,,ii  #aai? ,,congress  #a/ ,session    
,s4 #cid  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #d1 #bjbe,mr4 
,hag]ty 7= himself1 ,mr4 ,scott ( ,s\?  
,c>ol9a1 ,mrs4 ,gillibr&1 & ,ms4        
,lummis7 introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,bank+1 ,h\s+1 & ,urban ,affairs  ,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 ( #bjbe or !       
,,g5ius ,act ( #bjbe4  #b4 ,def9itions  
,9 ?is ,act3 7#a7 ,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#b7
 ,bo>d ,! t]m ,bo>d means ! ,bo>d (     
,gov]nors ( ! ,f$]al ,res]ve ,sy/em4    
7#c7 ,comptroll] ,! t]m ,comptroll]     

means ! ,comptroll] ( ! ,curr5cy4  7#d7 
,comptroll]-regulat$ entity ,! t]m      
,comptroll]-regulat$ entity means any   
,f$]al qualifi$ nonbank paym5t /ableco9 
issu] t is subject to regulation &      
sup]vision exclusively by ! ,comptroll]1
 pursuant to section #d7;a77#g74  7#e7  
,corporation ,! t]m ,corporation means !
 ,f$]al ,deposit ,insurance             
,corporation4  7#f7 ,digital asset ,!   
t]m digital asset means any digital     
repres5tation ( value :i* is record$ on 
a cryptographically-secur$ di/ribut$    
l$g]4  7#g7 ,di/ribut$ l$g] ,! t]m      
di/ribut$ l$g] means te*nology :]e data 
is %>$ across a network t creates a     
public digital l$g] ( v]ifi$            
transactions or in=mation among network 
p>ticipants & ! data is l9k$ us+        
cryptography to ma9ta9 ! integrity ( !  
public l$g] & execute o!r functions4    
7#h7 ,f$]al qualifi$ nonbank paym5t     
/ableco9 issu] ,! t]m ,f$]al qualifi$   
nonbank paym5t /ableco9 issu] means a   
nonbank entity approv$ by ! prim>y      

,f$]al paym5t /ableco9 regulator1       
pursuant to section #e1 to issue paym5t 
/ableco9s4  7#i7 ,in/itution-affiliat$  
p>ty ,) respect to a p]mitt$ paym5t     
/ableco9 issu]1 ! t]m                   
in/itution-affiliat$ p>ty means any     
director1 (fic]1 employee1 or p]son 9   
control (1 or ag5t =1 ! p]mitt$ paym5t  
/ableco9 issu]4  7#aj7 ,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$it union1 z def9$ 9 
section #aja ( ! ,f$]al ,cr$it ,union   
,act 7#ab ,u4,s4,c4 #ageb74  7#aa7      
,monet>y value ,! t]m monet>y value     
means a national curr5cy or deposit 7z  
def9$ "u ,section #c ( ! ,f$]al ,deposit
 ,insurance ,act7 d5om9at$ 9 a national 
curr5cy4  7#ab7 ,national curr5cy ,! t]m
 national curr5cy means a ,f$]al ,res]ve
 note 7z ! t]m is us$ 9 ! fir/          
undesignat$ p>agraph ( section #af ( !  

,f$]al ,res]ve ,act 7#ab ,u4,s4,c4      
#daa771 money issu$ by a c5tral bank1 & 
money issu$ by an int]gov]nm5tal        
organization pursuant to an agreem5t by 
#a or m gov]nm5ts4  7#ac7 ,nonbank      
entity ,! t]m nonbank entity means a    
p]son t is n an insur$ depository       
in/itution or subsidi>y ( an insur$     
depository in/itution4  7#ad7 ,paym5t   
/ableco9 ,! t]m paym5t /ableco9-- 7,a7  
means a digital asset-- 7i7 t is or is  
design$ to be 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      
value2 &  7,,ii7 repres5ts x w ma9ta9 or
 creates ! reasonable expectation t x w 
ma9ta9 a /able value relative to ! value
 ( a fix$ am\nt ( monet>y value2 &  7,b7
 t is n-- 7i7 a national curr5cy2 or    
7ii7 a security issu$ by an inve/m5t    
company regi/]$ "u section #h7;a7 ( !   
,inve/m5t ,company ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;a-#h7;a774  7#ae7 ,p]mitt$
 paym5t /ableco9 issu] ,! t]m p]mitt$   

paym5t /ableco9 issu] means-- 7,a7 a    
subsidi>y ( an insur$ depository        
in/itution t has be5 approv$ to issue   
paym5t /ableco9s "u section #e2  7,b7 a 
,f$]al qualifi$ nonbank paym5t /ableco9 
issu] t has be5 approv$ to issue paym5t 
/ableco9s "u section #e2 or  7,c7 a     
,/ate qualifi$ paym5t /ableco9 issu]4   
7#af7 ,p]son ,! t]m p]son means an      
individual1 p>tn]%ip1 company1          
corporation1 association 7incorporat$ or
 un9corporat$71 tru/1 e/ate1 coop]ative 
organization1 or o!r entity4  7#ag7     
,prim>y ,f$]al paym5t /ableco9 regulator
  7,a7 ,9 g5]al ,! t]m prim>y ,f$]al    
paym5t /ableco9 regulator means-- 7i7 ) 
respect to an insur$ depository         
in/itution 7o!r ?an an insur$ cr$it     
union7 or a subsidi>y ( an insur$       
depository in/itution 7o!r ?an an insur$
 cr$it union71 ! appropriate ,f$]al     
bank+ ag5cy ( su* insur$ depository     
in/itution 7z def9$ "u section #c ( !   
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahac772  7ii7 ) respect to an

 insur$ cr$it union or a subsidi>y ( an 
insur$ cr$it union1 ! ,national ,cr$it  
,union ,adm9i/ration2  7iii7 ) respect  
to a ,f$]al qualifi$ nonbank paym5t     
/ableco9 issu] t is n a national bank1 !
 ,comptroll]2 &  7iv7 ) respect to any  
entity *>t]$ by ! ,comptroll]1 !        
,comptroll]4  7,b7 ,prim>y ,f$]al paym5t
 /ableco9 regulators ,! t]m prim>y      
,f$]al paym5t /ableco9 regulators means 
! ,comptroll]1 ! ,bo>d1 ! ,corporation1 
& ! ,national ,cr$it ,union             
,adm9i/ration4  7#ah7 ,regi/]$ 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#ai7     
,/ate ,! t]m ,/ate means ea* ( ! sev]al 
,/ates1 ! ,di/rict ( ,columbia1 & ea*   
t]ritory ( ! ,unit$ ,/ates4  7#bj7 ,/ate
 qualifi$ paym5t /ableco9 issu] ,! t]m  
,/ate qualifi$ paym5t /ableco9 issu]    
means an entity t-- 7,a7 is legally     
e/abli%$ & approv$ to issue paym5t      
/ableco9s by a ,/ate paym5t /ableco9    

regulator2 &  7,b7 issues a paym5t      
/ableco9 9 compliance ) ! requirem5ts "u
 section #d4  7#ba7 ,/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#bb7 ,/ate    
regulat$ depository in/itution ,! t]m   
,/ate regulat$ depository in/itution has
 ! mean+ giv5 ! t]m ,/ate depository    
in/itution 9 section #c7;c7 ( ! ,f$]al  
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahac7;c774  7#bc7 ,subsidi>y ( an      
insur$ cr$it union ,) respect to an     
insur$ cr$it union1 ! t]m subsidi>y ( an
 insur$ cr$it union means-- 7,a7 an     
organization provid+ s]vices to ! insur$
 cr$it union t are associat$ ) ! r\t9e  
op]ations ( cr$it unions1 z describ$ "u 
section #ajg7g77;,i7 ( ! ,f$]al ,cr$it  
,union ,act 7#ab ,u4,s4,c4              
#ageg7g77;,i772 &  7,b7 a cr$it union   
s]vice organization1 z su* t]m is us$ "u
 "p #gab ( title #ab1 ,code ( ,f$]al    

