,,ii ,cal5d> ,no4 #cc #aai? ,,congress  
#a/ ,session  ,s4 #iai  ,,9 ,,! ,,s5ate 
,,( ,,! ,,unit$ ,,/ates  ,m>* #aj1      
#bjbe,mr4 ,hag]ty 7= himself1 ,mr4      
,scott ( ,s\? ,c>ol9a1 ,mrs4 ,gillibr&1 
,ms4 ,lummis1 & ,ms4 ,alsobrooks7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,m>*  
#ah1 #bjbe,report$ "u au?ority ( ! ord] 
( ! ,s5ate ( ,m>* #ad1 #bjbe1 by ,mr4   
,scott ( ,s\? ,c>ol9a1 ) an             
amendment,strike out all aft] ! enact+  
clause & ins]t ! "p pr9t$ 9 italic  ,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 ( #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$]al ,res]ve ,sy/em4    
7#c7 ,comptroll] ,! t]m ,comptroll]     
means ! ,(fice ( ! ,comptroll] ( !      
,curr5cy4  7#d7 ,comptroll]-regulat$    
entity ,! t]m ,comptroll]-regulat$      
entity means-- 7,a7 any ,f$]al qualifi$ 
nonbank paym5t /ableco9 issu] t is      
subject to regulation & sup]vision      
exclusively by ! ,comptroll]1 pursuant  
to section #d7;a77#g72 &  7,b7 any      
entity *>t]$ by ! ,comptroll]4  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$g] means te*nology 9 :i*    
data is %>$ 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$g] & execute o!r functions4  7#h7    
,f$]al qualifi$ nonbank paym5t /ableco9 
issu] ,! t]m ,f$]al qualifi$ nonbank    
paym5t /ableco9 issu] means a nonbank   
entity1 o!r ?an a ,/ate qualifi$ paym5t 
/ableco9 issu]1 approv$ by !            
,comptroll]1 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 controll+ 
/ockhold] ( ! 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$ 9 section #c
 ( ! ,f$]al ,deposit ,insurance ,act7   
d5om9at$ 9 a national curr5cy4  7#ab7   
,money ,! t]m money means any f9ancial  
in/rum5t t is-- 7,a7 legal t5d]2  7,b7  
requir$ to be receiv$ by a tax+ au?ority
 9 satisfaction ( tax obligations2 or   
7,c7 widely accept$ 9 an economy = !    
paym5t ( goods or s]vices4  7#ac7       
,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 
#a or m gov]nm5ts4  7#ad7 ,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#ae7 ,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 value1 n includ+ a      
digital asset d5om9at$ 9 a fix$ am\nt ( 
monet>y value2  7,,ii7 repres5ts t su*  
issu] w ma9ta9 or creates ! reasonable  
expectation t x w ma9ta9 a /able value  
relative to ! value ( a fix$ am\nt (    
monet>y value2 or  7,,iii7 has compli$ )
 ! au?orization requirem5ts ( ?is ,act2 
&  7,b7 t-- 7i7 is n a national curr5cy2
  7ii7 is n a deposit 7z def9$ 9 section
 #c ( ! ,f$]al ,deposit ,insurance      
,act71 includ+ a deposit record$ us+    
di/ribut$ l$g] te*nology2  7iii7 does n 
(f] a paym5t ( yield or int]e/2 &  7iv7 
is n a security1 z def9$ 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 o!r ?an a bond1    
note1 evid5ce ( indebt$ness1 or inve/m5t
 contract satisfy+ ! conditions describ$
 9 subp>agraph 7,a74  7#af7 ,p]mitt$    
paym5t /ableco9 issu] ,! t]m p]mitt$    
paym5t /ableco9 issu] means a p]son     
incorporat$ 9 ! ,unit$ ,/ates t is--    
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#ag7 ,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$4    
7#ah7 ,prim>y ,f$]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 7z def9$ "u section #c ( !  
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahac77 ( su* insur$          
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$]al  
qualifi$ nonbank paym5t /ableco9 issu]  
or any entity *>t]$ by ! ,comptroll]1 ! 
,comptroll]4  7#ai7 ,regi/]$ public     
acc\nt+ firm ,! t]m regi/]$ public      
acc\nt+ firm has ! mean+ giv5 t t]m "u  
section #b ( ! ,s>banes-,oxley ,act (   
#bjjb 7#ae ,u4,s4,c4 #gbja74  7#bj7     
,/ate ,! t]m ,/ate means ea* ( ! sev]al 
,/ates ( ! ,unit$ ,/ates1 ! ,di/rict (  
,columbia1 & ea* t]ritory ( ! ,unit$    
,/ates4  7#ba7 ,/ate qualifi$ paym5t    
/ableco9 issu] ,! t]m ,/ate qualifi$    
paym5t /ableco9 issu] means an entity t 
is legally e/abli%$ "u ! laws ( a ,/ate 

& approv$ to issue paym5t /ableco9s by a
 ,/ate paym5t /ableco9 regulator4  7#bb7
 ,/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#bc7 ,/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$]al 
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahac7;c774  7#bd7 ,subsidi>y ( an      
insur$ 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 ,issuance & treatm5t ( paym5t
 /ableco9s  7a7 ,issue ,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        
,treatm5t ,a paym5t /ableco9 t is n     
issu$ by a p]mitt$ paym5t /ableco9 issu]
 %all n be 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  7c7 ,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 %all ref] ! matt] to 

! ,attorney ,g5]al4  #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+ !      
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 & ag5cies ( 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 repur*ase agreem5ts ) ! p]mitt$    
paym5t /ableco9 issu] act+ z a sell] (  
securities & ) an ov]night maturity t   
are back$ by ,treasury bills ) a        
maturity ( #ic days or less2  7v7 rev]se
 repur*ase agreem5ts ) ! p]mitt$ paym5t 
/ableco9 issu] act+ z a pur*as] (       
securities & ) an ov]night maturity 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\se
 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;a77 t op]ates z a money m>ket 
fund 9 compliance ) rule #b;a-#g issu$  
"u t ,act 7or any successor rule7 & t   
are inve/$ solely 9 und]ly+ assets      

describ$ 9 clauses 7i7 ?r\gh 7iv7 (     
subp>agraph 7,a72  7vii7 any o!r        
simil>ly liquid 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 clauses 7i7
 ?r\gh 7vii7 9 tok5iz$ =m1 provid$ t su*
 res]ves comply ) all applicable laws & 
regulations2  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 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$ ) ! use  
or receipt ( 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 ! 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 consi/5t ) section #ah1 
issue-- 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 :i* 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 regulations implem5t+ ! liquidity
 /&>d "u clause 7i72  7iii7 res]ve asset
 div]sification & 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 :i* are suffici5t
 to ensure ! ongo+ op]ations ( p]mitt$  
paym5t /ableco9 issu]s2 &  7iv7         
appropriate op]ational1 compliance1 &   
in=mation te*nology risk managem5t      

/&>ds1 includ+ ,bank ,secrecy ,act &    
sanctions compliance1 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$]al regulators1
 9 prescrib+ /&>ds "u ?is p>agraph1 to  
tailor or diff]5tiate among issu]s on an
 individual basis or by category1 tak+  
into consid]ation ! capital /ructure1   
bus9ess model risk pr(ile1 complexity1  
f9ancial activities 7includ+ f9ancial   
activities ( subsidi>ies71 size1 & any  
o!r risk relat$ factors ( p]mitt$ paym5t
 /ableco9 issu]s t ! prim>y ,f$]al      
regulator det]m9es appropriate1 provid$ 
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 !   
sup]visory1 regulatory1 or en=cem5t     
au?ority ( a ,f$]al bank+ ag5cy to fur!r
 ! safe & s\nd op]ation ( an in/itution 

= :i* ! ,f$]al bank+ ag5cy is !         
appropriate ,f$]al bank+ ag5cy 7z def9$ 
"u section #c ( ! ,f$]al ,deposit       
,insurance ,act 7#ab ,u4,s4,c4 #ahac774 
7,c7 ,applicability ( exi/+ capital     
/&>ds  7i7 ,def9itions ,9 ?is           
subp>agraph-- 7,i7 appropriate ,f$]al   
bank+ ag5cy has ! mean+ giv5 t t]m 9    
section #c7q7 ( ! ,f$]al ,deposit       
,insurance ,act 7#ab ,u4,s4,c4 #ahac7q72
 &  7,,ii7 depository in/itution hold+  
company has ! mean+ giv5 t t]m "u       
section #aga7;a77#c7 ( ! ,f9ancial      
,/ability ,act ( #bjaj 7#ab ,u4,s4,c4   
#ecga7;a77#c774  7ii7 ,applicability (  
,f9ancial ,/ability ,act ,) respect to !
 promulgation ( rules "u subp>agraph    
7,a7 & clauses 7iii7 & 7iv7 ( ?is       
subp>agraph1 section #aga ( ! ,f9ancial 
,/ability ,act ( #bjaj 7#ab ,u4,s4,c4   
#ecga7 %all n apply4  7iii7 ,rules      
relat+ to lev]age capital requirem5ts or
 risk-bas$ 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] %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 promulgat$ pursuant to      
p>agraph 7#a77;,a77i74  7iv7            
,modifications ,n lat] ?an ! e>li] ( !  
rulemak+ deadl9e "u section #ah or !    
date ! ,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 ( ! ,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+-- 7i7 ma9t5ance ( an  
effective anti-money laund]+ & economic 
sanctions compliance program1 :i* %all  
include appropriate risk assessm5ts1    
v]ification ( sanctions li/s &          
designation ( an (fic] to sup]vise !    
programs2  7ii7 ret5tion ( appropriate  
records ( paym5t /ableco9 transactions2 
7iii7 monitor+ & report+ suspici\s      
activity2  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 transactions 
& appropriate enhanc$ due dilig5ce4     
7,b7 ,rulemak+ ,! ,f9ancial ,crimes     
,en=cem5t ,network %all adopt rules1    
tailor$ to ! size & complexity ( !      
p]mitt$ paym5t /ableco9 issu]1 to       
implem5t subp>agraph 7,a74  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 digital asset ( !  
=eign p]son ^u issue ( ! digital asset2 

