i* ! insur$ cr$it union has ext5d$ a   
loan2 &  7,c7 any subsidi>y ( ! insur$  
cr$it union t is a ,/ate cr$it union4   
#c4 ,limitation on :o may issue a paym5t
 /ableco9  7a7 ,limitation on issu]s ,x 
%all be unlawful = any p]son o!r ?an a  
p]mitt$ paym5t /ableco9 issu] to issue a
 paym5t /ableco9 9 ! ,unit$ ,/ates4  7b7
 ,limitation on (f]+ or sell+  7#a7 ,9  
g5]al ,aft] ! end ( ! #ah-mon? p]iod    
beg9n+ on ! date ( enactm5t ( ?is ,act1 
x %all be unlawful = any cu/odial       
int]m$i>y to (f] or sell a paym5t       
/ableco9 9 ! ,unit$ ,/ates unless !     
paym5t /ableco9 0 issu$ by a p]mitt$    
paym5t /ableco9 issu]4  7#b7 ,exceptions
 = comp>able paym5t /ableco9 regimes    
7,a7 ,9 g5]al ,p>agraph 7#a7 &          
subsection 7a7 %all n apply to ! (f] or 
sale ( a paym5t /ableco9 if-- 7i7 !     
paym5t /ableco9 0 issu$ by a =eign      

paym5t /ableco9 issu]2  7ii7 ! =eign    
paym5t /ableco9 issu] is subject to     
regulation by a =eign paym5t /ableco9   
regulator ( a nation ) a paym5t /ableco9
 regulatory regime t ! ,secret>y ( !    
,treasury det]m9es "u subp>agraph 7,b7  
is comp>able to ! requirem5ts "u ?is    
,act2 &  7iii7 ! =eign paym5t /ableco9  
issu] cons5ts to be subject to report+ &
 exam9ation requirem5ts1 z det]m9$ by-- 
7,i7 ! ,comptroll]1 if ! =eign paym5t   
/ableco9 issu] is a nonbank2 or  7,,ii7 
! ,bo>d1 if ! =eign paym5t /ableco9     
issu] is a bank+ in/itution or subsidi>y
 !re(4  7,b7 ,det]m9ation ,) respect to 
a =eign nation1 ! ,secret>y ( !         
,treasury %all det]m9e1 ^u reque/ ( a   
=eign paym5t /ableco9 issu]1 a =eign    
paym5t /ableco9 regulator1 or on !      
,secret>y's own initiative1 & 9         
consultation ) ! ,f$]al paym5t /ableco9 
regulators1 :e!r ! paym5t /ableco9      
regulatory regime ( su* nation is       
comp>able to ! requirem5ts "u ?is ,act4 
7,c7 ,public notice ,! ,secret>y %all   

make ! li/ ( nations = :i* a det]m9ation
 has be5 made "u subp>agraph 7,b7       
available to ! public1 & keep su* li/   
curr5t4  7,d7 ,resc9d+ det]m9ations  7i7
 ,secret>ial action ,! ,secret>y may1 9 
consultation ) ! prim>y ,f$]al paym5t   
/ableco9 regulators1 resc9d a           
det]m9ation made "u subp>agraph 7,b7 )  
respect to a =eign nation1 if !         
,secret>y det]m9es t ! regulatory regime
 ( su* nation is no long] comp>able to !
 requirem5ts "u ?is ,act4  7ii7         
,safeh>bors ,if ! ,secret>y resc9ds a   
det]m9ation pursuant to clause 7i71 a   
cu/odial int]m$i>y %all n be 9 violation
 ( ?is subsection by reason ( ! (f] or  
sale ( a paym5t /ableco9 issu$ by su*   
nation's =eign paym5t /ableco9 issu]    
until #ij days aft] ! det]m9ation is    
resc9d$4  7#c7 ,p5alty ,any p]son :o    
violates ?is subsection %all be subject 
to a civil p5alty ( n m ?an #ajj1jjj =  
ea* day dur+ :i* su* violation cont9ues4
  7c7 ,rulemak+ ,n lat] ?an #ab mon?s   
aft] ! date ( enactm5t ( ?is ,act1 !    

,secret>y %all issue su* rules z may be 
requir$ to c>ry out ?is section4  7d7   
,rule ( con/ruction ,?is section does n 
apply to transactions 9 digital assets =
 an individual's own lawful purposes by 
means ( a s(tw>e or h>dw>e wallet t     
facilitates su* individual's own cu/ody 
( digital assets4  #d4 ,requirem5ts =   
issu+ paym5t /ableco9s  7a7 ,/&>ds = !  
issuance ( paym5t /ableco9s  7#a7 ,9    
g5]al ,ea* p]mitt$ paym5t /ableco9 issu]
 %all-- 7,a7 ma9ta9 res]ves back+ !     
issu]'s out/&+ paym5t /ableco9s on an at
 lea/ #a to #a basis1 ) res]ves         
compris+-- 7i7 ,unit$ ,/ates curr5cy    
7includ+ ,f$]al res]ve notes7 or money  
/&+ to ! cr$it ( an acc\nt ) a ,f$]al   
res]ve bank2  7ii7 funds held z dem&    
deposits 7or o!r deposits t may be      
)drawn ^u reque/ at any "t7 at insur$   
depository in/itutions 7includ+ =eign   
bran*es & ag5cies ( insur$ depository   
in/itutions7 or approv$ =eign depository
 in/itutions 7z det]m9$ 9 p>agraph      
7#e77;,a77v77 or %>e drafts 7or o!r     

deposits t may be )drawn ^u reque/ at   
any "t7 at insur$ cr$it unions1 subject 
to limitations e/abli%$ by !            
,corporation & ! ,national ,cr$it ,union
 ,adm9i/ration1 respectively1 to address
 safety & s\ndness risks ( su* insur$   
depository in/itutions2  7iii7 ,treasury
 bills1 notes1 or bonds-- 7,i7 ) a      
rema9+ maturity ( #ic days or less2 or  
7,,ii7 issu$ ) a maturity ( #ic days or 
less2  7iv7 repur*ase agreem5ts1 :]e9 ! 
p]mitt$ paym5t /ableco9 issu] is act+ z 
a sell] ( securities1 or rev]se         
repur*ase agreem5ts1 :]e9 ! p]mitt$     
paym5t /ableco9 issu] is act+ z a       
pur*as] ( securities1 ) an ov]night     
maturity & t are back$ by ,treasury     
bills ) a maturity ( #ic days or less t 
are-- 7,i7 c5trally cle>$ ?r\gh a cle>+ 
ag5cy regi/]$ ) ! ,securities & ,ex*ange
 ,commission2 or  7,,ii7 bilat]al1      
settl+ ei!r ?r\gh deliv]y v]sus paym5t  
or ?r\gh a tri-p>ty control acc\nt1 ) a 
c\nt]p>ty t ! issu] has det]m9$ to be   
adequately cr$it wor?y ev5 9 ! ev5t (   

sev]e m>ket /ress2 or  7v7 securities   
issu$ by an inve/m5t company "u section 
#h7;a7 ( ! ,inve/m5t ,company ,act (    
#aidj 7#ae ,u4,s4,c4 #hj;a-#h7 t op]ates
 z a money m>ket fund 9 compliance )    
,rule #b;a-#g "u ! ,inve/m5t ,company   
,act ( #aidj 7or any successor rule7 & t
 are inve/$ solely 9 ! und]ly+ assets   
describ$ 9 clauses 7i7 ?r\gh 7iv72  7,b7
 publicly disclose ! issu]'s r$emption  
policy2  7,c7 e/abli% proc$ures = timely
 r$emption ( ! issu]'s out/&+ paym5t    
/ableco9s2 &  7,d7 publi% a report on ! 
mon?ly composition ( ! issu]'s res]ves  
on ! website ( ! issu]1 conta9+-- 7i7 ! 
total numb] ( out/&+ paym5t /ableco9s   
issu$ by ! issu]2 &  7ii7 ! am\nt &     
composition ( ! res]ves describ$ "u     
subp>agraph 7,a74  7#b7 ,eligibility    
,no?+ 9 ?is ,act %all be con/ru$ z exp&+
 or contract+ legal eligibility to make 
deposits1 or hold an acc\nt1 at a ,f$]al
 res]ve bank4  7#c7 ,prohibition on     
rehypo!cation ,res]ves describ$ "u      
p>agraph 7#a77;,a7 may n be pl$g$1      

rehypo!cat$1 or reus$1 except = !       
purpose ( satisfy+ obligations associat$
 ) res]ves describ$ "u p>agraph         
7#a77;,a77iv74  7#d7 ,mon?ly            
c]tification2 exam9ation ( reports by   
regi/]$ public acc\nt+ firm  7,a7 ,9    
g5]al ,a p]mitt$ paym5t /ableco9 issu]  
%all1 ea* mon?1 h ! in=mation disclos$ 9
 ! previ\s mon?-end report requir$ "u   
p>agraph 7#a77;,d7 exam9$ by an         
indep5d5t regi/]$ public acc\nt+ firm4  
7,b7 ,c]tification ,ea* mon?1 ! ,*ief   
,executive ,(fic] & ,*ief ,f9ancial     
,(fic] ( a p]mitt$ paym5t /ableco9 issu]
 %all submit to1 z applicable1 ! prim>y 
,f$]al paym5t /ableco9 regulator or1 9 !
 case ( a ,/ate qualifi$ paym5t /ableco9
 issu]1 ! ,/ate paym5t /ableco9         
regulator1 a c]tification t1 bas$ on su*
 (fic]s' k1 ! previ\s mon?-end report   
requir$ "u p>agraph 7#a77;,d7-- 7i7 does
 n conta9 any untrue /atem5t ( mat]ial  
fact or omit to /ate a mat]ial fact     
necess>y 9 ord] to make ! /atem5ts made1
 9 light ( ! circum/ances "u :i* su*    