,regulations1 ) respect to :i* ! insur$ 
cr$it union has an own]%ip int]e/ or to 
:i* ! insur$ cr$it union has ext5d$ a   
loan4  #c4 ,limitation on :o may issue a
 paym5t /ableco9 ,x %all be unlawful =  
any p]son o!r ?an a p]mitt$ paym5t      
/ableco9 issu] to issue a paym5t        
/ableco9 9 ! ,unit$ ,/ates4  #d4        
,requirem5ts = issu+ paym5t /ableco9s   
7a7 ,/&>ds = ! issuance ( paym5t        
/ableco9s  7#a7 ,9 g5]al ,p]mitt$ paym5t
 /ableco9 issu]s %all-- 7,a7 ma9ta9     
res]ves back+ ! issu]'s paym5t /ableco9s
 out/&+ on an at lea/ #a to #a basis1 ) 
res]ves compris+-- 7i7 ,unit$ ,/ates    
co9s & curr5cy 7includ+ ,f$]al res]ve   
notes72  7ii7 funds held z dem& deposits
 7or o!r deposits t may be )drawn ^u    
reque/ at any "t7 at insur$ depository  
in/itutions1 regulat$ =eign depository  
in/itutions1 or insur$ %>es at insur$   
depository in/itutions1 subject to      
limitations e/abli%$ by ! ,corporation &
 ! ,national ,cr$it ,union              
,adm9i/ration1 respectively1 to address 

safety & s\ndness risks ( su* insur$    
depository in/itutions2  7iii7 ,treasury
 bills1 notes1 or bonds-- 7,i7 ) a      
rema9+ maturity ( #ic days or less2 or  
7,,ii7 issu$ ) a maturity ( #ic days or 
less2  7iv7 repur*ase agreem5ts ) a     
maturity ( #g days or less t are back$  
by ,treasury bills ) a maturity ( #ij   
days or less2  7v7 rev]se repur*ase     
agreem5ts ) a maturity ( #g days or less
 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>+     
h\se2 or  7,,iii7 bilat]al ) a c\nt]p>ty
 t ! issu] has det]m9$ to be adequately 
cr$itwor?y ev5 9 ! ev5t ( sev]e m>ket   
/ress2  7vi7 money m>ket funds1 inve/$  
solely 9 und]ly+ assets describ$ 9      
clauses 7i7 ?r\gh 7iv7 ( subp>agraph    
7,a72 or  7vii7 ,c5tral ,bank res]ve    
deposits2  7,b7 publicly disclose !     
issu]'s r$emption policy2  7,c7 e/abli% 
proc$ures = timely r$emption ( out/&+   

paym5t /ableco9s2 &  7,d7 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$ "u     
subp>agraph 7,a74  7#b7 ,prohibition on 
rehypo!cation ,res]ves describ$ "u      
p>agraph 7#a77;,a7 may n be pl$g$1      
rehypo!cat$1 or reus$1 except = !       
purpose ( creat+ liquidity to meet      
reasonable expectations ( reque/s to    
r$eem paym5t /ableco9s1 su* t res]ves 9 
! =m ( ,treasury bills may be pl$g$ z   
collat]al = repur*ase agreem5ts ) a     
maturity ( #ij days or less1 provid$ t  
ei!r-- 7,a7 ! repur*ase agreem5ts are   
cle>$ by a c5tral cle>+ c\nt]p>ty t is  
approv$ by ! prim>y ,f$]al or ,/ate     
paym5t /ableco9 regulator2 or  7,b7 !   
p]mitt$ paym5t /ableco9 issu] receives !
 prior approval ( ! prim>y ,f$]al or    
,/ate paym5t /ableco9 regulator4  7#c7  
,mon?ly c]tification2 exam9ation (      
reports by regi/]$ 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 to-- 7i7 !   
prim>y ,f$]al paym5t /ableco9 regulator2
 or  7ii7 9 ! case ( a ,/ate qualifi$   
paym5t /ableco9 issu]1 to ! ,/ate paym5t
 /ableco9 regulator4  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 ! crim9al p5alties 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$]al paym5t   
/ableco9 regulators %all1 jo9tly1 or 9 !
 case ( a ,/ate qualifi$ paym5t /ableco9
 issu]1 ! ,/ate paym5t /ableco9         

regulator %all1 issue-- 7i7 capital     
requirem5ts applicable to p]mitt$ paym5t
 /ableco9 issu]s1 :i* may n exce$ :at is
 suffici5t to ensure ! p]mitt$ paym5t   
/ableco9 issu]'s ongo+ op]ations2  7ii7 
appropriate liquidity & int]e/ rate risk
 managem5t /&>ds applicable to p]mitt$  
paym5t /ableco9 issu]s1 :i* may n exce$ 
:at is suffici5t to ensure ! f9ancial   
integrity ( ! p]mitt$ paym5t /ableco9   
issu] & ! ability ( ! issu] to meet !   
f9ancial obligations ( ! issu]1 includ+ 
r$emptions2 &  7iii7 appropriate        
op]ational1 compliance1 & in=mation     
te*nology risk managem5t /&>ds1 includ+ 
,bank ,secrecy ,act & sanctions         
compliance1 tailor$ to ! bus9ess model &
 risk pr(ile ( ! p]mitt$ paym5t /ableco9
 issu]1 consi/5t ) o!r legal au?orities4
  7,b7 ,rule ( con/ruction ,no?+ 9 ?is  
p>agraph %all be con/ru$ to limit-- 7i7 
! au?ority ( ! prim>y ,f$]al 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  
risk9ess1 complexity1 f9ancial          
activities 7includ+ f9ancial activities 
( _! subsidi>ies71 size1 & any o!r risk 
relat$ factors t ! prim>y ,f$]al        
regulator det]m9es appropriate2 or  7ii7
 ! sup]visory1 regulatory1 or en=cem5t  
au?ority ( an appropriate ,f$]al bank+  
ag5cy to fur!r ! safe & s\nd op]ation ( 
an in/itution "u ! sup]vision ( !       
appropriate ,f$]al bank+ ag5cy4  7,c7   
,applicability ( exi/+ capital /&>ds ,) 
respect to ! promulgation ( rules "u    
subsection 7a77#a77;,a71 section #aga ( 
! ,f9ancial ,/ability ,act ( #bjaj 7#ab 
,u4,s4,c4 #ecga7;a77#a77;,a77 %all n    
apply4  7#e7 ,treatm5t "u ! ,bank       
,secrecy ,act ,a p]mitt$ paym5t /ableco9
 issu] %all be treat$ z a f9ancial      
in/itution = purposes ( ! ,bank ,secrecy
 ,act4  7#f7 ,limitation on /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]ves 7includ+ pur*as+ & hold+ res]ve 
assets72  7iv7 provide cu/odial or      
safekeep+ s]vices = paym5t /ableco9s1   
requir$ res]ves1 or private keys (      
paym5t /ableco9s2 &  7v7 und]take o!r   
functions t directly support ! "w (     
issu+ & r$eem+ paym5t /ableco9s4  7,b7  
,rule ( con/ruction ,no?+ 9 subp>agraph 
7,a7 %all prev5t a p]mitt$ /ableco9     
issu] f engag+ 9 non-/ableco9 activities
 t are explicitly all[$ by ! relevant   
regulator4  7#g7 ,regulation by !       
,comptroll]  7,a7 ,9 g5]al ,a ,f$]al    
qualifi$ nonbank paym5t /ableco9 issu]  
%all be regulat$ & sup]vis$ exclusively 
by ! ,comptroll]1 :i* %all h au?ority1 9
 coord9ation ) o!r relevant regulators1 
to issue su* regulations & ord]s z      
necess>y to ensure ! safety & s\ndness (
 ! issu]s1 consi/5t ) ! provisions ( ?is
 ,act4  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$]al
 qualifi$ nonbank paym5t /ableco9 issu]s