&  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  7i7 ,9 g5]al
  7,i7 ,p]mitt$ paym5t /ableco9 issu]s  
,a p]mitt$ paym5t /ableco9 issu] may    
issue paym5t /ableco9s only if ! issu]  
has ! te*nological capability to comply 
& w comply ) ! t]ms ( any lawful ord]4  
7,,ii7 ,=eign paym5t /ableco9s ,a =eign 
paym5t /ableco9 t is n lic5s$ "u ?is    
,act may n be publicly (f]$1 sold1 or   
o!rwise made available = trad+ 9 !      
,unit$ ,/ates unless ! paym5t /ableco9  
issu] has ! te*nological capability to  
comply & w comply ) ! t]ms ( any lawful 
ord]4  7ii7 ,lawful ord] def9$ ,9 ?is   
p>agraph1 ! 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,i7 requires !  

p]mitt$ paym5t /ableco9 issu] to seize1 
freeze1 burn1 or prev5t ! transf] (     
paym5t /ableco9s issu$ by ! p]mitt$     
paym5t /ableco9 issu]2  7,,ii7 specifies
 ! digital assets or acc\nts subject to 
block+ ) reasonable p>ticul>ity2 &      
7,,iii7 is subject to judicial or       
adm9i/rative review or appeal z provid$ 
by law4  7,c7 ,report requir$ ,n lat]   
?an #a ye> aft] ! date ( enactm5t ( ?is 
,act1 ! ,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 report on !   
coord9ation ) p]mitt$ paym5t /ableco9   
issu]s requir$ "u subp>agraph 7,a74     
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 prev5t a p]mitt$ paym5t      
/ableco9 issu] f engag+ 9 non-paym5t    
/ableco9 activities t are all[$ by !    
prim>y ,f$]al paym5t /ableco9 regulator 
or ! ,/ate paym5t /ableco9 regulator1 z 
applicable4  7#h7 ,prohibition on ty+   
7,a7 ,9 g5]al ,a p]mitt$ 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 subp>agraph1 &1 9      
consultation ) ! ,comptroll] & !        

,corporation1 may by regulation or ord]1
 p]mit su* exceptions to clause 7i7 z ! 
,bo>d consid]s w n be contr>y to !      
purpose ( ?is ,act4  7#i7 ,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 prim>y      
,f$]al paym5t /ableco9 regulators &     
,/ate paym5t /ableco9 regulators1 to    
issue su* regulations & ord]s z necess>y
 to ensure f9ancial /ability & implem5t 
?is subsection4  7,b7 ,con=m+ am5dm5t   
,section #cbd7;b7 ( ! ,revis$ ,/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 regulators
 & consi/5t ) section #ah ( ! ,guid+ &  
,e/abli%+ ,national ,innovation = ,u4,s4
 ,/ableco9s ,act ( #bjbe1 issue su*     
regulations & ord]s z necess>y to ensure
 f9ancial /ability & implem5t section   

#d7;a7 ( t ,act4  4  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   
sections #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 %all3 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  7b7           
,/ate-level regulatory regimes  7#a7    
,option = ,/ate-level regulatory regime 

,not)/&+ ! ,f$]al regulatory framework  
e/abli%$ "u subsection 7a71 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$]al         
regulatory framework "u subsection 7a74 
7#c7 ,review ,/ate paym5t /ableco9      
regulators %all review ,/ate-level      
regulatory regimes accord+ to !         
pr9ciples e/abli%$ 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
 ! ,secret>y ( ! ,treasury 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 ! ,secret>y ( ! ,treasury1 
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 ea* ye>1 a ,/ate paym5t       
/ableco9 regulator %all submit to !     
,secret>y ( ! ,treasury an additional   
c]tification t confirms ! accuracy (    
initial c]tification submitt$ "u        
subp>agraph 7,a74  7#e7 ,n sub/antially 
simil>  7,a7 ,9 g5]al ,if a ,/ate paym5t
 /ableco9 regulator det]m9es t ! crit]ia
 e/abli%$ "u p>agraph 7#b7 are n meet & 

! ,/ate paym5t /ableco9 regulator does n
 submit a c]tification "u p>agraph 7#d71
 !n a p]mitt$ paym5t /ableco9 issu]     
op]at+ "u ?is subsection %all be subject
 to ! ,f$]al regulatory framework z     
describ$ 9 subsection 7c71 not)/&+ !    
total issuance ?re%old !re94  7,b7      
,treasury review ,n lat] ?an #cj days   
aft] ! date ( receipt ( a c]tification  
"u p>agraph 7#d71 ! ,secret>y reject !  
c]tification if ! ,secret>y det]m9es t !
 ,/ate-level regulatory regime is n     
sub/antially simil> to ! ,f$]al         
regulatory framework "u subsection 7a71 
& ! p]mitt$ paym5t /ableco9 issu] %all  
be subject to ! ,f$]al regulatory       
framework z describ$ 9 subsection 7c71  
not)/&+ ! total issuance ?re%old !re94  
7,c7 ,appellate review ,a ,/ate paym5t  
/ableco9 regulator may *all5ge !        
det]m9ation ( ! ,secret>y ( ! ,treasury 
"u ?is p>agraph 9 ! ,unit$ ,/ates ,c\rt 
( ,appeals = ! ,di/rict ( ,columbia     
,circuit4  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  7c7  
,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 ! ,/ate      
paym5t /ableco9 regulator ( ! ,/ate     
qualifi$ paym5t /ableco9 issu]2 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 ,! laws 
& rules applicable to1 & ! sup]visory   
framework (1 ! ,/ate qualifi$ paym5t    
/ableco9 issu] ) respect to paym5t      
/ableco9s & digital assets4  7,c7 ,rule 
( con/ruction ,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]  
along 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$]al *>t]4  7d7 ,misrepres5tation (   
insur$ /atus2 m>ket+  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 insurance4  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+ ,x %all be unlawful to     
m>ket a digital asset 9 ! ,unit$ ,/ates 
z a paym5t /ableco9 unless ! digital    

asset is issu$ pursuant to ?is ,act4    
7e7 ,(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>s2 
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$]al paym5t /ableco9 regulator %all 
ref] ! matt] to ! ,attorney ,g5]al4  7f7
 ,rulemak+  7#a7 ,9 g5]al ,consi/5t )   
section #ah1 ! prim>y ,f$]al paym5t     
/ableco9 regulators & ,/ate paym5t      
/ableco9 regulators %all issue su*      
regulations 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 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  #e4 ,approval ( subsidi>ies 
( insur$ depository in/itutions & ,f$]al
 qualifi$ nonbank paym5t /ableco9 issu]s
  7a7 ,application  7#a7 ,9 g5]al ,ea*  
prim>y ,f$]al paym5t /ableco9 regulator 
%all receive1 review1 & consid] =       
approval applications f any insur$      
depository in/itution t seeks to issue  
paym5t /ableco9s ?r\gh a subsidi>y & any
 nonbank entity t seeks to issue paym5t 
/ableco9s z a ,f$]al qualifi$ nonbank   
paym5t /ableco9 issu]4 ,ea* prim>y      
,f$]al paym5t /ableco9 regulator %all   
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 #ah-- 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 "u  
?is ,act4  7#c7 ,m&atory approval       
process ,! prim>y ,f$]al paym5t /ableco9
 regulator %all1 ^u receipt ( a         
sub/antially complete application1      
evaluate & make a det]m9ation on ea*    
application bas$ 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 ,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$]al paym5t /ableco9 regulator to r5d]
 a decision on :e!r ! applicant         
satisfies ! crit]ia "u subsection 7c74  
7ii7 ,notification ,n lat] ?an #cj days 
aft] receiv+ an application "u          
subsection 7a71 a prim>y ,f$]al paym5t  
/ableco9 regulator %all notify !        
applicant :e!r ! prim>y ,f$]al paym5t   
/ableco9 regulator consid]s !           
application to be sub/antially complete 
&1 if ! application is n sub/antially   
complete1 ! additional in=mation !      
applicant mu/ provide 9 ord] = !        
application to be consid]$ 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$]al paym5t /ableco9
 regulator to treat ! application z a   
new application4  7#b7 ,d5ial (         
application  7,a7 ,gr\nds = d5ial  7i7  
,9 g5]al ,! prim>y ,f$]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  7ii7        
,issuance n gr\nd = d5ial ,! issuance ( 
a paym5t /ableco9 on an op51 public1 or 
dec5traliz$ network %all n be a valid   
gr\nd = d5ial ( an application4  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$]al paym5t /ableco9 regulator 
%all notify ! applicant ( a f9al        
det]m9ation1 :i* %all conta9 a /atem5t (
 ! basis = t det]m9ation1 ) specific    
f9d+s4  7iv7 ,notice if no he>+ ,if an  
applicant does n make a timely reque/ = 
a he>+ "u ?is subp>agraph1 ! prim>y     
,f$]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$]al      
paym5t /ableco9 regulator4  7#c7        
,failure to r5d] a decision ,if ! prim>y
 ,f$]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$4  7#d7 ,"r to reapply ,!  
d5ial ( an application "u ?is section   
%all n prohibit ! applicant f fil+ a    
subsequ5t application4  7e7 ,report on  
p5d+ applications ,! prim>y ,f$]al      
paym5t /ableco9 regulators %all annually
 report to ,congress on ! applications  
"u subsection 7a7 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$4  7f7  
,rulemak+ ,consi/5t ) section #ah1 !    
prim>y ,f$]al paym5t /ableco9 regulators
 %all rules necess>y = ! regulation ( ! 