/atem5ts 7 made1 n mislead+2 &  7ii7    
fairly pres5t$ 9 all mat]ial respects ! 
in=mation requir$ "u p>agraph 7#a77;,d7 
= ! p]iod pres5t$ 9 su* report4  7,c7   
,crim9al ,p5alties ,:oev]-- 7i7 submits 
a c]tification set =? 9 subp>agraph 7,b7
 kn[+ t ! report to :i* ! c]tification  
relates does n fairly pres5t1 9 all     
mat]ial respects1 ! in=mation requir$ to
 be conta9$ 9 su* report %all be f9$ n m
 ?an #a1jjj1jjj or imprison$ n m ?an #aj
 ye>s1 or bo?2 or  7ii7 willfully       
submits a c]tification set =? 9         
subp>agraph 7,b7 kn[+ t ! report to :i* 
! c]tification relates does n fairly    
pres5t1 9 all mat]ial respects1 !       
in=mation requir$ to be conta9$ 9 su*   
report %all be f9$ n m ?an #e1jjj1jjj1  
or imprison$ n m ?an #bj ye>s1 or bo?4  
7#e7 ,capital1 liquidity1 risk          
managem5t1 & o!r requirem5ts  7,a7 ,9   
g5]al ,! prim>y ,f$]al paym5t /ableco9  
regulators %all1 jo9tly & 9 consultation
 ) ! ,/ate paym5t /ableco9 regulators1  
issue rules to e/abli%-- 7i7 capital    

requirem5ts applicable to a p]mitt$     
paym5t /ableco9 issu] t-- 7,i7 are      
tailor$ to ! bus9ess model & risk pr(ile
 ( a p]mitt$ paym5t /ableco9 issu]2     
7,,ii7 d n exce$ requirem5ts :i* are    
suffici5t to ensure ! ongo+ op]ations ( 
a p]mitt$ paym5t /ableco9 issu]2 &      
7,,iii7 if su* regulators det]m9e t a   
capital buff] is necess>y to ensure !   
ongo+ op]ations ( a p]mitt$ paym5t      
/ableco9 issu]1 may include capital     
buff]s t are tailor$ to ! bus9ess model 
& risk pr(ile ( a p]mitt$ paym5t        
/ableco9 issu]2  7ii7 requirem5ts       
implem5t+ liquidity /&>ds applicable to 
res]ves describ$ 9 p>agraph 7#a7 = a    
p]mitt$ paym5t /ableco9 issu]1 :i* may n
 exce$ an am\nt t is suffici5t to ensure
 ! f9ancial integrity ( a p]mitt$ paym5t
 /ableco9 issu] & ! ability ( ! issu] to
 meet ! f9ancial obligations ( ! issu]1 
includ+ r$emptions2  7iii7 res]ve asset 
div]sification & int]e/ rate risk       
managem5t /&>ds applicable to a p]mitt$ 
paym5t /ableco9 issu] t-- 7,i7 are      

tailor$ to ! bus9ess model & risk pr(ile
 ( a p]mitt$ paym5t /ableco9 issu]2 &   
7,,ii7 d n exce$ /&>ds :i* are suffici5t
 to ensure ! ongo+ op]ations ( a p]mitt$
 paym5t /ableco9 issu]2 &  7iv7         
appropriate op]ational1 compliance1     
in=mation te*nology1 & cyb]security risk
 managem5t /&>ds t are tailor$ to !     
bus9ess model & risk pr(ile ( a p]mitt$ 
paym5t /ableco9 issu]2 &  7v7           
requirem5ts reg>d+ ! approval ( =eign   
depository in/itutions t may hold dem&  
deposits ( a p]mitt$ paym5t /ableco9    
issu]4  7,b7 ,rule ( con/ruction ,no?+ 9
 ?is p>agraph may be con/ru$ to limit-- 
7i7 ! au?ority ( ! prim>y ,f$]al paym5t 
/ableco9 regulators1 9 prescrib+ /&>ds  
"u ?is p>agraph1 to tailor or           
diff]5tiate among p]mitt$ paym5t        
/ableco9 issu]s on an individualiz$     
basis or by category1 tak+ into         
consid]ation ! capital /ructure1 bus9ess
 model risk pr(ile1 complexity1 f9ancial
 activities1 size1 & any o!r risk relat$
 factors ( p]mitt$ paym5t /ableco9      

issu]s t ! prim>y ,f$]al paym5t /ableco9
 regulators det]m9e appropriate2 or     
7ii7 ! sup]visory1 regulatory1 or       
en=cem5t au?ority ( a ,f$]al bank+ ag5cy
 7z def9$ 9 section #c ( ! ,f$]al       
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahac77 or ! ,national ,cr$it ,union    
,adm9i/ration to fur!r ! ability ( an   
in/itution "u ! sup]vision ( ! ,f$]al   
bank+ ag5cy or ! ,national ,cr$it ,union
 ,adm9i/ration to ma9ta9 safe & s\nd    
op]ations or comply ) ?is ,act4  7,c7   
,applicability ( exi/+ capital /&>ds    
7i7 ,applicability ( ! ,f9ancial        
,/ability ,act ( #bjaj ,section #aga ( !
 ,f9ancial ,/ability ,act ( #bjaj 7#ab  
,u4,s4,c4 #ecga7 %all n apply to        
requirem5ts issu$ "u ?is p>agraph4  7ii7
 ,rules relat+ to lev]age capital       
requirem5ts or risk-bas$ capital        
requirem5ts ,:]e an insur$ depository   
in/itution or depository in/itution     
hold+ company1 z def9$ "u section       
#aga7;a77#c7 ( ! ,f9ancial ,/ability    
,act ( #bjaj 7#ab ,u4,s4,c4             

#ecga7;a77#c771 includes1 on a          
consolidat$ basis1 a p]mitt$ paym5t     
/ableco9 issu]1 any rule issu$ by an    
appropriate ,f$]al bank+ ag5cy t        
imposes1 on a consolidat$ basis1 a      
lev]age capital requirem5t or risk-bas$ 
capital requirem5t on su* insur$        
depository in/itution or depository     
in/itution hold+ company1 %all n require
 su* insur$ depository in/itution or    
depository in/itution hold+ company to  
hold1 ) respect to ! p]mitt$ paym5t     
/ableco9 issu] & its assets & op]ations1
 any am\nt ( regulatory capital 9 excess
 ( ! capital t su* p]mitt$ paym5t       
/ableco9 issu] mu/ ma9ta9 "u ! capital  
requirem5ts promulgat$ pursuant to      
subp>agraph 7,a77i74  7iii7 ,rulemak+ ,n
 lat] ?an ! date ! prim>y ,f$]al paym5t 
/ableco9 regulators issue regulations to
 c>ry out ?is section1 ea* ,f$]al bank+ 
ag5cy1 z def9$ 9 section #c ( ! ,f$]al  
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahac71 %all am5d or o!rwise modify any 
rule describ$ 9 clause 7ii7 s t x       

complies ) su* clause 7ii74  7#f7       
,treatm5t ,"u ! ,bank ,secrecy ,act     
7,a7 ,9 g5]al ,a p]mitt$ paym5t /ableco9
 issu] %all be treat$ z a f9ancial      
in/itution = purposes ( ! ,bank ,secrecy
 ,act4  7,b7 ,regulations ,! ,secret>y (
 ! ,treasury1 act+ ?r\gh ! ,director ( !
 ,f9ancial ,crimes ,en=cem5t ,network1 &
 9 consultation ) ! prim>y ,f$]al paym5t
 /ableco9 regulators1 %all issue        
regulations to apply ! ,bank ,secrecy   
,act to p]mitt$ paym5t /ableco9 issu]s t
 are tailor$ to ! size & complexity (   
su* issu]s1 includ+ by requir+ ea*      
p]mitt$ paym5t /ableco9 issu] to-- 7i7  
e/abli% & ma9ta9 an anti-money laund]+ &
 c\nt]+ ! f9anc+ ( t]rorism program1 :i*
 %all include-- 7,i7 an appropriate risk
 assessm5t2  7,,ii7 ! developm5t (      
int]nal policies1 proc$ures1 & controls2
  7,,iii7 ! designation ( a compliance  
(fic]2  7,,iv7 an ongo+ employee tra9+  
program2 &  7,v7 an indep5d5t audit     
function to te/ su* program2  7ii7 reta9
 appropriate records ( paym5t /ableco9  

transactions2  7iii7 monitor & report   
suspici\s activity1 :i* may include use 
( appropriate di/ribut$ l$g] analytics2 
&  7iv7 ma9ta9 an effective cu/om]      
id5tification program to id5tify & v]ify
 initial hold]s ( a paym5t /ableco9 = ! 
purposes ( c>ry+ out appropriate cu/om] 
due dilig5ce4  7#g7 ,compliance )       
sanctions ,a p]mitt$ paym5t /ableco9    
issu] %all comply ) all laws &          
regulations relat$ to ,unit$ ,/ates     
sanctions adm9i/]$ by ! ,(fice ( ,=eign 
,assets ,control4  7#h7 ,limitation on  
paym5t /ableco9 activities ,a p]mitt$   
paym5t /ableco9 issu] may only-- 7,a7   
issue paym5t /ableco9s2  7,b7 r$eem     
paym5t /ableco9s2  7,c7 manage relat$   
res]ves 7includ+ pur*as+1 sell+1 & hold+
 res]ve assets72  7,d7 provide cu/odial 
or safekeep+ s]vices = paym5t /ableco9s 
& private keys ( paym5t /ableco9s2  7,e7
 provide cu/odial or safekeep+ s]vices =
 res]ves1 consi/5t ) ?is ,act2  7,f7    
und]take o!r functions t directly       
support activities describ$ 9           

subp>agraphs 7,a7 ?r\gh 7,e72 &  7,g7   
und]take su* non-paym5t /ableco9        
activities t are all[$ by ! prim>y      
,f$]al paym5t /ableco9 regulator4  7#i7 
,prohibition on yield ,a p]mitt$ paym5t 
/ableco9 issu] may n pay int]e/ or yield
 to hold]s ( its paym5t /ableco9s4      
7#aj7 ,regulation ( ,f$]al qualifi$     
nonbank paym5t /ableco9 issu]s by !     
,comptroll] ,a ,f$]al qualifi$ nonbank  
paym5t /ableco9 issu] %all be regulat$ &
 sup]vis$ exclusively by ! ,comptroll]4 
7b7 ,/ate-level regulatory regimes  7#a7
 ,9 g5]al ,a ,/ate qualifi$ paym5t      
/ableco9 issu] may only issue paym5t    
/ableco9s pursuant to ! regulation ( a  
,/ate paym5t /ableco9 regulator ( a     
,/ate ) a regulatory regime = issu+     
paym5t /ableco9s t is c]tifi$ "u ?is    
subsection z meet+ or exce$+ ! /&>ds &  
requirem5ts describ$ 9 subsection 7a74  
7#b7 ,c]tification  7,a7 ,9 g5]al       
,beg9n+ on ! date t is #a ye> aft] !    
date ( enactm5t ( ?is ,act or #fj days  
aft] ! rulemak+ describ$ 9 subsection   