 ,! ,comptroll] ( ! ,curr5cy %all1 9    
coord9ation ) o!r relevant regulators1  
issue su* regulations & ord]s z necess>y
 to ensure ! safety & s\ndness ( any    
nonbank entity approv$ by ! ,comptroll] 
to issue paym5t /ableco9s4  4  7b7      
,/ate-,level regulatory regimes  7#a7   
,option = ,/ate-level regulatory regime 
,not)/&+ ! ,f$]al regulatory framework  
e/abli%$ "u subsection 7a71 a /ableco9  
issu] ) a total m>ket capitalization ( 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$]al regulatory framework "u t  
subsection4  7#b7 ,review ,/ate         
regulators %all review ,/ate-level      
regulatory regimes accord+ to crit]ia ! 
,/ate regulators e/abli% = det]m9+ :e!r 
a ,/ate-level regulatory regime is      
sub/antially simil> to ! ,f$]al         
regulatory framework "u subsection 7a74 
7#c7 ,c]tification  7,a7 ,initial       
c]tification ,subject to subp>agraph    

7,b71 n lat] ?an #a ye> aft] ! date (   
enactm5t ( ?is ,act1 ,/ate regulators   
%all submit to ! ,secret>y ( ! ,treasury
 an initial c]tification t _!           
,/ate-level regulatory regime meets !   
crit]ia = sub/antial simil>ity "u       
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 ! ,secret>y ( ! ,treasury1 
an atte/ation t ! ,/ate-level regulatory
 regime meets ! crit]ia = sub/antial    
simil>ity "u p>agraph 7#b74  7,c7       
,annual rec]tification ,n lat] ?an a    
date to be det]m9$ by ! ,secret>y ea*   
ye>1 ! ,/ate %all submit to ! ,secret>y 
( ! ,treasury an additional c]tification
 t confirms ! accuracy ( initial        
c]tification submitt$ "u subp>agraph    
7,a74  7#d7 ,n sub/antially simil>  7,a7
 ,9 g5]al ,if a ,/ate regulator does n  
submit a c]tification "u p>agraph 7#c71 
!n a paym5t /ableco9 issu] op]at+ "u ?is
 subsection %all be subject to ! ,f$]al 
regulatory framework z describ$ 9       

subsection 7c71 not)/&+ ! m>ket         
capitalization ?re%old !re94  7,b7      
,treasury review ,! ,secret>y ( !       
,treasury may reject a c]tification "u  
p>agraph 7#c7 if ! ,secret>y det]m9es t 
! ,/ate-level regulatory regime is n    
sub/antially simil> to ! ,f$]al         
regulatory framework "u subsection 7a71 
& ! paym5t /ableco9 issu] %all be       
subject to ! ,f$]al regulatory framework
 z describ$ 9 subsection 7c71 not)/&+ ! 
m>ket capitalization ?re%old !re94  7,c7
 ,appellate review ,a paym5t /ableco9   
issu] may *all5ge ! det]m9ation ( !     
,/ate regulator or ! ,secret>y ( !      
,treasury "u ?is p>agraph 9 ! ,unit$    
,/ates ,di/rict ,c\rt = ! ,di/rict (    
,columbia4  7#e7 ,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#c74  7c7  
,transition to ,f$]al regulation  7#a7  
,depository in/itution ,a ,/ate-regulat$

 depository in/itution t has be5 approv$
 z a paym5t /ableco9 issu] ) a m>ket    
capitalization ( m ?an #aj1jjj1jjj1jjj  
%all-- 7,a7 n lat] ?an #cfj days aft]   
rea*+ su* m>ket capitalization1         
transition to regulation "u ! ,f$]al    
regulatory framework ( ! ,bo>d2 or  7,b7
 beg9n+ on ! date ( rea*+ su* m>ket     
capitalization1 cease issu+ new         
/ableco9s until ! ,/ate-regulat$        
/ableco9 issu] is "u ! #aj1jjj1jjj1jjj  
m>ket capitalization ?re%old4  7#b7 ,o!r
 in/itutions ,a ,/ate qualifi$ paym5t   
/ableco9 issu] n describ$ 9 p>agraph    
7#a7 ) a m>ket capitalization ( m ?an   
#aj1jjj1jjj1jjj %all-- 7,a7 n lat] ?an  
#cfj days aft] rea*+ su* m>ket          
capitalization1 transition to regulation
 "u ! regulatory framework ( !          
,comptroll]2 or  7,b7 beg9n+ on ! date (
 rea*+ su* m>ket capitalization1 cease  
issu+ new /ableco9s until !             
,/ate-regulat$ /ableco9 issu] is "u !   
#aj1jjj1jjj1jjj m>ket capitalization    
?re%old4  7#c7 ,conditional approval ,^u

 fil+ an application ) ! appropriate    
,f$]al regulator1 a ,/ate qualifi$      
paym5t /ableco9 issu] %all be deem$     
conditionally approv$1 p5d+ f9al        
approval or d5ial ( ! application4  7#d7
 ,waiv] ,! applicable ,f$]al regulator  
may waive ! requirem5t "u p>agraph 7#a7 
or 7#b7 to p]mit a ,/ate qualifi$ paym5t
 /ableco9 issu] to rema9 "u a           
,/ate-level regulatory regime4  7d7     
,rulemak+  7#a7 ,9 g5]al ,! prim>y      
,f$]al paym5t /ableco9 regulators &     
,/ate paym5t /ableco9 regulators may    
issue su* ord]s & regulations z may be  
necess>y to adm9i/] & c>ry out !        
requirem5ts ( ?is section1 includ+ to   
e/abli% conditions1 & to prev5t evasions
 !re(4  7#b7 ,jo9t issuance ( regulation
 ,all regulations issu$ to c>ry out ?is 
section %all be issu$ jo9tly by ! prim>y
 ,f$]al paym5t /ableco9 regulators1 if n
 issu$ by a ,/ate paym5t /ableco9       
regulator4  7#c7 ,rulemak+ deadl9e ,n   
lat] ?an ! end ( ! #ahj-;day p]iod      
beg9n+ on ! date ( enactm5t ( ?is ,act1 

