,,ii ,cal5d> ,no4 #ff #aai? ,,congress #a/ ,session ,s4 #aehb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,may #a1 #bjbe,mr4 ,hag]ty 7= himself1 ,ms4 ,lummis1 & ,mr4 ,scott ( ,s\? ,c>ol9a7 introduc$ ! foll[+ bill2 :i* 0 read ! fir/ "t ,may #e1 #bjbe,read ! second "t & plac$ on ! cal5d> ,a ,,bill ,to provide = ! regulation ( paym5t /ableco9s1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,guid+ & ,e/abli%+ ,national ,innovation = ,u4,s4 ,/ableco9s ,act or ! ,,g5ius ,act4 #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 9 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$]al ,res]ve ,sy/em4 7#d7 ,comptroll] ,! t]m ,comptroll] means ! ,(fice ( ! ,comptroll] ( ! ,curr5cy4 7#e7 ,corporation ,! t]m ,corporation means ! ,f$]al ,deposit ,insurance ,corporation4 7#f7 ,digital asset ,! t]m digital asset means any digital repres5tation ( value t is record$ on a cryptographically secur$ di/ribut$ l$g]4 7#g7 ,digital asset s]vice provid] ,! t]m digital asset s]vice provid]-- 7,a7 means a p]son t1 = comp5sation or pr(it1 engages 9 ! bus9ess 9 ! ,unit$ ,/ates 7includ+ on behalf ( cu/om]s or us]s 9 ! ,unit$ ,/ates7 (-- 7i7 ex*ang+ digital assets = monet>y value2 7ii7 ex*ang+ digital assets = o!r digital assets2 7iii7 transf]r+ digital assets to a ?ird p>ty2 7iv7 act+ z a digital asset cu/odian2 or 7v7 p>ticipat+ 9 f9ancial s]vices relat+ to digital asset issuance2 & 7,b7 does n include-- 7i7 a di/ribut$ l$g] protocol2 7ii7 develop+1 op]at+1 or engag+ 9 ! bus9ess ( develop+ di/ribut$ l$g] protocols or self-cu/odial s(tw>e int]faces2 7iii7 an immutable & self-cu/odial s(tw>e int]face2 7iv7 develop+1 op]at+1 or engag+ 9 ! bus9ess ( validat+ transactions or op]at+ a di/ribut$ l$g] node2 or 7v7 p>ticipat+ 9 a liquidity pool or o!r simil> me*anism = ! provision+ ( liquidity = pe]-to-pe] transactions4 7#h7 ,di/ribut$ l$g] ,! t]m di/ribut$ l$g] means te*nology 9 :i* data is %>$ across a network t creates a public digital l$g] ( v]ifi$ transactions or in=mation among network p>ticipants & cryptography is us$ to l9k ! data to ma9ta9 ! integrity ( ! public l$g] & execute o!r functions4 7#i7 ,di/ribut$ l$g] protocol ,! t]m di/ribut$ l$g] protocol means publicly available & accessible executable s(tw>e deploy$ to a di/ribut$ l$g]1 includ+ sm>t contracts or networks ( sm>t contracts4 7#aj7 ,f$]al bran* ,! t]m ,f$]al bran* has ! mean+ giv5 t t]m 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#aa7 ,f$]al qualifi$ paym5t /ableco9 issu] ,! t]m ,f$]al qualifi$ paym5t /ableco9 issu] means-- 7,a7 a nonbank entity1 o!r ?an a ,/ate qualifi$ paym5t /ableco9 issu]1 approv$ by ! ,comptroll]1 pursuant to section #e1 to issue paym5t /ableco9s2 7,b7 an un9sur$ national bank-- 7i7 t is *>t]$ by ! ,comptroll]1 pursuant to title ,,lxii ( ! ,revis$ ,/atutes2 & 7ii7 t is approv$ by ! ,comptroll]1 pursuant to section #e1 to issue paym5t /ableco9s2 & 7,c7 a ,f$]al bran* t is approv$ by ! ,comptroll]1 pursuant to section #e1 to issue paym5t /ableco9s4 7#ab7 ,=eign paym5t /ableco9 issu] ,! t]m =eign paym5t /ableco9 issu] means an issu] ( a paym5t /ableco9 t is-- 7,a7 organiz$ "u ! laws ( or domicil$ 9 a =eign c\ntry1 a t]ritory ( ! ,unit$ ,/ates1 ,pu]to ,rico1 ,guam1 ,am]ican ,samoa1 or ! ,virg9 ,isl&s2 & 7,b7 n a p]mitt$ paym5t /ableco9 issu]4 7#ac7 ,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 controll+ /ockhold] ( ! p]mitt$ paym5t /ableco9 issu]4 7#ad7 ,insur$ cr$it union ,! t]m insur$ cr$it union has ! mean+ giv5 t t]m 9 section #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#ae7 ,insur$ 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$it union4 7#af7 ,lawful ord] ,! t]m lawful ord] means any f9al & valid writ1 process1 ord]1 rule1 decree1 comm&1 or o!r requirem5t issu$ or promulgat$ "u ,f$]al law1 issu$ by a c\rt ( compet5t jurisdiction or by an au?oriz$ ,f$]al ag5cy pursuant to its /atutory au?ority1 t-- 7,a7 requires a p]son to seize1 freeze1 burn1 or prev5t ! transf] ( paym5t /ableco9s issu$ by ! p]son2 7,b7 specifies ! paym5t /ableco9s or acc\nts subject to block+ ) reasonable p>ticul>ity2 & 7,c7 is subject to judicial or adm9i/rative review or appeal z provid$ by law4 7#ag7 ,monet>y value ,! t]m monet>y value means a national curr5cy or deposit 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 d5om9at$ 9 a national curr5cy4 7#ah7 ,money ,! t]m money-- 7,a7 means a m$ium ( ex*ange curr5tly au?oriz$ or adopt$ by a dome/ic or =eign gov]nm5t2 & 7,b7 includes a monet>y unit ( acc\nt e/abli%$ by an int]gov]nm5tal organization or by agreem5t betwe5 #b or m c\ntries4 7#ai7 ,national curr5cy ,! t]m national curr5cy means ea* ( ! foll[+3 7,a7 ,a ,f$]al ,res]ve note 7z ! t]m is us$ 9 ! fir/ undesignat$ p>agraph ( section #af ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #daa774 7,b7 ,money /&+ to ! cr$it ( an acc\nt ) a ,f$]al ,res]ve ,bank4 7,c7 ,money issu$ by a =eign c5tral bank4 7,d7 ,money issu$ by an int]gov]nm5tal organization pursuant to an agreem5t by #b or m gov]nm5ts4 7#bj7 ,nonbank entity ,! t]m nonbank entity means a p]son t is n a depository in/itution or subsidi>y ( a depository in/itution4 7#ba7 ,(f] ,! t]m (f] means to make available = pur*ase1 sale1 or ex*ange4 7#bb7 ,paym5t /ableco9 ,! t]m paym5t /ableco9-- 7,a7 means a digital asset-- 7i7 t is1 or is design$ to be1 us$ z a means ( paym5t or settlem5t2 & 7ii7 ! issu] ( :i*-- 7,i7 is obligat$ to conv]t1 r$eem1 or repur*ase = a fix$ am\nt ( monet>y value1 n includ+ a digital asset d5om9at$ 9 a fix$ am\nt ( monet>y value2 & 7,,ii7 repres5ts t su* issu] w ma9ta91 or create ! reasonable expectation t x w ma9ta91 a /able value relative to ! value ( a fix$ am\nt ( monet>y value2 & 7,b7 does n include a digital asset t-- 7i7 is a national curr5cy2 7ii7 is a deposit 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac771 includ+ a deposit record$ us+ di/ribut$ l$g] te*nology2 or 7iii7 is a security1 z def9$ 9 section #b ( ! ,securities ,act ( #aicc 7#ae ,u4,s4,c4 #gg;b71 section #c ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c71 or section #b ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b71 except t1 = ! avoidance ( d\bt1 no bond1 note1 evid5ce ( indebt$ness1 or inve/m5t contract t 0 issu$ by a p]mitt$ paym5t /ableco9 issu] %all qualify z a security solely by virtue ( its satisfy+ ! conditions describ$ 9 subp>agraph 7,a71 consi/5t ) section #ag ( ?is ,act4 7#bc7 ,p]mitt$ paym5t /ableco9 issu] ,! t]m p]mitt$ paym5t /ableco9 issu] means a p]son =m$ 9 ! ,unit$ ,/ates t-- 7,a7 is-- 7i7 a subsidi>y ( an insur$ depository in/itution t has be5 approv$ to issue paym5t /ableco9s "u section #e2 7ii7 a ,f$]al qualifi$ paym5t /ableco9 issu]2 or 7iii7 a ,/ate qualifi$ paym5t /ableco9 issu]2 & 7,b7 does n (f] a paym5t ( yield or int]e/ on its issu$ paym5t /ableco94 7#bd7 ,p]son ,! t]m p]son means an individual1 p>tn]%ip1 company1 corporation1 association1 tru/1 e/ate1 coop]ative organization1 or o!r bus9ess entity1 incorporat$ or un9corporat$4 7#be7 ,prim>y ,f$]al paym5t /ableco9 regulator ,! t]m prim>y ,f$]al paym5t /ableco9 regulator means-- 7,a7 ) respect to a subsidi>y ( an insur$ depository in/itution 7o!r ?an an insur$ cr$it union71 ! appropriate ,f$]al bank+ ag5cy ( su* insur$ depository in/itution2 7,b7 ) respect to an insur$ cr$it union or a subsidi>y ( an insur$ cr$it union1 ! ,national ,cr$it ,union ,adm9i/ration2 7,c7 ) respect to a ,/ate *>t]$ depository in/itution n specifi$ "u subp>agraph 7,a71 ! ,corporation1 ! ,comptroll]1 or ! ,bo>d2 & 7,d7 ) respect to a ,f$]al qualifi$ paym5t /ableco9 issu]1 ! ,comptroll]4 7#bf7 ,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#bg7 ,/ate ,! t]m ,/ate means ea* ( ! sev]al ,/ates ( ! ,unit$ ,/ates1 ! ,di/rict ( ,columbia1 & ea* t]ritory ( ! ,unit$ ,/ates4 7#bh7 ,/ate *>t]$ depository in/itution ,! t]m ,/ate *>t]$ depository in/itution has ! mean+ giv5 ! t]m ,/ate depository in/itution 9 section #c7;c7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7;c774 7#bi7 ,/ate paym5t /ableco9 regulator ,! t]m ,/ate paym5t /ableco9 regulator means a ,/ate ag5cy t has prim>y regulatory & sup]visory au?ority 9 su* ,/ate ov] entities t issue paym5t /ableco9s4 7#cj7 ,/ate qualifi$ paym5t /ableco9 issu] ,! t]m ,/ate qualifi$ paym5t /ableco9 issu] means an entity t-- 7,a7 is legally e/abli%$ "u ! laws ( a ,/ate & approv$ to issue paym5t /ableco9s by a ,/ate paym5t /ableco9 regulator2 & 7,b7 is n an un9sur$ national bank *>t]$ by ! ,comptroll] pursuant to title ,,lxii ( ! ,revis$ ,/atutes1 a ,f$]al bran*1 an insur$ depository in/itution1 or a subsidi>y ( su* national bank1 ,f$]al bran*1 or insur$ depository in/itution4 7#ca7 ,subsidi>y ,! t]m subsidi>y has ! mean+ giv5 t t]m 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#cb7 ,subsidi>y ( an insur$ 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$it unions1 z describ$ 9 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 a subsidi>y ( a ,/ate *>t]$ insur$ cr$it union au?oriz$ "u ,/ate law4 #c4 ,issuance & treatm5t ( paym5t /ableco9s 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 ,prohibition on (f]s or sales 7#a7 ,9 g5]al ,except z provid$ 9 subsection 7c7 & section #ah1 beg9n+ on ! date t is #c ye>s aft] ! date ( enactm5t ( ?is ,act1 x %all be unlawful = any digital asset s]vice provid] to (f] or sell a paym5t /ableco9 to a p]son 9 ! ,unit$ ,/ates1 unless ! paym5t /ableco9 is issu$ by a p]mitt$ paym5t /ableco9 issu]4 7#b7 ,=eign paym5t /ableco9 issu]s ,x %all be unlawful = any p]son to (f]1 sell1 or o!rwise make available 9 ! ,unit$ ,/ates a paym5t /ableco9 issu$ by a =eign paym5t /ableco9 issu] unless ! =eign paym5t /ableco9 issu] has ! te*nological capability to comply1 & w comply1 ) ! t]ms ( any lawful ord] or reciprocal arrangem5t pursuant to section #ah4 7c7 ,limit$ safe h>bors 7#a7 ,9 g5]al ,! ,secret>y ( ! ,treasury may issue regulations provid+ safe h>bors f subsection 7a7 t are-- 7,a7 consi/5t ) ! purposes ( ! ,act2 7,b7 limit$ 9 scope2 & 7,c7 apply to a de m9imis volume ( transactions1 z det]m9$ by ! ,secret>y ( ! ,treasury4 7#b7 ,unusual & ,exig5t ,circum/ances ,if ! ,secret>y ( ! ,treasury det]m9es t unusual & exig5t circum/ances exi/1 ! ,secret>y may provide limit$ safe h>bors f subsection 7a74 7d7 ,rulemak+ ,! ,secret>y ( ! ,treasury may1 z ! ,secret>y det]m9es appropriate1 issue regulations to implem5t ?is section1 includ+ regulations to def9e /atutory t]ms4 7e7 ,extrat]ritorial effect ,?is section is int5d$ to h extrat]ritorial effect if conduct involves ! (f] or sale ( a paym5t /ableco9 to a p]son locat$ 9 ! ,unit$ ,/ates4 7f7 ,p5alty = violation 7#a7 ,9 g5]al ,:oev] kn[+ly p>ticipates 9 a violation ( subsection 7a7 %all be f9$ n m ?an #a1jjj1jjj = ea* su* violation1 imprison$ = n m ?an #e ye>s1 or bo?4 7#b7 ,ref]ral to ,attorney ,g5]al ,if a prim>y ,f$]al paym5t /ableco9 regulator has reason to believe t any p]son has kn[+ly violat$ subsection 7a71 ! prim>y ,f$]al paym5t /ableco9 regulator may ref] ! matt] to ! ,attorney ,g5]al4 7g7 ,treatm5t ,a paym5t /ableco9 t is n issu$ by a p]mitt$ paym5t /ableco9 issu] %all n be-- 7#a7 treat$ z ca% or a ca% equival5t = acc\nt+ purposes2 7#b7 eligible z ca% or a ca% equival5t m>g9 & collat]al = futures commission m]*ants1 d]ivative cle>+ organizations1 brok]-deal]s1 regi/]$ cle>+ ag5cies1 & swap deal]s2 or 7#c7 acceptable z a settlem5t asset to facilitate :olesale paym5ts betwe5 bank+ organizations or by a paym5t infra/ructure to facilitate ex*ange & settlem5t among bank+ organizations4 7h7 ,rule ( con/ruction ,?is section %all n apply to-- 7#a7 ! direct transf] ( digital assets betwe5 #b individuals act+ on _! own behalf & = _! own lawful purposes1 )\t ! involvem5t ( an int]m$i>y2 7#b7 to any transaction involv+ ! receipt ( digital assets by an individual betwe5 an acc\nt own$ by ! individual 9 ! ,unit$ ,/ates & an acc\nt own$ by ! individual abroad t are (f]$ by ! same p>5t company2 or 7#c7 to any transaction by means ( a s(tw>e or h>dw>e wallet t facilitates an individual's own cu/ody ( digital assets4 #d4 ,requirem5ts = issu+ paym5t /ableco9s 7a7 ,/&>ds = ! issuance ( paym5t /ableco9s 7#a7 ,9 g5]al ,a p]mitt$ paym5t /ableco9 issu] %all-- 7,a7 ma9ta9 res]ves back+ ! out/&+ paym5t /ableco9s ( ! p]mitt$ paym5t /ableco9 issu] on an at lea/ #a to #a basis1 ) res]ves compris+-- 7i7 ,unit$ ,/ates co9s & curr5cy 