7d7 is complet$1 :i*ev] is e>li]1 a     
,/ate paym5t /ableco9 regulator may     
submit to ! ,secret>y ( ! ,treasury a   
c]tification t ! regulatory regime ( !  
,/ate = issu+ paym5t /ableco9s meets or 
exce$s ! /&>ds & requirem5ts describ$ 9 
subsection 7a74  7,b7 ,validity (       
c]tification ,a c]tification "u         
subp>agraph 7,a7 %all be valid ^u       
submission & rema9 valid unless !       
,secret>y ( ! ,treasury rejects !       
c]tification "u p>agraph 7#f74  7#c7 ,=m
 ( c]tification ,a c]tification describ$
 "u p>agraph 7#b7-- 7,a7 %all conta9 an 
atte/ation t ! regulatory regime ( !    
,/ate = issu+ paym5t /ableco9s meets or 
exce$s ! /&>ds & requirem5ts describ$ 9 
subsection 7a72 &  7,b7 may include     
support+ in=mation1 su* z a copy ( any  
,/ate law or regulation implem5t+ su*   
/&>ds & requirem5ts4  7#d7 ,report &    
atte/ation  7,a7 ,9 g5]al ,a ,/ate      
paym5t /ableco9 regulator ) a valid     
c]tification "u ?is subsection t has    
made subsequ5t mat]ial *anges to its    

,/ate regulatory regime & wi%es to      
ma9ta9 a valid c]tification %all submit 
to ! ,secret>y ( ! ,treasury an         
explanation ( all su* mat]ial *anges4   
7,b7 ,=m ( mat]ial *anges explanation ,)
 respect to a ,/ate paym5t /ableco9     
regulator t submits an explanation (    
mat]ial *anges to ! ,/ate regulatory    
regime "u subp>agraph 7,a71 ! paym5t    
/ableco9 regulator %all make su*        
explanation 9 ! same mann]1 & conta9+ ! 
same atte/ation1 z describ$ "u p>agraph 
7#c7 = a c]tification4  7#e7 ,advisory  
op9ions on propos$ laws or regulations  
,^u reque/ ( any ,/ate paym5t /ableco9  
regulator1 ! ,secret>y ( ! ,treasury    
%all-- 7,a7 review any propos$ law or   
regulation ( ! ,/ate provid$ by ! ,/ate 
paym5t /ableco9 regulator2 &  7,b7 n    
lat] ?an #cj days aft] be+ provid$ !    
propos$ law or regulation1 ei!r-- 7i7   
in=m ! ,/ate paym5t /ableco9 regulator t
 ! propos$ law or regulation is consi/5t
 ) a ,/ate regulatory regime = issu+    
paym5t /ableco9s t meets or exce$s !    

/&>ds & requirem5ts describ$ 9          
subsection 7a72 or  7ii7 provide ! ,/ate
 paym5t /ableco9 regulator ) a detail$  
explanation ( :y ! propos$ law or       
regulation is n consi/5t ) a ,/ate      
regulatory regime = issu+ paym5t        
/ableco9s t meets or exce$s ! /&>ds &   
requirem5ts describ$ 9 subsection 7a74  
7#f7 ,regimes t are n sub/antially      
simil>  7,a7 ,9 g5]al ,! ,secret>y ( !  
,treasury may reject a c]tification "u  
p>agraph 7#b7 or a c]tification )       
respect to :i* a ,/ate paym5t /ableco9  
regulator has submitt$ an explanation ( 
mat]ial *anges "u p>agraph 7#d71 if !   
,secret>y1 n lat] ?an #cj days aft] !   
date on :i* ! initial c]tification or   
explanation ( mat]ial *anges is         
submitt$-- 7i7 det]m9es t ! ,/ate       
regulatory regime does n meet or exce$ !
 /&>ds & requirem5ts describ$ 9         
subsection 7a72 &  7ii7 provides ! ,/ate
 paym5t /ableco9 regulator ) a writt5   
explanation = ! rejection1 describ+ !   
reason$ basis = ! rejection ) suffici5t 

detail su* t ! ,/ate c br+ ! ,/ate      
regulatory regime into compliance bas$  
on ! explanation4  7,b7 ,opportunity to 
cure  7i7 ,9 g5]al ,) respect to a      
rejection describ$ "u subp>agraph 7,a71 
! ,secret>y ( ! ,treasury %all provide !
 ,/ate paym5t /ableco9 regulator ) n    
less ?an a #ahj-;day p]iod f ! date on  
:i* ! ,/ate paym5t /ableco9 regulator is
 notifi$ ( su* rejection to-- 7,i7 make 
su* *anges z may be necess>y to ensure !
 regulatory regime ( ! ,/ate = issu+    
paym5t /ableco9s meets or exce$s ! /&>ds
 & requirem5ts describ$ 9 subsection    
7a72 &  7,,ii7 resubmit ! c]tification  
or explanation ( mat]ial *anges4  7ii7  
,rejection ,if1 aft] a ,/ate paym5t     
/ableco9 regulator makes *anges describ$
 "u clause 7i7 dur+ ! p]iod describ$ 9  
clause 7i71 ! ,secret>y ( ! ,treasury   
det]m9es t ! c]tification %\ld be       
reject$1 ! ,secret>y ( ! ,treasury %all1
 n lat] ?an #cj days aft] su*           
det]m9ation1 provide ! ,/ate paym5t     
/ableco9 regulator ) a writt5           

explanation = ! det]m9ation1 describ+ ! 
reason$ basis = ! det]m9ation )         
suffici5t detail su* t ! ,/ate c br+ its
 regime into compliance bas$ on !       
explanation4  7,c7 ,appeal ( rejection  
7i7 ,9 g5]al ,a ,/ate paym5t /ableco9   
regulator t has _h a c]tification       
reject$ "u ?is p>agraph may1 aft] ! cure
 p]iod describ$ "u subp>agraph 7,b77i71 
appeal su* rejection to ! ,unit$ ,/ates 
,c\rt ( ,appeals = ! ,di/rict (         
,columbia ,circuit1 :i* %all1 ^u a      
det]m9ation t ! regulatory regime ( !   
,/ate = issu+ paym5t /ableco9s meets or 
exce$s ! /&>ds & requirem5ts describ$ 9 
subsection 7a71 rev]se su* rejection4   
7ii7 ,review by ! ,supreme ,c\rt ,!     
judgm5t & decree ( ! ,c\rt ( ,appeals   
%all be f9al1 except t ! same %all be   
subject to review by ! ,supreme ,c\rt ^u
 c]tior>i1 z provid$ 9 section #abed (  
title #bh1 ,unit$ ,/ates ,code4  7,d7   
,"r to resubmit ,a ,/ate paym5t /ableco9
 regulator t has _h a c]tification      
reject$ "u ?is p>agraph may resubmit a  

new c]tification "u p>agraph 7#b74  7#g7
 ,appropriate exemptive relief ,!       
,secret>y ( ! ,treasury %all issue su*  
rules & ord]s z are necess>y to provide 
appropriate exemptive relief & safe     
h>bors = ,/ate qualifi$ paym5t /ableco9 
issu]s to cont9ue op]ations dur+ su*    
p]iods 9 :i* any rules promulgat$       
pursuant to subsection 7a7 mat]ially    
affect a previ\sly c]tifi$ ,/ate        
regulatory regime's ability to meet or  
exce$ ! /&>ds & requirem5ts describ$ 9  
subsection 7a74  7c7 ,n insur$ by !     
,f$]al ,gov]nm5t2 misrepres5tation (    
insur$ /atus  7#a7 ,9 g5]al ,paym5t     
/ableco9s are n back$ by ! full fai? &  
cr$it ( ! ,unit$ ,/ates1 gu>ante$ by !  
,unit$ ,/ates ,gov]nm5t1 subject to     
deposit insurance by ! ,corporation1 or 
subject to %>e insurance by ! ,national 
,cr$it ,union ,adm9i/ration4  7#b7      
,misrepres5tation ( insur$ /atus ,x %all
 be unlawful to repres5t t a paym5t     
/ableco9 is back$ by ! full fai? & cr$it
 ( ! ,unit$ ,/ates1 gu>ante$ by ! ,unit$

 ,/ates ,gov]nm5t1 or subject to ,f$]al 
deposit insurance or ,f$]al %>e         
insurance4  7#c7 ,disclosure ,p]mitt$   
paym5t /ableco9 issu]s %all cle>ly &    
prom95tly disclose on _! website t      
paym5t /ableco9s issu$ by su* p]mitt$   
paym5t /ableco9 issu] are n gu>ante$ by 
! ,unit$ ,/ates ,gov]nm5t1 cov]$ by     
deposit insurance by ! ,f$]al ,deposit  
,insurance ,corporation1 or cov]$ by %>e
 insurance ( ! ,national ,cr$it ,union  
,adm9i/ration4  7#d7 ,p5alties ,any     
p]son :o violates ?is subsection may be 
prosecut$ to ! fulle/ ext5t ( ! law1    
includ+1 z applicable1 "u-- 7,a7 section
 #ah7;a77#d7 ( ! ,f$]al ,deposit        
,insurance ,act 7#ab ,u4,s4,c4          
#ahbh7;a77#d72 relat+ to ! prohibition  
on false adv]tis+ 9 connection ) deposit
 insurance1 ! misuse ( ,,fdic names1 &  
misrepres5tations ( insur$ /atus72  7,b7
 section #gji ( title #ah1 ,unit$ ,/ates
 ,code 7relat+ to false adv]tis+ or     
misuse ( names to indicate a ,f$]al     
ag5cy72  7,c7 crim9al p5alties "u title 