! ,f$]al paym5t /ableco9 regulators %all
 issue regulations to c>ry out ?is      
section4  #e4 ,approval ( subsidi>ies ( 
insur$ depository in/itutions & ,f$]al  
qualifi$ nonbank paym5t /ableco9 issu]s 
7a7 ,application  7#a7 ,9 g5]al ,!      
prim>y ,f$]al paym5t /ableco9 regulator 
%all receive1 review1 & approve         
applications f any insur$ depository    
in/itution t seeks to issue paym5t      
/ableco9s ?r\gh a subsidi>y & any       
nonbank entity t seeks to issue paym5t  
/ableco9s4 ,! prim>y ,f$]al paym5t      
/ableco9 regulator %all e/abli% a       
process = ! lic5s+ & regulation ( ^!    
entities4  7#b7 ,au?ority to issue      
regulations & process applications ,!   
prim>y ,f$]al paym5t /ableco9 regulators
 %all1 be=e ! effective date describ$ 9 
section #af-- 7,a7 issue regulations to 
c>ry out ?is section2 &  7,b7 pursuant  
to ! regulations describ$ 9 subp>agraph 
7,a71 accept & process applications "u  
?is ,act4  7#c7 ,m&atory approval       
process ,! prim>y ,f$]al paym5t /ableco9

 regulator %all1 ^u receipt ( a complete
 application1 evaluate & make a         
det]m9ation on ea* application bas$ on !
 crit]ia e/abli%$ "u ?is ,act4  7b7     
,evaluation ( applications ,a 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 ! 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 =? 9 section #d4  7d7  
,tim+ = decision2 gr\nds = d5ial  7#a7  
,tim+ ,! prim>y ,f$]al paym5t /ableco9  
regulator %all r5d] a decision on an    
application no lat] ?an #abj days aft]  
in=m+ ! applicant t ! application is    
complete4  7#b7 ,d5ial ( application    
7,a7 ,gr\nds = d5ial ,! prim>y ,f$]al   
paym5t /ableco9 regulator %all only d5y 
a 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  7,b7        
,explanation requir$ ,if ! 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/1 ! prim>y ,f$]al paym5t /ableco9 
regulator %all notice a "t 7n lat] ?an  
#cj days aft] ! date ( receipt ( !      
reque/7 & place at :i* ! applicant may  
appe>1 p]sonally or ?r\gh c\nsel1 to    
submit writt5 mat]ials or provide oral  
te/imony & oral argum5t74  7iii7 ,f9al  
det]m9ation ,n lat] ?an #fj days aft] ! 
date ( a he>+ "u ?is subp>agraph1 !     
prim>y ,f$]al paym5t /ableco9 regulator 
%all notify ! applicant ( ! f9al        
det]m9ation ( ! ,comptroll]1 :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 ! 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$4  7#d7
 ,"r to reapply ,! d5ial ( an           
application "u ?is section %all n       
prohibit ! applicant f fil+ a subsequ5t 
application4  7e7 ,report on p5d+       
applications ,! ,comptroll] %all        
annually report to ,congress on !       
applications t h be5 p5d+ = #f mon?s or 
long] s9ce ! date ( ! initial           
application fil$ "u subsection 7a7 :]e !
 applicant has be5 in=m$ t ! application
 rema9s incomplete1 includ+ provid+     
docum5tation on ! /atus ( ! application 
& :y ! application has n yet be5        
approv$4  7f7 ,rulemak+ ,! ,comptroll]  
%all issue rules necess>y = ! regulation
 ( ! issuance ( paym5t /ableco9s1 b may 
n impose requirem5ts inconsi/5t ) !     
requirem5ts specifi$ "u section #d4  #f4
 ,sup]vision & en=cem5t ) respect to    
subsidi>ies ( insur$ depository         
in/itutions & ,comptroll]-regulat$      

entities  7a7 ,sup]vision  7#a7         
,subsidi>y ( an insur$ depository       
in/itution  7,a7 ,9 g5]al ,ea* p]mitt$  
paym5t /ableco9 issu] t is a subsidi>y (
 an insur$ depository in/itution %all be
 subject to sup]vision by ! prim>y      
,f$]al paym5t /ableco9 regulator 9 !    
same mann] z su* insur$ depository      
in/itution4  7,b7 ,gramm-,lea*-,bliley  
,act ,= purposes ( title ,v ( !         
,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4
 #fhja et seq47 ea* p]mitt$ paym5t      
/ableco9 issu] t is a subsidi>y ( an    
insur$ depository in/itution %all be    
deem$ a f9ancial in/itution4  7#b7      
,comptroll]-regulat$ entities  7,a7     
,submission ( reports ,ea*              
,comptroll]-regulat$ entity %all1 ^u    
reque/1 submit reports to ! ,comptroll] 
z to-- 7i7 ! f9ancial condition ( !     
,comptroll]-regulat$ entity1 sy/ems =   
monitor+ & controll+ f9ancial & op]at+  
risks2 &  7ii7 compliance by !          
,comptroll]-regulat$ entity 7& any      
subsidi>y !re(7 ) ?is ,act4  7,b7       

,exam9ations ,! ,comptroll] may make    
exam9ations ( a ,comptroll]-regulat$    
entity & ea* subsidi>y ( su* entity 9   
ord] to in=m ! ,comptroll] (-- 7i7 !    
nature ( ! op]ations & f9ancial         
condition ( ! ,comptroll]-regulat$      
entity2  7ii7 ! f9ancial1 op]ational1 & 
o!r risks )9 ! ,comptroll]-regulat$     
entity t may pose a ?reat to-- 7,i7 !   
safety & s\ndness ( !                   
,comptroll]-regulat$ entity2 or  7,,ii7 
! /ability ( ! f9ancial sy/em ( ! ,unit$
 ,/ates2 &  7iii7 ! sy/ems ( !          
,comptroll]-regulat$ entity = monitor+ &
 controll+ ! risks describ$ 9 clause    
7ii74  7,c7 ,requirem5ts = effici5cy    
7i7 ,use ( exi/+ reports ,9 sup]vis+ &  
exam9+ a ,comptroll]-regulat$ entity1 ! 
,comptroll] %all1 to ! fulle/ ext5t     
possible1 use exi/+ reports & o!r       
sup]visory in=mation4  7ii7 ,avoidance (
 duplication ,! ,comptroll] %all1 to !  
fulle/ ext5t possible1 avoid duplication
 ( exam9ation activities1 report+       
requirem5ts1 & reque/s = in=mation 9    

