Title 12 — Banks and BankingRelease 119-73
§5910 Treatment of payment stablecoin issuers in insolvency proceedings
Title 12 › Chapter CHAPTER 56— - REGULATION OF PAYMENT STABLECOINS › § 5910
Summary
Holders of payment stablecoins get priority in an insolvency of a permitted payment stablecoin issuer, subject to section 507(e) of title 11, as added by subsection (d). Their claims on the required stablecoin reserves come before other creditors but are shared proportionally with other coin holders. Despite other law, including section 101(5) of title 11, a holder is treated as having a claim, and the priority only covers claims that come directly from holding the stablecoins.
Full Legal Text
Title 12, §5910
Banks and Banking — Source: USLM XML via OLRC
Subject to section 507(e) of title 11, as added by subsection (d), in any insolvency proceeding of a permitted payment stablecoin issuer under Federal or State law, including any proceeding under that title and any insolvency proceeding administered by a State payment stablecoin regulator with respect to a permitted payment stablecoin issuer—
(1)the claim of a person holding payment stablecoins issued by the permitted payment stablecoin issuer shall have priority, on a ratable basis with the claims of other persons holding such payment stablecoins, over the claims of the permitted payment stablecoin issuer and any other holder of claims against the permitted payment stablecoin issuer, with respect to required payment stablecoin reserves;
(2)notwithstanding any other provision of law, including the definition of “claim” under section 101(5) of title 11, any person holding a payment stablecoin issued by the permitted payment stablecoin issuer shall be deemed to hold a claim; and
(3)the priority under paragraph (1) shall not apply to claims other than those arising directly from the holding of payment stablecoins.
Legislative History
Notes & Related Subsidiaries
Delayed
Effective Date
of SectionFor delayed
Effective Date
of section, see
Effective Date
note below.
Editorial Notes
References in Text
Subsection (d), referred to in introductory provisions, means subsec. (d) of section 11 of Pub. L. 119–27.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective on the earlier of the date that is 18 months after July 18, 2025, or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final
Regulations
implementing Pub. L. 119–27, see section 20 of Pub. L. 119–27, set out as a note under section 5901 of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 5910
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73