#ah1 ,unit$ ,/ates ,code1 relat$ to     
fraud2 &  7,d7 o!r rem$ies available "u 
! law4  7d7 ,(fic]s & directors convict$
 ( c]ta9 felonies ,no individual :o has 
be5 convict$ ( a felony (f5se involv+   
insid] trad+1 embezzlem5t1 cyb]crime1   
money laund]+1 f9anc+ ( t]rorism1 or    
f9ancial fraud may s]ve z-- 7#a7 an     
(fic] ( a paym5t /ableco9 issu]2 or     
7#b7 a director ( a paym5t /ableco9     
issu]4  7e7 ,rulemak+  7#a7 ,9 g5]al ,! 
prim>y ,f$]al paym5t /ableco9 regulators
 may issue su* ord]s & regulations z may
 be necess>y to adm9i/] & c>ry out !    
requirem5ts ( ?is section1 includ+ to   
e/abli% conditions1 & to prev5t evasions
 !re(4  7#b7 ,jo9t issuance ( regulation
 ,all regulations issu$ to c>ry out ?is 
section by ! prim>y ,f$]al paym5t       
/ableco9 regulators %all be issu$       
jo9tly1 aft] consultation ) ,/ate paym5t
 /ableco9 regulators4  7#c7 ,rulemak+   
deadl9e ,n lat] ?an ! end ( ! #ahj-;day 
p]iod beg9n+ on ! date ( enactm5t ( ?is 
,act1 ! ,f$]al paym5t /ableco9          

regulators %all issue regulations to    
c>ry out ?is section4  #e4 ,approval (  
subsidi>ies ( insur$ depository         
in/itutions & subsidi>ies ( nonbank     
entities  7a7 ,9 g5]al  7#a7            
,application  7,a7 ,9 g5]al ,! prim>y   
,f$]al paym5t /ableco9 regulator %all   
receive1 review1 & consid] = approval   
applications f any insur$ depository    
in/itution t seeks to issue paym5t      
/ableco9s ?r\gh a subsidi>y & any       
nonbank entity t seeks to issue paym5t  
/ableco9s ?r\gh a subsidi>y4  7,b7 ,%>+ 
( in=mation ,) respect to applications  
submitt$ by ,/ate-*>t]$ insur$          
depository in/itutions1 ! prim>y ,f$]al 
paym5t /ableco9 regulator %all %>e su*  
applications ) ! relevant ,/ate bank or 
,/ate cr$it union sup]visor4  7,c7      
,completion ( application  7i7 ,9 g5]al 
,! prim>y ,f$]al paym5t /ableco9        
regulator %all consid] an application   
complete if su* application conta9s     
suffici5t in=mation = ! prim>y ,f$]al   
paym5t /ableco9 regulator to r5d] a     

decision on :e!r ! application meets !  
requirem5ts set =? 9 section #d4  7ii7  
,mat]ial *ange 9 circum/ances ,an       
application describ$ "u clause 7i7 t is 
consid]$ complete %all rema9 complete   
unless ! prim>y ,f$]al paym5t /ableco9  
regulator det]m9es t a mat]ial *ange 9  
circum/ances requires o!rwise4  7#b7    
,evaluation ( applications ,a complete  
application receiv$ "u p>agraph 7#a7    
%all be evaluat$ by ! prim>y ,f$]al     
paym5t /ableco9 regulator bas$ on !     
ability ( ! subsidi>y ( ! applicant to  
meet ! requirem5ts set =? 9 section #d4 
7#c7 ,tim+ = decision2 gr\nds = d5ial   
7,a7 ,tim+ ,! prim>y ,f$]al paym5t      
/ableco9 regulator %all-- 7i7 n lat] ?an
 #cj days aft] receiv+ ! application--  
7,i7 in=m ! applicant :e!r ! applicant  
has submitt$ a complete application2 &  
7,,ii7 if ! application is n complete1  
in=m ! applicant ( ! additional         
in=mation ! applicant mu/ provide 9 ord]
 = ! application to be consid]$         
complete2 &  7ii7 n lat] ?an #abj days  

aft] in=m+ ! applicant t ! application  
is complete1 r5d] a decision on an      
application4  7,b7 ,d5ial ( application 
7i7 ,gr\nds = d5ial  7,i7 ,9 g5]al ,!   
prim>y ,f$]al paym5t /ableco9 regulator 
may only d5y a complete application     
receiv$ "u p>agraph 7#a7 if ! regulator 
det]m9es t ! activities ( ! applicant   
w\ld be unsafe or uns\nd bas$ on !      
ability ( ! subsidi>y ( ! applicant to  
meet ! requirem5ts set =? 9 section #d4 
7,,ii7 ,treatm5t ( c]ta9 issuances ,!   
issuance ( a paym5t /ableco9 on an op51 
public1 & dec5traliz$ network %all n be 
a valid gr\nd = d5ial ( an application  
receiv$ "u p>agraph 7#a74  7ii7         
,explanation requir$ ,if ! prim>y ,f$]al
 paym5t /ableco9 regulator d5ies a      
complete application receiv$ "u p>agraph
 7#a71 ! regulator %all1 n lat] ?an #cj 
days aft] ! date ( su* d5ial1 provide ! 
applicant )-- 7,i7 writt5 notice expla9+
 ! d5ial ) specificity1 includ+ all     
f9d+s made by ! regulator ) respect to  
all id5tifi$ mat]ial %ortcom+s 9 !      

application2 &  7,,ii7 actionable       
recomm5dations on h[ ! applicant c\ld   
address ! id5tifi$ mat]ial %ortcom+s4   
7iii7 ,opportunity = he>+2 f9al         
det]m9ation  7,i7 ,9 g5]al ,n lat] ?an  
#cj days aft] ! date ( receipt ( any    
notice ( ! d5ial ( an application "u ?is
 subsection1 ! applicant may reque/1 9  
writ+1 an opportunity = a writt5 or oral
 he>+ be=e ! prim>y ,f$]al paym5t       
/ableco9 regulator to appeal ! d5ial4   
7,,ii7 ,tim+ ,^u receipt ( a timely     
reque/1 ! prim>y ,f$]al paym5t /ableco9 
regulator %all notice a "t 7n lat] ?an  
#cj days aft] ! date ( receipt ( !      
reque/7 & place at :i* ! applicant may  
appe>1 p]sonally or ?r\gh c\nsel1 to    
appeal ! d5ial1 to submit writt5        
mat]ials1 or to provide oral te/imony & 
oral argum5t4  7,,iii7 ,f9al det]m9ation
 ,n lat] ?an #fj days aft] ! date ( a   
he>+ "u ?is clause1 ! prim>y ,f$]al     
paym5t /ableco9 regulator %all notify ! 
applicant ( ! f9al det]m9ation ( !      
prim>y ,f$]al paym5t /ableco9 regulator 

) respect to ! appeal1 :i* %all conta9 a
 /atem5t ( ! basis = su* det]m9ation1 ) 
specific f9d+s4  7,,iv7 ,notice if no   
he>+ ,if an applicant does n make a     
timely reque/ = a he>+ "u ?is clause1 ! 
prim>y ,f$]al paym5t /ableco9 regulator 
%all notify ! applicant1 n lat] ?an #aj 
days aft] ! date by :i* ! applicant may 
reque/ a he>+ "u ?is clause1 9 writ+1 t 
! d5ial ( ! application is a f9al       
det]m9ation ( ! prim>y ,f$]al paym5t    
/ableco9 regulator4  7,c7 ,failure to   
r5d] a decision ,if ! prim>y ,f$]al     
paym5t /ableco9 regulator fails to r5d] 
a decision on a complete application )9 
! "t p]iod specifi$ 9 subp>agraph 7,a71 
! application %all be deem$ approv$4    
7,d7 ,"r to reapply ,! d5ial ( an       
application "u ?is subsection %all n    
prohibit ! applicant f fil+ a subsequ5t 
application4  7#d7 ,report on p5d+      
applications ,ea* ( ! prim>y ,f$]al     
paym5t /ableco9 regulators %all annually
 report to ,congress on-- 7,a7 ! numb] (
 cal5d> days ea* applicant wait$ = ei!r 

an approval or d5ial ( an application "u
 ?is subsection2  7,b7 ! numb] ( cal5d> 
days ea* applicant ) an out/&+          
application has wait$ = a decision2 &   
7,c7 ! numb] ( applications t h be5 p5d+
 = #f mon?s or long] s9ce ! date ( !    
initial application fil$ "u p>agraph    
7#a7 :]e ! applicant has be5 in=m$ t !  
application rema9s incomplete1 includ+  
provid+ docum5tation on ! /atus ( !     
application & :y ! application has n yet
 be5 approv$4  7#e7 ,rulemak+  7,a7 ,9  
g5]al ,n lat] ?an #ahj days aft] ! date 
( enactm5t ( ?is ,act1 ! prim>y ,f$]al  
paym5t /ableco9 regulators %all1 jo9tly1
 issue rules to c>ry out ?is section1   
:i* may only relate to ! application    
process "u ?is subsection & may n       
implem5t ! requirem5ts set =? 9 section 
#d4  7,b7 ,tailor+ ( rules ,! jo9t      
rulemak+ requir$ "u subp>agraph 7,a7    
%all be tailor$ s z to m9imize any      
increm5tal burd5 plac$ on well          
capitaliz$ & highly-rat$ insur$         
depository in/itutions4  7b7 ,effective 

date  7#a7 ,9 g5]al ,?is section %all   
take effect on ! e>li] (-- 7,a7 #ab     
mon?s aft] ! date ( enactm5t ( ?is ,act2
 or  7,b7 ! date t is #abj days aft] !  
date on :i* ! prim>y ,f$]al paym5t      
/ableco9 regulators issue f9al          
regulations implem5t+ ?is section4  7#b7
 ,notice to ,congress ,ea* ( ! prim>y   
,f$]al paym5t /ableco9 regulators %all  
notify ,congress ^u receiv+ _! fir/     
application4  7c7 ,effect on ,/ate law =
 paym5t /ableco9 issu]s approv$ by      
,f$]al paym5t /ableco9 regulators "u ?is
 section ,! provisions ( ?is section    
preempt any conflict+ ,/ate law &       
sup]s$e any ,/ate lic5s+ requirem5t =   
any nonbank entity or subsidi>y ( an    
insur$ depository in/itution or cr$it   
union t is approv$ "u ?is section to be 
a p]mitt$ paym5t /ableco9 issu]4  #f4   
,sup]vision & en=cem5t ) respect to     
subsidi>ies ( insur$ depository         
in/itutions & ,f$]al qualifi$ nonbank   
paym5t /ableco9 issu]s  7a7 ,sup]vision 
7#a7 ,subsidi>y ( an insur$ depository  

in/itution  7,a7 ,9 g5]al ,ea* p]mitt$  
paym5t /ableco9 issu] t is a subsidi>y (
 an insur$ depository in/itution %all be
 subject to sup]vision by ! prim>y      
,f$]al paym5t /ableco9 regulator 9 !    
same mann] z su* insur$ depository      
in/itution4  7,b7 ,gramm-,lea*-,bliley  
,act ,= purposes ( title ,v ( !         
,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4
 #fhja et seq47 ea* p]mitt$ paym5t      
/ableco9 issu] t is a subsidi>y ( an    
insur$ depository in/itution %all be    
deem$ a f9ancial in/itution4  7#b7      
,f$]al qualifi$ nonbank paym5t /ableco9 
issu]  7,a7 ,submission ( reports ,ea*  
,f$]al qualifi$ nonbank paym5t /ableco9 
issu] %all1 ^u reque/1 submit reports to
 ! ,comptroll] z to-- 7i7 ! f9ancial    
condition ( ! ,f$]al qualifi$ nonbank   
paym5t /ableco9 issu]2  7ii7 ! sy/ems ( 
! ,f$]al qualifi$ nonbank paym5t        
/ableco9 issu] = monitor+ & controll+   
f9ancial & op]at+ risks2 &  7iii7       
compliance ) ?is ,act & regulations     
issu$ pursuant to ?is ,act by ! ,f$]al  

qualifi$ nonbank paym5t /ableco9 issu]4 
7,b7 ,exam9ations ,! ,comptroll] may    
exam9e a ,f$]al qualifi$ nonbank paym5t 
/ableco9 issu] 9 ord] to in=m !         
,comptroll] (-- 7i7 ! nature ( !        
op]ations & f9ancial condition ( !      
,f$]al qualifi$ nonbank paym5t /ableco9 
issu]2  7ii7 ! f9ancial1 op]ational1 &  
o!r risks )9 ! ,f$]al qualifi$ nonbank  
paym5t /ableco9 issu] t may pose a ?reat
 to-- 7,i7 ! safety & s\ndness ( !      
,f$]al qualifi$ nonbank paym5t /ableco9 
issu]2 or  7,,ii7 ! /ability ( !        
f9ancial sy/em ( ! ,unit$ ,/ates2  7iii7
 ! sy/ems ( ! ,f$]al qualifi$ nonbank   
paym5t /ableco9 issu] = monitor+ &      
controll+ ! risks describ$ 9 clause     
7ii72  7iv7 ! compliance ( ! ,f$]al     
qualifi$ nonbank paym5t /ableco9 issu] )
 ?is ,act & regulations issu$ pursuant  
to ?is ,act2 &  7v7 ! compliance ( !    
,f$]al qualifi$ nonbank paym5t /ableco9 
issu] ) ! requirem5ts ( ! ,bank ,secrecy
 ,act & laws au?oriz+ ! imposition (    
sanctions & implem5t$ by ! ,secret>y ( !

