Summer Regulatory Summit eBook

CONFIDENTIAL

Stablecoin Legislation “Clarity for Payment Stablecoins” (Rep. McHenry (R-NC)) • Three pathways to issuance - • Nonbank entities regulated by state; • Nonbank entities regulated by Fed; • Subsidiaries of IDIs regulated by primary federal regulator • All issuers subject to universal standards regarding redemption authority, certification of financial reports, and minimum consumer protections • Unclear if bill permits OCC to charter a nonbank payment stablecoin issuer as an uninsured national bank

“Lummis-Gillibrand Payment Stablecoin Act” (Sens. Lummis (R-WY)/Gillibrand (D-NY)) • Three pathways to issuance –

• Non-depository trust (state) • Depository institution (state) • Depository Institution (OCC)

• All issuers subject to reserve requirements, prudential standards, BSA/AML, enforcement and judicial review and receivership by FDIC • Federal Reserve active in all three paths • Non-depository trust limited to $10B in issuance when it must convert to an IDI at either state or federal level