7includ+ ,f$]al ,res]ve notes7 or money /&+ to ! cr$it ( an acc\nt ) a ,f$]al ,res]ve ,bank2 7ii7 funds held z dem& deposits 7or o!r deposits t may be )drawn ^u reque/ at any "t7 or insur$ %>es at an insur$ depository in/itution 7includ+ any =eign bran*es or ag5ts1 includ+ correspond5t banks1 ( an insur$ depository in/itution71 subject to limitations e/abli%$ by ! ,corporation & ! ,national ,cr$it ,union ,adm9i/ration1 z applicable1 to address safety & s\ndness risks ( su* insur$ depository in/itution2 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 money receiv$ "u repur*ase agreem5ts1 ) ! p]mitt$ paym5t /ableco9 issu] act+ z a sell] ( securities & ) an ov]night maturity1 t are back$ by ,treasury bills ) a maturity ( #ic days or less2 7v7 rev]se repur*ase agreem5ts1 ) ! p]mitt$ paym5t /ableco9 issu] act+ z a pur*as] ( securities & ) an ov]night maturity1 t are collat]aliz$ by ,treasury notes1 bills1 or bonds on an ov]night basis1 subject to ov]collat]alization 9 l9e ) /&>d m>ket t]ms1 t are-- 7,i7 tri-p>ty2 7,,ii7 c5trally cle>$ ?r\gh a cle>+ ag5cy regi/]$ ) ! ,securities & ,ex*ange ,commission2 or 7,,iii7 bilat]al ) a c\nt]p>ty t ! issu] has det]m9$ to be adequately cr$itwor?y ev5 9 ! ev5t ( sev]e m>ket /ress2 7vi7 securities issu$ by an inve/m5t company regi/]$ "u section #h7;a7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#h7;a771 or o!r regi/]$ ,gov]nm5t money m>ket fund1 & t are inve/$ solely 9 und]ly+ assets describ$ 9 clauses 7i7 ?r\gh 7v72 7vii7 any o!r simil>ly liquid ,f$]al ,gov]nm5t-issu$ asset approv$ by ! prim>y ,f$]al paym5t /ableco9 regulator1 9 consultation ) ! ,/ate paym5t /ableco9 regulator1 if applicable1 ( ! p]mitt$ paym5t /ableco9 issu]2 or 7viii7 any res]ve describ$ 9 clause 7i7 ?r\gh 7iii7 or clause 7vi7 ?r\gh 7vii7 9 tok5iz$ =m1 provid$ t su* res]ves comply ) all applicable laws & regulations2 7,b7 publicly disclose ! issu]'s r$emption policy1 :i* %all-- 7i7 e/abli% cle> & conspicu\s proc$ures = timely r$emption ( out/&+ paym5t /ableco9s1 provid$ t any discretion>y limitations on timely r$emptions c only be impos$ by a ,/ate qualifi$ paym5t /ableco9 regulator1 ! ,corporation1 ! ,comptroll]1 or ! ,bo>d1 consi/5t ) section #g2 & 7ii7 publicly1 cle>ly1 & conspicu\sly disclose 9 pla9 language all fees associat$ ) pur*as+ or r$eem+ ! paym5t /ableco9s1 provid$ t su* fees c only be *ang$ ^u n less ?an #g days' prior notice to consum]s2 & 7,c7 publi% ! 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$ 9 subp>agraph 7,a71 includ+ ! av]age t5or & geographic location ( cu/ody ( ea* category ( res]ve in/rum5ts4 7#b7 ,prohibition on rehypo!cation ,res]ves requir$ "u p>agraph 7#a77;,a7 may n be pl$g$1 rehypo!cat$1 or reus$ by ! p]mitt$ paym5t /ableco9 issu]1 ei!r directly or indirectly1 except = ! purpose (-- 7,a7 satisfy+ m>g9 obligations 9 connection ) inve/m5ts 9 p]mitt$ res]ves "u clauses 7iv7 & 7v7 ( p>agraph 7#a77;,a72 7,b7 satisfy+ obligations associat$ ) ! use1 receipt1 or provision ( /&>d cu/odial s]vices2 or 7,c7 creat+ liquidity to meet reasonable expectations ( reque/s to r$eem paym5t /ableco9s1 su* t res]ves 9 ! =m ( ,treasury bills may be sold z pur*as$ securities = repur*ase agreem5ts ) a maturity ( #ic days or less1 provid$ t ei!r-- 7i7 ! repur*ase agreem5ts are cle>$ by a cle>+ ag5cy regi/]$ ) ! ,securities & ,ex*ange ,commission2 or 7ii7 ! p]mitt$ paym5t /ableco9 issu] receives ! prior approval ( its prim>y ,f$]al paym5t /ableco9 regulator or ,/ate paym5t /ableco9 regulator1 z applicable4 7#c7 ,mon?ly c]tification2 exam9ation ( reports by regi/]$ 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 a 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 a c]tification z to ! accuracy ( ! mon?ly report to1 z applicable-- 7i7 ! prim>y ,f$]al paym5t /ableco9 regulator ( ! p]mitt$ paym5t /ableco9 issu]2 or 7ii7 ! ,/ate paym5t /ableco9 regulator ( ! p]mitt$ paym5t /ableco9 issu]4 7,c7 ,crim9al p5alty ,any p]son :o submits a c]tification requir$ "u subp>agraph 7,b7 kn[+ t su* c]tification is false %all be subject to ! same crim9al p5alties z ^? set =? "u section #acej7;c7 ( title #ah1 ,unit$ ,/ates ,code4 7#d7 ,capital1 liquidity1 & risk managem5t requirem5ts 7,a7 ,9 g5]al ,! prim>y ,f$]al paym5t /ableco9 regulators %all1 or 9 ! case ( a ,/ate qualifi$ paym5t /ableco9 issu]1 ! ,/ate paym5t /ableco9 regulator %all1 consi/5t ) section #ac1 issue regulations implem5t+-- 7i7 capital requirem5ts applicable to p]mitt$ paym5t /ableco9 issu]s t-- 7,i7 are tailor$ to ! bus9ess model & risk pr(ile ( p]mitt$ paym5t /ableco9 issu]s2 7,,ii7 d n exce$ requirem5ts t are suffici5t to ensure ! ongo+ op]ations ( p]mitt$ paym5t /ableco9 issu]s2 & 7,,iii7 9 ! case ( ! prim>y ,f$]al paym5t /ableco9 regulators1 if ! prim>y ,f$]al paym5t /ableco9 regulators det]m9e t a capital buff] is necess>y to ensure ! ongo+ op]ations ( p]mitt$ paym5t /ableco9 issu]s1 may include capital buff]s t are tailor$ to ! bus9ess model & risk pr(ile ( p]mitt$ paym5t /ableco9 issu]s2 7ii7 ! liquidity /&>d "u p>agraph 7#a77;,a72 7iii7 res]ve asset div]sification1 includ+ deposit conc5tration at bank+ in/itutions1 & int]e/ rate risk managem5t /&>ds applicable to p]mitt$ paym5t /ableco9 issu]s t-- 7,i7 are tailor$ to ! bus9ess model & risk pr(ile ( p]mitt$ paym5t /ableco9 issu]s2 & 7,,ii7 d n exce$ /&>ds t are suffici5t to ensure ! ongo+ op]ations ( p]mitt$ paym5t /ableco9 issu]s2 & 7iv7 appropriate op]ational1 compliance1 & in=mation te*nology risk managem5t pr9ciples-bas$ requirem5ts & /&>ds1 includ+ ,bank ,secrecy ,act & sanctions compliance /&>ds1 t-- 7,i7 are tailor$ to ! bus9ess model & risk pr(ile ( p]mitt$ paym5t /ableco9 issu]s2 & 7,,ii7 are consi/5t ) applicable law4 7,b7 ,rule ( con/ruction ,no?+ 9 ?is p>agraph %all be con/ru$ to limit-- 7i7 ! au?ority ( ! prim>y ,f$]al paym5t /ableco9 regulators1 9 prescrib+ /&>ds "u ?is p>agraph1 to tailor or diff]5tiate among issu]s on an individual basis or by category1 tak+ into consid]ation ! capital /ructure1 bus9ess model risk pr(ile1 complexity1 f9ancial activities 7includ+ f9ancial activities ( subsidi>ies71 size1 & any o!r risk-relat$ factors ( p]mitt$ paym5t /ableco9 issu]s t a prim>y ,f$]al paym5t /ableco9 regulator det]m9es appropriate1 provid$ t su* tailor+ or diff]5tiation occurs )\t respect to :e!r a p]mitt$ paym5t /ableco9 issu] is regulat$ by a ,/ate paym5t /ableco9 regulator2 or 7ii7 any sup]visory1 regulatory1 or en=cem5t au?ority ( a prim>y ,f$]al paym5t /ableco9 regulator to fur!r ! safe & s\nd op]ation ( an in/itution = :i* ! prim>y ,f$]al paym5t /ableco9 regulator is ! appropriate regulator4 7,c7 ,applicability ( exi/+ capital /&>ds 7i7 ,def9ition ,9 ?is subp>agraph1 ! t]m depository in/itution hold+ company has ! mean+ giv5 t t]m "u section #aga7;a77#c7 ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecga7;a77#c774 7ii7 ,applicability ( ,f9ancial ,/ability ,act ,) respect to ! promulgation ( rules "u subp>agraph 7,a7 & clauses 7iii7 & 7iv7 ( ?is subp>agraph1 section #aga ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecga7 %all n apply4 7iii7 ,rules relat+ to lev]age capital requirem5ts or risk-bas$ capital requirem5ts ,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 ) respect to an insur$ depository in/itution or depository in/itution hold+ company %all provide t1 = purposes ( su* lev]age capital requirem5t or risk-bas$ capital requirem5t1 any insur$ depository in/itution or depository in/itution hold+ company t includes1 on a consolidat$ basis1 a p]mitt$ paym5t /ableco9 issu]1 %all n be requir$ to hold1 ) respect to su* 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 issu$ pursuant to subp>agraph 7,a77i74 7iv7 ,modifications ,n lat] ?an ! e>li] ( ! rulemak+ deadl9e "u section #ac or ! date on :i* ! ,f$]al paym5t /ableco9 regulators issue regulations to c>ry out ?is section1 ea* appropriate ,f$]al bank+ ag5cy %all am5d or o!rwise modify any regulation ( ! appropriate ,f$]al bank+ ag5cy describ$ 9 clause 7iii7 s t su* regulation1 z am5d$ or o!rwise modifi$1 complies ) clause 7iii7 ( ?is subp>agraph4 7#e7 ,treatm5t "u ! ,bank ,secrecy ,act & sanctions laws 7,a7 ,9 g5]al ,a p]mitt$ paym5t /ableco9 issu] %all be treat$ z a f9ancial in/itution = purposes ( ! ,bank ,secrecy ,act1 & z su*1 %all be subject to all ,f$]al laws applicable to a f9ancial in/itution locat$ 9 ! ,unit$ ,/ates relat+ to economic sanctions1 prev5tion ( money laund]+1 cu/om] id5tification1 & due dilig5ce1 includ+1 z applicable-- 7i7 ma9t5ance ( an effective anti-money laund]+ & economic sanctions compliance program1 :i* %all include appropriate risk assessm5ts1 v]ification ( sanctions li/s1 & designation ( an (fic] to sup]vise ! programs2 7ii7 ret5tion ( appropriate records2 7iii7 monitor+ & report+ ( any suspici\s transaction relevant to a possible violation ( law or regulation2 7iv7 policies & proc$ures to block1 freeze1 & reject specific or imp]missible transactions t violate ,f$]al or ,/ate laws1 rules1 or regulations2 & 7v7 ma9t5ance ( an effective cu/om] id5tification program1 includ+ id5tification & v]ification ( acc\nt hold]s ) ! p]mitt$ paym5t /ableco9 issu]1 high-value transactions1 & appropriate enhanc$ due dilig5ce4 7,b7 ,rulemak+ ,! ,f9ancial ,crimes ,en=cem5t ,network %all adopt rules1 tailor$ to ! size & complexity ( p]mitt$ paym5t /ableco9 issu]s1 to implem5t subp>agraph 7,a74 7,c7 ,res]vation ( au?ority ,no?+ 9 ?is ,act %all re/rict ! au?ority ( ! ,secret>y ( ! ,treasury to implem5t1 adm9i/]1 & en=ce ! provisions ( sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#f7 ,coord9ation ) p]mitt$ paym5t /ableco9 issu]s ) respect to block+ ( prop]ty & te*nological capabilities to comply ) lawful ord]s 7,a7 ,9 g5]al ,! ,secret>y ( ! ,treasury-- 7i7 %all1 to ! be/ ( ! ,secret>y's ability1 coord9ate ) a p]mitt$ paym5t /ableco9 issu] be=e tak+ any action to block & prohibit transactions 9 prop]ty & int]e/s 9 prop]ty ( a =eign p]son to ensure t ! p]mitt$ paym5t /ableco9 issu] is able to effectively block a paym5t /ableco9 ( ! =eign p]son ^u issuance ( ! paym5t /ableco92 & 7ii7 is n requir$ to notify any p]mitt$ paym5t /ableco9 issu] ( any int5d$ action describ$ 9 clause 7i7 prior to tak+ su* action4 7,b7 ,compliance ) lawful ord]s ,a p]mitt$ paym5t /ableco9 issu] may issue paym5t /ableco9s only if ! issu] has ! te*nological capability to comply1 & w comply1 ) ! t]ms ( any lawful ord]4 7,c7 ,report requir$ ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,attorney ,g5]al & ! ,secret>y ( ! ,treasury %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report1 :i* may include a classifi$ annex if applicable1 on ! coord9ation ) p]mitt$ paym5t /ableco9 issu]s requir$ "u subp>agraph 7,a74 7,d7 ,rule ( con/ruction ,no?+ 9 ?is p>agraph %all be con/ru$ to alt] or affect ! au?ority ( ,/ate paym5t /ableco9 regulators ) respect to ! (f] ( =eign-issu$ digital assets t are issu$ )9 a =eign jurisdiction4 7#g7 ,limitation on paym5t /ableco9 activities 7,a7 ,9 g5]al ,a p]mitt$ paym5t /ableco9 issu] may only-- 7i7 issue paym5t /ableco9s2 7ii7 r$eem paym5t /ableco9s2 7iii7 manage relat$ res]ves1 includ+ pur*as+1 sell+1 & hold+ res]ve assets or provid+ cu/odial s]vices = res]ve assets1 consi/5t ) ,/ate & ,f$]al law2 7iv7 provide cu/odial or safekeep+ s]vices = paym5t /ableco9s1 requir$ res]ves1 or private keys ( paym5t /ableco9s1 consi/5t ) ?is ,act2 & 7v7 und]take o!r activities t directly support any ( ! activities describ$ 9 clauses 7i7 ?r\gh 7iv74 7,b7 ,rule ( con/ruction ,no?