issuance ( paym5t /ableco9s1 b may n    
impose requirem5ts 9 addition to !      
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 ,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
 its 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 ,act4

  7#c7 ,exam9ations ,! 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 )9 ! 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 ! 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$]al paym5t /ableco9 regulator 
%all1 ) respect to any exam9ation or    
reque/ = ! submission ( a report "u ?is 
subsection1 only reque/ exam9ations &   
reports at a cad5ce & 9 a =mat t is     
simil> to ^? requir$ = 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] 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]-- 7,a7 is         
recklessly violat+ or has recklessly    

violat$ ?is ,act or any regulation or   
ord] issu$ "u ?is ,act2 or  7,b7 is     
recklessly violat+ or has recklessly    
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$]al paym5t /ableco9 regulator ( a    
p]mitt$ paym5t /ableco9 issu] t is n a  
,/ate qualifi$ paym5t /ableco9 issu] 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 or prohibit fur!r     
p>ticipation 9 ! affairs ( ! p]mitt$    
paym5t /ableco9 issu] or all su* 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 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 ( 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 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 ! 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] ,not)/&+ any?+ 9 ?is subsection to
 ! contr>y1 ?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] 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 a ,/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 #ah1 ! ,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* usual & exig5t            
circum/ances4 ,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  
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$ 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$ies "u clause 7i74     
7#b7 ,comptroll]  7,a7 ,9 g5]al ,subject
 to subp>agraph 7,c71 "u unusual &      
exig5t circum/ances det]m9$ 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 #ah1 ! ,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 by a ,/ate qualifi$ paym5t  
/ableco9 issu] t is a nonbank entity (  
any activity 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/ances4 ,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] t is a nonbank entity &  
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$1 !         
,comptroll]-regulat$ entity1 or any     
in/itution-affiliat$ p>ty ( !           
,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$ies "u clause 7i74  7f7
 ,effect on ,/ate law  7#a7 ,ho/ ,/ate  
,law ,! laws ( a ho/ ,/ate1 includ+     
g5]ally applicable laws relat+ to       
consum] protection1 %all only apply to !
 activities conduct$ 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$]al      
qualifi$ 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 ( ! ,/ate   
qualifi$ paym5t /ableco9 issu] %all     

gov]n ! activities ( ! p]mitt$ paym5t   
/ableco9 issu] conduct$ 9 ! ho/ ,/ate4  
7#c7 ,applicability ,! laws applicable  
"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  #h4 ,anti-money  
laund]+ protections  7a7 ,def9itions ,9 
?is subsection3 7#a7 ,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 or = cu/om]s  
or us]s 9 ! ,unit$ ,/ates1 (-- 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 
a digital asset issuance2 &  7,b7 does n
 include-- 7i7 a di/ribut$ l$g] protocol
 or a p]son solely develop+ su* a       
protocol2 or  7ii7 a p]son solely       

validat+ transactions or op]at+ a       
di/ribut$ l$g] node4  7#b7 ,(f]+ ,! t]m 
(f]+ means mak+ available = pur*ase1    
sale1 or ex*ange4  7#c7 ,di/ribut$ l$g] 
protocol ,! t]m di/ribut$ l$g] protocol 
means publicly available & accessible   
executable s(tw>e deploy$ to a di/ribut$
 l$g]1 includ+ sm>t contracts or        
networks ( sm>t contracts4  7#d7 ,lawful
 ord] ,! t]m lawful ord] means any f9al 
& valid writ1 process1 ord]1 rule1      
decree1 comm&1 or o!r requirem5t issu$  
or promulgat$ "u ,f$]al law1 issu$ by a 
c\rt ( compet5t jurisdiction or by an   
au?oriz$ ,f$]al ag5cy pursuant to its   
/atutory au?ority1 t-- 7,a7 requires a  
p]mitt$ paym5t /ableco9 issu] to seize1 
freeze1 burn1 or prev5t ! transf] (     
paym5t /ableco9s issu$ by ! p]mitt$     
paym5t /ableco9 issu]2  7,b7 specifies !
 digital assets 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  7b7 
,treasury au?ority to designate         

noncompliant issu]s ,n lat] ?an #cj days
 aft] ! ,dep>tm5t ( ! ,treasury has     
id5tifi$ ! failure ( a =eign issu] ( any
 paym5t /ableco9s trad+ 9 ! ,unit$      
,/ates t is n a p]mitt$ paym5t /ableco9 
issu] to comply ) ! t]ms ( any lawful   
ord]1 ! ,secret>y ( ! ,treasury1 9      
coord9ation ) relevant ,f$]al ag5cies1  
%all designate ! =eign issu] z          
noncompliant & notify ! =eign issu] 9   
writ+ ( ! designation4  7c7 ,publication
 ( designation2 prohibition on second>y 
trad+  7#a7 ,9 g5]al ,if a =eign issu]  
describ$ 9 subsection 7b7 does n come   
into compliance ) ! lawful ord] )9 #cj  
days ( receiv+ ! writt5 notice describ$ 
9 t subsection1 ! ,secret>y ( !         
,treasury %all-- 7,a7 publi% !          
det]m9ation ( noncompliance 9 ! ,f$]al  
,regi/]1 includ+ a /atem5t on ! failure 
( ! =eign issu] to comply ) ! lawful    
ord] aft] ! writt5 notice2 &  7,b7 issue
 a notification 9 ! ,f$]al ,regi/]      
prohibit+ digital asset s]vice provid]s 
f facilitat+ second>y trad+ ( paym5t    

/ableco9s issu$ by ! =eign 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$]al ,regi/]4  7#c7 ,waiv]s &         
ext5sions ,) respect to ! prohibition on
 facilitation ( second>y trad+ describ$ 
9 p>agraph 7#a71 ! ,secret>y ( !        
,treasury may issue waiv]s & "t         
ext5sions to digital asset s]vice       
provid]s on a case by case basis4  7#d7 
,civil monet>y p5alties  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 issu] ( paym5t /ableco9 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 ,unit$ ,/ates ,di/rict   
,c\rt to b> ! =eign issu] f engag+ 9    
f9ancial transactions 9 ! ,unit$ ,/ates 
or ) ,unit$ ,/ates p]sons4  7d7 ,appeal 
,a det]m9ation ( noncompliance "u       
subsection 7b7 is subject to judicial   
review 9 ! ,unit$ ,/ates ,c\rt (        
,appeals = ! ,di/rict ( ,columbia       
,circuit4  7e7 ,waiv]1 lic5s+ au?ority1 
& exceptions  7#a7 ,9 g5]al ,! ,secret>y
 ( ! ,treasury may (f] a waiv]1 g5]al   
lic5se1 or specific lic5se to any ,unit$
 ,/ates p]sons engag+ 9 second>y trad+  
describ$ 9 subsection 7c7 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 issu] ( 
! paym5t /ableco9 is tak+ tangible /eps 
to rem$y ! failure to comply ) ! lawful 
ord] t result$ 9 ! noncompliance        

det]m9ation "u subsection 7b74  7#b7    
,national security waiv] ,! ,presid5t   
may waive ! application ( ! second>y    
trad+ re/rictions "u subsection 7c7 if !
 ,presid5t det]m9es t ! waiv] is 9 !    
national security int]e/ ( ! ,unit$     
,/ates4  7#c7 ,exceptions = intellig5ce 
& law en=cem5t activities ,?is ,act %all
 n apply ) respect to-- 7,a7 activities 
subject to ! report+ requirem5ts "u     
title ,v ( ! ,national ,security ,act ( 
#aidg 7#ej ,u4,s4,c4 #cjia et seq47 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 ! ,*airm5 &    
,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 ,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 ( 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$]al ,deposit 
,insurance ,act 7#ab ,u4,s4,c4 #ahac7 or
 a ,/ate cr$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 ) !    
requirem5ts "u subsection 7b71 unless   
su* p]son complies ) simil> requirem5ts 
z requir$ by a prim>y ,f$]al paym5t     
/ableco9 regulator1 ! ,securities &     
,ex*ange ,commission1 or ! ,commodity   
,futures ,trad+ ,commission4  7b7       
,cu/om] prop]ty requirem5t ,a p]son     
describ$ 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] &
 is n ! prop]ty ( su* p]son2 &  7#b7    
take su* /eps z are appropriate to      
protect ! paym5t /ableco9s1 private     
keys1 ca%1 & o!r prop]ty ( a cu/om] f ! 
claims ( cr$itors ( ! p]son4  7c7       
,comm+l+ prohibit$  7#a7 ,9 g5]al       
,paym5t /ableco9s1 ca%1 & o!r prop]ty ( 