c>ry+ out ?is ,act ) respect to a       
,comptroll]-regulat$ entity4  7iii7     
,consid]ation ( burd5 ,! ,comptroll]    
%all1 ) respect to any exam9ation or    
reque/ = ! submission ( a report "u ?is 
p>agraph1 only reque/ exam9ations &     
reports at a cad5ce & 9 a =mat t is     
simil> to ^? requir$ = simil>ly situat$ 
,comptroll]-regulat$ entities4  7b7     
,en=cem5t  7#a7 ,susp5sion or revocation
 ( regi/ration ,! prim>y ,f$]al paym5t  
/ableco9 regulator may prohibit a       
p]mitt$ paym5t /ableco9 issu] f issu+   
paym5t /ableco9s1 if ! prim>y ,f$]al    
paym5t /ableco9 regulator det]m9es t su*
 p]mitt$ paym5t /ableco9 issu]1 or an   
in/itution-affiliat$ p>ty ( ! p]mitt$   
paym5t /ableco9 issu]1 is-- 7,a7        
mat]ially violat+ or has mat]ially      
violat$ ?is ,act or any regulation or   
ord] issu$ "u ?is ,act2 or  7,b7        
mat]ially violat+ or has mat]ially      
violat$ any condition impos$ 9 writ+ by 
! prim>y ,f$]al paym5t /ableco9         
regulator 9 connection ) a writt5       

agreem5t ent]$ into betwe5 ! p]mitt$    
paym5t /ableco9 issu] & ! prim>y ,f$]al 
paym5t /ableco9 regulator4  7#b7        
,cease-&-desi/ proce$+s ,if ! prim>y    
,f$]al paym5t /ableco9 regulator has    
reasonable cause to believe t a p]mitt$ 
paym5t /ableco9 issu] or any            
in/itution-affiliat$ p>ty ( a p]mitt$   
paym5t /ableco9 issu] is violat+1 has   
violat$1 or is attempt+ to violate ?is  
,act1 any regulation or ord] issu$ "u   
?is ,act1 or any writt5 agreem5t ent]$  
into ) ! prim>y ,f$]al paym5t /ableco9  
regulator or condition impos$ 9 writ+ by
 ! prim>y ,f$]al paym5t /ableco9        
regulator 9 connection ) any application
 or o!r reque/1 ! prim>y ,f$]al paym5t  
/ableco9 regulator 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$]al   
paym5t /ableco9 regulator may remove an 
in/itution-affiliat$ p>ty ( a p]mitt$   
paym5t /ableco9 issu] f _! position or  
(fice or prohibit fur!r p>ticipation 9 !
 affairs ( ! p]mitt$ paym5t /ableco9    
issu] or all p]mitt$ paym5t /ableco9    
issu]s by su* in/itution-affiliat$ p>ty1
 if ! prim>y ,f$]al paym5t /ableco9     
regulator det]m9es t-- 7,a7 !           
in/itution-affiliat$ p>ty has1 directly 
or indirectly1 committ$ a violation or  
attempt$ violation ( ?is ,act or any    
regulation or ord] issu$ "u ?is ,act2 or
  7,b7 ! in/itution-affiliat$ p>ty has  
committ$ a violation ( any provision (  
sub*apt] ,,ii ( *apt] #ec ( title #ca1  
,unit$ ,/ates ,code4  7#d7 ,proc$ures   
7,a7 ,9 g5]al ,if ! prim>y ,f$]al paym5t
 /ableco9 regulator id5tifies a         
violation or attempt$ violation ( ?is   
,act or makes a det]m9ation "u p>agraph 
7#a71 7#b71 or 7#c71 ! prim>y ,f$]al    
paym5t /ableco9 regulator %all comply ) 

! proc$ures set =? 9 subsections 7b7 &  
7e7 ( sections #h ( ! ,f$]al ,deposit   
,insurance ,act 7#ab ,u4,s4,c4 #ahah74  
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$]al ,deposit ,insurance ,act 7#ab 
,u4,s4,c4 #ahah7;h774  7,c7 ,injunction 
,! prim>y ,f$]al paym5t /ableco9        
regulator may1 9 ! discretion ( !       
regulator1 foll[ ! proc$ures provid$ 9  
section #h7;i77#a7 ( ! ,f$]al ,deposit  
,insurance ,act 7#ab ,u4,s4,c4          
#ahah7;i77#a77 = judicial en=cem5t ( any
 effective & out/&+ notice or ord] issu$
 "u ?is subsection4  7,d7 ,tempor>y     
cease-&-desi/ proce$+s ,if ! prim>y     
,f$]al paym5t /ableco9 regulator        
det]m9es t a violation or attempt$      
violation ( ?is ,act or an action )     
respect to :i* a det]m9ation 0 made "u  
p>agraph 7#a71 7#b71 or 7#c71 or !      
cont9uation !re(1 is likely to cause    
insolv5cy or significant dissipation (  

assets or e>n+s ( a p]mitt$ paym5t      
/ableco9 issu]1 or is likely to weak5 ! 
condition ( ! p]mitt$ paym5t /ableco9   
issu] or o!rwise prejudice ! int]e/s ( !
 cu/om]s ( ! p]mitt$ paym5t /ableco9    
issu] prior to ! completion ! proce$+s  
conduct$ "u ?is p>agraph1 ! prim>y      
,f$]al paym5t /ableco9 regulator may    
foll[ ! proc$ures provid$ 9 section     
#h7;c7 ( ! ,f$]al ,deposit ,insurance   
,act 7#ab ,u4,s4,c4 #ahah7;c77 to issue 
a tempor>y cease-&-desi/ ord]4  7#e7    
,civil money p5alties  7,a7 ,failure to 
be approv$ ,any p]son :o issues a ,unit$
 ,/ates doll>-d5om9at$ paym5t /ableco9 &
 :o is n a p]mitt$ paym5t /ableco9      
issu]1 & any in/itution-affiliat$ p>ty (
 su* a p]son :o kn[+ly p>ticipates is   
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
 ! prim>y ,f$]al paym5t /ableco9        
regulator 9 connection ) a writt5       
agreem5t ent]$ into betwe5 ! p]mitt$    
paym5t /ableco9 issu] & ! prim>y ,f$]al 
paym5t /ableco9 regulator1 %all be      
liable = a civil p5alty ( up to #ajj1jjj
 = ea* day dur+ :i* ! violation         
cont9ues4  7,c7 ,second ti] ,except z   
provid$ 9 subp>agraph 7,a71 & 9 addition
 to ! p5alties describ$ "u subp>agraph  
7,b71 a p]mitt$ paym5t /ableco9 issu] or
 in/itution-affiliat$ p>ty ( su* p]mitt$
 paym5t /ableco9 issu] :o kn[+ly        
p>ticipates 9 a violation ( any         
provision ( ?is ,act1 or any regulation 
or ord] issu$ !reund]1 is liable = a    
civil p5alty ( up to an additional      
#ajj1jjj = ea* day dur+ :i* ! violation 
cont9ues4  7,d7 ,proc$ure ,any p5alty   
impos$ "u ?is p>agraph may be assess$ & 
collect$ by ! prim>y ,f$]al paym5t      