 ,treasury4  7,c7 ,requirem5ts =        
effici5cy ,9 sup]vis+ & exam9+ a ,f$]al 
qualifi$ nonbank paym5t /ableco9 issu]1 
! ,comptroll] %all1 to ! fulle/ ext5t   
possible1 use exi/+ reports & o!r       
sup]visory in=mation4  7,d7 ,avoidance (
 duplication ,! ,comptroll] %all1 to !  
fulle/ ext5t possible1 avoid duplication
 ( exam9ation activities1 report+       
requirem5ts1 & reque/s = in=mation 9    
c>ry+ out ?is ,act ) respect to a ,f$]al
 qualifi$ nonbank paym5t /ableco9 issu]4
  7,e7 ,gramm-,lea*-,bliley ,act ,=     
purposes ( title ,v ( !                 
,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4
 #fhja et seq47 ea* ,f$]al qualifi$     
nonbank paym5t /ableco9 issu] %all be   
deem$ a f9ancial in/itution4  7b7       
,en=cem5t  7#a7 ,susp5sion or revocation
 ( regi/ration ,! prim>y ,f$]al paym5t  
/ableco9 regulator may prohibit a       
p]mitt$ paym5t /ableco9 issu] f issu+   
paym5t /ableco9s1 if ! prim>y ,f$]al    
paym5t /ableco9 regulator det]m9es t su*
 p]mitt$ paym5t /ableco9 issu]1 or an   

in/itution-affiliat$ p>ty ( ! p]mitt$   
paym5t /ableco9 issu]1 is-- 7,a7        
mat]ially violat+ or has mat]ially      
violat$ ?is ,act or any regulation or   
ord] issu$ "u ?is ,act1 includ+ !       
issu]'s obligations "u ! section        
#d7;a77#f72 or  7,b7 mat]ially violat+  
or has mat]ially violat$ any condition  
impos$ 9 writ+ by ! prim>y ,f$]al paym5t
 /ableco9 regulator 9 connection ) a    
writt5 agreem5t ent]$ into betwe5 !     
p]mitt$ paym5t /ableco9 issu] & ! prim>y
 ,f$]al paym5t /ableco9 regulator4  7#b7
 ,cease-&-desi/ proce$+s ,if ! prim>y   
,f$]al paym5t /ableco9 regulator has    
reasonable cause to believe t a p]mitt$ 
paym5t /ableco9 issu] or any            
in/itution-affiliat$ p>ty ( a p]mitt$   
paym5t /ableco9 issu] is violat+1 has   
violat$1 or is attempt+ to violate ?is  
,act1 any regulation or ord] issu$ "u   
?is ,act1 or any writt5 agreem5t ent]$  
into ) ! prim>y ,f$]al paym5t /ableco9  
regulator or condition impos$ 9 writ+ by
 ! prim>y ,f$]al paym5t /ableco9        

regulator 9 connection ) any application
 or o!r reque/1 ! prim>y ,f$]al paym5t  
/ableco9 regulator may ord] ! p]mitt$   
paym5t /ableco9 issu] or                
in/itution-affiliat$ p>ty ( ! p]mitt$   
paym5t /ableco9 issu] to-- 7,a7 cease & 
desi/ f su* violation or practice2 or   
7,b7 take affirmative action to correct 
! conditions result+ f any su* violation
 or practice4  7#c7 ,removal &          
prohibition au?ority ,! prim>y ,f$]al   
paym5t /ableco9 regulator may remove an 
in/itution-affiliat$ p>ty ( a p]mitt$   
paym5t /ableco9 issu] f _! position or  
(fice or prohibit fur!r p>ticipation 9 !
 affairs ( ! p]mitt$ paym5t /ableco9    
issu] or all p]mitt$ paym5t /ableco9    
issu]s by su* in/itution-affiliat$ p>ty1
 if ! prim>y ,f$]al paym5t /ableco9     
regulator det]m9es t-- 7,a7 !           
in/itution-affiliat$ p>ty has1 directly 
or indirectly1 committ$ a violation or  
attempt$ violation ( ?is ,act or any    
regulation or ord] issu$ "u ?is ,act2 or
  7,b7 ! in/itution-affiliat$ p>ty has  

committ$ a violation ( any provision (  
sub*apt] ,,ii ( *apt] #ec ( title #ca1  
,unit$ ,/ates ,code4  7#d7 ,proc$ures   
7,a7 ,9 g5]al ,if ! prim>y ,f$]al paym5t
 /ableco9 regulator id5tifies a         
violation or attempt$ violation ( ?is   
,act or makes a det]m9ation "u p>agraph 
7#a71 7#b71 or 7#c71 ! prim>y ,f$]al    
paym5t /ableco9 regulator %all comply ) 
! proc$ures set =?1 z applicable1 9--   
7i7 subsections 7b7 & 7e7 ( sections #h 
( ! ,f$]al ,deposit ,insurance ,act 7#ab
 ,u4,s4,c4 #ahah72 or  7ii7 subsections 
7e7 & 7g7 ( section #bjf ( ! ,f$]al     
,cr$it ,union ,act 7#ab ,u4,s4,c4       
#aghf74  7,b7 ,judicial review ,a p]son 
aggriev$ by a f9al action "u ?is        
subsection may obta9 judicial review (  
su* action exclusively z provid$1 z     
applicable1 9-- 7i7 section #h7;h7 ( !  
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahah7;h772 or  7ii7 section  
#bjf7;j7 ( ! ,f$]al ,cr$it ,union ,act  
7#ab ,u4,s4,c4 #aghf7;j774  7,c7        
,injunction ,! prim>y ,f$]al paym5t     

/ableco9 regulator may1 9 ! discretion (
 ! regulator1 foll[ ! proc$ures =       
judicial en=cem5t ( any effective &     
out/&+ notice or ord] issu$ "u ?is      
subsection provid$1 z applicable1 9--   
7i7 section #h7;i77#a7 ( ! ,f$]al       
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahah7;i77#a772 or  7ii7 section        
#bjf7k77#a7 ( ! ,f$]al ,cr$it ,union    
,act 7#ab ,u4,s4,c4 #aghf7k77#a774  7,d7
 ,tempor>y cease-&-desi/ proce$+s ,if ! 
prim>y ,f$]al paym5t /ableco9 regulator 
det]m9es t a violation or attempt$      
violation ( ?is ,act or an action )     
respect to :i* a det]m9ation 0 made "u  
p>agraph 7#a71 7#b71 or 7#c71 or !      
cont9uation !re(1 is likely to cause    
insolv5cy or significant dissipation (  
assets or e>n+s ( a p]mitt$ paym5t      
/ableco9 issu]1 or is likely to weak5 ! 
condition ( ! p]mitt$ paym5t /ableco9   
issu] or o!rwise prejudice ! int]e/s ( !
 cu/om]s ( ! p]mitt$ paym5t /ableco9    
issu] prior to ! completion ( ! proce$+s
 conduct$ "u ?is p>agraph1 ! prim>y     

,f$]al paym5t /ableco9 regulator may    
foll[ ! proc$ures provid$1 z applicable1
 9-- 7i7 section #h7;c7 ( ! ,f$]al      
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahah7;c77 to issue a tempor>y          
cease-&-desi/ ord]2 or  7ii7 section    
#bjf7;f7 ( ! ,f$]al ,cr$it ,union ,act  
7#ab ,u4,s4,c4 #aghf7;f77 to issue a    
tempor>y cease-&-desi/ ord]4  7#e7      
,civil money p5alties  7,a7 ,failure to 
be approv$ ,any p]son :o issues a paym5t
 /ableco9 & :o is n a p]mitt$ paym5t    
/ableco9 issu]1 & any                   
in/itution-affiliat$ p>ty ( su* a p]son 
:o kn[+ly p>ticipates 9 issu+ su* a     
paym5t /ableco91 %all be liable = a     
civil p5alty ( n m ?an #ajj1jjj = ea*   
day dur+ :i* su* paym5t /ableco9s are   
out/&+4  7,b7 ,fir/ ti] ,except z       
provid$ 9 subp>agraph 7,a71 a p]mitt$   
paym5t /ableco9 issu] or                
in/itution-affiliat$ p>ty ( su* p]mitt$ 
paym5t /ableco9 issu] t mat]ially       
violates ?is ,act or any regulation or  
ord] issu$ "u ?is ,act1 or t mat]ially  

violates any condition impos$ 9 writ+ by
 ! prim>y ,f$]al paym5t /ableco9        
regulator 9 connection ) a writt5       
agreem5t ent]$ into betwe5 ! p]mitt$    
paym5t /ableco9 issu] & ! prim>y ,f$]al 
paym5t /ableco9 regulator1 %all be      
liable = a civil p5alty ( up to #ajj1jjj
 = ea* day dur+ :i* ! violation         
cont9ues4  7,c7 ,second ti] ,except z   
provid$ 9 subp>agraph 7,a71 & 9 addition
 to ! p5alties describ$ "u subp>agraph  
7,b71 a p]mitt$ paym5t /ableco9 issu] or
 in/itution-affiliat$ p>ty ( su* p]mitt$
 paym5t /ableco9 issu] :o kn[+ly        
p>ticipates 9 a violation ( any         
provision ( ?is ,act1 or any regulation 
or ord] issu$ !reund]1 is liable = a    
civil p5alty ( up to an additional      
#ajj1jjj = ea* day dur+ :i* ! violation 
cont9ues4  7,d7 ,proc$ure ,any p5alty   
impos$ "u ?is p>agraph may be assess$ & 
collect$ by ! prim>y ,f$]al paym5t      
/ableco9 regulator pursuant to !        
proc$ures set =?1 z applicable1 9-- 7i7 
section #h7;i77#b7 ( ! ,f$]al ,deposit  