a cu/om] %all be sep>ately acc\nt$ = by 
a p]son describ$ 9 subsection 7a7 & %all
 be segregat$ f & 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
 a ,/ate *>t]$ depository in/itution1 an
 insur$ depository in/itution1 national 
bank1 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 or  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 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 ! prim>y
 ,f$]al paym5t /ableco9 regulator to be 
sep>ately acc\nt$ =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 ,f$]al paym5t /ableco9
 regulator in=mation conc]n+ ! p]son's  
bus9ess op]ations & processes to protect
 cu/om] assets1 9 su* =m & mann] z !    
prim>y regulator %all det]m9e4  7e7     
,exclusion ,! requirem5ts ( ?is section 
%all n apply to any p]son solely on !   
basis t su* p]son engages 9 ! bus9ess ( 
provid+ h>dw>e or s(tw>e to facilitate a
 cu/om]'s own cu/ody or safekeep+ ( !   
cu/om]'s paym5t /ableco9s or private    
keys4  #aj4 ,treatm5t ( paym5t /ableco9 
issu]s 9 insolv5cy proce$+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 ,code4  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 ( ! ,guid+ & 
,e/abli%+ ,national ,innovation = ,u4,s4
 ,/ableco9s ,act ( #bjbe4  4  7c7       
,automatic /ay ,section #cfb ( title    
#aa1 ,unit$ ,/ates ,code 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 ! 
debtor1 f paym5t /ableco9 res]ves       
requir$ to be ma9ta9$ "u section #d ( ! 
,guid+ & ,e/abli%+ ,national ,innovation
 = ,u4,s4 ,/ableco9s ,act ( #bjbe4  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$emption ( paym5t  
/ableco9s held by a p]son1 if ! c\rt    
f9ds1 subject to ! motion & atte/ation (
 ! debtor on ! petition date1 !re are   
paym5t /ableco9 res]ves available =     
di/ribution on a ratable basis to       
simil>ly situat$ 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 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 ! debtor1   
any rema9+ claim ( a p]son hold+ a      
paym5t /ableco9 issu$ by ! debtor %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 ( ! ,guid+ &    
,e/abli%+ ,national ,innovation = ,u4,s4
 ,/ableco9s ,act ( #bjbe w\ld h requir$ 
additional res]ves to be ma9ta9$ by !   
debtor = paym5t /ableco9 hold]s4  4  7e7
 ,paym5t /ableco9 res]ves ,section      
#eda7;b7 ( title #aa1 ,unit$ ,/ates     
,code1 is am5d$-- 7#a7 9 p>agraph 7#i71 
9 ! flu% text foll[+ subp>agraph 7,b71  
by /rik+ or at ! end2  7#b7 9 p>agraph  
7#aj77;,c71 by /rik+ ! p]iod & ins]t+ 2 
or2 &  7#c7 by ins]t+ aft] p>agraph     
7#aj7 ! foll[+3  7#aa7 requir$ paym5t   

/ableco9 res]ves "u section #d ( !      
,guid+ & ,e/abli%+ ,national ,innovation
 = ,u4,s4 ,/ableco9s ,act ( #bjbe4  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 ( ! ,guid+ & ,e/abli%+ ,national     
,innovation = ,u4,s4 ,/ableco9s ,act (  
#bjbe7 %all raise & %all appe> & be he>d
 on 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  #aa4 ,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 #e & 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  #ab4  
,/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 %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$ paym5t /ableco9 def9$ ,9   
?is section1 ! t]m endog5\sly           
collat]aliz$ paym5t /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  #ac4 ,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 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  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 ( ! ,dodd-,frank ,wall 
,/reet ,re=m & ,consum] ,protection ,act
 7#ab ,u4,s4,c4 #ecbb74  #ad4 ,au?ority 
( bank+ in/itutions  7a7 ,rule (        
con/ruction ,no?+ 9 ?is ,act may be     
con/ru$ to limit ! au?ority ( a         
depository in/itution1 ,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 & issu+ digital assets 
t repres5t deposits2  7#b7 utiliz+ a    
di/ribut$ l$g] = ! books & records ( !  
entity & to affect intrabank transf]s2 &
  7#c7 provid+ cu/odial s]vices = paym5t
 /ableco9s1 private keys ( paym5t       
/ableco9s1 or res]ves back+ paym5t      
/ableco9s4  7b7 ,regulatory review ,!   
prim>y ,f$]al paym5t /ableco9 regulators
 %all review all exi/+ guidance &       
regulations1 & if necess>y1 am5d or     
promulgate new regulations & guidance1  
to cl>ify t regulat$ entities c engage 9
 ! paym5t /ableco9 activities           
contemplat$ 91 & 9 accordance )1 ?is    
,act4  7c7 ,treatm5t ( cu/ody activities
 ,! appropriate ,f$]al bank+ ag5cy 7z   
def9$ "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   

in/itution-affiliat$ p>ty !re(-- 7#a7 to
 include assets held 9 cu/ody t are n   
own$ by ! entity z a liability on !     
f9ancial /atem5t or balance %eet ( !    
entity1 includ+ paym5t /ableco9 cu/ody  
or safekeep+ activities2  7#b7 to hold  
regulatory capital aga9/ assets1 includ+
 res]ves back+ su* assets describ$ 9    
section #d7;a77#a77;,a71 9 cu/ody or    
safekeep+1 except z necess>y to mitigate
 aga9/ op]ational risks inh]5t ) !      
cu/ody or safekeep+ s]vices1 z det]m9$  
by-- 7,a7 ! appropriate ,f$]al bank+    
ag5cy2  7,b7 ! ,national ,cr$it ,union  
,adm9i/ration 79 ! case ( a cr$it       
union72  7,c7 a ,/ate bank sup]visor 7z 
def9$ "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 9 any am\nt great] ?an

 ! exp5se recogniz$ 9 ! income /atem5t  
or ! consid]ation receiv$ z a result ( !
 correspond+ obligation4  7d7           
,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$it ,union   
,act4  #ae4 ,am5dm5ts to cl>ify t paym5t
 /ableco9s are n securities or          
commodities & p]mitt$ 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 ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      

,u4,s4 ,/ableco9s ,act ( #bjbe44  7b7   
,inve/m5t ,company ,act ( #aidj ,!      
,inve/m5t ,company ,act ( #aidj is      
am5d$-- 7#a7 9 section #b7;a77#cf7 7#ae 
,u4,s4,c4 #hj;a-#b7;a77#cf777ae         
,u4,s4,c4 #hj;a-#b7;a77#cf771 by add+ at
 ! end ! foll[+3 ,! t]m security does n 
include a paym5t /ableco9 issu$ by a    
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$ 9 section #b ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      
,u4,s4 ,/ableco9s ,act ( #bjbe42 &  7#b7
 9 section #c7;c77#c7 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 ( ! ,guid+ &         
,e/abli%+ ,national ,innovation = ,u4,s4
 ,/ableco9s ,act ( #bjbe2 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 ( !     

,guid+ & ,e/abli%+ ,national ,innovation
 = ,u4,s4 ,/ableco9s ,act ( #bjbe44  7d7
 ,securities ,ex*ange act ( #aicd       
,section #c7;a77#aj7 ( ! ,securities    
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a77#aj77 is am5d$ by add+ at ! end
 ! foll[+3 ,! t]m security does n       
include a paym5t /ableco9 issu$ by a    
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$ 9 section #b ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      
,u4,s4 ,/ableco9s ,act ( #bjbe44  7e7   
,securities ,inve/or ,protection ,act ( 
#aigj ,section #af7ad7 ( ! ,securities  
,inve/or ,protection ,act ( #aigj 7#ae  
,u4,s4,c4 #ghlll7#ad77 is am5d$ by add+ 
at ! end ! foll[+3 ,! t]m security does 
n include a paym5t /ableco9 issu$ by a  
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$ 9 section #b ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      
,u4,s4 ,/ableco9s ,act ( #bjbe44  7f7   
,commodity ,ex*ange ,act ,section #a;a (
 ! ,commodity ,ex*ange ,act 7#g         
,u4,s4,c4 #a;a7 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 ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      
,u4,s4 paym5t /ableco9s ,act ( #bjbe4   
#af4 ,reciprocity = paym5t /ableco9s    
issu$ 9 ov]seas jurisdictions ,!        
,secret>y ( ! ,treasury %all create &   
implem5t reciprocal arrangem5ts or o!r  
bilat]al agreem5ts betwe5 ! ,unit$      
,/ates & jurisdictions ) sub/antially   
simil> paym5t /ableco9 regulatory       
regimes to ! requirem5ts "u ?is ,act1   
includ+ res]ve requirem5ts1 sup]vision1 
anti-money laund]+ & c\nt]-t]rorism     
features1 sanctions compliance /&>ds1   
liquidity requirem5ts1 & risk managem5t 
/&>ds1 to facilitate int]national       
transactions & int]op]ability ) ,unit$  
,/ates doll>-d5om9at$ paym5t /ableco9s  
issu$ ov]seas4 ,! ,secret>y ( !         
,treasury %all aim to complete su*      
arrangem5ts n lat] ?an ! date t is #b   
ye>s aft] ! date ( enactm5t ( ?is ,act4 

#ag4 ,effective date  7a7 ,9 g5]al ,?is 
,act1 & ! am5dm5ts made by ?is ,act1    
%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  #ah4       
,rulemak+  7a7 ,9 g5]al ,n lat] ?an #a  
ye> aft] ! date ( enactm5t ( ?is ,act1  
ea* prim>y ,f$]al paym5t /ableco9       
regulator1 ! ,secret>y ( ! ,treasury1 & 
ea* ,/ate paym5t /ableco9 regulator %all
 implem5t ?is ,act ?r\gh appropriate    
notice & comm5t rulemak+1 includ+       
promulgat+ regulations z describ$ 9 ?is 
,act z necess>y4  7b7 ,coord9ation      
,f$]al paym5t /ableco9 regulators &     
,/ate paym5t /ableco9 regulators %\ld   
coord9ate on ! issuance ( any           
regulations to implem5t ?is ,act4  7c7  
,report requir$ ,n lat] ?an #ahj days   
aft] ! date ( enactm5t ( ?is ,act1 ea*  
,f$]al bank+ ag5cy %all submit to !     
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate & ! ,committee on   
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives a report t confirms &   
describes ! rules promulgat$ to implem5t
 ?is ,act4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,guid+ & ,e/abli%+      
,national ,innovation = ,u4,s4          