+ 9 subp>agraph 7,a7 %all limit a p]mitt$ paym5t /ableco9 issu] f engag+ 9 non-paym5t /ableco9 activities t are au?oriz$ by ! prim>y ,f$]al paym5t /ableco9 regulator or ! ,/ate paym5t /ableco9 regulator1 z applicable1 consi/5t ) all o!r ,f$]al & ,/ate laws1 provid$ t ! claims ( paym5t /ableco9 hold]s rank s5ior to any pot5tial claims ( non-/ableco9 cr$itors ) respect to ! res]ve assets1 consi/5t ) section #aa & ! am5dm5ts made by t section4 7#h7 ,prohibition on ty+ 7,a7 ,9 g5]al ,a p]mitt$ paym5t /ableco9 issu] may n provide s]vices to a cu/om] on ! condition t ! cu/om] obta9 an additional paid product or s]vice f ! p]mitt$ paym5t /ableco9 issu]1 or any ( its subsidi>ies1 or agree to n obta9 an additional product or s]vice f a competitor4 7,b7 ,regulations ,! ,bo>d may issue su* regulations z are necess>y to c>ry out ?is p>agraph1 &1 9 consultation ) o!r relevant prim>y ,f$]al paym5t /ableco9 regulators1 may by regulation or ord]1 p]mit su* exceptions to subp>agraph 7,a7 z ! ,bo>d consid]s w n be contr>y to ! purpose ( ?is ,act4 7#i7 ,prohibition on ! use ( deceptive names ,a p]mitt$ paym5t /ableco9 issu] may n-- 7,a7 use any comb9ation ( t]ms relat+ to ! ,unit$ ,/ates ,gov]nm5t1 includ+ ,unit$ ,/ates & ,unit$ ,/ates ,gov]nm5t1 9 ! "n ( a paym5t /ableco92 or 7,b7 m>ket a paym5t /ableco9 9 su* a way t a reasonable p]son w\ld p]ceive ! paym5t /ableco9 to be-- 7i7 legal t5d]1 z describ$ 9 section #eajc ( title #ca1 ,unit$ ,/ates ,code2 7ii7 issu$ by ! ,unit$ ,/ates2 or 7iii7 gu>ante$ or approv$ by ! ,gov]nm5t ( ! ,unit$ ,/ates4 7#aj7 ,audits & reports 7,a7 ,annual f9ancial /atem5t 7i7 ,9 g5]al ,a p]mitt$ paym5t /ableco9 issu] ) m ?an #ej1jjj1jjj1jjj 9 consolidat$ total out/&+ issuance1 t is n subject to ! report+ requirem5ts "u section #ac7;a7 or #ae7;d7 ( ! ,securities & ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghm1 #gho7d771 %all prep>e1 9 accordance ) g5]ally accept$ acc\nt+ pr9ciples1 an annual f9ancial /atem5t1 :i* %all include ! disclosure ( any relat$ p>ty transactions1 z def9$ by su* g5]ally accept$ acc\nt+ pr9ciples4 7ii7 ,auditor ,a regi/]$ public acc\nt+ firm %all p]=m an audit ( ! annual f9ancial /atem5ts describ$ 9 clause 7i74 7iii7 ,/&>ds ,an audit describ$ 9 clause 7ii7 %all be conduct$ 9 accordance ) all applicable audit+ /&>ds e/abli%$ by ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d1 includ+ ^? relat+ to auditor indep5d5ce1 int]nal controls1 & relat$ p>ty transactions4 7iv7 ,rule ( con/ruction ,no?+ 9 ?is subp>agraph %all be con/ru$ to limit1 alt]1 or exp& ! jurisdiction ( ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d ov] p]mitt$ paym5t /ableco9 issu]s or regi/]$ public acc\nt+ firms4 7,b7 ,public disclosure & submission to ,f$]al regulators ,ea* p]mitt$ paym5t /ableco9 issu] requir$ to prep>e an audit$ annual f9ancial /atem5t "u subp>agraph 7,a7 %all-- 7i7 make su* audit$ f9ancial /atem5ts publicly available on ! website ( ! p]mitt$ paym5t /ableco9 issu]2 & 7ii7 submit su* audit$ f9ancial /atem5ts annually to _! prim>y ,f$]al paym5t /ableco9 regulator4 7,c7 ,consultation ,! prim>y ,f$]al paym5t /ableco9 regulators may consult ) ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d to det]m9e be/ practices = det]m9+ audit ov]sight & to detect fraud1 mat]ial mis/atem5ts1 & o!r f9ancial misrepres5tations t c\ld mislead p]mitt$ paym5t /ableco9 hold]s4 7#aa7 ,eligibility ,! requirem5t to ma9ta9 res]ves "u p>agraph 7#a77;,a7 may n be con/ru$ z exp&+ or contract+ eligibility to qualify z a depository in/itution "u section #ai7;b77#a77;,a7 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #dfa7;b77#a77;,a774 7#ab7 ,rule ( con/ruction ,compliance ) ?is section does n alt] or affect any additional requirem5t ( a ,/ate paym5t /ableco9 regulator t may apply relat+ to ! (f]+ ( paym5t /ableco9s4 7b7 ,regulation by ! comptroll] 7#a7 ,9 g5]al ,not)/&+ section #eacf;,c ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #be;b71 section #f ( ! ,home ,own]s' ,loan ,act 7#ab ,u4,s4,c4 #adfe71 or any applicable ,/ate law relat+ to lic5s+ & sup]vision1 a ,f$]al qualifi$ paym5t /ableco9 issu] approv$ by ! ,comptroll] pursuant to section #e ( ?is ,act %all be lic5s$1 regulat$1 exam9$1 & sup]vis$ exclusively by ! ,comptroll]1 :i* %all h au?ority1 9 coord9ation ) o!r relevant prim>y ,f$]al paym5t /ableco9 regulators & ,/ate paym5t /ableco9 regulators1 to issue su* regulations & ord]s z necess>y to ensure f9ancial /ability & implem5t subsection 7a74 7#b7 ,con=m+ am5dm5t ,section #cbd7;b7 ( ! ,revis$ ,/atutes 7#ab ,u4,s4,c4 #a7;b77 is am5d$ by add+ at ! end ! foll[+3 7#c7 ,regulation ( ,f$]al qualifi$ paym5t /ableco9 issu]s ,! ,comptroll] ( ! ,curr5cy %all1 9 coord9ation ) o!r relevant regulators & consi/5t ) section #ac ( ! ,,g5ius ,act1 issue su* regulations & ord]s z necess>y to ensure f9ancial /ability & implem5t section #d7;a7 ( t ,act4 4 7c7 ,/ate-level regulatory regimes 7#a7 ,option = ,/ate-level regulatory regime ,not)/&+ ! ,f$]al regulatory framework e/abli%$ "u ?is ,act1 a ,/ate qualifi$ paym5t /ableco9 issu] ) a consolidat$ total out/&+ issuance ( n m ?an #aj1jjj1jjj1jjj may opt = regulation "u a ,/ate-level regulatory regime1 provid$ t ! ,/ate-level regulatory regime is sub/antially simil> to ! ,f$]al regulatory framework "u t subsection4 7#b7 ,pr9ciples ,! ,secret>y ( ! ,treasury %all1 ?r\gh notice & comm5t rulemak+1 e/abli% broad-bas$ pr9ciples = det]m9+ :e!r a ,/ate-level regulatory regime is sub/antially simil> to ! ,f$]al regulatory framework "u ?is ,act4 7#c7 ,review ,/ate paym5t /ableco9 regulators %all review ,/ate-level regulatory regimes accord+ to ! pr9ciples e/abli%$ by ! ,secret>y ( ! ,treasury "u p>agraph 7#b7 & = ! purposes ( e/abli%+ any necess>y coop]ative agreem5ts to implem5t section #g7;f74 7#d7 ,c]tification 7,a7 ,initial c]tification ,subject to subp>agraph 7,b71 n lat] ?an #a ye> aft] ! effective date ( ?is ,act1 a ,/ate paym5t /ableco9 regulator %all submit to ! ,/ableco9 ,c]tification ,review ,committee an initial c]tification t ! ,/ate-level regulatory regime meets ! crit]ia = sub/antial simil>ity e/abli%$ pursuant to p>agraph 7#b74 7,b7 ,=m ( c]tification ,! initial c]tification requir$ "u subp>agraph 7,a7 %all conta91 9 a =m prescrib$ by ! ,/ableco9 ,c]tification ,review ,committee1 an atte/ation t ! ,/ate-level regulatory regime meets ! crit]ia = sub/antial simil>ity e/abli%$ pursuant to p>agraph 7#b74 7,c7 ,annual rec]tification ,n lat] ?an a date to be det]m9$ by ! ,secret>y ( ! ,treasury ea* ye>1 a ,/ate paym5t /ableco9 regulator %all submit to ! ,/ableco9 ,c]tification ,review ,committee an additional c]tification t confirms ! accuracy ( ! initial c]tification submitt$ "u subp>agraph 7,a74 7#e7 ,c]tification review 7,a7 ,9 g5]al ,n lat] ?an #cj days aft] ! date on :i* a ,/ate paym5t /ableco9 regulator submits an initial c]tification or a rec]tification "u p>agraph 7#d71 ! ,/ableco9 ,c]tification ,review ,committee %all-- 7i7 approve su* c]tification if ! ,committee unanim\sly det]m9es t ! ,/ate-level regulatory regime meets or exce$s ! /&>ds & requirem5ts describ$ 9 subsection 7a72 or 7ii7 d5y su* c]tification & provide ! ,/ate paym5t /ableco9 regulator ) a writt5 explanation ( ! d5ial1 describ+ ! reason$ basis = ! d5ial ) suffici5t detail to enable ! ,/ate paym5t /ableco9 regulator & ,/ate-level regulatory regime to make any *anges necess>y to meet or exce$ ! /&>ds & requirem5ts describ$ 9 subsection 7a74 7,b7 ,rec]tifications ,) respect to rec]tification c]tification submitt$ by a ,/ate paym5t /ableco9 regulator "u p>agraph 7#d71 ! ,/ableco9 ,c]tification ,review ,committee %all only d5y ! rec]tification if-- 7i7 ! ,/ate-level regulatory regime has mat]ially *ang$ f ! prior c]tification or !re has be5 a significant *ange 9 circum/ances2 & 7ii7 ! mat]ial *ange 9 ! regime or significant *ange 9 circum/ances describ$ 9 clause 7i7 is su* t ! ,/ate-level regulatory regime w n promote ! safe & s\nd op]ation ( ,/ate qualifi$ paym5t /ableco9 issu]s "u its sup]vision4 7,c7 ,opportunity to cure 7i7 ,9 g5]al ,) respect to a d5ial describ$ "u subp>agraph 7,a7 or 7,b71 ! ,/ableco9 ,c]tification ,review ,committee %all provide ! ,/ate paym5t /ableco9 regulator ) n less ?an #ahj days f ! date on :i* ! ,/ate paym5t /ableco9 regulator is notifi$ ( su* d5ial to-- 7,i7 make su* *anges z may be necess>y to ensure ! ,/ate-level regulatory regime meets or exce$s ! /&>ds describ$ 9 subsection 7a72 & 7,,ii7 resubmit ! initial c]tification or rec]tification4 7ii7 ,d5ial ,if1 aft] a ,/ate paym5t /ableco9 regulator resubmits an initial c]tification or rec]tification "u clause 7i71 ! ,/ableco9 ,c]tification ,review ,committee aga9 det]m9es t ! initial c]tification or rec]tification %all result 9 a d5ial1 ! ,/ableco9 ,c]tification ,review ,committee %all1 n lat] ?an #cj days aft] su* det]m9ation1 provide ! ,/ate paym5t /ableco9 regulator ) a writt5 explanation = ! det]m9ation4 7,d7 ,appeal ( d5ial ,a ,/ate paym5t /ableco9 regulator 9 receipt ( a d5ial "u subp>agraph 7,c77ii7 may appeal ! d5ial to ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,di/rict ( ,columbia ,circuit4 7,e7 ,"r to resubmit ,a ,/ate paym5t /ableco9 regulator 9 receipt ( a d5ial "u ?is p>agraph %all n be prohibit$ f resubmitt+ a new c]tification "u p>agraph 7#d74 7#f7 ,li/ ,! ,secret>y ( ! ,treasury %all publi% & ma9ta9 9 ! ,f$]al ,regi/] & on ! website ( ! ,dep>tm5t ( ! ,treasury a li/ ( ,/ates t h submitt$ initial c]tifications & rec]tifications "u p>agraph 7#d74 7#g7 ,/ableco9 ,c]tification ,review ,committee e/abli%m5t ,= purposes ( ?is subsection1 ! ,/ableco9 ,c]tification ,review ,committee %all consi/ ( ! ,secret>y ( ! ,treasury1 ! ,*air ( ! ,bo>d1 & ! ,*air ( ! ,corporation4 7d7 ,transition to ,f$]al ov]sight 7#a7 ,depository in/itution ,a ,/ate *>t]$ depository in/itution t is a ,/ate qualifi$ paym5t /ableco9 issu] ) a paym5t /ableco9 ) a consolidat$ total out/&+ issuance ( m ?an #aj1jjj1jjj1jjj %all-- 7,a7 n lat] ?an #cfj days aft] ! paym5t /ableco9 rea*es su* ?re%old1 transition to ! ,f$]al regulatory framework ( ! prim>y ,f$]al paym5t /ableco9 regulator ( ! ,/ate *>t]$ depository in/itution1 :i* %all be adm9i/]$ by ! ,/ate paym5t /ableco9 regulator ( ! ,/ate *>t]$ depository in/itution & ! prim>y ,f$]al paym5t /ableco9 regulator act+ jo9tly2 or 7,b7 beg9n+ on ! date ! paym5t /ableco9 rea*es su* ?re%old1 cease issu+ new paym5t /ableco9s until ! paym5t /ableco9 is "u ! #aj1jjj1jjj1jjj consolidat$ total out/&+ issuance ?re%old4 7#b7 ,o!r in/itutions ,a ,/ate qualifi$ paym5t /ableco9 issu] n describ$ 9 p>agraph 7#a7 ) a paym5t /ableco9 ) a consolidat$ total out/&+ issuance ( m ?an #aj1jjj1jjj1jjj %all-- 7,a7 n lat] ?an #cfj days aft] ! paym5t /ableco9 rea*es su* ?re%old1 transition to ! ,f$]al regulatory framework "u subsection 7a7 adm9i/]$ by ! relevant ,/ate paym5t /ableco9 regulator & ! ,comptroll]1 act+ 9 coord9ation2 or 7,b7 beg9n+ on ! date ! paym5t /ableco9 rea*es su* ?re%old1 cease issu+ new paym5t /ableco9s until ! paym5t /ableco9 is "u ! #aj1jjj1jjj1jjj consolidat$ total out/&+ issuance ?re%old4 7#c7 ,waiv] 7,a7 ,9 g5]al ,not)/&+ p>agraphs 7#a7 & 7#b71 ! applicable prim>y ,f$]al paym5t /ableco9 regulator may p]mit a ,/ate qualifi$ paym5t /ableco9 issu] ) a paym5t /ableco9 ) a consolidat$ total out/&+ issuance ( m ?an #aj1jjj1jjj1jjj to rema9 solely sup]vis$ by a ,/ate paym5t /ableco9 regulator4 7,b7 ,crit]ia = waiv] ,! prim>y ,f$]al paym5t /ableco9 regulator %all consid] ! foll[+ exclusive crit]ia 9 det]m9+ :e!r to issue a waiv] "u ?is p>agraph3 7i7 ,! capital ma9ta9$ by ! ,/ate qualifi$ paym5t /ableco9 issu]4 7ii7 ,! pa/ op]ations & exam9ation hi/ory ( ! ,/ate qualifi$ paym5t /ableco9 issu]4 7iii7 ,! exp]i5ce ( ! ,/ate paym5t /ableco9 regulator 9 sup]vis+ paym5t /ableco9 & digital asset activities4 7iv7 ,! sup]visory framework1 includ+ regulations & guidance1 ( ! ,/ate qualifi$ paym5t /ableco9 issu] ) respect to paym5t /ableco9s & digital assets4 7,c7 ,rule ( con/ruction 7i7 ,f$]al ov]sight ,a ,/ate qualifi$ paym5t /ableco9 issu] subject to ,f$]al ov]sight "u p>agraph 7#a7 or 7#b7 ( ?is subsection t does n receive a waiv] "u ?is p>agraph %all cont9ue to be sup]vis$ by ! ,/ate paym5t /ableco9 regulator ( ! ,/ate qualifi$ paym5t /ableco9 issu] jo9tly ) ! prim>y ,f$]al paym5t /ableco9 regulator4 ,no?