/ableco9 regulator pursuant to !        
proc$ures set =? 9 section #h7;i77#b7 ( 
! ,f$]al ,deposit ,insurance ,act 7#ab  
,u4,s4,c4 #ahah7;i77#b774  7,e7 ,notice 
& ord]s aft] sep>ation f s]vice ,!      
resignation1 t]m9ation ( employm5t or   
p>ticipation1 or sep>ation ( an         
in/itution-affiliat$ p>ty 7includ+ a    
sep>ation caus$ by ! clos+ ( a p]mitt$  
paym5t /ableco9 issu]7 %all n affect !  
jurisdiction & au?ority ( ! prim>y      
,f$]al paym5t /ableco9 regulator to     
issue any notice or ord] & proce$ "u ?is
 subsection aga9/ any su* p>ty1 if su*  
notice or ord] is s]v$ be=e ! end ( !   
#f-ye> p]iod beg9n+ on ! date su* p>ty  
ceas$ to be an in/itution-affiliat$ p>ty
 ) respect to su* p]mitt$ paym5t        
/ableco9 issu]4  7#f7 ,non-applicability
 to a ,/ate qualifi$ paym5t /ableco9    
issu] ,?is subsection %all n apply to a 
,/ate qualifi$ paym5t /ableco9 issu]4   
#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] a   
,/ate qualifi$ paym5t /ableco9 issu] (  
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 c>ry out ! 
sup]vision1 exam9ation1 & en=cem5t      
au?ority ) 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 a ,/ate qualifi$
 paym5t /ableco9 issu]s4  7e7 ,en=cem5t 

au?ority 9 exig5t circum/ances  7#a7    
,bo>d  7,a7 ,9 g5]al ,subject to        
subp>agraph 7,c71 9 exig5t circum/ances1
 ! ,bo>d may1 aft] n less ?an #e days   
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 t are exig5t 9    
nature4  7,b7 ,rulemak+ ,n lat] ?an !   
end ( ! #ahj-;day p]iod beg9n+ on ! date
 ( enactm5t ( ?is ,act1 ! ,bo>d %all    
issue rules to set =? ^? exig5t         
circum/ances 9 :i* ! ,bo>d may act "u   
?is p>agraph4  7,c7 ,limitations ,if !  
,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 (
 ! /ableco9 issu]1 ! ,bo>d may impose   
su* re/rictions z ! ,bo>d det]m9es to be
 necess>y to address su* risk4 ,su*     
re/rictions %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 ! paym5t ( 
divid5ds by ! ,/ate qualifi$ paym5t     
/ableco9 issu]2  7ii7 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 &  7iii7 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$1 ! ,/ate   
qualifi$ paym5t /ableco9 issu]1 or any  
affiliate ( ! ,/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$ or 9 ! ,unit$ ,/ates ,di/rict    
,c\rt = ! ,di/rict ( ,columbia 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 9 exig5t  
circum/ances1 ! ,comptroll] %all1 aft] n
 less ?an #e days prior writt5 notice to
 ! applicable ,/ate paym5t /ableco9     

regulator1 take an en=cem5t action aga9/
 a ,comptroll]-regulat$ entity or an    
in/itution-affiliat$ p>ty ( su* entity =
 violations ( ?is ,act4  7,b7 ,rulemak+ 
,n lat] ?an ! end ( ! #ahj-;day p]iod   
beg9n+ on ! date ( enactm5t ( ?is ,act1 
! ,comptroll] %all issue rules to set =?
 ^? exig5t circum/ances 9 :i* !         
,comptroll] may act "u ?is p>agraph4    
7,c7 ,limitations ,if ! ,comptroll]     
det]m9es t !re is reasonable cause to   
believe t ! cont9uation by a            
,comptroll]-regulat$ entity ( any       
activity con/itutes a s]i\s risk to !   
f9ancial safety1 s\ndness1 or /ability (
 ! /ableco9 issu]1 ! ,comptroll] %all   
impose su* re/rictions z ! ,comptroll]  
det]m9es to be necess>y to address su*  
risk4 ,su* re/rictions %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 !    
paym5t ( divid5ds by !                  
,comptroll]-regulat$ entity2  7ii7      

transactions betwe5 !                   
,comptroll]-regulat$ entity1 a hold+    
company1 & ! subsidi>ies or affiliates (
 ei!r ! ,comptroll]-regulat$ entity or !
 hold+ company2 &  7iii7 any activities 
( ! ,comptroll]-regulat$ entity t might 
create a s]i\s risk t ! liabilities ( a 
hold+ company & ! affiliates ( ! hold+  
company may be impos$ on !              
,comptroll]-regulat$ entity4  7,d7      
,review ( directive  7i7 ,adm9i/rative  
review  7,i7 ,9 g5]al ,aft] a directive 
describ$ 9 subp>agraph 7,c7 is issu$1 ! 
,comptroll]-regulat$ entity1 or any     
affiliate ( ! ,comptroll]-regulat$      
entity subject to ! directive1 may      
object & pres5t to ! ,comptroll]1 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 ! ,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$ or 9 ! ,unit$ ,/ates     
,di/rict ,c\rt = ! ,di/rict ( ,columbia 
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$ies "u clause
 7i74  7f7 ,gramm-,lea*-,bliley ,act ,= 
purposes ( title ,v ( !                 
,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4
 #fhja et seq47 a ,/ate qualifi$ paym5t 
/ableco9 issu] is deem$ a f9ancial      
in/itution4  7g7 ,effect on ,/ate law   
7#a7 ,ho/ ,/ate ,law ,! consum]         
protection laws t g5]ally apply to !    
op]ation ( a paym5t /ableco9 issu] ( !  
,ho/ ,/ate apply to ! activities        
conduct$ 9 ! ,ho/ ,/ate by an           
out-(-,/ate ,/ate qualifi$ paym5t       

/ableco9 issu] to ! same ext5t z ^?     
requirem5ts apply to ! activities       
conduct$ 9 ! ,ho/ ,/ate by an           
out-(-,/ate ,f$]al qualifi$ nonbank     
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 ( ! paym5t /ableco9 issu]   
%all gov]n ! activities ( ! paym5t      
/ableco9 issu] conduct$ 9 ! ,ho/ ,/ate4 
#h4 ,cu/om] protection  7a7 ,9 g5]al ,a 
p]son may only engage 9 ! bus9ess (     
provid+ cu/odial or safekeep+ s]vices = 
p]mitt$ paym5t /ableco9s or private keys
 ( p]mitt$ paym5t /ableco9s1 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 #ahac7 or
 a ,/ate cr$it union sup]visor1 z def9$ 
"u section #fjjc ( ! ,anti-,money       
,laund]+ ,act ( #bjbj1 & su* /ate bank  
sup]visor or /ate cr$it union sup]visor 
makes available to ! ,bo>d su* in=mation
 z ! ,bo>d det]m9es necess>y & relevant 
to ! categories ( in=mation "u          
subsection 7d72 &  7#b7 complies ) !    
segregation requirem5ts "u subsection   
7b71 unless su* p]son complies ) simil> 
requirem5ts z requir$ by a prim>y ,f$]al
 paym5t /ableco9 regulator1 !           
,securities & ,ex*ange ,commission1 or !
 ,commodity ,futures ,trad+ ,commission4
  7b7 ,segregation requirem5t ,a p]son  
describ$ 9 subsection 7a7 %all-- 7#a7   
treat & deal ) ! paym5t /ableco9s1      
private keys1 ca%1 & o!r prop]ty ( a    
p]son = :om or on ^: behalf ! p]son     
receives1 acquires1 or holds paym5t     
/ableco9s1 private keys1 ca%1 & o!r     
prop]ty 7h]e9aft] 9 ?is section ref]r$  
to z ! cu/om]7 z belong+ to su* cu/om]2 
&  7#b7 take su* /eps z are appropriate 