,/ableco9s ,act ( #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$]al ,res]ve ,sy/em4  7#c7 ,comptroll]
 ,! t]m ,comptroll] means ! ,(fice ( !  
,comptroll] ( ! ,curr5cy4  7#d7         
,comptroll]-regulat$ entity ,! t]m      
,comptroll]-regulat$ entity means-- 7,a7
 any ,f$]al qualifi$ nonbank paym5t     
/ableco9 issu] t is subject to          
regulation & sup]vision exclusively by !
 ,comptroll]1 pursuant to section       
#d7;a77#g72 &  7,b7 any entity *>t]$ by 
! ,comptroll]4  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$g] means te*nology 9   
:i* data is %>$ 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$g] & execute o!r functions4  7#h7    
,f$]al qualifi$ nonbank paym5t /ableco9 
issu] ,! t]m ,f$]al qualifi$ nonbank    
paym5t /ableco9 issu] means a nonbank   
entity1 o!r ?an a ,/ate qualifi$ paym5t 
/ableco9 issu]1 approv$ by !            
,comptroll]1 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 controll+ 
/ockhold] ( ! 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$ 9 section #c
 ( ! ,f$]al ,deposit ,insurance ,act7   
d5om9at$ 9 a national curr5cy4  7#ab7   
,money ,! t]m money means any f9ancial  
in/rum5t t is-- 7,a7 legal t5d]2  7,b7  
requir$ to be receiv$ by a tax+ au?ority
 9 satisfaction ( tax obligations2 or   
7,c7 widely accept$ 9 an economy = !    
paym5t ( goods or s]vices4  7#ac7       
,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 
#a or m gov]nm5ts4  7#ad7 ,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#ae7 ,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 value1 n includ+ a      
digital asset d5om9at$ 9 a fix$ am\nt ( 
monet>y value2  7,,ii7 repres5ts t su*  
issu] w ma9ta9 or creates ! reasonable  
expectation t x w ma9ta9 a /able value  
relative to ! value ( a fix$ am\nt (    
monet>y value2 or  7,,iii7 has compli$ )
 ! au?orization requirem5ts ( ?is ,act2 
&  7,b7 t-- 7i7 is n a national curr5cy2
  7ii7 is n a deposit 7z def9$ 9 section
 #c ( ! ,f$]al ,deposit ,insurance      
,act71 includ+ a deposit record$ us+    
di/ribut$ l$g] te*nology2  7iii7 does n 
(f] a paym5t ( yield or int]e/2 &  7iv7 

is n 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 o!r ?an a bond1    
note1 evid5ce ( indebt$ness1 or inve/m5t
 contract satisfy+ ! conditions describ$
 9 subp>agraph 7,a74  7#af7 ,p]mitt$    
paym5t /ableco9 issu] ,! t]m p]mitt$    
paym5t /ableco9 issu] means a p]son     
incorporat$ 9 ! ,unit$ ,/ates t is--    
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#ag7 ,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#ah7 ,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 7z def9$ "u section #c ( !  
,f$]al ,deposit ,insurance ,act 7#ab    
,u4,s4,c4 #ahac77 ( su* insur$          
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$]al  
qualifi$ nonbank paym5t /ableco9 issu]  
or any entity *>t]$ by ! ,comptroll]1 ! 
,comptroll]4  7#ai7 ,regi/]$ public     
acc\nt+ firm ,! t]m regi/]$ public      
acc\nt+ firm has ! mean+ giv5 t t]m "u  
section #b ( ! ,s>banes-,oxley ,act (   
#bjjb 7#ae ,u4,s4,c4 #gbja74  7#bj7     
,/ate ,! t]m ,/ate means ea* ( ! sev]al 

,/ates ( ! ,unit$ ,/ates1 ! ,di/rict (  
,columbia1 & ea* t]ritory ( ! ,unit$    
,/ates4  7#ba7 ,/ate qualifi$ paym5t    
/ableco9 issu] ,! t]m ,/ate qualifi$    
paym5t /ableco9 issu] means an entity t 
is legally e/abli%$ "u ! laws ( a ,/ate 
& approv$ to issue paym5t /ableco9s by a
 ,/ate paym5t /ableco9 regulator4  7#bb7
 ,/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#bc7 ,/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$]al 
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahac7;c774  7#bd7 ,subsidi>y ( an      
insur$ 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 ,issuance & treatm5t ( paym5t
 /ableco9s  7a7 ,issue ,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        
,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  7c7 ,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$]al paym5t  
/ableco9 regulator %all ref] ! matt] to 
! ,attorney ,g5]al4  #d4 ,requirem5ts = 
issu+ paym5t /ableco9s  7a7 ,/&>ds = !  
issuance ( paym5t /ableco9s  7#a7 ,9    
g5]al ,p]mitt$ paym5t /ableco9 issu]s   
%all-- 7,a7 ma9ta9 res]ves back+ !      
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 & ag5cies ( 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 repur*ase agreem5ts ) ! p]mitt$    
paym5t /ableco9 issu] act+ z a sell] (  
securities & ) an ov]night maturity t   
are back$ by ,treasury bills ) a        
maturity ( #ic days or less2  7v7 rev]se
 repur*ase agreem5ts ) ! p]mitt$ paym5t 
/ableco9 issu] act+ z a pur*as] (       
securities & ) an ov]night maturity 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\se

 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;a77 t op]ates z a money m>ket 
fund 9 compliance ) rule #b;a-#g issu$  
"u t ,act 7or any successor rule7 & t   
are inve/$ solely 9 und]ly+ assets      
describ$ 9 clauses 7i7 ?r\gh 7v7 (      
subp>agraph 7,a72  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 
clauses 7i7 ?r\gh 7vii7 9 tok5iz$ =m1   
provid$ t su* res]ves comply ) all      
applicable laws & regulations2  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  
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$ ) ! use or receipt
 ( 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 ! 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 consi/5t ) section #ah1 
issue-- 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 :i* 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 regulations implem5t+ ! liquidity
 /&>d "u clause 7i72  7iii7 res]ve asset
 div]sification & 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 :i* are suffici5t
 to ensure ! ongo+ op]ations ( p]mitt$  
paym5t /ableco9 issu]s2 &  7iv7         
appropriate op]ational1 compliance1 &   
in=mation te*nology risk managem5t      
/&>ds1 includ+ ,bank ,secrecy ,act &    
sanctions compliance1 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 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 ! prim>y ,f$]al      
regulator det]m9es appropriate1 provid$ 
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 !   
sup]visory1 regulatory1 or en=cem5t     
au?ority ( a ,f$]al bank+ ag5cy to fur!r
 ! safe & s\nd op]ation ( an in/itution 
= :i* ! ,f$]al bank+ ag5cy is !         
appropriate ,f$]al bank+ ag5cy 7z def9$ 
"u section #c ( ! ,f$]al ,deposit       
,insurance ,act 7#ab ,u4,s4,c4 #ahac774 
7,c7 ,applicability ( exi/+ capital     
/&>ds  7i7 ,def9itions ,9 ?is           
subp>agraph-- 7,i7 appropriate ,f$]al   
bank+ ag5cy has ! mean+ giv5 t t]m 9    
section #c7q7 ( ! ,f$]al ,deposit       
,insurance ,act 7#ab ,u4,s4,c4 #ahac7q72
 &  7,,ii7 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] %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 promulgat$ pursuant to      
p>agraph 7#a77;,a77i74  7iv7            
,modifications ,n lat] ?an ! e>li] ( !  
rulemak+ deadl9e "u section #ah or !    
date ! ,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 ( ! ,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+-- 7i7 ma9t5ance ( an  
effective anti-money laund]+ & economic 
sanctions compliance program1 :i* %all  
include appropriate risk assessm5ts1    
v]ification ( sanctions li/s &          
designation ( an (fic] to sup]vise !    
programs2  7ii7 ret5tion ( appropriate  
records ( paym5t /ableco9 transactions2 
7iii7 monitor+ & report+ suspici\s      
activity2  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 transactions 
& appropriate enhanc$ due dilig5ce4     
7,b7 ,rulemak+ ,! ,f9ancial ,crimes     
,en=cem5t ,network %all adopt rules1    
tailor$ to ! size & complexity ( !      
p]mitt$ paym5t /ableco9 issu]1 to       
implem5t subp>agraph 7,a74  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 digital asset ( !  
=eign p]son ^u issue ( ! digital asset2 
&  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  7i7 ,9 g5]al
  7,i7 ,p]mitt$ paym5t /ableco9 issu]s  
,a p]mitt$ paym5t /ableco9 issu] may    
issue paym5t /ableco9s only if ! issu]  
has ! te*nological capability to comply 
& w comply ) ! t]ms ( any lawful ord]4  
7,,ii7 ,=eign paym5t /ableco9s ,a =eign 
paym5t /ableco9 t is n lic5s$ "u ?is    