,insurance ,act 7#ab ,u4,s4,c4          
#ahah7;i77#b772 or  7ii7 section        
#bjf7k77#b7 ( ! ,f$]al ,cr$it ,union    
,act 7#ab ,u4,s4,c4 #aghf7k77#b774  7,e7
 ,notice & ord]s aft] sep>ation f s]vice
 ,! resignation1 t]m9ation ( employm5t  
or p>ticipation1 or sep>ation ( an      
in/itution-affiliat$ p>ty 7includ+ a    
sep>ation caus$ by ! clos+ ( a p]mitt$  
paym5t /ableco9 issu]7 %all n affect !  
jurisdiction & au?ority ( ! prim>y      
,f$]al paym5t /ableco9 regulator to     
issue any notice or ord] & proce$ "u ?is
 subsection aga9/ any su* p>ty1 if su*  
notice or ord] is s]v$ be=e ! end ( !   
#f-ye> p]iod beg9n+ on ! date su* p>ty  
ceas$ to be an in/itution-affiliat$ p>ty
 ) respect to su* p]mitt$ paym5t        
/ableco9 issu]4  7#f7 ,non-applicability
 to a ,/ate qualifi$ paym5t /ableco9    
issu] ,?is subsection %all n apply to a 
,/ate qualifi$ paym5t /ableco9 issu]1   
except z describ$ 9 section #g7;e74  7c7
 ,%>+ ( in=mation ,a ,/ate paym5t       
/ableco9 regulator & ! prim>y ,f$]al    

paym5t /ableco9 regulator %all %>e      
in=mation on an ongo+ basis ) respect to
 a p]mitt$ paym5t /ableco9 issu] t is a 
subsidi>y ( a ,/ate-*>t]$ insur$        
depository in/itution4  #g4 ,/ate       
qualifi$ paym5t /ableco9 issu]s  7a7 ,9 
g5]al ,) respect to a ,/ate1 a ,/ate    
paym5t /ableco9 regulator %all h        
sup]visory1 exam9ation1 & en=cem5t      
au?ority ov] a ,/ate qualifi$ paym5t    
/ableco9 issu] ( su* ,/ate4  7b7        
,au?ority to ent] into agreem5ts  7#a7  
,9 g5]al ,a ,/ate paym5t /ableco9       
regulator may ent] into a memor&um (    
und]/&+ ) ! prim>y ,f$]al bank+ ag5cy & 
,comptroll] sett+ out ! mann] 9 :i* !   
prim>y ,f$]al bank+ ag5cy & ,comptroll] 
may p>ticipate 9 ! sup]vision1          
exam9ation1 & en=cem5t au?ority )       
respect to ! ,/ate qualifi$ paym5t      
/ableco9 issu]s ( su* ,/ate4  7#b7 ,rule
 ( con/ruction ,no?+ 9 ?is subsection or
 a memor&um ent]$ into "u ?is subsection
 may be con/ru$ to limit ! au?ority ( ! 
prim>y ,f$]al bank+ ag5cy or ,comptroll]

 "u subsection 7e7 or any o!r provision 
( law4  7c7 ,%>+ ( in=mation  7#a7 ,9   
g5]al ,a ,/ate paym5t /ableco9 regulator
 &1 z applicable1 ! ,comptroll]1 !      
,bo>d1 ! ,corporation1 or ! ,national   
,cr$it ,union ,adm9i/ration %all %>e    
in=mation on an ongo+ basis ) respect to
 ea* ,/ate qualifi$ paym5t /ableco9     
issu] ( su* ,/ate1 includ+ a copy ( all 
initial applications & any accompany+   
docum5ts4  7#b7 ,privileges n affect$ by
 %>+ ( in=mation ,! %>+ ( in=mation "u  
p>agraph 7#a7 %all n be con/ru$ z waiv+1
 de/roy+1 or o!rwise affect+ any        
privilege applicable to su* in=mation "u
 ,f$]al or ,/ate law z to any p]son or  
entity o!r ?an ! ,/ate paym5t /ableco9  
regulator1 ! ,comptroll]1 ! ,bo>d1 !    
,corporation1 & ! ,national ,cr$it      
,union ,adm9i/ration4  7d7 ,rulemak+ ,a 
,/ate paym5t /ableco9 regulator may1 to 
! same ext5t z ! prim>y ,f$]al paym5t   
/ableco9 regulators issue ord]s & rules 
"u section #d applicable to a p]mitt$   
paym5t /ableco9 issu] t is n a ,/ate    

qualifi$ paym5t /ableco9 issu]1 issue   
ord]s & rules relat$ to ! requirem5ts "u
 section #d applicable to ,/ate qualifi$
 paym5t /ableco9 issu]s4  7e7 ,back-up  
en=cem5t au?ority  7#a7 ,by ! prim>y    
,f$]al bank+ ag5cy  7,a7 ,9 g5]al       
,subject to subp>agraph 7,c71 ! prim>y  
,f$]al bank+ ag5cy may1 aft] n less ?an 
#dh h\rs prior writt5 notice to any     
applicable ,/ate paym5t /ableco9        
regulator1 take an en=cem5t action aga9/
 a ,/ate qualifi$ paym5t /ableco9 issu] 
t is a subsidi>y ( an insur$ depository 
in/itution or an in/itution-affiliat$   
p>ty !re( = violations ( ?is ,act if--  
7i7 ! applicable ,/ate paym5t /ableco9  
regulator has n comm5c$ an en=cem5t     
action to correct su* violation2 &  7ii7
 failure to take su* action w\ld create 
a mat]ial risk ( loss to hold]s ( su*   
issu]'s /ableco9s or create a mat]ial   
?reat to ,u4,s4 f9ancial /ability4  7,b7
 ,rulemak+ ,n lat] ?an ! end ( !        
#ahj-;day p]iod beg9n+ on ! date (      
enactm5t ( ?is ,act1 ! prim>y ,f$]al    

bank+ ag5cies %all issue rules to set =?
 ! /&>ds t w\ld be us$ by ! prim>y      
,f$]al bank+ ag5cies to ex]cise !       
back-up au?ority "u ?is p>agraph4  7,c7 
,back-up au?ority "u section #f7;b7     
,solely = purposes ( c>ry+ out ?is      
p>agraph1 section #f7;b7 %all apply to a
 ,/ate qualifi$ paym5t /ableco9 issu] t 
is a subsidi>y ( an insur$ depository   
in/itution z if ! prim>y ,f$]al bank+   
ag5cy 7 ! prim>y ,f$]al paym5t /ableco9 
regulator ) respect to ! ,/ate qualifi$ 
paym5t /ableco9 issu]4  7,d7 ,prim>y    
,f$]al bank+ ag5cy def9$ ,9 ?is         
section-- 7i7 ! t]m prim>y ,f$]al bank+ 
ag5cy means-- 7,i7 ! appropriate ,f$]al 
bank+ ag5cy2 &  7,,ii7 ! ,national      
,cr$it ,union ,adm9i/ration1 9 ! case ( 
an insur$ cr$it union2 &  7ii7 ! t]m    
prim>y ,f$]al bank+ ag5cies means !     
,bo>d1 ! ,comptroll]1 ! ,corporation1 & 
! ,national ,cr$it ,union ,adm9i/ration4
  7#b7 ,by ! ,comptroll]  7,a7 ,9 g5]al 
,subject to subp>agraph 7,c71 !         
,comptroll] may1 aft] n less ?an #dh    

h\rs prior writt5 notice to any         
applicable ,/ate paym5t /ableco9        
regulator1 take an en=cem5t action aga9/
 a ,/ate qualifi$ paym5t /ableco9 issu] 
t is a nonbank entity or an             
in/itution-affiliat$ p>ty !re( =        
violations ( ?is ,act if-- 7i7 !        
applicable ,/ate paym5t /ableco9        
regulator has n comm5c$ an en=cem5t     
action to correct su* violation2 &  7ii7
 failure to take su* action w\ld create 
a mat]ial risk ( loss to hold]s ( su*   
issu]'s /ableco9s or create a mat]ial   
?reat to ,u4,s4 f9ancial /ability4  7,b7
 ,rulemak+ ,n lat] ?an ! end ( !        
#ahj-;day p]iod beg9n+ on ! date (      
enactm5t ( ?is ,act1 ! ,comptroll] %all 
issue rules to set =? ! /&>ds t w\ld be 
us$ by ! ,comptroll] to ex]cise !       
back-up au?ority "u ?is p>agraph4  7,c7 
,back-up au?ority "u section #f7;b7     
,solely = purposes ( c>ry+ out ?is      
p>agraph1 section #f7;b7 %all apply to a
 ,/ate qualifi$ paym5t /ableco9 issu] t 
is a nonbank entity z if ! ,comptroll] 7

 ! prim>y ,f$]al paym5t /ableco9        
regulator ) respect to ! ,/ate qualifi$ 
paym5t /ableco9 issu]4  7f7             
,gramm-,lea*-,bliley ,act ,= purposes ( 
title ,v ( ! ,gramm-,lea*-,bliley ,act  
7#ae ,u4,s4,c4 #fhja et seq47 a ,/ate   
qualifi$ paym5t /ableco9 issu] is deem$ 
a f9ancial in/itution4  7g7 ,int]/ate   
paym5t /ableco9 m>ket  7#a7 ,def9itions 
,= ! purposes ( ?is subsection-- 7,a7 ! 
t]m home ,/ate means ! ,/ate ( a ,/ate  
qualifi$ paym5t /ableco9 issu]'s ,/ate  
paym5t /ableco9 regulator2 &  7,b7 ! t]m
 ho/ ,/ate means a ,/ate o!r ?an t ( !  
,/ate qualifi$ paym5t /ableco9 issu]'s  
,/ate paym5t /ableco9 regulator4  7#b7  
,au?ority to issue paym5t /ableco9s 9   
ho/ ,/ates ,subject to ! requirem5ts (  
p>agraph 7#c71 a ,/ate qualifi$ paym5t  
/ableco9 issu] may issue paym5t         
/ableco9s 9 a ho/ ,/ate )\t a *>t] or   
lic5se to issue paym5t /ableco9s f su*  
ho/ ,/ate4  7#c7 ,/ate obligations ,:]e 
a ,/ate qualifi$ paym5t /ableco9 issu]  
issues a paym5t /ableco9 9 a ho/ ,/ate  

pursuant to p>agraph 7#b7-- 7,a7 su*    
,/ate qualifi$ paym5t /ableco9 issu]    
%all notify any ,/ate paym5t /ableco9   
regulator 9 su* ho/ ,/ate ( ! issu]'s   
int5tion to d bus9ess 9 ! ho/ ,/ate n   
less ?an #cj days be=e su* issu]        
comm5ces bus9ess 9 ! ho/ ,/ate & 9 a    
mann] prescrib$ by ! ho/ ,/ate's ,/ate  
paym5t /ableco9 regulator or ,/ate bank+
 regulator if su* ,/ate does n h a      
regime c]tifi$ "u section #d7;b71       
provid$ t su* notice does n impose a de 
facto lic5sure or *>t]+ requirem5t on   
su* ,/ate qualifi$ paym5t /ableco9      
issu]2  7,b7 su* ,/ate qualifi$ paym5t  
/ableco9 issu] %all comply ) all        
requirem5ts ( ! issu]'s home ,/ate      
regulatory regime :5 conduct+ bus9ess 9 
! ho/ ,/ate1 & :]e ! ho/ ,/ate ma9ta9s a
 paym5t /ableco9 regulatory regime t is 
c]tifi$ "u section #d7;b71 su* issu]    
%all comply ) any obligations ( ! ho/   
,/ate's paym5t /ableco9 regulatory      
regime t exce$ ^? ( su* issu]'s home    
,/ate regulatory regime2  7,c7 :]e ! ho/