+ 9 ?is subsection %all require ! ,/ate qualifi$ paym5t /ableco9 issu] to conv]t to a ,f$]al *>t]4 7ii7 ,/ate ov]sight ,a ,/ate qualifi$ paym5t /ableco9 issu] sup]vis$ by a ,/ate paym5t /ableco9 regulator t has e/abli%$ a prud5tial regulatory regime 7includ+ regulations & guidance7 = ! sup]vision ( digital assets or paym5t /ableco9s be=e ! #ij-;day p]iod end+ on ! date ( enactm5t ( ?is ,act t has be5 c]tifi$ pursuant to subsection 7c7 & has approv$ #a or m issu]s to issue a paym5t /ableco9 "u ! sup]vision ( su* ,/ate paym5t /ableco9 regulator1 %all be presumptively approv$ = a waiv] "u ?is p>agraph1 unless ! ,f$]al paym5t /ableco9 regulator f9ds1 by cle> & conv9c+ evid5ce1 t ! requirem5ts ( subp>agraph 7,b7 are n sub/antially met ) respect to t issu] or t ! issu] poses significant safety & s\ndness risks to ! f9ancial sy/em ( ! ,unit$ ,/ates4 7e7 ,misrepres5tation ( insur$ /atus 7#a7 ,9 g5]al ,paym5t /ableco9s %all n be back$ by ! full fai? & cr$it ( ! ,unit$ ,/ates1 gu>ante$ by ! ,unit$ ,/ates ,gov]nm5t1 subject to deposit insurance by ! ,f$]al ,deposit ,insurance ,corporation1 or subject to %>e insurance by ! ,national ,cr$it ,union ,adm9i/ration4 7#b7 ,misrepres5tation ( insur$ /atus 7,a7 ,9 g5]al ,x %all be unlawful to repres5t t paym5t /ableco9s are 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 insurance1 provid$ t ?is subp>agraph %all n prohibit a p]mitt$ paym5t /ableco9 issu] f disclos+ :i* assets 9 its res]ves are back$ by ! full fai? & cr$it ( ! ,unit$ ,/ates or :at p]c5tage ( its total res]ves are back$ by ! full fai? & cr$it ( ! ,unit$ ,/ates4 7,b7 ,p5alty ,a violation ( subp>agraph 7,a7 %all be consid]$ a violation ( section #ah7;a77#d7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7;a77#d77 or section #gji ( title #ah1 ,unit$ ,/ates ,code1 z applicable4 7#c7 ,m>ket+ 7,a7 ,9 g5]al ,x %all be unlawful to m>ket a product 9 ! ,unit$ ,/ates z a paym5t /ableco9 unless ! product is issu$ pursuant to ?is ,act4 7,b7 ,p5alty ,:oev] kn[+ly & willfully p>ticipates 9 a violation ( subp>agraph 7,a7 %all be f9$ by ! ,dep>tm5t ( ! ,treasury n m ?an #ejj1jjj = ea* su* violation4 7,c7 ,det]m9ation ( ! numb] ( violations ,= purposes ( det]m9+ ! numb] ( violations = :i* to impose p5alties "u subp>agraph 7,b71 sep>ate acts ( noncompliance are a s+le violation :5 ! acts are ! result (-- 7i7 a common or sub/antially ov]lapp+ orig9at+ cause2 or 7ii7 ! same /atem5t or publication4 7,d7 ,ref]ral to ,secret>y ( ! ,treasury ,if a ,f$]al paym5t /ableco9 regulator has reason to believe t any p]son has kn[+ly & willfully violat$ subp>agraph 7,a71 ! ,f$]al paym5t /ableco9 regulator may ref] ! matt] to ! ,secret>y ( ! ,treasury4 7f7 ,(fic]s or directors convict$ ( c]ta9 felonies 7#a7 ,9 g5]al ,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 7#b7 ,p5alty 7,a7 ,9 g5]al ,:oev] kn[+ly p>ticipates 9 a violation ( p>agraph 7#a7 %all be f9$ n m ?an #a1jjj1jjj = ea* su* violation1 imprison$ = n m ?an #e ye>s1 or bo?4 7,b7 ,ref]ral to ,attorney ,g5]al ,if a ,f$]al paym5t /ableco9 regulator has reason to believe t any p]son has kn[+ly violat$ p>agraph 7#a71 ! ,f$]al paym5t /ableco9 regulator %all ref] ! matt] to ! ,attorney ,g5]al4 7g7 ,cl>ification relat+ to ,f$]al sav+s association res]ves ,a ,f$]al sav+s association e/abli%$ "u ! ,home ,own]s' ,loan ,act 7#ab ,u4,s4,c4 #adfa et seq47 t holds a res]ve t satisfies ! requirem5ts ( section #d7;a77#a7 %all n be requir$ to satisfy ! qualifi$ ?rift l5d] te/ "u section #aj7m7 ( ! ,home ,own]s' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7m77 ) respect to su* res]ve assets4 7h7 ,rulemak+ 7#a7 ,9 g5]al ,consi/5t ) section #ac1 ! prim>y ,f$]al paym5t /ableco9 regulators %all1 & ,/ate paym5t /ableco9 regulators may1 issue su* regulations relat+ to p]mitt$ paym5t /ableco9 issu]s z may be necess>y to e/abli% a paym5t /ableco9 regulatory framework necess>y to adm9i/] & c>ry out ! requirem5ts ( ?is section1 includ+ to e/abli% conditions1 & to prev5t evasion !re(4 7#b7 ,coord9at$ issuance ( regulations ,all regulations issu$ to c>ry out ?is section %all be issu$ 9 coord9ation by ! prim>y ,f$]al paym5t /ableco9 regulators1 if n issu$ by a ,/ate paym5t /ableco9 regulator4 7i7 ,rules ( con/ruction ,no?+ 9 ?is ,act %all be con/ru$-- 7#a7 z exp&+ ! au?ority ( ! ,bo>d ) respect to ! s]vices ! ,bo>d c make directly available to ! public2 or 7#b7 to limit or prev5t ! cont9u$ application ( applicable e?ics /atutes & regulations adm9i/]$ by ! ,(fice ( ,gov]nm5t ,e?ics1 or ! e?ics rules ( ! ,h\se ( ,repres5tatives & ! ,s5ate1 includ+ section #bjh ( title #ah1 ,unit$ ,/ates ,code1 & sections #bfce4gjb & #bfce4hjb ( title #e1 ,code ( ,f$]al ,regulations4 ,= ! avoidance ( d\bt1 exi/+ ,(fice ( ,gov]nm5t ,e?ics laws & ! e?ics rules ( ! ,h\se ( ,repres5tatives & ! ,s5ate prohibit any memb] ( ,congress or s5ior executive bran* (ficial f issu+ a paym5t /ableco9 product dur+ _! "t 9 public s]vice4 #e4 ,approval ( subsidi>ies ( insur$ depository in/itutions & ,f$]al qualifi$ paym5t /ableco9 issu]s 7a7 ,application 7#a7 ,9 g5]al ,ea* prim>y ,f$]al paym5t /ableco9 regulator %all-- 7,a7 receive1 review1 & consid] = approval applications f any insur$ depository in/itution t seeks to issue paym5t /ableco9s ?r\gh a subsidi>y & any nonbank entity1 ,f$]al bran*1 or un9sur$ national bank t is *>t]$ by ! ,comptroll] pursuant to title ,,lxii ( ! ,revis$ ,/atutes1 & t seeks to issue paym5t /ableco9s z a ,f$]al qualifi$ paym5t /ableco9 issu]2 & 7,b7 e/abli% a process & framework = ! lic5s+1 regulation1 exam9ation1 & sup]vision ( su* entities t prioritizes ! safety & s\ndness ( su* entities4 7#b7 ,au?ority to issue regulations & process applications ,! prim>y ,f$]al paym5t /ableco9 regulators %all1 be=e ! date describ$ 9 section #ac-- 7,a7 issue regulations consi/5t ) t section to c>ry out ?is section2 & 7,b7 pursuant to ! regulations describ$ 9 subp>agraph 7,a71 accept & process applications describ$ 9 p>agraph 7#a74 7#c7 ,m&atory approval process ,a prim>y ,f$]al paym5t /ableco9 regulator %all1 ^u receipt ( a sub/antially complete application receiv$ "u p>agraph 7#a71 evaluate & make a det]m9ation on ea* application bas$ on ! crit]ia e/abli%$ "u ?is ,act4 7b7 ,evaluation ( applications ,a sub/antially complete application receiv$ "u subsection 7a7 %all be evaluat$ by ! prim>y ,f$]al paym5t /ableco9 regulator us+ ! factors describ$ 9 subsection 7c74 7c7 ,factors to be consid]$ ,! factors describ$ 9 ?is subsection are ! foll[+3 7#a7 ,! ability ( ! applicant 7or1 9 ! case ( an applicant t is an insur$ depository in/itution1 ! subsidi>y ( ! applicant71 bas$ on f9ancial condition & res\rces1 to meet ! requirem5ts set =? "u section #d4 7#b7 ,:e!r an individual :o has be5 convict$ ( a felony (f5se involv+ insid] trad+1 embezzlem5t1 cyb]crime1 money laund]+1 f9anc+ ( t]rorism1 or f9ancial fraud is s]v+ z an (fic] or director ( ! applicant4 7#c7 ,! compet5ce1 exp]i5ce1 & integrity ( ! (fic]s1 directors1 & pr9cipal %>ehold]s ( ! applicant1 its subsidi>ies1 & p>5t company1 includ+-- 7,a7 ! record ( ^? (fic]s1 directors1 & pr9cipal %>ehold]s ( compliance ) laws & regulations2 & 7,b7 ! ability ( ^? (fic]s1 directors1 & pr9cipal %>ehold]s to fulfill any commitm5ts to1 & any conditions impos$ by1 _! prim>y ,f$]al paym5t /ableco9 regulator 9 connection ) ! application at issue & any prior applications4 7#d7 ,:e!r ! r$emption policy ( ! applicant meets ! /&>ds "u section #d7;a77#a77;,b74 7#e7 ,any o!r factors e/abli%$ by ! prim>y ,f$]al paym5t /ableco9 regulator t are necess>y to ensure ! safety & s\ndness ( ! p]mitt$ paym5t /ableco9 issu]4 7d7 ,tim+ = decision2 gr\nds = d5ial 7#a7 ,tim+ = decisions on applications 7,a7 ,9 g5]al ,n lat] ?an #abj days aft] receiv+ a sub/antially complete application "u subsection 7a71 a prim>y ,f$]al paym5t /ableco9 regulator %all r5d] a decision on ! application4 7,b7 ,sub/antially complete 7i7 ,9 g5]al ,= purposes ( subp>agraph 7,a71 an application %all be consid]$ sub/antially complete if ! application conta9s suffici5t in=mation = ! prim>y ,f$]al paym5t /ableco9 regulator to r5d] a decision on :e!r ! applicant satisfies ! factors describ$ 9 subsection 7c74 7ii7 ,notification ,n lat] ?an #cj days aft] receiv+ an application "u subsection 7a71 a prim>y ,f$]al paym5t /ableco9 regulator %all notify ! applicant z to :e!r ! prim>y ,f$]al paym5t /ableco9 regulator consid]s ! application to be sub/antially complete &1 if ! application is n sub/antially complete1 ! additional in=mation ! applicant %all provide 9 ord] = ! application to be consid]$ sub/antially complete4 7iii7 ,mat]ial *ange 9 circum/ances ,an application consid]$ sub/antially complete "u ?is subp>agraph rema9s sub/antially complete unless !re is a mat]ial *ange 9 circum/ances t requires ! prim>y ,f$]al paym5t /ableco9 regulator to treat ! application z a new application4 7#b7 ,d5ial ( application 7,a7 ,gr\nds = d5ial 7i7 ,9 g5]al ,a prim>y ,f$]al paym5t /ableco9 regulator %all only d5y a sub/antially complete application receiv$ "u subsection 7a7 if ! regulator det]m9es t ! activities ( ! applicant w\ld be unsafe or uns\nd bas$ on ! factors describ$ 9 subsection 7c74 7ii7 ,issuance on op51 public1 or dec5traliz$ network n gr\nd = d5ial ,! issuance ( a paym5t /ableco9 on an op51 public1 or dec5traliz$ network %all n be a valid gr\nd = d5ial ( an application receiv$ "u subsection 7a74 7,b7 ,explanation requir$ ,if a prim>y ,f$]al paym5t /ableco9 regulator d5ies a complete application receiv$ "u subsection 7a71 n lat] ?an #cj days aft] ! date ( su* d5ial1 ! regulator %all provide ! applicant ) writt5 notice expla9+ ! d5ial ) specificity1 includ+ all f9d+s made by ! regulator ) respect to all id5tifi$ mat]ial %ortcom+s 9 ! application1 includ+ actionable recomm5dations on h[ ! applicant c\ld address ! id5tifi$ mat]ial %ortcom+s4 7,c7 ,opportunity = he>+2 f9al det]m9ation 7i7 ,9 g5]al ,n lat] ?an #cj days aft] ! date ( receipt ( any notice ( ! d5ial ( an application "u ?is section1 ! applicant may reque/1 9 writ+1 an opportunity = a writt5 or oral he>+ be=e ! prim>y ,f$]al paym5t /ableco9 regulator to appeal ! d5ial4 7ii7 ,tim+ ,^u receipt ( a timely reque/ "u clause 7i71 ! prim>y ,f$]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 submit writt5 mat]ials or provide oral te/imony & oral argum5t4 7iii7 ,f9al det]m9ation ,n lat] ?an #fj days aft] ! date ( a he>+ "u ?is subp>agraph1 ! applicable prim>y ,f$]al paym5t /ableco9 regulator %all notify ! applicant ( a f9al det]m9ation1 :i* %all conta9 a /atem5t ( ! basis = t det]m9ation1 ) specific f9d+s4 7iv7 ,notice if no he>+ ,if an applicant does n make a timely reque/ = a he>+ "u ?is subp>agraph1 ! prim>y ,f$]al paym5t /ableco9 regulator %all notify ! applicant1 n lat] ?an #aj days aft] ! date by :i* ! applicant may reque/ a he>+ "u ?is subp>agraph1 9 writ+1 t ! d5ial ( ! application is a f9al det]m9ation ( ! prim>y ,f$]al paym5t /ableco9 regulator4 7#c7 ,failure to r5d] a decision ,if a prim>y ,f$]al paym5t /ableco9 regulator fails to r5d] a decision on a complete application )9 ! "t p]iod specifi$ 9 p>agraph 7#a71 ! application %all be deem$ approv$4 7#d7 ,"r to reapply ,! d5ial ( an application "u ?is section %all n prohibit ! applicant f fil+ a subsequ5t application4 7e7 ,reports on p5d+ applications ,ea* prim>y ,f$]al paym5t /ableco9 regulator %all-- 7#a7 notify ,congress ^u beg9n+ to process applications "u ?is ,act2 & 7#b7 annually report to ,congress on ! applications t h be5 p5d+ = #ahj days or m s9ce ! date ! initial application 0 fil$ & = :i* ! applicant has be5 in=m$ t ! application rema9s incomplete1 includ+ docum5tation on ! /atus ( su* applications & :y su* applications h n yet be5 approv$4 7f7 ,safe h>bor = p5d+ applications ,! prim>y ,f$]al paym5t /ableco9 regulators may waive ! application ( ! requirem5ts ( ?is ,act = a p]iod n to exce$ #ab mon?s beg9n+ on ! effective date ( ?is ,act1 ) respect to-- 7#a7 a subsidi>y ( an insur$ depository in/itution1 if ! insur$ depository in/itution has an application p5d+ = ! subsidi>y to become a p]mitt$ paym5t /ableco9 issu] on t effective date2 or 7#b7 a ,f$]al qualifi$ paym5t /ableco9 issu] ) a p5d+ application on t effective date4 7g7 ,rulemak+ ,consi/5t ) section #ac1 ! prim>y ,f$]al paym5t /ableco9 regulators %all issue rules necess>y = ! regulation ( ! issuance ( paym5t /ableco9s1 b may n impose requirem5ts 9 addition to ! requirem5ts specifi$ "u section #d4 7h7 ,relation to o!r lic5s+ requirem5ts ,! provisions ( ?is section sup]s$e & preempt any ,/ate requirem5t = a *>t]1 lic5se1 or o!r au?orization to d bus9ess ) respect to a ,f$]al qualifi$ paym5t /ableco9 issu] 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 7i7 ,c]tification requir$ 7#a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! approval ( an application1 & on an annual basis !reaft]1 ea* p]mitt$ paym5t /ableco9 issu] %all submit to its prim>y ,f$]al paym5t /ableco9 regulator1 or 9 ! case ( a ,/ate qualifi$ paym5t /ableco9 issu] its ,/ate paym5t /ableco9 regulator1 a c]tification t ! issu] has implem5t$ anti-money laund]+ & economic sanctions compliance programs t are reasonably design$ to prev5t ! p]mitt$ paym5t /ableco9 issu] f facilitat+ money laund]+1 includ+1 9 p>ticul>1 facilitat+ money laund]+ = c>tels & organizations designat$ z =eign t]rori/ organizations "u section #bai ( ! ,immigration & ,nationality ,act 7#h ,u4,s4,c4 #aahi7 & ! f9anc+ ( t]rori/ activities1 consi/5t ) ! requirem5ts ( ?is ,act4 7#b7 ,availability ( c]tifications ,f$]al paym5t /ableco9 regulators & ,/ate paym5t /ableco9 regulators %all make c]tifications describ$ 9 p>agraph 7#a7 available to ! ,secret>y ( ,treasury ^u reque/4 7#c7 ,p5alties 7,a7 ,approval revocation ,! prim>y ,f$]al paym5t /ableco9 regulator or ,/ate paym5t /ableco9 regulator ( a p]mitt$ paym5t /ableco9 issu] t does n submit a c]tification pursuant to p>agraph 7#a7 may revoke ! approval ( ! paym5t /ableco9 issu] "u ?is section4 7,b7 ,crim9al p5alty 7i7 ,9 g5]al ,any p]son t kn[+ly submits a c]tification pursuant to p>agraph 7#a7 t is false %all be subject to ! crim9al p5alties set =? "u section #ajja ( title #ah1 ,unit$ ,/ates ,code4 7ii7 ,ref]ral to attorney g5]al ,if a ,f$]al paym5t /ableco9 regulator or ,/ate paym5t /ableco9 regulator has reason to believe t any p]son has kn[+ly violat$ p>agraph 7#a71 ! applicable regulator may ref] ! matt] to ! ,attorney ,g5]al or to ! attorney g5]al ( ! paym5t /ableco9 issu]'s ho/ ,/ate4 #f4 ,sup]vision & en=cem5t ) respect to ,f$]al qualifi$ paym5t /ableco9 issu]s & subsidi>ies ( insur$ depository in/itutions 7a7 ,sup]vision 7#a7 ,9 g5]al ,ea* p]mitt$ paym5t /ableco9 issu] t is n a ,/ate qualifi$ paym5t /ableco9 issu] ) a paym5t /ableco9 ) a consolidat$ total out/&+ issuance ( less ?an #aj1jjj1jjj1jjj %all be subject to sup]vision by ! appropriate prim>y ,f$]al paym5t /ableco9 regulator4 7#b7 ,submission ( reports ,ea* p]mitt$ paym5t /ableco9 issu] describ$ 9 p>agraph 7#a7 %all1 ^u reque/1 submit to ! appropriate prim>y ,f$]al paym5t /ableco9 regulator a report on-- 7,a7 ! f9ancial condition ( ! p]mitt$ paym5t /ableco9 issu]2 7,b7 ! sy/ems ( ! p]mitt$ paym5t /ableco9 issu] = monitor+ & controll+ f9ancial & op]at+ risks2 7,c7 compliance by ! p]mitt$ paym5t /ableco9 issu] 7& any subsidi>y !re(7 ) ?is ,act2 & 7,d7 ! compliance ( ! ,f$]al qualifi$ nonbank paym5t /ableco9 issu] ) ! requirem5ts ( ! ,bank ,secrecy ,act & ) laws au?oriz+ ! imposition ( sanctions to be implem5t$ by ! ,secret>y ( ! ,treasury4 7#c7 ,exam9ations ,! appropriate prim>y ,f$]al paym5t /ableco9 regulator %all exam9e a p]mitt$ paym5t /ableco9 issu] describ$ 9 p>agraph 7#a7 9 ord] to assess-- 7,a7 ! nature ( ! op]ations & f9ancial condition ( ! p]mitt$ paym5t /ableco9 issu]2 7,b7 ! f9ancial1 op]ational1 te*nological1 & o!r risks associat$ ) ! p]mitt$ paym5t /ableco9 issu] t may pose a ?reat to-- 7i7 ! safety & s\ndness ( ! p]mitt$ paym5t /ableco9 issu]2 or 7ii7 ! /ability ( ! f9ancial sy/em ( ! ,unit$ ,/ates2 & 7,c7 ! sy/ems ( ! p]mitt$ paym5t /ableco9 issu] = monitor+ & controll+ ! risks describ$ 9 subp>agraph 7,b74 7#d7 ,requirem5ts = effici5cy 7,a7 ,use ( exi/+ reports ,9 sup]vis+ & exam9+ a p]mitt$ paym5t /ableco9 issu] "u ?is subsection1 a prim>y ,f$]al paym5t /ableco9 regulator %all1 to ! fulle/ ext5t possible1 use exi/+ reports & o!r sup]visory in=mation4 7,b7 ,avoidance ( duplication ,a prim>y ,f$]al paym5t /ableco9 regulator %all1 to ! fulle/ ext5t possible1 avoid duplication ( exam9ation activities1 report+ requirem5ts1 & reque/s = in=mation 9 c>ry+ out ?is subsection ) respect to a p]mitt$ paym5t /ableco9 issu]4 7,c7 ,consid]ation ( burd5 ,a prim>y ,f$]al paym5t /ableco9 regulator %all1 ) respect to any exam9ation or reque/ = ! submission ( a report "u ?is subsection1 only reque/ exam9ations & reports at a cad5ce & 9 a =mat t is simil> to t requir$ = simil>ly situat$ entities regulat$ by ! prim>y ,f$]al paym5t /ableco9 regulator4 7b7 ,en=cem5t 7#a7 ,susp5sion or revocation ( regi/ration ,! prim>y ,f$]al paym5t /ableco9 regulator ( a p]mitt$ paym5t /ableco9 issu] t is n a ,/ate qualifi$ paym5t /ableco9 issu] ) a paym5t /ableco9 ) a consolidat$ total out/&+ issuance ( less ?an #aj1jjj1jjj1jjj may prohibit ! 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] is willfully violat+ or has willfully violat$-- 7,a7 ?is ,act or any regulation or ord] issu$ "u ?is ,act2 or 7,b7 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$]al paym5t /ableco9 regulator ( a p]mitt$ paym5t /ableco9 issu] t is n a ,/ate qualifi$ paym5t /ableco9 issu] ) a paym5t /ableco9 ) a consolidat$ total out/&+ issuance ( less ?an #aj1jjj1jjj1jjj has reasonable cause to believe t ! p]mitt$ paym5t /ableco9 issu] or any in/itution-affiliat$ p>ty ( ! 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 may1 by provisions t are m&atory or o!rwise1 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$]al paym5t /ableco9 regulator ( a p]mitt$ paym5t /ableco9 issu] t is n a ,/ate qualifi$ paym5t /ableco9 issu] may remove an in/itution-affiliat$ p>ty ( ! p]mitt$ paym5t /ableco9 issu] f ! position or (fice ( t in/itution-affiliat$ p>ty or prohibit fur!r p>ticipation 9 ! affairs ( ! p]mitt$ paym5t /ableco9 issu] or ( all su* p]mitt$ paym5t /ableco9 issu]s by t in/itution-affiliat$ p>ty1 if ! prim>y ,f$]al paym5t /ableco9 regulator det]m9es t-- 7,a7 ! in/itution-affiliat$ p>ty has kn[+ly 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 kn[+ly committ$ a violation ( any provision ( sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#d7 ,proc$ures 7,a7 ,9 g5]al ,if a prim>y ,f$]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 =? 9 subsections 7b7 & 7e7 ( section #h ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7 or subsections 7e7 & 7g7 ( section #bjf ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #aghf7;e7 & 7g771 z applicable4 7,b7 ,judicial review ,a p]son aggriev$ by a f9al action "u ?is subsection may obta9 judicial review ( su* action exclusively z provid$ 9 section #h7;h7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;h77 or section #bjf7;j7 ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #aghf7;j771 z applicable4 7,c7 ,injunction ,a prim>y ,f$]al paym5t /ableco9 regulator may1 at ! discretion ( ! regulator1 foll[ ! proc$ures provid$ 9 section #h7;i77#a7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;i77#a77 or section #bjf7k77#a7 ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #aghf7k77#a771 z applicable1 = judicial en=cem5t ( any effective & out/&+ notice or ord] issu$ "u ?is subsection4 7,d7 ,tempor>y cease-&-desi/ proce$+s ,if a prim>y ,f$]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$ 9 section #h7;c7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;c77 or section #bjf7;f7 ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #aghf7;f771 z applicable1 to issue a tempor>y cease & desi/ ord]4 7#e7 ,civil money p5alties ,unless o!rwise specifi$ 9 ?is ,act1 ! civil money p5alties = violations ( ?is ,act consi/ ( ! foll[+3 7,a7 ,failure to be approv$ ,any p]son t issues a ,unit$ ,/ates doll>-d5om9at$ paym5t /ableco9 9 violation ( section #c1 & 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 issu$4 7,b7 ,fir/ ti] ,except z provid$ 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 ! appropriate prim>y ,f$]al paym5t /ableco9 regulator 9 connection ) a writt5 agreem5t ent]$ into betwe5 ! p]mitt$ paym5t /ableco9 issu] & t prim>y ,f$]al paym5t /ableco9 regulator1 %all be liable = a civil p5alty ( n m ?an #ajj1jjj = ea* day dur+ :i* ! violation cont9ues4 7,c7 ,second ti] ,except z provid$ 9 subp>agraph 7,a71 & 9 addition to ! p5alties describ$ 9 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$ "u ?is ,act1 %all be liable = a civil p5alty ( n m ?an 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 ! appropriate prim>y ,f$]al paym5t /ableco9 regulator pursuant to ! proc$ures set =? 9 section #h7;i77#b7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;i77#b77 or section #bjf7k77#b7 ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #aghf7k77#b771 z applicable4 7,e7 ,notice & ord]s aft] sep>ation f s]vice ,! resignation1 t]m9ation ( employm5t or p>ticipation1 or sep>ation ( an in/itution-affiliat$ p>ty 7includ+ a sep>ation caus$ by ! clos+ ( a p]mitt$ paym5t /ableco9 issu]7 %all n affect ! jurisdiction & au?ority ( a 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 on :i* 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] ,not)/&+ any?+ 9 ?is subsection to ! contr>y1 ?is subsection %all n apply to a ,/ate qualifi$ paym5t /ableco9 issu]4 7c7 ,f$]al ,trade ,commission ,jurisdiction ,no?+ 9 ?is ,act %all be con/ru$ to limit1 impair1 or o!rwise affect ! au?ority or jurisdiction ( ! ,f$]al ,trade ,commission "u ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 or any o!r applicable ,f$]al law4 #g4 ,/ate qualifi$ paym5t /ableco9 issu]s 7a7 ,9 g5]al ,a ,/ate paym5t /ableco9 regulator %all h sup]visory1 exam9ation1 & en=cem5t au?ority ov] all ,/ate qualifi$ paym5t /ableco9 issu]s ( su* ,/ate4 7b7 ,au?ority ,to ent] into agreem5ts ) ! ,bo>d ,a ,/ate paym5t /ableco9 regulator may ent] into a memor&um ( und]/&+ ) ! ,bo>d1 by mutual agreem5t1 "u :i* ! ,bo>d may p>ticipate 9 ! sup]vision1 exam9ation1 & en=cem5t ( ?is ,act ) respect to ! ,/ate qualifi$ paym5t /ableco9 issu]s ( su* ,/ate4 7c7 ,%>+ ( in=mation ,a ,/ate paym5t /ableco9 regulator & ! ,bo>d %all %>e in=mation on an ongo+ basis ) respect to a ,/ate qualifi$ paym5t /ableco9 issu] ( su* ,/ate1 includ+ a copy ( ! initial application & any accompany+ docum5ts4 7d7 ,rulemak+ ,a ,/ate paym5t /ableco9 regulator may issue ord]s & rules "u section #d applicable to ,/ate qualifi$ paym5t /ableco9 issu]s to ! same ext5t z ! prim>y ,f$]al paym5t /ableco9 regulators issue ord]s & rules "u section #d applicable to p]mitt$ paym5t /ableco9 issu]s t are n ,/ate qualifi$ paym5t /ableco9 issu]s4 7e7 ,en=cem5t au?ority 9 unusual & exig5t circum/ances 7#a7 ,bo>d 7,a7 ,9 g5]al ,subject to subp>agraph 7,c71 "u unusual & exig5t circum/ances t ! ,bo>d det]m9es to exi/1 ! ,bo>d may1 aft] n less ?an #dh h\rs' prior writt5 notice to ! applicable ,/ate paym5t /ableco9 regulator1 take an en=cem5t action aga9/ a ,/ate qualifi$ paym5t /ableco9 issu] or an in/itution-affiliat$ p>ty ( su* issu] = violations ( ?is ,act dur+ su* unusual & exig5t circum/ances4 7,b7 ,rulemak+ ,consi/5t ) section #ac1 ! ,bo>d %all issue rules to set =? ! unusual & exig5t circum/ances 9 :i* ! ,bo>d may act "u ?is p>agraph4 7,c7 ,limitations ,if1 aft] unusual & exig5t circum/ances are det]m9$ to exi/ pursuant to subp>agraph 7,a71 ! ,bo>d det]m9es t !re is reasonable cause to believe t ! cont9uation by a ,/ate qualifi$ paym5t /ableco9 issu] ( any activity con/itutes a s]i\s risk to ! f9ancial safety1 s\ndness1 or /ability ( ! ,/ate qualifi$ paym5t /ableco9 issu]1 ! ,bo>d may impose su* re/rictions z ! ,bo>d det]m9es to be necess>y to address su* risk dur+ su* unusual & exig5t circum/ances1 :i* may include limitations on r$emptions ( paym5t /ableco9s1 & :i* %all be issu$ 9 ! =m ( a directive1 ) ! effect ( a cease & desi/ ord] t has become f9al1 to ! ,/ate qualifi$ paym5t /ableco9 issu] & any ( its affiliates1 limit+-- 7i7 transactions betwe5 ! ,/ate qualifi$ paym5t /ableco9 issu]1 a hold+ company1 & ! subsidi>ies or affiliates ( ei!r ! ,/ate qualifi$ paym5t /ableco9 issu] or ! hold+ company2 & 7ii7 any activities ( ! ,/ate qualifi$ paym5t /ableco9 issu] t might create a s]i\s risk t ! liabilities ( a hold+ company & ! affiliates ( ! hold+ company may be impos$ on ! ,/ate qualifi$ paym5t /ableco9 issu]4 7,d7 ,review ( directive 7i7 ,adm9i/rative review 7,i7 ,9 g5]al ,aft] a directive describ$ 9 subp>agraph 7,c7 is issu$1 ! applicable ,/ate qualifi$ paym5t /ableco9 issu]1 or any in/itution-affiliat$ p>ty ( ! ,/ate qualifi$ paym5t /ableco9 issu] subject to ! directive1 may object & pres5t to ! ,bo>d1 9 writ+1 ! reasons :y ! directive %\ld be modifi$ or resc9d$4 7,,ii7 ,automatic lapse ( directive ,if1 aft] #aj days aft] ! receipt ( a response describ$ 9 subclause 7,i71 ! ,bo>d does n affirm1 modify1 or resc9d ! directive1 ! directive %all automatically lapse4 7ii7 ,judicial review 7,i7 ,9 g5]al ,if ! ,bo>d affirms or modifies a directive pursuant to clause 7i71 any affect$ p>ty may imm$iately !reaft] petition ! ,unit$ ,/ates di/rict c\rt = ! di/rict 9 :i* ! ma9 (fice ( ! affect$ p>ty is locat$1 or 9 ! ,unit$ ,/ates ,di/rict ,c\rt = ! ,di/rict ( ,columbia1 to /ay1 modify1 t]m9ate1 or set aside ! directive4 7,,ii7 ,relief = extraord9>y cause ,^u a %[+ ( extraord9>y cause1 an affect$ p>ty may petition = relief "u subclause 7,i7 )\t fir/ pursu+ or exhau/+ ! adm9i/rative rem$ies "u clause 7i74 7#b7 ,comptroll] 7,a7 ,9 g5]al ,subject to subp>agraph 7,c71 "u unusual & exig5t circum/ances det]m9$ to exi/ by ! ,comptroll]1 ! ,comptroll] %all1 aft] n less ?an #dh h\rs' prior writt5 notice to ! applicable ,/ate paym5t /ableco9 regulator1 take an en=cem5t action aga9/ a ,/ate qualifi$ paym5t /ableco9 issu] t is a nonbank entity = violations ( ?is ,act4 7,b7 ,rulemak+ ,consi/5t ) section #ac1 ! ,comptroll] %all issue rules to set =? ! unusual & exig5t circum/ances 9 :i* ! ,comptroll] may act "u ?is p>agraph4 7,c7 ,limitations ,if1 aft] unusual & exig5t circum/ances are det]m9$ to exi/ "u subp>agraph 7,a71 ! ,comptroll] det]m9es t !re is reasonable cause to believe t ! cont9uation ( any activity by a ,/ate qualifi$ paym5t /ableco9 issu] t is a nonbank entity con/itutes a s]i\s risk to ! f9ancial safety1 s\ndness1 or /ability ( ! ,/ate qualifi$ paym5t /ableco9 issu] t is a nonbank entity1 ! ,comptroll] %all impose su* re/rictions z ! ,comptroll] det]m9es to be necess>y to address su* risk dur+ su* unusual & exig5t circum/ances1 :i* may include limitations on r$emption ( paym5t /ableco9s1 & :i* %all be issu$ 9 ! =m ( a directive1 ) ! effect ( a cease & desi/ ord] t has become f9al1 to ! ,/ate qualifi$ paym5t /ableco9 issu] t is a nonbank entity & any ( its affiliates1 limit+-- 7i7 transactions betwe5 ! ,/ate qualifi$ paym5t /ableco9 issu]1 a hold+ company1 & ! subsidi>ies or affiliates ( ei!r ! ,/ate qualifi$ paym5t /ableco9 issu] or ! hold+ company2 & 7ii7 any activities ( ! ,/ate qualifi$ paym5t /ableco9 issu] t might create a s]i\s risk t ! liabilities ( a hold+ company & ! affiliates ( ! hold+ company may be impos$ on ! ,/ate qualifi$ paym5t /ableco9 issu]4 7,d7 ,review ( directive 7i7 ,adm9i/rative review 7,i7 ,9 g5]al ,aft] a directive describ$ 9 subp>agraph 7,c7 is issu$1 ! applicable ,f$]al qualifi$ paym5t /ableco9 issu]1 or any in/itution-affiliat$ p>ty ( ! ,f$]al qualifi$ paym5t /ableco9 issu] subject to ! directive1 may object & pres5t to ! ,comptroll]1 9 writ+1 ! reasons t ! directive %\ld be modifi$ or resc9d$4 7,,ii7 ,automatic lapse ( directive ,if1 aft] #aj days aft] ! receipt ( a response describ$ 9 subclause 7,i71 ! ,comptroll] does n affirm1 modify1 or resc9d ! directive1 ! directive %all automatically lapse4 7ii7 ,judicial review 7,i7 ,9 g5]al ,if ! ,comptroll] affirms or modifies a directive pursuant to clause 7i71 any affect$ p>ty may imm$iately !reaft] petition ! ,unit$ ,/ates di/rict c\rt = ! di/rict 9 :i* ! ma9 (fice ( ! affect$ p>ty is locat$1 or 9 ! ,unit$ ,/ates ,di/rict ,c\rt = ! ,di/rict ( ,columbia1 to /ay1 modify1 t]m9ate1 or set aside ! directive4 7,,ii7 ,relief = extraord9>y cause ,^u a %[+ ( extraord9>y cause1 an affect$ p>ty may petition = relief "u subclause 7,i7 )\t fir/ pursu+ or exhau/+ ! adm9i/rative rem$ies "u clause 7i74 7f7 ,effect on ,/ate law 7#a7 ,ho/ ,/ate law ,unless o!rwise provid$ 9 ?is ,act1 ! laws ( a ho/ ,/ate1 includ+ laws relat+ to consum] protection1 %all only apply to ! activities conduct$ 9 ! ho/ ,/ate by an out-(-,/ate ,/ate qualifi$ paym5t /ableco9 issu] to ! same ext5t z su* laws apply to ! activities conduct$ 9 ! ho/ ,/ate by an out-(-,/ate ,f$]al qualifi$ paym5t /ableco9 issu]4 7#b7 ,home ,/ate ,law ,if any ho/ ,/ate law is det]m9$ n to apply "u p>agraph 7#a71 ! laws ( ! home ,/ate ( ! ,/ate qualifi$ paym5t /ableco9 issu] %all gov]n ! activities ( ! p]mitt$ paym5t /ableco9 issu] conduct$ 9 ! ho/ ,/ate4 7#c7 ,applicability 7,a7 ,9 g5]al ,?is subsection %all only apply to an out-(-,/ate ,/ate qualifi$ paym5t /ableco9 issu] *>t]$1 lic5s$1 or o!rwise au?oriz$ to d bus9ess by a ,/ate t has a c]tification 9 place pursuant to section #d7;c7 ( ?is ,act4 7,b7 ,exclusion ,! laws applicable to an out-(-,/ate qualifi$ paym5t /ableco9 issu] "u p>agraph 7#a7 exclude ho/ ,/ate laws gov]n+ ! *>t]+1 lic5sure1 or o!r au?orization to d bus9ess 9 ! ho/ ,/ate z a p]mitt$ paym5t /ableco9 issu] pursuant to ?is ,act4 7#d7 ,rule ( con/ruction ,except z specifi$ 9 ?is subsection1 no?+ 9 ?is ,act %all preempt ,/ate consum] protection laws1 includ+ common law1 & ! rem$ies available !reund]4 #h4 ,anti-money laund]+ protections 7a7 ,paym5t /ableco9 issu$ by a =eign paym5t /ableco9 issu] 7#a7 ,9 g5]al ,paym5t /ableco9 t is issu$ by a =eign paym5t /ableco9 issu] may n be publicly (f]$1 sold1 or o!rwise made available = trad+ 9 ! ,unit$ ,/ates unless ! =eign paym5t /ableco9 issu] has ! te*nological capability to comply & complies ) ! t]ms ( any lawful ord]4 7#b7 ,en=cem5t 7,a7 ,au?ority ,! ,secret>y ( ! ,treasury %all h ! au?ority to designate any =eign issu] t publicly (f]s1 sells1 or o!rwise makes available a paym5t /ableco9 9 violation ( p>agraph 7#a7 z noncompliant4 7,b7 ,designation z noncompliant ,n lat] ?an #cj days aft] ! ,dep>tm5t ( ! ,treasury has id5tifi$ a =eign paym5t /ableco9 issu] ( any paym5t /ableco9 t is trad+ 9 ! ,unit$ ,/ates t is 9 violation ( p>agraph 7#a71 ! ,secret>y ( ! ,treasury1 9 coord9ation ) relevant ,f$]al ag5cies1 may1 pursuant to ! au?ority "u subp>agraph 7,a71 designate ! =eign paym5t /ableco9 issu] z noncompliant & notify ! =eign paym5t /ableco9 issu] 9 writ+ ( ! designation4 7#c7 ,appeal ,a det]m9ation ( noncompliance "u ?is subsection is subject to judicial review 9 ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,di/rict ( ,columbia ,circuit4 7b7 ,publication ( designation2 prohibition on second>y trad+ 7#a7 ,9 g5]al ,if a =eign paym5t /ableco9 issu] does n come into compliance ) ! lawful ord] )9 #cj days f ! date ( issuance ( ! writt5 notice describ$ 9 subsection 7a71 ! ,secret>y ( ! ,treasury may-- 7,a7 publi% ! det]m9ation ( noncompliance 9 ! ,f$]al ,regi/]1 includ+ a /atem5t on ! failure ( ! =eign paym5t /ableco9 issu] to comply ) ! lawful ord] aft] ! writt5 notice2 & 7,b7 issue a notification 9 ! ,f$]al ,regi/] prohibit+ digital asset s]vice provid]s f facilitat+ second>y trad+ ( paym5t /ableco9s issu$ by ! =eign paym5t /ableco9 issu] 9 ! ,unit$ ,/ates4 7#b7 ,effective date ( prohibition ,! prohibition on facilitation ( second>y trad+ describ$ 9 p>agraph 7#a7 %all become effective on ! date t is #cj days aft] ! date ( issue ( notification ( ! prohibition 9 ! ,f$]al ,regi/]4 7#c7 ,expiration ( prohibition 7,a7 ,9 g5]al ,! prohibition on facilitation ( second>y trad+ describ$ 9 p>agraph 7#a77;,b7 %all expire ^u ! ,secret>y ( ! ,treasury's det]m9ation t ! =eign paym5t /ableco9 issu] is no long] noncompliant4 7,b7 ,rulemak+ ,consi/5t ) section #ac1 ! ,secret>y ( ! ,treasury %all specify ! crit]ia t a noncompliant =eign issu] mu/ meet = ! ,secret>y ( ! ,treasury to det]m9e t ! =eign paym5t /ableco9 issu] is no long] noncompliant4 7#d7 ,civil monet>y p5alties ,! ,secret>y ( ! ,treasury may impose a civil monet>y p5alty z foll[s3 7,a7 ,digital asset s]vice provid]s ,any digital asset s]vice provid] t kn[+ly violates a prohibition "u p>agraph 7#a77;,b7 %all be subject to a civil monet>y p5alty ( n m ?an #ajj1jjj p] violation p] day4 7,b7 ,=eign paym5t /ableco9 issu]s ,any =eign paym5t /ableco9 issu] t kn[+ly cont9ues to publicly (f] a paym5t /ableco9 9 ! ,unit$ ,/ates aft] publication ( ! det]m9ation ( noncompliance "u p>agraph 7#a77;,a7 %all be subject to a civil monet>y p5alty ( n m ?an #a1jjj1jjj p] violation p] day1 & ! ,secret>y ( ! ,treasury may seek an injunction 9 a di/rict c\rt ( ! ,unit$ ,/ates to b> ! =eign paym5t /ableco9 issu] f engag+ 9 f9ancial transactions 9 ! ,unit$ ,/ates or ) ,unit$ ,/ates p]sons4 7,c7 ,det]m9ation ( ! numb] ( violations ,= purposes ( det]m9+ ! numb] ( violations = :i* to impose a p5alty "u subp>agraph 7,a7 or 7,b71 sep>ate acts ( noncompliance are a s+le violation :5 ! acts are ! result ( a common or sub/antially ov]lapp+ orig9at+ cause4 7,d7 ,comm5cem5t ( civil actions ,! ,secret>y ( ! ,treasury may comm5ce a civil action aga9/ a =eign paym5t /ableco9 issu] 9 a di/rict c\rt ( ! ,unit$ ,/ates to-- 7i7 recov] a civil monet>y p5alty assess$ "u subp>agraph 7,a7 or 7,b72 7ii7 seek an injunction to b> ! =eign paym5t /ableco9 issu] f engag+ 9 f9ancial transactions 9 ! ,unit$ ,/ates or ) ,unit$ ,/ates p]sons2 or 7iii7 seek an injunction to /op a digital asset s]vice provid] f (f]+ on ! plat=m ( ! digital asset s]vice provid] paym5t /ableco9s issu$ by ! =eign paym5t /ableco9 issu]4 7c7 ,waiv] & lic5s+ au?ority exemptions 7#a7 ,9 g5]al ,! ,secret>y ( ! ,treasury may (f] a waiv]1 g5]al lic5se1 or specific lic5se to any ,unit$ ,/ates p]son engag+ 9 second>y trad+ describ$ 9 subsection 7b77#a77;,b7 on a case-by-case basis if ! ,secret>y det]m9es t-- 7,a7 prohibit+ second>y trad+ w\ld adv]sely affect ! f9ancial sy/em ( ! ,unit$ ,/ates2 or 7,b7 ! =eign paym5t /ableco9 issu] is tak+ tangible /eps to rem$y ! failure to comply ) ! lawful ord] t result$ 9 ! noncompliance det]m9ation "u subsection 7a74 7#b7 ,national security waiv] ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,director ( ,national ,intellig5ce & ! ,secret>y ( ,/ate1 may waive ! application ( ! second>y trad+ re/rictions "u subsection 7b77#a77;,b7 if ! ,secret>y ( ! ,treasury det]m9es t ! waiv] is 9 ! national security int]e/ ( ! ,unit$ ,/ates4 7#c7 ,waiv] = intellig5ce & law en=cem5t activities ,! head ( a dep>tm5t or ag5cy may waive ! application ( ?is section ) respect to-- 7,a7 activities subject to ! report+ requirem5ts "u title ,v ( ! ,national ,security ,act ( #aidg 7#ej ,u4,s4,c4 #cjia et seq471 or any au?oriz$ intellig5ce activities ( ! ,unit$ ,/ates2 or 7,b7 activities necess>y to c>ry out or assi/ law en=cem5t activity ( ! ,unit$ ,/ates4 7#d7 ,report requir$ ,n lat] ?an #g days aft] issu+ a waiv] or a lic5se "u p>agraph 7#a71 ! ,secret>y ( ! ,treasury %all submit a report to ! *airs & rank+ memb]s ( ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 includ+ ! text ( ! waiv] or lic5se1 z well z ! facts & circum/ances ju/ify+ ! waiv] det]m9ation1 & provide a brief+ on ! report4 #i4 ,anti-money laund]+ innovation 7a7 ,public comm5t ,beg9n+ on ! date t is #cj days aft] ! date ( enactm5t ( ?is ,act1 & = a p]iod ( #fj days !reaft]1 ! ,secret>y ( ! ,treasury %all seek public comm5t to id5tify innovative or novel me?ods1 te*niques1 or /rategies t regulat$ f9ancial in/itutions use1 or h ! pot5tial to use1 to detect illicit activity1 su* z money laund]+1 involv+ digital assets1 includ+ comm5ts ) respect to-- 7#a7 application program int]faces2 7#b7 artificial intellig5ce2 7#c7 digital id5tify v]ification2 & 7#d7 use ( block*a9 te*nology & monitor+4 7b7 ,treasury rese>* 7#a7 ,9 g5]al ,^u completion ( ! public comm5t p]iod describ$ 9 subsection 7a71 ! ,secret>y ( ! ,treasury %all conduct rese>* on ! innovative or novel me?ods1 te*niques1 or /rategies t regulat$ f9ancial in/itutions use1 or h ! pot5tial to use1 to detect illicit activity1 su* z money laund]+1 involv+ digital assets t 7 id5tifi$ 9 su* public comm5t p]iod4 7#b7 ,rese>* factors ,) respect to ea* innovative or novel me?od1 te*nique1 or /rategy describ$ 9 p>agraph 7#a71 ! ,f9ancial ,crimes ,en=cem5t ,network %all evaluate & consid] ! foll[+ factors aga9/ exi/+ me?ods1 te*niques1 or /rategies3 7,a7 ,improvem5ts 9 ! ability ( f9ancial in/itutions to detect illicit activity involv+ digital assets4 7,b7 ,co/s to regulat$ f9ancial in/itutions4 7,c7 ,! am\nt & s5sitivity ( in=mation t is collect$ or review$4 7,d7 ,privacy risks associat$ ) ! in=mation t is collect$ or review$4 7,e7 ,op]ational *all5ges & effici5cy consid]ations4 7,f7 ,cyb]security risks4 7,g7 ,effectiv5ess ( me?ods1 te*niques1 or /rategies at mitigat+ illicit f9ance4 7c7 ,treasury risk assessm5t ,z "p ( ! national /rategy = combat+ t]rori/ & o!r illicit f9anc+ requir$ "u sections #bfa & #bfb ( ! ,c\nt]+ ,am]ica's ,adv]s>ies ,?r\gh ,sanctions ,act 7,public ,law #aae-dd2 #aca ,/at4 #icd71 ! ,secret>y ( ! ,treasury %all consid]-- 7#a7 ! s\rce ( illicit activity1 su* z money laund]+ & sanctions evasion involv+ digital assets2 7#b7 ! effectiv5ess ( & gaps 9 exi/+ me?ods1 te*niques1 & /rategies us$ by regulat$ f9ancial in/itutions 9 detect+ illicit activity1 su* z money laund]+1 involv+ digital assets2 7#c7 ! impact ( exi/+ regulatory frameworks on ! use & developm5t ( innovative