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Title 12, Banks and BankingRelease 119-102

§5910 Treatment of Payment Stablecoin Issuers in Insolvency Proceedings

Title 12 › CHAPTER 56 — REGULATION OF PAYMENT STABLECOINS › § 5910

Last updated Aug 21, 2026|Official source

Summary

In a bankruptcy or similar insolvency of a permitted payment stablecoin issuer, and subject to section 507(e) of title 11, people who hold that issuer’s payment stablecoins must have priority over the issuer and other creditors for the issuer’s required stablecoin reserves. Those holders share that priority proportionally with each other, are treated as having a legal claim in the proceeding no matter what other laws say, and the priority applies only to 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

Aug 21, 2026

Release point: 119-102