 ,/ate does n ma9ta9 a paym5t /ableco9  
regulatory regime t is c]tifi$ "u       
section #d7;b71 su* ,/ate qualifi$      
paym5t /ableco9 issu] %all rema9 subject
 to all applicable consum] protection   
laws ( su* ho/ ,/ate2 &  7,d7 :]e ! ho/ 
,/ate ma9ta9s a paym5t /ableco9         
regulatory regime t is c]tifi$ "u       
section #d7;b71 su* ,/ate qualifi$      
paym5t /ableco9 issu] %all rema9 subject
 to applicable consum] protection laws (
 su* ho/ ,/ate1 b only to ! same ext5t z
 ,/ate qualifi$ paym5t /ableco9 issu]s  
*>t]$ or lic5s$ 9 t ho/ ,/ate4  #h4     
,cu/om] protection  7a7 ,9 g5]al ,a     
p]son may only engage 9 ! bus9ess (     
provid+ cu/odial or safekeep+ s]vices = 
paym5t /ableco9s issu$ by p]mitt$ paym5t
 /ableco9 issu]s1 res]ves describ$ 9    
section #d7;a77#a77;,a71 or private keys
 ( paym5t /ableco9s issu$ by p]mitt$    
paym5t /ableco9 issu]s1 if ! p]son--    
7#a7 is subject to-- 7,a7 sup]vision or 
regulation by a prim>y ,f$]al paym5t    
/ableco9 regulator or a prim>y f9ancial 

regulatory ag5cy describ$ "u subp>agraph
 7,b7 or 7,c7 ( section #b7ab7 ( !      
,dodd-,frank ,wall ,/reet ,re=m &       
,consum] ,protection ,act 7#ab ,u4,s4,c4
 #ecja7ab772 or  7,b7 sup]vision by a   
,/ate bank sup]visor1 z def9$ 9 section 
#c ( ! ,f$]al ,deposit ,insurance ,act  
7#ab ,u4,s4,c4 #ahac7 or a ,/ate cr$it  
union sup]visor1 z def9$ 9 section #fjjc
 ( ! ,anti-,money ,laund]+ ,act ( #bjbj 
7#ca ,u4,s4,c4 #ecaa note71 & su* ,/ate 
bank sup]visor or ,/ate cr$it union     
sup]visor makes available to ! ,bo>d su*
 in=mation z ! ,bo>d det]m9es necess>y &
 relevant to ! categories ( in=mation "u
 subsection 7d72 &  7#b7 complies ) !   
segregation requirem5ts "u subsections  
7b71 7c71 & 7d71 unless su* p]son       
complies ) simil> requirem5ts z requir$ 
by ! ,bo>d1 ! ,comptroll]1 !            
,corporation1 ! ,securities & ,ex*ange  
,commission1 or ! ,commodity ,futures   
,trad+ ,commission1 z applicable4  7b7  
,cu/om] prop]ty requirem5ts ,a p]son    
describ$ 9 subsection 7a7 %all-- 7#a7   

treat & deal ) ! paym5t /ableco9s1      
private keys1 ca%1 & o!r prop]ty ( ano!r
 p]son = :om or on ^: behalf ! p]son    
receives1 acquires1 or holds paym5t     
/ableco9s1 private keys1 ca%1 & o!r     
prop]ty 7h]e9aft] 9 ?is section ref]r$  
to z ! cu/om]7 z belong+ to su* cu/om] &
 n z ! prop]ty ( su* p]son2 &  7#b7 take
 su* /eps z are appropriate to protect !
 paym5t /ableco9s1 private keys1 ca%1 & 
o!r prop]ty ( a cu/om] f ! claims (     
cr$itors ( ! p]son4  7c7 ,comm+l+       
prohibit$  7#a7 ,9 g5]al ,paym5t        
/ableco9s1 ca%1 & o!r prop]ty ( a cu/om]
 %all be sep>ately acc\nt$ = by a p]son 
describ$ 9 subsection 7a7 & %all n be   
comm+l$ ) ! funds ( ! p]son4  7#b7      
,cu/om] priority ,9 any insolv5cy1      
claims aga9/ res]ves ( a paym5t /ableco9
 issu] f p]sons hold+ paym5t /ableco9s  
issu$ by ! paym5t /ableco9 issu] %all h 
priority ov] all o!r claims1 o!r ?an =  
adm9i/rative exp5ses1 aga9/ ! paym5t    
/ableco9 issu]4  7#c7 ,exception        
,not)/&+ p>agraph 7#a7-- 7,a7 ! paym5t  

/ableco9s1 ca%1 & o!r prop]ty ( a cu/om]
 may be comm+l$ & deposit$ 9 an omnibus 
acc\nt hold+ ! paym5t /ableco9s1 ca%1 & 
o!r prop]ty ( m ?an #a cu/om] at a      
depository in/itution 7z def9$ 9 section
 #c ( ! ,f$]al ,deposit ,insurance      
,act71 tru/ company1 ,f$]al cr$it union1
 or ,/ate cr$it union2  7,b7 su* %>e ( !
 paym5t /ableco9s1 ca%1 & o!r prop]ty ( 
! cu/om] t %all be necess>y to transf]1 
adju/1 or settle a transaction or       
transf] ( assets may be )drawn & appli$ 
to su* purposes1 includ+ ! paym5t (     
commissions1 taxes1 /orage1 & o!r *>ges 
lawfully accru+ 9 connection ) !        
provision ( s]vices by a p]son describ$ 
9 subsection 7a72  7,c7 9 accordance )  
su* t]ms & conditions z ! ,bo>d may     
prescribe by rule1 regulation1 or ord]1 
any cu/om] paym5t /ableco91 ca%1 & o!r  
prop]ty describ$ 9 ?is subsection may be
 comm+l$ & deposit$ 9 cu/om] acc\nts )  
paym5t /ableco9s1 ca%1 & o!r prop]ty    
receiv$ by ! p]son & requir$ by ! ,bo>d 
to be sep>ately acc\nt$ =1 treat$1 &    

dealt ) z belong+ to cu/om]s2 &  7,d7 an
 insur$ depository in/itution t provides
 cu/odial or safekeep+ s]vices = paym5t 
/ableco9 res]ves %all be p]mitt$ to hold
 paym5t /ableco9 res]ves 9 ! =m ( ca% on
 deposit4  7d7 ,regulatory in=mation ,a 
p]son describ$ "u subsection 7a7 %all   
submit to ! prim>y ,f$]al paym5t        
/ableco9 regulator 7or1 if ! p]son does 
n h a prim>y ,f$]al paym5t /ableco9     
regulator1 to ! ,bo>d7 in=mation conc]n+
 ! p]son's bus9ess op]ations & processes
 to protect cu/om] paym5t /ableco9s1    
ca%1 & o!r prop]ty1 9 su* =m & mann] z !
 prim>y ,f$]al paym5t /ableco9 regulator
 7or1 if ! p]son does n h a prim>y      
,f$]al paym5t /ableco9 regulator1 !     
,bo>d7 %all det]m9e4  7e7 ,exclusion ,! 
requirem5ts ( ?is section %all n apply  
to any p]son solely on ! basis t su*    
p]son engages 9 ! bus9ess ( provid+     
h>dw>e or s(tw>e to facilitate a        
cu/om]'s own cu/ody or safekeep+ ( !    
cu/om]'s paym5t /ableco9s or private    
keys4  #i4 ,rule ( con/ruction ,a       

digital asset %all n be con/ru$ to be a 
paym5t /ableco9 if x is-- 7#a7 r$eemable
 exclusively = o!r digital assets1      
provid$ t su* digital assets = :i* x is 
r$eemable are n prim>ily-- 7,a7 paym5t  
/ableco9s2 or  7,b7 repres5tations (    
p]missible res]ves describ$ "u section  
#d7;a77#a77;,a7 or simil> su* assets2 or
  7#b7 prim>ily us$ )9 a sy/em controll$
 by su* digital asset's issu] z a means 
( access+ products1 s]vices1 or loyalty 
rew>ds4  #aj4 ,int]op]ability /&>ds  7a7
 ,9 g5]al ,! prim>y ,f$]al paym5t       
/ableco9 regulators1 9 consultation ) ! 
,national ,in/itute ( ,/&>ds &          
,te*nology1 o!r relevant /&>d sett+     
organizations1 & ,/ate gov]nm5ts-- 7#a7 
%all assess compatibility &             
int]op]ability /&>ds = p]mitt$ paym5t   
/ableco9 issu]s2 &  7#b7 if necess>y1   
may1 pursuant to section #eec ( title   
#e1 ,unit$ ,/ates ,code1 & 9 a mann]    
consi/5t ) ! ,national ,te*nology       
,transf] & ,advancem5t ,act ( #aiie     
7,public ,law #ajd-aac71 prescribe /&>ds