,act may n be publicly (f]$1 sold1 or   
o!rwise made available = trad+ 9 !      
,unit$ ,/ates unless ! paym5t /ableco9  
issu] has ! te*nological capability to  
comply & complies ) ! t]ms ( any lawful 
ord]4  7ii7 ,lawful ord] def9$ ,9 ?is   
p>agraph1 ! 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$]al ag5cy pursuant to its   
/atutory au?ority1 t-- 7,i7 requires !  
p]mitt$ paym5t /ableco9 issu] to seize1 
freeze1 burn1 or prev5t ! transf] (     
paym5t /ableco9s issu$ by ! p]mitt$     
paym5t /ableco9 issu]2  7,,ii7 specifies
 ! digital assets or acc\nts subject to 
block+ ) reasonable p>ticul>ity2 &      
7,,iii7 is subject to judicial or       
adm9i/rative review or appeal z provid$ 
by law4  7,c7 ,report requir$ ,n lat]   
?an #a ye> aft] ! date ( enactm5t ( ?is 
,act1 ! ,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 report on !   
coord9ation ) p]mitt$ paym5t /ableco9   
issu]s requir$ "u subp>agraph 7,a74     
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 prev5t a p]mitt$ paym5t      
/ableco9 issu] f engag+ 9 non-paym5t    
/ableco9 activities t are all[$ by !    
prim>y ,f$]al paym5t /ableco9 regulator 

or ! ,/ate paym5t /ableco9 regulator1 z 
applicable4  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 subp>agraph1 &1 9      
consultation ) ! ,comptroll] & !        
,corporation1 may by regulation or ord]1
 p]mit su* exceptions to clause 7i7 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 m>ket a     
paym5t /ableco9 9 su* a way t a         
reasonable p]son w\ld p]ceive ! paym5t  
/ableco9 to be-- 7,a7 legal t5d]1 z     
describ$ 9 section #eajc ( title #ca1   
,unit$ ,/ates ,code2  7,b7 issu$ by !   
,unit$ ,/ates2 or  7,c7 gu>ante$ or     

approv$ by ! ,gov]nm5t ( ! ,unit$       
,/ates4  7#aj7 ,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 prim>y      
,f$]al paym5t /ableco9 regulators &     
,/ate paym5t /ableco9 regulators1 to    
issue su* regulations & ord]s z necess>y
 to ensure f9ancial /ability & implem5t 
?is subsection4  7,b7 ,con=m+ am5dm5t   
,section #cbd7;b7 ( ! ,revis$ ,/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 regulators
 & consi/5t ) section #ah ( ! ,guid+ &  
,e/abli%+ ,national ,innovation = ,u4,s4
 ,/ableco9s ,act ( #bjbe1 issue su*     
regulations & ord]s z necess>y to ensure
 f9ancial /ability & implem5t section   
#d7;a7 ( t ,act4  4  7#aa7 ,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   
sections #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 %all3 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#ab7         
,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$]al    
,res]ve ,act 7#ab ,u4,s4,c4             
#dfa7;b77#a77;,a774  7b7 ,/ate-level    
regulatory regimes  7#a7 ,option =      
,/ate-level regulatory regime ,not)/&+ !
 ,f$]al regulatory framework e/abli%$ "u
 subsection 7a71 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$]al regulatory framework "u          
subsection 7a74  7#c7 ,review ,/ate     
paym5t /ableco9 regulators %all review  
,/ate-level regulatory regimes accord+  
to ! pr9ciples e/abli%$ 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
 ! ,secret>y ( ! ,treasury 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 ! ,secret>y ( ! ,treasury1 
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 ea* ye>1 a ,/ate paym5t       
/ableco9 regulator %all submit to !     
,secret>y ( ! ,treasury an additional   
c]tification t confirms ! accuracy (    
initial c]tification submitt$ "u        

subp>agraph 7,a74  7#e7 ,n sub/antially 
simil>  7,a7 ,9 g5]al ,if a ,/ate paym5t
 /ableco9 regulator det]m9es t ! crit]ia
 e/abli%$ "u p>agraph 7#b7 are n met & !
 ,/ate paym5t /ableco9 regulator does n 
submit a c]tification "u p>agraph 7#d71 
!n a p]mitt$ paym5t /ableco9 issu]      
op]at+ "u ?is subsection %all be subject
 to ! ,f$]al regulatory framework z     
describ$ 9 subsection 7c71 not)/&+ !    
total issuance ?re%old !re94  7,b7      
,treasury review ,n lat] ?an #cj days   
aft] ! date ( receipt ( a c]tification  
"u p>agraph 7#d71 ! ,secret>y may reject
 ! c]tification if ! ,secret>y det]m9es 
t ! ,/ate-level regulatory regime is n  
sub/antially simil> to ! ,f$]al         
regulatory framework "u subsection 7a71 
& ! p]mitt$ paym5t /ableco9 issu] %all  
be subject to ! ,f$]al regulatory       
framework z describ$ 9 subsection 7c71  
not)/&+ ! total issuance ?re%old !re94  
7,c7 ,appellate review ,a ,/ate paym5t  
/ableco9 regulator may *all5ge !        
det]m9ation ( ! ,secret>y ( ! ,treasury 

"u ?is p>agraph 9 ! ,unit$ ,/ates ,c\rt 
( ,appeals = ! ,di/rict ( ,columbia     
,circuit4  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  7c7  
,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 ! ,/ate      
paym5t /ableco9 regulator ( ! ,/ate     
qualifi$ paym5t /ableco9 issu]2 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 ,! laws 
& rules applicable to1 & ! sup]visory   
framework (1 ! ,/ate qualifi$ paym5t    
/ableco9 issu] ) respect to paym5t      
/ableco9s & digital assets4  7,c7 ,rule 
( con/ruction ,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]  

along 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$]al *>t]4  7d7 ,misrepres5tation (   
insur$ /atus2 m>ket+  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 insurance4  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+ ,x %all be unlawful to     
m>ket a digital asset 9 ! ,unit$ ,/ates 
z a paym5t /ableco9 unless ! digital    
asset is issu$ pursuant to ?is ,act4    
7e7 ,(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 or        
subsection 7d77#c7 %all be f9$ n m ?an  
#a1jjj1jjj = ea* su* violation1         
imprison$ = n m ?an #e ye>s2 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#a7 or subsection    
7d77#c71 ! ,f$]al paym5t /ableco9       
regulator %all ref] ! matt] to !        

,attorney ,g5]al4  7f7 ,rulemak+  7#a7  
,9 g5]al ,consi/5t ) section #ah1 !     
prim>y ,f$]al paym5t /ableco9 regulators
 & ,/ate paym5t /ableco9 regulators %all
 issue su* regulations z may be necess>y
 to e/abli% a paym5t /ableco9 regulatory
 framework necess>y to adm9i/] & c>ry   
out ! requirem5ts ( ?is section1 includ+
 to e/abli% conditions1 & to prev5t     
evasions !re(4  7#b7 ,jo9t issuance (   
regulation ,all regulations issu$ 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  #e4   
,approval ( subsidi>ies ( insur$        
depository in/itutions & ,f$]al qualifi$
 nonbank paym5t /ableco9 issu]s  7a7    
,application  7#a7 ,9 g5]al ,ea* prim>y 
,f$]al paym5t /ableco9 regulator %all   
receive1 review1 & consid] = approval   
applications f any insur$ depository    
in/itution t seeks to issue paym5t      
/ableco9s ?r\gh a subsidi>y & any       
nonbank entity t seeks to issue paym5t  

/ableco9s z a ,f$]al qualifi$ nonbank   
paym5t /ableco9 issu]4 ,ea* prim>y      
,f$]al paym5t /ableco9 regulator %all   
e/abli% a process & framework = !       
lic5s+1 regulation1 exam9ation1 &       
sup]vision ( su* entities t prioritizes 
! safety & s\ndness ( su* entities4     
7#b7 ,au?ority to issue regulations &   
process applications ,! prim>y ,f$]al   
paym5t /ableco9 regulators %all1 be=e ! 
date describ$ 9 section #ah-- 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 "u  
?is ,act4  7#c7 ,m&atory approval       
process ,! prim>y ,f$]al paym5t /ableco9
 regulator %all1 ^u receipt ( a         
sub/antially complete application1      
evaluate & make a det]m9ation on ea*    
application bas$ 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 ,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  7#d7 ,! 
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$]al paym5t /ableco9    
regulator 9 connection ) ! application  
at issue & any prior applications4  7d7 
,tim+ = decision2 gr\nds = d5ial  7#a7  
,tim+ = decisions on applications  7,a7 
,9 g5]al ,n lat] ?an #abj days aft]     
receiv+ a sub/antially complete         
application "u subsection 7a71 a prim>y 
,f$]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$]al paym5t /ableco9 regulator to r5d]
 a decision on :e!r ! applicant         
satisfies ! crit]ia "u subsection 7c74  
7ii7 ,notification ,n lat] ?an #cj days 
aft] receiv+ an application "u          
subsection 7a71 a prim>y ,f$]al paym5t  
/ableco9 regulator %all notify !        