me?ods1 te*niques1 or /rategies by regulat$ f9ancial in/itutions2 & 7#d7 any =eign jurisdictions t pose a high risk ( facilitat+ illicit activity ?r\gh ! use ( digital assets to obta9 fiat curr5cy4 7d7 ,fin,c,e,n guidance or rulemak+ ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,f9ancial ,crimes ,en=cem5t ,network %all issue public guidance or notice & comm5t rulemak+1 bas$ on ! results ( ! rese>* & risk assessm5ts requir$ "u ?is section1 relat+ to ! foll[+3 7#a7 ,! implem5tation ( innovative or novel me?ods1 te*niques1 or /rategies by regulat$ f9ancial in/itutions to detect illicit activity involv+ digital assets4 7#b7 ,be/ practices = paym5t /ableco9 issu]s to id5tify & report illicit activity involv+ ! paym5t /ableco9 ( a p]mitt$ paym5t /ableco9 issu]1 includ+1 fraud1 cyb]crime1 money laund]+1 f9anc+ ( t]rorism1 sanctions evasion1 & insid] trad+4 7#c7 ,be/ practices = paym5t /ableco9 issu]s' sy/ems & practices to monitor transactions on block*a9s1 digital asset mix+ s]vices1 tumbl]s1 or o!r simil> s]vices t mix paym5t /ableco9s 9 su* a way z to make su* transaction or ! id5tity ( ! transaction p>ties less id5tifiable4 7e7 ,recomm5dations & report to congress ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 & annually !reaft] = a p]iod ( #d ye>s1 ! ,secret>y ( ! ,treasury %all submit to ! *airs & rank+ memb]s ( ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report1 & provide a brief+ ( su* report1 on-- 7#a7 legislative & regulatory proposals to all[ regulat$ f9ancial in/itutions to develop & implem5t novel & innovative me?ods1 te*niques1 or /rategies to detect illicit activity1 su* z money laund]+ & sanctions evasion1 involv+ digital assets2 7#b7 ! results ( ! rese>* & risk assessm5ts conduct$ pursuant to ?is section2 & 7#c7 ef=ts to support ! ability ( f9ancial in/itutions to implem5t novel & innovative me?ods1 te*niques1 or /rategies to detect illicit activity1 su* z money laund]+ & sanctions evasion1 involv+ digital assets4 7f7 ,rule ( con/ruction ,no?+ 9 ?is section %all be con/ru$ to limit ! exi/+ au?ority ( ! ,secret>y ( ! ,treasury or ! prim>y ,f$]al paym5t /ableco9 regulators to1 prior to ! submission ( a report requir$ "u ?is section1 use exi/+ exemptive au?orities1 ! no-action lett] process1 or rulemak+ au?orities 9 a mann] t enc\rages regulat$ f9ancial in/itutions to adopt novel or innovative me?ods1 te*niques1 or /rategies to detect illicit activity1 su* z money laund]+1 involv+ digital assets4 #aj4 ,cu/ody ( paym5t /ableco9 res]ve & collat]al 7a7 ,9 g5]al ,a p]son may only engage 9 ! bus9ess ( provid+ cu/odial or safekeep+ s]vices = ! paym5t /ableco9 res]ve1 ! paym5t /ableco9s us$ z collat]al1 or ! private keys us$ to issue p]mitt$ paym5t /ableco9s 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$ "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac71 or a ,/ate cr$it union sup]visor1 z def9$ "u section #fjjc ( ! ,anti-,money ,laund]+ ,act ( #bjbj 7#ca ,u4,s4,c4 #ecaa note71 & su* ,/ate bank sup]visor or ,/ate cr$it union sup]visor makes available to ! ,bo>d su* in=mation z ! ,bo>d det]m9es necess>y & relevant to ! categories ( in=mation "u subsection 7d72 & 7#b7 complies ) ! requirem5ts "u subsection 7b71 unless su* p]son holds su* prop]ty 9 accordance ) simil> requirem5ts z requir$ by a prim>y ,f$]al paym5t /ableco9 regulator1 ! ,securities & ,ex*ange ,commission1 or ! ,commodity ,futures ,trad+ ,commission4 7b7 ,cu/om] prop]ty requirem5t ,a p]son describ$ 9 subsection 7a7 %all-- 7#a7 ) respect to paym5t /ableco9 res]ves receiv$ f a p]mitt$ paym5t /ableco9 issu] = deposit 9 a res]ve acc\nt1 treat & deal ) su* paym5t /ableco9 res]ves z belong+ to ! hold]s ( ! p]mitt$ paym5t /ableco9s issu$ by su* issu] & n z ! prop]ty ( su* p]son or ( su* p]mitt$ paym5t /ableco9 issu]2 & 7#b7 ) respect to o!r prop]ty describ$ 9 subsection 7a7-- 7,a7 treat & deal ) ! paym5t /ableco9s1 private keys1 ca%1 & o!r prop]ty ( a p]son = :om or on ^: behalf ! p]son describ$ 9 t subsection receives1 acquires1 or holds paym5t /ableco9s1 private keys1 ca%1 & o!r prop]ty 7h]e9aft] ref]r$ to 9 ?is section 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 /ableco9 res]ves1 paym5t /ableco9s1 ca%1 & o!r prop]ty ( a p]mitt$ paym5t /ableco9 issu] or cu/om] %all be sep>ately acc\nt$ = by a p]son describ$ 9 subsection 7a7 & %all be segregat$ f & n be comm+l$ ) ! funds ( ! p]son4 7#b7 ,exceptions ,not)/&+ p>agraph 7#a7 or subsection 7b7-- 7,a7 ! paym5t /ableco9 res]ves1 paym5t /ableco9s1 ca%1 & o!r prop]ty ( a p]mitt$ paym5t /ableco9 issu] or cu/om] may1 = conv5i5ce1 be comm+l$ & deposit$ 9 an omnibus acc\nt hold+ ! paym5t /ableco9 res]ves1 paym5t /ableco9s1 ca%1 & o!r prop]ty ( m ?an #a p]mitt$ paym5t /ableco9 issu] or cu/om] at a ,/ate *>t]$ depository in/itution1 an insur$ depository in/itution1 national bank1 or tru/ company1 & any paym5t /ableco9 res]ves 9 ! =m ( ca% held 9 ! =m ( a deposit liability at a depository in/itution %all n be subject to any requirem5t relat+ to ! sep>ation ( su* ca% f ! prop]ty ( ! applicable depository in/itution2 7,b7 su* %>e ( ! paym5t /ableco9 res]ves1 paym5t /ableco9s1 ca%1 & o!r prop]ty ( ! p]mitt$ paym5t /ableco9 issu] or 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 a prim>y ,f$]al paym5t /ableco9 regulator may prescribe by rule1 regulation1 or ord]1 any paym5t /ableco9 res]ves1 paym5t /ableco9s1 ca%1 & o!r prop]ty describ$ 9 ?is subsection may be comm+l$ & deposit$ 9 p]mitt$ paym5t /ableco9 issu] or cu/om] acc\nts ) paym5t /ableco9 res]ves1 paym5t /ableco9s1 ca%1 & o!r prop]ty receiv$ by ! p]son & requir$ by ! prim>y ,f$]al paym5t /ableco9 regulator to be sep>ately acc\nt$ =1 treat$ z1 & dealt ) z belong+ to su* p]mitt$ paym5t /ableco9 issu]s or cu/om]s2 or 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 7#c7 ,cu/om] priority ,) or )\t ! segregation requir$ "u p>agraph 7#a71 ! claims ( a cu/om] ) respect to ! prop]ty describ$ 9 t p>agraph %all h priority ov] ! claims ( any p]son o!r ?an a cu/om] aga9/ a p]son describ$ 9 subp>agraph 7a7 unless ! cu/om] expressly cons5ts to su* o!r priority ( claim4 7d7 ,regulatory in=mation ,a p]son describ$ "u subsection 7a7 %all submit to ! applicable prim>y ,f$]al paym5t /ableco9 regulator in=mation conc]n+ ! p]son's bus9ess op]ations & processes to protect cu/om] assets1 9 su* =m & mann] z ! prim>y regulator %all det]m9e4 7e7 ,exclusion ,! requirem5ts ( ?is section %all n apply to any p]son solely on ! basis t su* p]son engages 9 ! bus9ess ( provid+ h>dw>e or s(tw>e to facilitate a cu/om]'s own cu/ody or safekeep+ ( ! cu/om]'s paym5t /ableco9s or private keys4 #aa4 ,treatm5t ( paym5t /ableco9 issu]s 9 insolv5cy proce$+s 7a7 ,9 g5]al ,9 any insolv5cy proce$+ ( a p]mitt$ paym5t /ableco9 issu] "u ,f$]al or ,/ate law1 includ+ any proce$+ "u title #aa1 ,unit$ ,/ates ,code1 & any insolv5cy proce$+ adm9i/]$ by a ,/ate paym5t /ableco9 regulator ) respect to a p]mitt$ paym5t /ableco9 issu]1 ! claim ( a p]son hold+ paym5t /ableco9s issu$ by ! p]mitt$ paym5t /ableco9 issu] %all h priority ov] ! claims ( ! p]mitt$ paym5t /ableco9 issu] & any o!r cr$itor ( ! p]mitt$ paym5t /ableco9 issu]1 ) respect to requir$ paym5t /ableco9 res]ves1 subject to section #ejg7;e7 ( title #aa1 ,unit$ ,/ates ,code1 z add$ by subsection 7d74 7b7 ,def9itions ,section #aja ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ aft] p>agraph 7#dj;,b7 ! foll[+3 7#dj;,c7 ,! t]ms paym5t /ableco9 & p]mitt$ paym5t /ableco9 issu] h ! mean+s giv5 ^? t]ms 9 section #b ( ! ,,g5ius ,act4 4 7c7 ,automatic /ay ,section #cfb ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 9 p>agraph 7#g71 by /rik+ &2 7,b7 9 p>agraph 7#h71 by /rik+ ! p]iod & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7#i7 ! r$emption ( paym5t /ableco9s issu$ by ! p]mitt$ paym5t /ableco9 issu]1 f paym5t /ableco9 res]ves requir$ to be ma9ta9$ "u section #d ( ! ,,g5ius ,act4 2 & 7#b7 9 subsection 7d7-- 7,a7 9 p>agraph 7#c77;,b77ii71 by /rik+ or at ! end2 7,b7 9 p>agraph 7#d77;,b71 by /rik+ ! p]iod at ! end & ins]t+ 2 or2 & 7,c7 by ins]t+ aft] p>agraph 7#d7 ! foll[+3 7#e7 ) respect to ! r$emption ( paym5t /ableco9s held by a p]son1 if ! c\rt f9ds1 subject to ! motion & atte/ation ( ! p]mitt$ paym5t /ableco9 issu] on ! petition date1 !re are paym5t /ableco9 res]ves available = di/ribution on a ratable basis to simil>ly situat$ paym5t /ableco9 hold]s1 provid$ t ! c\rt %all use be/ ef=ts to ent] a f9al ord] to beg9 di/ributions "u ?is p>agraph n lat] ?an #ad days aft] ! date ( ! requir$ he>+4 4 7d7 ,priority 9 bankruptcy proce$+s ,section #ejg ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a71 9 ! matt] prec$+ p>agraph 7#a71 by /rik+ ,! foll[+ & ins]t+ ,subject to subsection 7e71 ! foll[+2 & 7#b7 by add+ at ! end ! foll[+3 7e7 ,not)/&+ subsection 7a71 if a paym5t /ableco9 hold] is n able to r$eem all out/&+ paym5t /ableco9 claims f requir$ paym5t /ableco9 res]ves ma9ta9$ by ! p]mitt$ paym5t /ableco9 issu]1 any rema9+ claim ( a p]son hold+ a paym5t /ableco9 issu$ by ! p]mitt$ paym5t /ableco9 issu] %all h fir/ priority ov] any o!r claim1 includ+ ov] any exp5ses & claims t h priority "u t subsection1 to ! ext5t compliance ) section #d ( ! ,,g5ius ,act w\ld h requir$ additional res]ves to be ma9ta9$ by ! p]mitt$ paym5t /ableco9 issu] = paym5t /ableco9 hold]s4 4 7e7 ,paym5t /ableco9 res]ves ,section #eda7;b7 ( title #aa1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#i71 9 ! matt] foll[+ subp>agraph 7,b71 by /rik+ or at ! end2 7#b7 9 p>agraph 7#aj77;,c71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7#c7 by ins]t+ aft] p>agraph 7#aj7 ! foll[+3 7#aa7 requir$ paym5t /ableco9 res]ves "u section #d ( ! ,,g5ius ,act4 4 7f7 ,int]v5tion ,section #aaji ( title #aa1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7c7 ,! ,comptroll] ( ! ,curr5cy or ,/ate paym5t /ableco9 regulator 7z def9$ 9 section #b ( ! ,,g5ius ,act7 %all raise1 & %all appe> & be he>d on1 any issue1 includ+ ! protection ( cu/om]s1 9 a case "u ?is *apt] 9 :i* ! debtor is a p]mitt$ paym5t /ableco9 issu]4 4 7g7 ,application ( exi/+ insolv5cy law ,9 accordance ) o!rwise applicable law1 an insolv5cy proce$+ ) respect to a p]mitt$ paym5t /ableco9 issu] %all occur z foll[s3 7#a7 ,a depository in/itution 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 %all be resolv$ by ! ,f$]al ,deposit ,insurance ,corporation1 ,national ,cr$it ,union ,adm9i/ration1 or ,/ate paym5t /ableco9 regulator1 z applicable4 7#b7 ,a subsidi>y ( a depository in/itution 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 or a nonbank entity may be consid]$ a debtor "u title #aa1 ,unit$ ,/ates ,code4 #ab4 ,int]op]ability /&>ds ,! prim>y ,f$]al paym5t /ableco9 regulators1 9 consultation ) ! ,national ,in/itute ( ,/&>ds & ,te*nology1 o!r relevant /&>d-sett+ organizations1 & ,/ate bank & cr$it union regulators1 %all assess &1 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 = p]mitt$ paym5t /ableco9 issu]s to promote compatibility & int]op]ability )-- 7#a7 o!r p]mitt$ paym5t /ableco9 issu]s2 & 7#b7 ! broad] digital f9ance ecosy/em1 includ+ accept$ communications protocols & block*a9s1 p]mission$ or public4 #ac4 ,rulemak+ 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ea* prim>y ,f$]al paym5t /ableco9 regulator1 ! ,secret>y ( ! ,treasury1 & ea* ,/ate paym5t /ableco9 regulator %all promulgate regulations to c>ry out ?is ,act ?r\gh appropriate notice & comm5t rulemak+4 7b7 ,coord9ation ,f$]al paym5t /ableco9 regulators1 ! ,secret>y ( ! ,treasury1 & ,/ate paym5t /ableco9 regulators %\ld coord9ate1 z appropriate1 on ! issuance ( any regulations to implem5t ?is ,act4 7c7 ,report requir$ ,n lat] ?an #ahj days aft] ! effective date ( ?is ,act1 ea* ,f$]al bank+ ag5cy %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report t confirms & describes ! regulations promulgat$ to c>ry out ?is ,act4 #ad4 ,/udy on non-paym5t /ableco9s 7a7 ,/udy by ,treasury 7#a7 ,/udy ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,bo>d1 ! ,comptroll]1 ! ,corporation1 ! ,securities & ,ex*ange ,commission1 & ! ,commodity ,futures ,trad+ ,commission %all c>ry out a /udy ( non-paym5t /ableco9s1 includ+ endog5\sly collat]aliz$ paym5t /ableco9s4 7#b7 ,report ,n lat] ?an #cfe days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all provide to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report