to protect ! paym5t /ableco9s1 private  
keys1 ca%1 & o!r prop]ty ( a cu/om] f ! 
claims ( cr$itors ( ! p]son4  7c7       
,comm+l+ prohibit$  7#a7 ,9 g5]al       
,paym5t /ableco9s1 ca%1 & o!r prop]ty ( 
a cu/om] %all be sep>ately acc\nt$ = by 
a p]son describ$ 9 subsection 7a7 & %all
 n be comm+l$ ) ! funds ( ! p]son4  7#b7
 ,exception ,not)/&+ p>agraph 7#a7--    
7,a7 ! paym5t /ableco9s1 ca%1 & o!r     
prop]ty ( a cu/om] may1 = conv5i5ce1 be 
comm+l$ & deposit$ 9 an omnibus acc\nt  
hold+ ! paym5t /ableco9s1 ca%1 & o!r    
prop]ty ( m ?an #a cu/om] at an insur$  
depository in/itution or tru/ company2  
7,b7 su* %>e ( ! paym5t /ableco9s1 ca%1 
& o!r prop]ty ( ! cu/om] t %all be      
necess>y to transf]1 adju/1 or settle a 
transaction or transf] ( assets may be  
)drawn & appli$ to su* purposes1 includ+
 ! paym5t ( commissions1 taxes1 /orage1 
& o!r *>ges lawfully accru+ 9 connection
 ) ! provision ( s]vices by a p]son     
describ$ 9 subsection 7a72 &  7,c7 9    
accordance ) su* t]ms & conditions z !  

,bo>d may prescribe by rule1 regulation1
 or ord]1 any cu/om] paym5t /ableco91   
ca%1 & o!r prop]ty describ$ 9 ?is       
subsection may be comm+l$ & deposit$ 9  
cu/om] acc\nts ) paym5t /ableco9s1 ca%1 
& o!r prop]ty receiv$ by ! p]son &      
requir$ by ! ,bo>d to be sep>ately      
acc\nt$ =1 treat$1 & dealt ) z belong+  
to cu/om]s4  7d7 ,regulatory in=mation  
,a p]son describ$ "u subsection 7a7 %all
 submit to ! applicable prim>y 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  #i4 ,treatm5t ( insolv5t paym5t  
/ableco9 issu]s  7a7 ,9 g5]al ,9 any    
insolv5cy proce$+1 includ+ any proce$+  
"u title #aa1 ,unit$ ,/ates ,code1 or   

any insolv5cy proce$+ by a prim>y ,f$]al
 paym5t /ableco9 regulator or a ,/ate   
bank+ sup]visor ) respect to a paym5t   
/ableco9 issu]1 ! claim ( a p]son hold+ 
paym5t /ableco9s issu$ by ! paym5t      
/ableco9 issu] %all h priority ov] all  
o!r claims aga9/ ! paym5t /ableco9      
issu]4  7b7 ,priority 9 bankruptcy      
proce$+s ,section #ejg ( title #aa1     
,unit$ ,/ates ,code1 is am5d$-- 7#a7 9  
subsection 7a71 by /rik+ ,! foll[+ &    
ins]t+ ,subject to subsection 7e71 !    
foll[+2 &  7#b7 by add+ at ! end !      
foll[+3  7e7 ,not)/&+ subsection 7a71   
any claim ( a p]son hold+ paym5t        
/ableco9s1 z def9$ 9 section #b ( !     
,guid+ & ,e/abli%+ ,national ,innovation
 = ,u4,s4 ,/ableco9s ( #bjbe1 issu$ by a
 debtor %all h fir/ priority ov] any o!r
 claim aga9/ ! debtor "u ?is title4  4  
7c7 ,debtor ,a paym5t /ableco9 issu] t  
is n a depository in/itution 7z def9$ 9 
section #c ( ! ,f$]al ,deposit          
,insurance ,act 7#ab ,u4,s4,c4 #ahac77  
may be consid]$ a debtor "u title #aa1  

,unit$ ,/ates ,code4  #aj4              
,int]op]ability /&>ds ,! prim>y ,f$]al  
paym5t /ableco9 regulators1 9           
consultation ) ! ,national ,in/itute (  
,/&>ds & ,te*nology1 o!r relevant /&>d  
sett+ organizations1 & ,/ate gov]nm5ts1 
%all assess &1 if necess>y1 may1        
pursuant to section #eec ( title #e & 9 
a mann] consi/5t ) ! ,national          
,te*nology ,transf] & ,advancem5t ,act (
 #aiie 7,public ,law #ajd-aac71         
prescribe /&>ds = paym5t /ableco9 issu]s
 to promote compatibility &             
int]op]ability4  #aa4 ,/udy on          
endog5\sly collat]aliz$ /ableco9s  7a7  
,/udy by ,treasury  7#a7 ,/udy ,!       
,secret>y ( ! ,treasury1 9 consultation 
) ! ,bo>d1 ! ,comptroll]1 !             
,corporation1 & ! ,securities & ,ex*ange
 ,commission1 %all c>ry out a /udy (    
endog5\sly collat]aliz$ /ableco9s4  7#b7
 ,report ,n lat] ?an #cfe days aft] !   
date ( ! enactm5t ( ?is ,act1 !         
,secret>y %all provide to ! ,committee  
on ,f9ancial ,s]vices ( ! ,h\se (       

,repres5tatives & ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate a report t conta9s all f9d+s made
 9 c>ry+ out ! /udy "u 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$2  7,f7 gov]nance  
/ructure1 includ+ aspects (             
dec5tralization2  7,g7 nature ( public  
promotion & adv]tis+2 &  7,h7 cl>ity &  
availability ( consum] notices          
disclosures4  7b7 ,endog5\sly           
collat]aliz$ /ableco9 def9$ ,9 ?is      
section1 ! t]m endog5\sly collat]aliz$  
/ableco9 means any digital asset-- 7#a7 
9 :i* its orig9ator has repres5t$ w be  
conv]t$1 r$eem$1 or repur*as$ = a fix$  
am\nt ( monet>y value2 &  7#b7 t relies 
solely on ! value ( ano!r digital asset 

creat$ or ma9ta9$ by ! same orig9ator to
 ma9ta9 ! fix$ price4  #ab4 ,reports    
7a7 ,rulemak+ /atus ,n lat] ?an #f mon?s
 aft] ! date ( enactm5t ( ?is ,act1 !   
prim>y ,f$]al paym5t /ableco9 regulators
 %all provide a /atus update on !       
developm5t ( ! rulemak+ "u ?is ,act to !
 ,committee on ,f9ancial ,s]vices ( !   
,h\se ( ,repres5tatives & ! ,committee  
on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! 
,s5ate4  7b7 ,annual report+ requirem5t 
,beg9n+ on ! date t is #a ye> aft] !    
date ( enactm5t ( ?is ,act1 & annually  
!reaft]1 ! ,bo>d & ,comptroll] %all     
submit to ! ,committee on ,bank+1 ,h\s+1
 & ,urban ,affairs ( ! ,s5ate1 !        
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives1 & ! ,director (
 ! ,(fice ( ,f9ancial ,rese>* a report  
on ! /atus ( ! paym5t /ableco9 indu/ry1 
includ+-- 7#a7 an ov]view ( tr5ds 9     
paym5t /ableco9 activities2  7#b7 a     
summ>y ( ! numb] ( applications =       
p]mitt$ 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  7c7 ,,fsoc 
report ,! ,f9ancial ,/ability ,ov]sight 
,c\ncil %all incorporate ! f9d+s 9 !    
report "u subsection 7b7 into ! annual  
report ( ! ,c\ncil requir$ "u section   
#aab7;a77#b77,n7 ( ! ,dodd-,frank ,wall 
,/reet ,re=m & ,consum] ,protection ,act
 7#ab ,u4,s4,c4 #ecbb74  #ac4 ,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$it union1 or tru/       
company to engage 9 activities          
p]missible pursuant to applicable ,/ate 
& ,f$]al law1 includ+-- 7#a7 accept+ or 
receiv+ deposits & issu+ digital assets 
t repres5t deposits2  7#b7 utiliz+ a    
di/ribut$ l$g] = ! books & records ( !  
entity & to affect intrabank transf]s2 &
  7#c7 provid+ cu/odial s]vices = paym5t