applicant :e!r ! prim>y ,f$]al paym5t   
/ableco9 regulator consid]s !           
application to be sub/antially complete 
&1 if ! application is n sub/antially   
complete1 ! additional in=mation !      
applicant mu/ provide 9 ord] = !        
application to be consid]$ 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$]al paym5t /ableco9
 regulator to treat ! application z a   
new application4  7#b7 ,d5ial (         
application  7,a7 ,gr\nds = d5ial  7i7  
,9 g5]al ,! prim>y ,f$]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  7ii7        
,issuance n gr\nd = d5ial ,! issuance ( 
a paym5t /ableco9 on an op51 public1 or 

dec5traliz$ network %all n be a valid   
gr\nd = d5ial ( an application4  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$]al paym5t /ableco9 regulator 
%all notify ! applicant ( a f9al        
det]m9ation1 :i* %all conta9 a /atem5t (
 ! basis = t det]m9ation1 ) specific    
f9d+s4  7iv7 ,notice if no he>+ ,if an  
applicant does n make a timely reque/ = 
a he>+ "u ?is subp>agraph1 ! prim>y     
,f$]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$]al      
paym5t /ableco9 regulator4  7#c7        
,failure to r5d] a decision ,if ! prim>y
 ,f$]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$4  7#d7 ,"r to reapply ,!  
d5ial ( an application "u ?is section   
%all n prohibit ! applicant f fil+ a    
subsequ5t application4  7e7 ,report on  
p5d+ applications ,! prim>y ,f$]al      
paym5t /ableco9 regulators %all annually
 report to ,congress on ! applications  
"u subsection 7a7 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$4  7f7  
,rulemak+ ,consi/5t ) section #ah1 !    
prim>y ,f$]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  #f4 ,sup]vision & en=cem5t 
) respect to subsidi>ies ( insur$       
depository in/itutions &                
,comptroll]-regulat$ entities  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
 its 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 ,act4
  7#c7 ,exam9ations ,! 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 )9 ! 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 ! 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 ^? 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] 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]-- 7,a7 is         
recklessly violat+ or has recklessly    
violat$ ?is ,act or any regulation or   
ord] issu$ "u ?is ,act2 or  7,b7 is     
recklessly violat+ or has recklessly    
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$]al paym5t /ableco9 regulator ( a    
p]mitt$ paym5t /ableco9 issu] t is n a  
,/ate qualifi$ paym5t /ableco9 issu] 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 or prohibit fur!r     
p>ticipation 9 ! affairs ( ! p]mitt$    
paym5t /ableco9 issu] or all su* 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 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 ( 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 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 ! 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] ,not)/&+ any?+ 9 ?is subsection to
 ! contr>y1 ?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] 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 a ,/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 #ah1 ! ,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* usual & exig5t            
circum/ances4 ,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  
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$ 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$ies "u clause 7i74     
7#b7 ,comptroll]  7,a7 ,9 g5]al ,subject
 to subp>agraph 7,c71 "u unusual &      
exig5t circum/ances det]m9$ 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 #ah1 ! ,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 by a ,/ate qualifi$ paym5t  
/ableco9 issu] t is a nonbank entity (  

any activity 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/ances4 ,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] t is a nonbank entity &  
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$1 !         
,comptroll]-regulat$ entity1 or any     
in/itution-affiliat$ p>ty ( !           
,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$ies "u clause 7i74  7f7
 ,effect on ,/ate law  7#a7 ,ho/ ,/ate  
,law ,! laws ( a ho/ ,/ate1 includ+     
g5]ally applicable laws relat+ to       
consum] protection1 %all only apply to !
 activities conduct$ 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$]al      
qualifi$ 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 ( ! ,/ate   
qualifi$ paym5t /ableco9 issu] %all     
gov]n ! activities ( ! p]mitt$ paym5t   
/ableco9 issu] conduct$ 9 ! ho/ ,/ate4  
7#c7 ,applicability ,! laws applicable  
"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  #h4 ,anti-money  
laund]+ protections  7a7 ,def9itions ,9 
?is subsection3 7#a7 ,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 or = cu/om]s  
or us]s 9 ! ,unit$ ,/ates1 (-- 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 
a digital asset issuance2 &  7,b7 does n
 include-- 7i7 a di/ribut$ l$g] protocol
 or a p]son solely develop+ su* a       
protocol2 or  7ii7 a p]son solely       
validat+ transactions or op]at+ a       
di/ribut$ l$g] node4  7#b7 ,(f]+ ,! t]m 
(f]+ means mak+ available = pur*ase1    
sale1 or ex*ange4  7#c7 ,di/ribut$ l$g] 
protocol ,! t]m di/ribut$ l$g] protocol 
means publicly available & accessible   

executable s(tw>e deploy$ to a di/ribut$
 l$g]1 includ+ sm>t contracts or        
networks ( sm>t contracts4  7#d7 ,lawful
 ord] ,! t]m lawful ord] means any f9al 
& valid writ1 process1 ord]1 rule1      
decree1 comm&1 or o!r requirem5t issu$  
or promulgat$ "u ,f$]al law1 issu$ by a 
c\rt ( compet5t jurisdiction or by an   
au?oriz$ ,f$]al ag5cy pursuant to its   
/atutory au?ority1 t-- 7,a7 requires a  
p]mitt$ paym5t /ableco9 issu] to seize1 
freeze1 burn1 or prev5t ! transf] (     
paym5t /ableco9s issu$ by ! p]mitt$     
paym5t /ableco9 issu]2  7,b7 specifies !
 digital assets 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  7b7 
,treasury au?ority to designate         
noncompliant issu]s ,n lat] ?an #cj days
 aft] ! ,dep>tm5t ( ! ,treasury has1    
pursuant to section                     
#d7;a77#f77;,b77i77,,ii71 id5tifi$ !    
failure ( a =eign issu] ( any paym5t    
/ableco9s trad+ 9 ! ,unit$ ,/ates t is n

 a p]mitt$ paym5t /ableco9 issu] to     
comply ) ! t]ms ( any lawful ord]1 !    
,secret>y ( ! ,treasury1 9 coord9ation )
 relevant ,f$]al ag5cies1 %all designate
 ! =eign issu] z noncompliant & notify !
 =eign issu] 9 writ+ ( ! designation4   
7c7 ,publication ( designation2         
prohibition on second>y trad+  7#a7 ,9  
g5]al ,if a =eign issu] describ$ 9      
subsection 7b7 does n come into         
compliance ) ! lawful ord] )9 #cj days f
 ! date ( issuance ( ! writt5 notice    
describ$ 9 t subsection1 ! ,secret>y ( !
 ,treasury %all-- 7,a7 publi% !         
det]m9ation ( noncompliance 9 ! ,f$]al  
,regi/]1 includ+ a /atem5t on ! failure 
( ! =eign issu] to comply ) ! lawful    
ord] aft] ! writt5 notice2 &  7,b7 issue
 a notification 9 ! ,f$]al ,regi/]      
prohibit+ digital asset s]vice provid]s 
f facilitat+ second>y trad+ ( paym5t    
/ableco9s issu$ by ! =eign 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$]al ,regi/]4  7#c7 ,waiv]s &         
ext5sions ,) respect to ! prohibition on
 facilitation ( second>y trad+ describ$ 
9 p>agraph 7#a71 ! ,secret>y ( !        
,treasury may issue waiv]s & "t         
ext5sions to digital asset s]vice       
provid]s on a case by case basis4  7#d7 
,civil monet>y p5alties  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 issu] ( paym5t /ableco9 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 ,unit$ ,/ates ,di/rict   
,c\rt to b> ! =eign issu] f engag+ 9    
f9ancial transactions 9 ! ,unit$ ,/ates 
or ) ,unit$ ,/ates p]sons4  7d7 ,appeal 
,a det]m9ation ( noncompliance "u       
subsection 7b7 is subject to judicial   
review 9 ! ,unit$ ,/ates ,c\rt (        
,appeals = ! ,di/rict ( ,columbia       
,circuit4  7e7 ,waiv]1 lic5s+ au?ority1 
& exceptions  7#a7 ,9 g5]al ,! ,secret>y
 ( ! ,treasury may (f] a waiv]1 g5]al   
lic5se1 or specific lic5se to any ,unit$
 ,/ates p]sons engag+ 9 second>y trad+  
describ$ 9 subsection 7c7 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 issu] ( 
! paym5t /ableco9 is tak+ tangible /eps 
to rem$y ! failure to comply ) ! lawful 
ord] t result$ 9 ! noncompliance        
det]m9ation "u subsection 7b74  7#b7    
,national security waiv] ,! ,presid5t   
may waive ! application ( ! second>y    
trad+ re/rictions "u subsection 7c7 if !

 ,presid5t det]m9es t ! waiv] is 9 !    
national security int]e/ ( ! ,unit$     
,/ates4  7#c7 ,exceptions = intellig5ce 
& law en=cem5t activities ,?is ,act %all
 n apply ) respect to-- 7,a7 activities 
subject to ! report+ requirem5ts "u     
title ,v ( ! ,national ,security ,act ( 
#aidg 7#ej ,u4,s4,c4 #cjia et seq47 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 ! ,*airm5 &    
,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 ,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 ( 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$]al ,deposit 
,insurance ,act 7#ab ,u4,s4,c4 #ahac7 or
 a ,/ate cr$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 ) !    
requirem5ts "u subsection 7b71 unless   

su* p]son complies ) simil> requirem5ts 
z requir$ by a prim>y ,f$]al paym5t     
/ableco9 regulator1 ! ,securities &     
,ex*ange ,commission1 or ! ,commodity   
,futures ,trad+ ,commission4  7b7       
,cu/om] prop]ty requirem5t ,a p]son     
describ$ 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] &
 is n ! prop]ty ( su* p]son2 &  7#b7    
take su* /eps z are appropriate to      
protect ! paym5t /ableco9s1 private     
keys1 ca%1 & o!r prop]ty ( a cu/om] f ! 
claims ( cr$itors ( ! p]son4  7c7       
,comm+l+ prohibit$  7#a7 ,9 g5]al       
,paym5t /ableco9s1 ca%1 & o!r prop]ty ( 
a cu/om] %all be sep>ately acc\nt$ = by 
a p]son describ$ 9 subsection 7a7 & %all
 be segregat$ f & 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
 a ,/ate *>t]$ depository in/itution1 an
 insur$ depository in/itution1 national 
bank1 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 or  7,c7 9 accordance 
) su* t]ms & conditions z a prim>y      
,f$]al paym5t /ableco9 regulator may    
prescribe by rule1 regulation1 or ord]1 
any cu/om] paym5t /ableco91 ca%1 & o!r  
prop]ty describ$ 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 ! prim>y

 ,f$]al paym5t /ableco9 regulator to be 
sep>ately acc\nt$ =1 treat$1 & dealt ) z
 belong+ to cu/om]s4  7#c7 ,cu/om]      
priority ,) or )\t ! segregation requir$
 "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  #aj4 ,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 ,code4  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 ( ! ,guid+ & 
,e/abli%+ ,national ,innovation = ,u4,s4
 ,/ableco9s ,act ( #bjbe4  4  7c7       
,automatic /ay ,section #cfb ( title    