 = paym5t /ableco9 issu]s to promote    
compatibility & int]op]ability4  7b7    
,agreem5ts ) =eign regulators ,!        
,secret>y ( ! ,treasury %all seek to    
ent] into agreem5ts ) =eign             
jurisdictions ) comp>able paym5t        
/ableco9 regulatory regimes to          
facilitate int]national transactions &  
int]op]ability ) any ,unit$ ,/ates      
doll>-d5om9at$ paym5t /ableco9s issu$   
ov]seas4  #aa4 ,moratorium on endog5\sly
 collat]aliz$ /ableco9s  7a7 ,moratorium
 ,dur+ ! #b-ye> p]iod beg9n+ on ! date (
 enactm5t ( ?is ,act1 x %all be unlawful
 to issue an endog5\sly collat]aliz$    
/ableco9 n 9 exi/5ce on ! date (        
enactm5t ( ?is ,act4  7b7 ,endog5\sly   
collat]aliz$ /ableco9 def9$ ,9 ?is      
section1 ! t]m endog5\sly collat]aliz$  
/ableco9 means any digital asset-- 7#a7 
9 :i* its issu] has repres5t$ w be      
conv]t$1 r$eem$1 or repur*as$ = a fix$  
am\nt ( monet>y value2 &  7#b7 t relies 
solely on ! value ( ano!r digital asset 
creat$ or ma9ta9$ by ! same orig9ator to

 ma9ta9 ! fix$ price4  #ab4 ,/udies &   
reports  7a7 ,/udy by ,treasury ,!      
,secret>y ( ! ,treasury1 9 consultation 
) ! ,bo>d1 ! ,comptroll]1 !             
,corporation1 ! ,national ,cr$it ,union 
,adm9i/ration1 & ! ,securities &        
,ex*ange ,commission1 %all c>ry out a   
/udy ( non-paym5t /ableco9s1 includ+    
dec5traliz$ /ableco9s4  7b7 ,report ,n  
lat] ?an #cfe days aft] ! date ( !      
enactm5t ( ?is ,act1 ! ,secret>y %all   
provide to ! ,committee on ,f9ancial    
,s]vices ( ! ,h\se ( ,repres5tatives & !
 ,committee on ,bank+1 ,h\s+1 & ,urban  
,affairs ( ! ,s5ate a report t conta9s  
all f9d+s made 9 c>ry+ out ! /udy "u    
subsection 7a71 includ+ an analysis (-- 
7#a7 ! categories ( non-paym5t          
/ableco9s1 includ+ ! b5efits & risks (  
te*nological design features2  7#b7 !   
p>ticipants 9 non-paym5t /ableco9       
arrangem5ts2  7#c7 utilization &        
pot5tial utilization ( non-paym5t       
/ableco9s2  7#d7 nature ( res]ve        
compositions2  7#e7 gov]nance /ructure1 

includ+ aspects ( dec5tralization2  7#f7
 nature ( public promotion & adv]tis+2 &
  7#g7 cl>ity & availability ( consum]  
notices & disclosures4  7c7 ,impact /udy
  7#a7 ,9 g5]al ,! ,secret>y ( !        
,treasury1 9 consultation ) ! ,bo>d1 !  
,comptroll]1 ! ,corporation1 ! ,national
 ,cr$it ,union ,adm9i/ration1 & !       
,securities & ,ex*ange ,commission1 %all
 c>ry out a /udy on ! impact ( paym5t   
/ableco9s4  7#b7 ,report ,n lat] ?an    
#cfe days aft] ! date ( enactm5t ( ?is  
,act1 ! ,secret>y %all provide !        
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives & ! ,committee  
on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! 
,s5ate a report conta9+ all f9d+s made 9
 c>ry+ out ! /udy "u p>agraph 7#a71     
includ+ an analysis (-- 7,a7 ! impact ( 
paym5t /ableco9s on ! co/ ( dome/ic &   
cross-bord] paym5ts & remittances2  7,b7
 ! role ( paym5t /ableco9s 9 provid+    
access to a /able curr5cy 9 ! ,global   
,s\?2  7,c7 ! use ( paym5t /ableco9s by 
populations 9 ! ,global ,s\? to mitigate

 exposure to ! effects ( inflation2     
7,d7 ! ext5t to :i* paym5t /ableco9     
adoption re9=ces ! role ( ! ,unit$      
,/ates doll> z ! _w's res]ve curr5cy2 & 
7,e7 ! ext5t to :i* paym5t /ableco9s may
 exp& dem& = ,unit$ ,/ates ,treasury    
securities & r$uce ! co/ ( ,unit$ ,/ates
 ,gov]nm5t borr[+4  #ac4 ,report on     
rulemak+ /atus ,n lat] ?an #f mon?s aft]
 ! date ( enactm5t ( ?is ,act1 ! prim>y 
,f$]al paym5t /ableco9 regulators %all  
provide a /atus update on ! developm5t (
 ! rulemak+ "u ?is ,act to ! ,committee 
on ,f9ancial ,s]vices ( ! ,h\se (       
,repres5tatives & ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate4  #ad4 ,au?ority ( bank+         
in/itutions  7a7 ,rule ( con/ruction    
,no?+ 9 ?is ,act may be con/ru$ to limit
 ! au?ority ( a depository in/itution1  
national bank1 ,f$]al cr$it union1 ,/ate
 cr$it union1 or tru/ company to engage 
9 activities p]missible pursuant to     
applicable ,/ate & ,f$]al law1 includ+--
 7#a7 accept+ or receiv+ deposits &     

issu+ digital assets t repres5t         
deposits2  7#b7 utiliz+ a di/ribut$ l$g]
 = ! books & records ( ! entity & to    
affect intrabank transf]s2 &  7#c7      
provid+ cu/odial s]vices = paym5t       
/ableco9s1 private keys ( paym5t        
/ableco9s1 or res]ves back+ paym5t      
/ableco9s4  7b7 ,regulatory review ,!   
prim>y ,f$]al paym5t /ableco9 regulators
 %all review all exi/+ regulations &    
guidance &1 if necess>y1 am5d su*       
regulations or guidance or issue new    
regulations or guidance to cl>ify t     
regulat$ entities c engage 9 ! paym5t   
/ableco9 activities contemplat$ 91 & 9  
accordance )1 ?is ,act4  7c7 ,treatm5t (
 cu/ody activities ,! appropriate ,f$]al
 bank+ ag5cy1 ! ,national ,cr$it ,union 
,adm9i/ration 79 ! case ( a cr$it       
union71 & ! ,securities & ,ex*ange      
,commission may n require a depository  
in/itution1 national bank1 ,f$]al cr$it 
union1 ,/ate cr$it union1 or tru/       
company1 or any affiliate !re( 7!       
entity7-- 7#a7 to include assets held 9 

cu/ody t are n own$ by ! entity z a     
liability on ! f9ancial /atem5t or      
balance %eet ( ! entity1 includ+ paym5t 
/ableco9 cu/ody or safekeep+ s]vices2   
7#b7 to hold regulatory capital aga9/   
assets1 includ+ res]ves back+ su* assets
 describ$ 9 section #d7;a77#a77;,a71 9  
cu/ody or safekeep+1 except z necess>y  
to mitigate aga9/ op]ational risks      
inh]5t ) ! cu/ody or safekeep+ s]vices1 
z det]m9$ by-- 7,a7 ! appropriate ,f$]al
 bank+ ag5cy2  7,b7 ! ,national ,cr$it  
,union ,adm9i/ration 79 ! case ( a cr$it
 union72  7,c7 a ,/ate bank sup]visor 7z
 def9$ 9 section #c ( ! ,f$]al ,deposit 
,insurance ,act 7#ab ,u4,s4,c4 #ahac772 
or  7,d7 a ,/ate cr$it union sup]visor  
7z def9$ 9 section #fjjc ( !            
,anti-,money ,laund]+ ,act ( #bjbj 7#ca 
,u4,s4,c4 #ecaa note772 &  7#c7 to      
recognize a liability = any obligations 
relat$ to activities or s]vices p]=m$ ) 
respect to digital assets t ! entity    
does n own if t liability w\ld exce$ !  
exp5se recogniz$ 9 ! income /atem5t z a 

result ( ! correspond+ obligation4  7d7 
,depository in/itution def9$ ,9 ?is     
section1 ! t]m depository in/itution has
 ! mean+ giv5 t t]m 9 section #c ( !    
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahac74  #ae4 ,am5dm5ts to    
cl>ify t paym5t /ableco9s are n         
securities  7a7 ,inve/m5t ,advis]s ,act 
( #aidj ,section #bjb7;a77#ah7 ( !      
,inve/m5t ,advis]s ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;b-#b7;a77#ah77 is am5d$ by
 add+ at ! end ! foll[+3 ,! t]m security
 does n include a paym5t /ableco9 issu$ 
by a p]mitt$ paym5t /ableco9 issu]1 z   
su* t]ms are def9$1 respectively1 9     
section #b ( ! ,,/able ,act ( #bjbe44   
7b7 ,inve/m5t ,company ,act ( #aidj ,!  
,inve/m5t ,company ,act ( #aidj is      
am5d$-- 7#a7 9 section #b7;a77#cf7 7#ae 
,u4,s4,c4 #hj;a-#b7;a77#cf771 by add+ at
 ! end ! foll[+3 ,! t]m security does n 
include a paym5t /ableco9 issu$ by a    
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$1 respectively1 9 section 
#b ( ! ,,/able ,act ( #bjbe42 &  7#b7 9 

section #c7;c7 7#ae ,u4,s4,c4           
#hj;a-#c7;c771 by add+ at ! end !       
foll[+3  7#ae7 ,any p]mitt$ paym5t      
/ableco9 issu]1 z su* t]m is def9$ 9    
section #b ( ! ,,/able ,act ( #bjbe4  4 
7c7 ,securities ,act ( #aicc ,section   
#b7;a77#a7 ( ! ,securities ,act ( #aicc 
7#ae ,u4,s4,c4 #gg;b7a77#a77 is am5d$ by
 add+ at ! end ! foll[+3 ,! t]m security
 does n include a paym5t /ableco9 issu$ 
by a p]mitt$ paym5t /ableco9 issu]1 z   
su* t]ms are def9$1 respectively1 9     
section #b ( ! ,,/able ,act ( #bjbe44   
7d7 ,securities ,ex*ange act ( #aicd    
,section #c7;a77#aj7 ( ! ,securities    
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a77#aj77 is am5d$ by add+ at ! end
 ! foll[+3 ,! t]m security does n       
include a paym5t /ableco9 issu$ by a    
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$1 respectively1 9 section 
#b ( ! ,,/able ,act ( #bjbe44  7e7      
,securities ,inve/or ,protection ,act ( 
#aigj ,section #af7ad7 ( ! ,securities  
,inve/or ,protection ,act ( #aigj 7#ae  

,u4,s4,c4 #ghlll7#ad77 is am5d$ by add+ 
at ! end ! foll[+3 ,! t]m security does 
n include a paym5t /ableco9 issu$ by a  
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$1 respectively1 9 section 
#b ( ! ,,/able ,act ( #bjbe44  ,may #f1 
#bjbe,report$ ) an am5dm5t1 committ$ to 
! ,committee ( ! ,:ole ,h\se on ! ,/ate 
( ! ,union1 & ord]$ to be pr9t$