 /ableco9s1 private keys ( paym5t       
/ableco9s1 or res]ves back+ paym5t      
/ableco9s4  7b7 ,treatm5t ( cu/ody      
activities ,! appropriate ,f$]al bank+  
ag5cy 7z def9$ "u section #c ( ! ,f$]al 
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahac771 ! ,national ,cr$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 assets held 9 cu/ody z a       
liability on any f9ancial /atem5t or    
balance %eet1 includ+ paym5t /ableco9   
cu/ody or safekeep+ activities2  7#b7 to
 hold additional regulatory capital     
aga9/ assets 9 cu/ody or safekeep+1     
except z necess>y to mitigate aga9/     
op]ational risks inh]5t ) ! cu/ody or   
safekeep+ s]vices1 z det]m9$ by-- 7,a7 !
 appropriate ,f$]al bank+ ag5cy2  7,b7 !
 ,national ,cr$it ,union ,adm9i/ration  
79 ! case ( a cr$it union72  7,c7 a     

,/ate bank sup]visor 7z def9$ "u section
 #c ( ! ,f$]al ,deposit ,insurance ,act 
7#ab ,u4,s4,c4 #ahac772 or  7,d7 a ,/ate
 cr$it union sup]visor 7z def9$ "u      
section #fjjc ( ! ,anti-,money ,laund]+ 
,act ( #bjbj72  7#c7 to recognize a     
liability = any obligations relat$ to   
activities or s]vices p]=m$ = digital   
assets t ! entity does n own if t       
liability w\ld exce$ ! exp5se recogniz$ 
9 ! income /atem5t z a result ( !       
correspond+ obligation4  7c7 ,def9itions
 ,9 ?is section3 7#a7 ,depository       
in/itution ,! t]m depository in/itution 
has ! mean+ giv5 t t]m "u section #c ( !
 ,f$]al ,deposit ,insurance ,act 7#ab   
,u4,s4,c4 #ahac74  7#b7 ,cr$it union    
t]ms ,! t]ms ,f$]al cr$it union & ,/ate 
cr$it union h ! mean+ giv5 ^? t]ms1     
respectively1 "u section #aja ( ! ,f$]al
 ,cr$it ,union ,act4  #ad4 ,am5dm5ts to 
cl>ify t paym5t /ableco9s are n         
securities or commodities  7a7 ,inve/m5t
 ,advis]s ,act ( #aidj ,section         
#bjb7;a77#ah7 ( ! ,inve/m5t ,advis]s    

,act ( #aidj 7#ae ,u4,s4,c4             
#hj;b-#b7;a77#ah77 is am5d$ by add+ at !
 end ! foll[+3 ,! t]m security does n   
include a paym5t /ableco9 issu$ by a    
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$1 respectively1 9 section 
#b ( ! ,cl>ity = ,paym5t ,/ableco9s ,act
 ( #bjbc44  7b7 ,inve/m5t ,company ,act 
( #aidj ,section #b7;a77#cf7 ( !        
,inve/m5t ,company ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;a-#b7;a77#cf77 is am5d$ by
 add+ at ! end ! foll[+3 ,! t]m security
 does n include a paym5t /ableco9 issu$ 
by a p]mitt$ paym5t /ableco9 issu]1 z   
su* t]ms are def9$1 respectively1 9     
section #b ( ! ,cl>ity = ,paym5t        
,/ableco9s ,act ( #bjbc44  7c7          
,securities ,act ( #aicc ,section       
#b7;a77#a7 ( ! ,securities ,act ( #aicc 
7#ae ,u4,s4,c4 #gg;b7a77#a77 is am5d$ by
 add+ at ! end ! foll[+3 ,! t]m security
 does n include a paym5t /ableco9 issu$ 
by a p]mitt$ paym5t /ableco9 issu]1 z   
su* t]ms are def9$1 respectively1 9     
section #b ( ! ,cl>ity = ,paym5t        

,/ableco9s ,act ( #bjbc44  7d7          
,securities ,ex*ange act ( #aicd        
,section #c7;a77#aj7 ( ! ,securities    
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a77#aj77 is am5d$ by add+ at ! end
 ! foll[+3 ,! t]m security does n       
include a paym5t /ableco9 issu$ by a    
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$1 respectively1 9 section 
#b ( ! ,cl>ity = ,paym5t ,/ableco9s ,act
 ( #bjbc44  7e7 ,securities ,inve/or    
,protection ,act ( #aigj ,section       
#af7ad7 ( ! ,securities ,inve/or        
,protection ,act ( #aigj 7#ae ,u4,s4,c4 
#ghlll7#ad77 is am5d$ by add+ at ! end !
 foll[+3 ,! t]m security does n include 
a paym5t /ableco9 issu$ by a p]mitt$    
paym5t /ableco9 issu]1 z su* t]ms are   
def9$1 respectively1 9 section #b ( !   
,cl>ity = ,paym5t ,/ableco9s ,act (     
#bjbc44  #ae4 ,reciprocity = /ableco9s  
issu$ 9 ov]seas jurisdictions ,! ,f$]al 
,res]ve1 9 collaboration ) ! ,secret>y (
 ! ,treasury1 %all create & implem5t    
reciprocal arrangem5ts or o!r bilat]al  

agreem5ts betwe5 ! ,unit$ ,/ates &      
jurisdictions ) sub/antially simil>     
paym5t /ableco9 regulatory regimes to   
facilitate int]national transactions &  
int]op]ability ) ,unit$ ,/ates          
doll>-d5om9at$ /ableco9s issu$ ov]seas4 
#af4 ,effective date  7a7 ,9 g5]al ,?is 
,act %all take effect on ! e>li] (--    
7#a7 #ah mon?s aft] ! date ( enactm5t ( 
?is ,act2 or  7#b7 ! date t is #abj days
 aft] ! date on :i* ! prim>y ,f$]al     
paym5t /ableco9 regulators issue any    
f9al regulations implem5t+ ?is ,act4    
7b7 ,notice to ,congress ,! prim>y      
,f$]al paym5t /ableco9 regulators %all  
notify ,congress ^u beg9n+ to process   
applications "u ?is ,act4  7c7 ,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 describ$ "u  
subsection 7a71 ) 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 nonbank entity ) an application  
p5d+ to become a ,comptroll]-regulat$   
entity on t effective date4