#aa1 ,unit$ ,/ates ,code 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 ! 
debtor1 f paym5t /ableco9 res]ves       
requir$ to be ma9ta9$ "u section #d ( ! 
,guid+ & ,e/abli%+ ,national ,innovation
 = ,u4,s4 ,/ableco9s ,act ( #bjbe4  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$emption ( paym5t  
/ableco9s held by a p]son1 if ! c\rt    
f9ds1 subject to ! motion & atte/ation (
 ! debtor on ! petition date1 !re are   
paym5t /ableco9 res]ves available =     
di/ribution on a ratable basis to       
simil>ly situat$ 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$-- 7#a7 9 subsection 7a71 by    
/rik+ ,! foll[+ & ins]t+ ,subject to    
subsection 7e71 ! foll[+2 &  7#b7 by    
add+ at ! end ! foll[+3  7e7 ,not)/&+   
subsection 7a71 if a paym5t /ableco9    
hold] is n able to r$eem all out/&+     
paym5t /ableco9 claims f requir$ paym5t 
/ableco9 res]ves ma9ta9$ by ! debtor1   
any rema9+ claim ( a p]son hold+ a      
paym5t /ableco9 issu$ by ! debtor %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 ( ! ,guid+ &    
,e/abli%+ ,national ,innovation = ,u4,s4
 ,/ableco9s ,act ( #bjbe w\ld h requir$ 
additional res]ves to be ma9ta9$ by !   
debtor = 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 ! flu% text 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 ( !      
,guid+ & ,e/abli%+ ,national ,innovation
 = ,u4,s4 ,/ableco9s ,act ( #bjbe4  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 ( ! ,guid+ & ,e/abli%+ ,national     
,innovation = ,u4,s4 ,/ableco9s ,act (  
#bjbe7 %all raise & %all appe> & be he>d
 on 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  #aa4 ,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 #e & 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  #ab4  
,/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 %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$2  7,f7 gov]nance  
/ructure1 includ+ aspects (             
dec5tralization2  7,g7 nature ( public  
promotion & adv]tis+2 &  7,h7 cl>ity &  
availability ( consum] notices          
disclosures4  7b7 ,endog5\sly           
collat]aliz$ paym5t /ableco9 def9$ ,9   
?is section1 ! t]m endog5\sly           
collat]aliz$ paym5t /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  #ac4 ,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 report  
on ! /atus ( ! paym5t /ableco9 indu/ry1 
includ+-- 7#a7 a summ>y ( 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   
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 ( !            
,dodd-,frank ,wall ,/reet ,re=m &       
,consum] ,protection ,act 7#ab ,u4,s4,c4
 #ecbb74  #ad4 ,au?ority ( bank+        
in/itutions  7a7 ,rule ( con/ruction    
,no?+ 9 ?is ,act may be con/ru$ to limit
 ! au?ority ( a depository in/itution1  
,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$]al law1 includ+--
 7#a7 accept+ or receiv+ deposits &     
issu+ digital assets t repres5t         
deposits2  7#b7 utiliz+ a di/ribut$ l$g]
 = ! books & records ( ! entity & to    
affect intrabank transf]s2 &  7#c7      
provid+ cu/odial s]vices = paym5t       
/ableco9s1 private keys ( paym5t        
/ableco9s1 or res]ves back+ paym5t      
/ableco9s4  7b7 ,regulatory review ,!   
prim>y ,f$]al paym5t /ableco9 regulators
 %all review all exi/+ guidance &       
regulations1 & if necess>y1 am5d or     
promulgate new regulations & guidance1  
to cl>ify t regulat$ entities c engage 9
 ! paym5t /ableco9 activities           
contemplat$ 91 & 9 accordance )1 ?is    
,act4  7c7 ,treatm5t ( cu/ody activities
 ,! appropriate ,f$]al bank+ ag5cy 7z   
def9$ "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$it union1 or tru/ company1 or any   
in/itution-affiliat$ p>ty !re(-- 7#a7 to
 include assets held 9 cu/ody t are n   
own$ by ! entity z a liability on !     
f9ancial /atem5t or balance %eet ( !    
entity1 includ+ paym5t /ableco9 cu/ody  
or safekeep+ activities2  7#b7 to hold  
regulatory capital aga9/ assets1 includ+
 res]ves back+ su* assets describ$ 9    
section #d7;a77#a77;,a71 9 cu/ody or    
safekeep+1 except z necess>y to mitigate
 aga9/ op]ational risks inh]5t ) !      
cu/ody or safekeep+ s]vices1 z det]m9$  
by-- 7,a7 ! appropriate ,f$]al bank+    
ag5cy2  7,b7 ! ,national ,cr$it ,union  
,adm9i/ration 79 ! case ( a cr$it       
union72  7,c7 a ,/ate bank sup]visor 7z 
def9$ "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 9 any am\nt great] ?an
 ! exp5se recogniz$ 9 ! income /atem5t  
or ! consid]ation receiv$ z a result ( !
 correspond+ obligation4  7d7           
,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$it ,union   
,act4  #ae4 ,am5dm5ts to cl>ify t paym5t
 /ableco9s are n securities or          
commodities & p]mitt$ 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 ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      
,u4,s4 ,/ableco9s ,act ( #bjbe44  7b7   
,inve/m5t ,company ,act ( #aidj ,!      
,inve/m5t ,company ,act ( #aidj is      
am5d$-- 7#a7 9 section #b7;a77#cf7 7#ae 
,u4,s4,c4 #hj;a-#b7;a77#cf777ae         
,u4,s4,c4 #hj;a-#b7;a77#cf771 by add+ at
 ! end ! foll[+3 ,! t]m security does n 
include a paym5t /ableco9 issu$ by a    
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$ 9 section #b ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      
,u4,s4 ,/ableco9s ,act ( #bjbe42 &  7#b7
 9 section #c7;c77#c7 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 ( ! ,guid+ &         
,e/abli%+ ,national ,innovation = ,u4,s4
 ,/ableco9s ,act ( #bjbe2 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 ( !     
,guid+ & ,e/abli%+ ,national ,innovation
 = ,u4,s4 ,/ableco9s ,act ( #bjbe44  7d7
 ,securities ,ex*ange act ( #aicd       
,section #c7;a77#aj7 ( ! ,securities    
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a77#aj77 is am5d$ by add+ at ! end
 ! foll[+3 ,! t]m security does n       
include a paym5t /ableco9 issu$ by a    
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$ 9 section #b ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      
,u4,s4 ,/ableco9s ,act ( #bjbe44  7e7   
,securities ,inve/or ,protection ,act ( 
#aigj ,section #af7ad7 ( ! ,securities  
,inve/or ,protection ,act ( #aigj 7#ae  
,u4,s4,c4 #ghlll7#ad77 is am5d$ by add+ 
at ! end ! foll[+3 ,! t]m security does 
n include a paym5t /ableco9 issu$ by a  
p]mitt$ paym5t /ableco9 issu]1 z su*    
t]ms are def9$ 9 section #b ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      

,u4,s4 ,/ableco9s ,act ( #bjbe44  7f7   
,commodity ,ex*ange ,act ,section #a;a (
 ! ,commodity ,ex*ange ,act 7#g         
,u4,s4,c4 #a;a7 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 ( ! ,guid+ &
 ,e/abli%+ ,national ,innovation =      
,u4,s4 paym5t /ableco9s ,act ( #bjbe4   
#af4 ,reciprocity = paym5t /ableco9s    
issu$ 9 ov]seas jurisdictions ,not)/&+  
section #b7ae77;,a77ii77,,iii71 !       
,secret>y ( ! ,treasury %all create &   
implem5t reciprocal arrangem5ts or o!r  
bilat]al agreem5ts betwe5 ! ,unit$      
,/ates & jurisdictions ) sub/antially   
simil> paym5t /ableco9 regulatory       
regimes to ! requirem5ts "u ?is ,act1   
includ+ res]ve requirem5ts1 sup]vision1 
anti-money laund]+ & c\nt]-t]rorism     
features1 sanctions compliance /&>ds1   
liquidity requirem5ts1 & risk managem5t 
/&>ds1 to facilitate int]national       
transactions & int]op]ability ) ,unit$  

,/ates doll>-d5om9at$ paym5t /ableco9s  
issu$ ov]seas4 ,! ,secret>y ( !         
,treasury %all aim to complete su*      
arrangem5ts n lat] ?an ! date t is #b   
ye>s aft] ! date ( enactm5t ( ?is ,act4 
#ag4 ,effective date  7a7 ,9 g5]al ,?is 
,act1 & ! am5dm5ts made by ?is ,act1    
%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  #ah4       
,rulemak+  7a7 ,9 g5]al ,n lat] ?an #a  
ye> aft] ! date ( enactm5t ( ?is ,act1  
ea* prim>y ,f$]al paym5t /ableco9       
regulator1 ! ,secret>y ( ! ,treasury1 & 
ea* ,/ate paym5t /ableco9 regulator %all
 implem5t ?is ,act ?r\gh appropriate    
notice & comm5t rulemak+1 includ+       
promulgat+ regulations z describ$ 9 ?is 
,act z necess>y4  7b7 ,coord9ation      
,f$]al paym5t /ableco9 regulators &     
,/ate paym5t /ableco9 regulators %\ld   
coord9ate on ! issuance ( any           
regulations to implem5t ?is ,act4  7c7  
,report requir$ ,n lat] ?an #ahj days   
aft] ! date ( enactm5t ( ?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 ! rules promulgat$ to implem5t
 ?is ,act4  ,m>* #ah1 #bjbe,report$ ) an
 am5dm5t