Title 12, Banks and BankingRelease 119-102
§5911 Application of Existing Insolvency Law
Title 12 › CHAPTER 56 — REGULATION OF PAYMENT STABLECOINS › § 5911
Summary
If a permitted payment stablecoin issuer goes broke, existing law decides who handles the case. If it is a depository institution (the legal term for banks and similar firms), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), or a state payment stablecoin regulator will resolve it; a subsidiary of a depository institution or a nonbank entity may instead be treated as a debtor under the U.S. Bankruptcy Code (Title 11).
Full Legal Text
Title 12, §5911
Banks and Banking, Source: USLM XML via OLRC
In accordance with otherwise applicable law, an insolvency proceeding with respect to a permitted payment stablecoin issuer shall occur as follows:
(1)A depository institution (as defined in section 1813 of this title) shall be resolved by the Federal Deposit Insurance Corporation, National Credit Union Administration, or State payment stablecoin regulator, as applicable.
(2)A subsidiary of a depository institution (as defined in section 1813 of this title) or a nonbank entity may be considered a debtor under title 11.
Legislative History
Notes & Related Subsidiaries
Delayed
Effective Date
of SectionFor delayed
Effective Date
of section, see
Effective Date
note below.
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. § 5911
Title 12, Banks and Banking
Last Updated
Aug 21, 2026
Release point: 119-102