t conta9s all f9d+s made 9 c>ry+ out ! /udy "u p>agraph 7#a71 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 types ( algori?ms be+ employ$2 7,f7 gov]nance /ructure1 includ+ aspects ( dec5tralization2 7,g7 ! nature ( public promotion & adv]tis+2 & 7,h7 ! cl>ity & availability ( consum] notices disclosures4 7#c7 ,classifi$ annex ,a report "u ?is section may include a classifi$ annex1 if applicable4 7b7 ,endog5\sly collat]aliz$ paym5t /ableco9 def9$ ,9 ?is section1 ! t]m endog5\sly collat]aliz$ paym5t /ableco9 means any digital asset-- 7#a7 ! orig9ator ( :i* 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 #ae4 ,reports 7a7 ,annual report+ requirem5t ,beg9n+ on ! date t is #a ye> aft] ! date ( enactm5t ( ?is ,act1 & annually !reaft]1 ! prim>y ,f$]al paym5t /ableco9 regulators %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate1 ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 & ! ,director ( ! ,(fice ( ,f9ancial ,rese>* a report1 :i* may include a classifi$ annex1 if applicable1 on ! /atus ( ! paym5t /ableco9 indu/ry1 includ+-- 7#a7 a summ>y ( tr5ds 9 paym5t /ableco9 activities2 7#b7 a summ>y ( ! numb] ( applications = approval z a p]mitt$ paym5t /ableco9 issu] "u section #e1 includ+ aggregate approvals & rejections ( applications2 & 7#c7 a description ( ! pot5tial f9ancial /ability risks pos$ to ! safety & s\ndness ( ! broad] f9ancial sy/em by paym5t /ableco9 activities4 7b7 ,,fsoc report ,! ,f9ancial ,/ability ,ov]sight ,c\ncil %all incorporate ! f9d+s 9 ! report "u subsection 7a7 into ! annual report ( ! ,c\ncil requir$ "u section #aab7;a77#b77,n7 ( ! ,f9ancial ,/ability ,act ( #bjaj 7#ab ,u4,s4,c4 #ecbb7;a77#b77,n774 #af4 ,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 ,f$]al cr$it union1 ,/ate cr$it union1 national bank1 or tru/ company to engage 9 activities p]missible pursuant to applicable ,/ate & ,f$]al law1 includ+-- 7#a7 accept+ or receiv+ deposits or %>es 79 ! case ( a cr$it union71 & issu+ digital assets t repres5t ^? deposits or %>es2 7#b7 utiliz+ a di/ribut$ l$g] = ! books & records ( ! entity & to effect intrabank transf]s2 & 7#c7 provid+ cu/odial s]vices = paym5t /ableco9s1 private keys ( paym5t /ableco9s1 or res]ves back+ paym5t /ableco9s4 7b7 ,regulatory review ,entities regulat$ by ! prim>y ,f$]al paym5t /ableco9 regulators are au?oriz$ to engage 9 ! paym5t /ableco9 activities & inve/m5ts contemplat$ by ?is ,act1 includ+ act+ z a pr9cipal or ag5t ) respect to any paym5t /ableco9 & paym5t ( fees to facilitate cu/om] transactions4 ,! prim>y ,f$]al paym5t /ableco9 regulators %all review all exi/+ guidance & regulations1 & if necess>y1 am5d or promulgate new regulations & guidance1 to cl>ify t regulat$ entities are au?oriz$ to engage 9 su* activities & inve/m5ts4 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#a7 to include digital 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+ activities2 or 7#b7 to hold 9 cu/ody or safekeep+ regulatory capital aga9/ digital assets & res]ves back+ su* assets describ$ 9 section #d7;a77#a77;,a71 except z necess>y to mitigate aga9/ op]ational risks inh]5t 9 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$it union72 7,c7 a ,/ate bank sup]visor2 or 7,d7 a ,/ate cr$it union sup]visor4 7d7 ,/ate-*>t]$ depository in/itutions ,a ,/ate-*>t]$ depository in/itution *>t]$ "u ! bank+ laws ( a ,/ate %all n be requir$ to obta9 a *>t]1 lic5se1 or o!r au?orization to d bus9ess f a ,/ate to engage 9 ! bus9ess ( money transmission1 ! issuance ( paym5t in/rum5ts or /or$ value1 cu/odial s]vices1 or any simil> or relat$ activity1 if su* ,/ate-*>t]$ depository in/itution is-- 7#a7 subject to prud5tial regulation & sup]vision by ! *>t]+ ,/ate 9 a mann] t is sub/antially simil> to ! prud5tial regulation & sup]vision applicable to insur$ depository in/itutions *>t]$ by su* ,/ate2 & 7#b7 requir$ by ! laws ( ! *>t]+ ,/ate to ma9ta9 res]ves = any out/&+ deposit liabilities 9 an am\nt equal to or great] ?an su* liabilities & to hold su* res]ves 9 a mann] t is at lea/ z protective ( cu/om]s z is requir$ "u section #h4 7e7 ,def9itions ,9 ?is section3 7#a7 ,depository in/itution2 ,/ate bank sup]visor ,! t]ms depository in/itution & ,/ate bank sup]visor h ! mean+s giv5 ^? t]ms "u section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#b7 ,f$]al cr$it union2 ,/ate cr$it union ,! t]ms ,f$]al cr$it union & ,/ate cr$it union h ! mean+s giv5 ^? t]ms 9 section #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#c7 ,/ate cr$it union sup]visor ,! t]m ,/ate cr$it union sup]visor has ! mean+ giv5 t t]m 9 section #fjjc ( ! ,anti-,money ,laund]+ ,act ( #bjbj 7#ca ,u4,s4,c4 #ecaa note74 #ag4 ,am5dm5ts to cl>ify t paym5t /ableco9s are n securities or commodities & p]mitt$ paym5t /ableco9 issu]s are n inve/m5t companies 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$ 9 section #b ( ! ,,g5ius ,act44 7b7 ,inve/m5t ,company ,act ( #aidj ,! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq47 is am5d$-- 7#a7 9 section #b7;a77#cf7 ( ! ,act 7#ae ,u4,s4,c4 #hj;a-#b7;a77#cf771 by add+ at ! end ! foll[+3 ,! t]m security does n include a paym5t /ableco9 issu$ by a p]mitt$ paym5t /ableco9 issu]1 z su* t]ms are def9$ 9 section #b ( ! ,,g5ius ,act42 & 7#b7 9 section #c7;c77#c7 ( ! ,act 7#ae ,u4,s4,c4 #hj;a-#c7;c77#c771 by ins]t+ any p]mitt$ paym5t /ableco9 issu]1 z su* t]m is def9$ 9 section #b ( ! ,,g5ius ,act2 aft] !re=24 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$ 9 section #b ( ! ,,g5ius ,act44 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$ 9 section #b ( ! ,,g5ius ,act44 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$ 9 section #b ( ! ,,g5ius ,act44 7f7 ,commodity ,ex*ange ,act ,section #a;a7#i7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a7#i77 is am5d$ by add+ at ! end ! foll[+3 ,! t]m commodity does n include a paym5t /ableco9 issu$ by a p]mitt$ paym5t /ableco9 issu]1 z su* t]ms are def9$ 9 section #b ( ! ,,g5ius ,act4 #ah4 ,exception = =eign paym5t /ableco9 issu]s & reciprocity = paym5t /ableco9s issu$ 9 ov]seas jurisdictions 7a7 ,9 g5]al ,! prohibitions "u section #c %all n apply to a =eign paym5t /ableco9 issu] if all ( ! foll[+ apply3 7#a7 ,! =eign paym5t /ableco9 issu] is subject to regulation & sup]vision by a =eign paym5t /ableco9 regulator ( a =eign c\ntry1 a t]ritory ( ! ,unit$ ,/ates1 ,pu]to ,rico1 ,guam1 ,am]ican ,samoa1 or ! ,virg9 ,isl&s t has a regulatory & sup]visory regime ) respect to paym5t /ableco9s t ! ,secret>y ( ! ,treasury det]m9es1 pursuant to subsection 7b71 is comp>able to ! regulatory & sup]visory regime e/abli%$ "u ?is ,act1 includ+1 9 p>ticul>1 ! requirem5ts "u section #d7;a74 7#b7 ,! =eign paym5t /ableco9 issu] is regi/]$ ) ! ,comptroll] pursuant to subsection 7c74 7#c7 ,! =eign paym5t /ableco9 issu] holds res]ves 9 a ,unit$ ,/ates f9ancial in/itution suffici5t to meet liquidity dem&s ( ,unit$ ,/ates cu/om]s1 unless o!rwise p]mitt$ "u a reciprocal arrangem5t e/abli%$ pursuant to subsection 7d74 7b7 ,treasury det]m9ation 7#a7 ,9 g5]al ,! ,secret>y ( ! ,treasury may1 9 consultation ) ! ,f$]al paym5t /ableco9 regulators1 make a det]m9ation z to :e!r a =eign c\ntry has a regulatory & sup]visory regime t is comp>able to ! requirem5ts e/abli%$ "u ?is ,act1 includ+ ! requirem5ts "u section #d7;a74 7#b7 ,reque/ ,a =eign paym5t /ableco9 issu] or a =eign paym5t /ableco9 regulator may reque/ f ! ,secret>y ( ! ,treasury a det]m9ation "u p>agraph 7#a74 7#c7 ,tim+ = det]m9ation ,if a =eign paym5t /ableco9 issu] or =eign paym5t /ableco9 regulator reque/s a det]m9ation "u p>agraph 7#b71 ! ,secret>y ( ! ,treasury %all r5d] a decision on ! det]m9ation n lat] ?an #baj days aft] ! receipt ( a sub/antially complete det]m9ation reque/4 7#d7 ,rescission ( det]m9ation 7,a7 ,9 g5]al ,! ,secret>y ( ! ,treasury may1 9 consultation ) ! ,f$]al paym5t /ableco9 regulators1 resc9d a det]m9ation made "u p>agraph 7#a71 if ! ,secret>y det]m9es t ! regulatory regime ( su* =eign c\ntry is no long] comp>able to ! requirem5ts e/abli%$ "u ?is ,act4 7,b7 ,limit$ safe h>bor ,if ! ,secret>y ( ! ,treasury resc9ds a det]m9ation pursuant to subp>agraph 7,a71 a digital asset s]vice provid] %all h #ij days be=e ! (f] or sale ( a paym5t /ableco9 issu$ by ! =eign paym5t /ableco9 issu] t is ! subject ( ! resc9d$ det]m9ation %all be 9 violation ( section #c4 7#e7 ,public notice ,! ,secret>y ( ! ,treasury %all keep & make publicly available a curr5t li/ ( =eign c\ntries = :i* a det]m9ation "u p>agraph 7#a7 has be5 made4 7#f7 ,rulemak+ ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all issue su* rules z may be requir$ to c>ry out ?is section4 7c7 ,regi/ration & ongo+ monitor+ 7#a7 ,regi/ration 7,a7 ,9 g5]al ,a =eign paym5t /ableco9 issu] may (f] or sell paym5t /ableco9s us+ a digital asset s]vice provid] if ! =eign paym5t /ableco9 issu] is regi/]$ ) ! ,comptroll]4 7,b7 ,regi/ration approval ,a regi/ration ( a =eign paym5t /ableco9 issu] fil$ 9 accordance ) ?is section %all be deem$ approv$ on ! date t is #cj days aft] ! date ! ,comptroll] receives ! regi/ration1 unless ! ,comptroll] notifies ! =eign paym5t /ableco9 issu] 9 writ+ t su* regi/ration has be5 reject$4 7,c7 ,/&>ds = rejection ,9 det]m9+ :e!r to reject a =eign paym5t /ableco9 issu]'s regi/ration1 ! ,comptroll] %all consid]-- 7i7 ! f9al det]m9ation ( ! ,secret>y ( ! ,treasury "u ?is section2 7ii7 ! f9ancial & manag]ial res\rces ( ! ,unit$ ,/ates op]ations ( ! =eign paym5t /ableco9 issu]2 7iii7 :e!r ! =eign paym5t /ableco9 issu] w provide adequate in=mation to ! ,comptroll] z ! ,comptroll] det]m9es is necess>y to det]m9e compliance ) ?is ,act2 7iv7 :e!r ! =eign paym5t /ableco9 pres5ts a risk to ! f9ancial /ability ( ! ,unit$ ,/ates2 & 7v7 :e!r ! =eign paym5t /ableco9 issu] pres5ts illicit f9ance risks to ! ,unit$ ,/ates4 7,d7 ,proc$ure = appeal ,if ! ,comptroll] rejects a regi/ration1 n lat] ?an #cj days aft] ! date ( receipt ( su* rejection1 ! =eign paym5t /ableco9 issu] may appeal ! rejection by notify+ ! ,comptroll] ( ! reque/ to appeal4 7,e7 ,rulemak+ ,pursuant to section #ac ( ?is ,act1 ! ,comptroll] %all issue rules relat+ to ! /&>ds = approval ( regi/ration reque/s & ! process = appeal+ d5ials ( su* regi/ration reque/s4 7,f7 ,public notice ,! ,comptroll] %all keep & make publicly available a curr5t li/ ( =eign paym5t /ableco9 issu] regi/rations t h be5 approv$4 7#b7 ,ongo+ monitor+ ,a =eign paym5t /ableco9 issu] %all-- 7,a7 be subject to report+1 sup]vision1 & exam9ation requirem5ts z det]m9$ by ! ,comptroll]2 & 7,b7 cons5t to ,unit$ ,/ates jurisdiction relat+ to ! en=cem5t ( ?is ,act4 7#c7 ,lack ( compliance 7,a7 ,comptroll] action ,! ,comptroll] may1 9 consultation ) ! ,secret>y ( ! ,treasury1 resc9d approval ( a regi/ration ( a =eign paym5t /ableco9 issu] "u ?is subsection if ! ,comptroll] det]m9es t ! =eign paym5t /ableco9 issu] is n 9 compliance ) ! requirem5ts ( ?is ,act1 includ+ = ma9ta9+ insuffici5t res]ves or pos+ an illicit f9ance risk or f9ancial /ability risk4 7,b7 ,secret>y action ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,comptroll]1 may revoke a regi/ration ( a =eign paym5t /ableco9 issu] "u ?is subsection if ! ,secret>y det]m9es t reasonable gr\nds exi/ = conclud+ t ! =eign paym5t /ableco9 issu] pres5ts economic sanctions evasion1 money laund]+1 or o!r illicit f9ance risks1 or1 z applicable1 violations1 or facilitation !re(4 7d7 ,reciprocity 7#a7 ,9 g5]al ,! ,secret>y ( ! ,treasury may create & implem5t reciprocal arrangem5ts or o!r bilat]al agreem5ts betwe5 ! ,unit$ ,/ates & jurisdictions ) paym5t /ableco9 regulatory regimes t are comp>able to ! requirem5ts e/abli%$ "u ?is ,act1 includ+1 9 p>ticul>1 section #d7;a71 & c demon/rate adequate sup]visory & en=cem5t capacity to facilitate int]national transactions & int]op]ability ) ,unit$ ,/ates doll>-d5om9at$ paym5t /ableco9s issu$ ov]seas4 7#b7 ,completion ,! ,secret>y ( ! ,treasury %\ld complete ! arrangem5ts "u ?is subsection n lat] ?an ! date t is #b ye>s aft] ! date ( enactm5t ( ?is ,act4 #ai4 ,effective date ,?is ,act1 & ! am5dm5ts made by ?is ,act1 %all take effect on ! e>li] (-- 7#a7 ! date t is #ah mon?s aft] ! date ( enactm5t ( ?is ,act2 or 7#b7 ! date t is #abj days aft] ! date on :i* ! prim>y ,f$]al paym5t /ableco9 regulators issue any f9al regulations implem5t+ ?is ,act4 ,may #e1 #bjbe,read ! second "t & plac$ on ! cal5d>