§5902 Issuance and Treatment of Payment Stablecoins

Summary

Only firms that are officially allowed must issue payment stablecoins in the United States. Starting July 18, 2028 (three years after July 18, 2025), businesses that offer or sell payment stablecoins to people in the U.S. may only do so if the coin is issued by an allowed issuer. Foreign issuers can only be offered in the U.S. if they can and will follow lawful orders and any rules that let countries cooperate. The Treasury can write rules and make narrow safe harbors for a very small number of transactions or for emergency situations, but it must tell Congress and explain why for emergencies. The rule applies even when the offer or sale happens from outside the U.S. Penalties for knowingly breaking the rule can be a fine up to $1,000,000 per violation, up to 5 years in prison, or both. Regulators can refer suspected violations to the Attorney General. Coins not issued by an allowed issuer cannot be treated as cash or a cash equivalent for accounting, cannot be used as cash-equivalent margin or collateral by certain financial firms, and cannot be used as a settlement asset for wholesale bank payments. Exemptions include direct person-to-person transfers without intermediaries, transfers between accounts owned by the same person offered by the same parent company, and use of self-custody wallets. Definitions: permitted payment stablecoin issuer — an issuer allowed under the rules; payment stablecoin — a digital coin meant for payments that keeps a stable value; digital asset service provider — a business that offers or sells digital coins; foreign payment stablecoin issuer — an issuer based outside the United States.