Title 12, Banks and BankingRelease 119-110
§5916 Exception for Foreign Payment Stablecoin Issuers and Reciprocity for Payment Stablecoins Issued in Overseas Jurisdictions
Title 12 › CHAPTER 56 — REGULATION OF PAYMENT STABLECOINS › § 5916
Summary
Foreign payment stablecoin issuers may be allowed to operate for U.S. customers if four things happen. First, they must be regulated in a country or U.S. territory whose rules the Secretary of the Treasury finds are comparable to U.S. rules for payment stablecoins (including the rules in section 5903(a)); that finding must follow recommendations from the other members of the Stablecoin Certification Review Committee. Second, the issuer must register with the Comptroller. Third, the issuer must keep reserves in a U.S. bank large enough to meet U.S. customer needs, unless a reciprocal agreement says otherwise. Fourth, the issuer’s home country must not be under U.S. comprehensive sanctions or labeled a primary money‑laundering concern. The Treasury must publish why it made any comparability decision and keep a public list. The Treasury must decide requested determinations within 210 days. If a comparability finding is rescinded, providers get a 90‑day safe harbor. Registrations are treated as approved after 30 days unless the Comptroller rejects them; the Comptroller will set rules, monitor issuers, keep a public list, and can cancel registrations for noncompliance. The Secretary can revoke registrations for serious sanctions or illicit‑finance risks. The Treasury must issue any needed rules within 1 year after July 18, 2025, and should finish reciprocal agreements within 2 years after July 18, 2025, with each agreement published 90 days before it starts.
Full Legal Text
Title 12, §5916
Banks and Banking, Source: USLM XML via OLRC
(a)In general
The prohibitions under section 5902 of this title shall not apply to a foreign payment stablecoin issuer if all of the following apply:
(1)The foreign payment stablecoin issuer is subject to regulation and supervision by a foreign payment stablecoin regulator of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands that has a regulatory and supervisory regime with respect to payment stablecoins that the Secretary of the Treasury determines, pursuant to subsection (b), is comparable to the regulatory and supervisory regime established under this chapter, including, in particular, the requirements under section 5903(a) of this title.
(2)The foreign payment stablecoin issuer is registered with the Comptroller pursuant to subsection (c).
(3)The foreign payment stablecoin issuer holds reserves in a United States financial institution sufficient to meet liquidity demands of United States customers, unless otherwise permitted under a reciprocal arrangement established pursuant to subsection (d).
(4)The foreign country in which the foreign payment stablecoin issuer is domiciled and regulated is not subject to comprehensive economic sanctions by the United States or in a jurisdiction that the Secretary of the Treasury has determined to be a jurisdiction of primary money laundering concern.
(b)Treasury determination
(1)In general
The Secretary of the Treasury may make a determination as to whether a foreign country has a regulatory and supervisory regime that is comparable to the requirements established under this chapter, including the requirements under section 5903(a) of this title. The Secretary of the Treasury may make such a determination only upon a recommendation from each other member of the Stablecoin Certification Review Committee. Prior to such determination taking effect, the Secretary of the Treasury shall publish in the Federal Register a justification for such determination, including how the foreign country’s regulatory and supervisory regime is comparable to the requirements established under this chapter, including the requirements under section 5903(a) of this title.
(2)Request
A foreign payment stablecoin issuer or a foreign payment stablecoin regulator may request from the Secretary of the Treasury a determination under paragraph (1).
(3)Timing for determination
If a foreign payment stablecoin issuer or foreign payment stablecoin regulator requests a determination under paragraph (2), the Secretary of the Treasury shall render a decision on the determination not later than 210 days after the receipt of a substantially complete determination request.
(4)Rescission of determination
(A)In general
The Secretary of the Treasury may, in consultation with the Federal payment stablecoin regulators, rescind a determination made under paragraph (1), if the Secretary determines that the regulatory regime of such foreign country is no longer comparable to the requirements established under this chapter. Prior to such rescission taking effect, the Secretary of the Treasury shall publish in the Federal Register a justification for the rescission.
(B)Limited safe harbor
If the Secretary of the Treasury rescinds a determination pursuant to subparagraph (A), a digital asset service provider shall have 90 days before the offer or sale of a payment stablecoin issued by the foreign payment stablecoin issuer that is the subject of the rescinded determination shall be in violation of section 5902 of this title.
(5)Public notice
The Secretary of the Treasury shall keep and make publicly available a current list of foreign countries for which a determination under paragraph (1) has been made.
(6)Rulemaking
Not later than 1 year after July 18, 2025, the Secretary of the Treasury shall issue such rules as may be required to carry out this section.
(c)Registration and ongoing monitoring
(1)Registration
(A)In general
A foreign payment stablecoin issuer may offer or sell payment stablecoins using a digital asset service provider if the foreign payment stablecoin issuer is registered with the Comptroller.
(B)Registration approval
A registration of a foreign payment stablecoin issuer filed in accordance with this section shall be deemed approved on the date that is 30 days after the date the Comptroller receives the registration, unless the Comptroller notifies the foreign payment stablecoin issuer in writing that such registration has been rejected.
(C)Standards for rejection
In determining whether to reject a foreign payment stablecoin issuer’s registration, the Comptroller shall consider
(i)the final determination of the Secretary of the Treasury under this section;
(ii)the financial and managerial resources of the United States operations of the foreign payment stablecoin issuer;
(iii)whether the foreign payment stablecoin issuer will provide adequate information to the Comptroller as the Comptroller determines is necessary to determine compliance with this chapter;
(iv)whether the foreign payment stablecoin presents a risk to the financial stability of the United States; and
(v)whether the foreign payment stablecoin issuer presents illicit finance risks to the United States.
(D)Procedure for appeal
If the Comptroller rejects a registration, not later than 30 days after the date of receipt of such rejection, the foreign payment stablecoin issuer may appeal the rejection by notifying the Comptroller of the request to appeal.
(E)Rulemaking
Pursuant to section 5913 of this title, the Comptroller shall issue rules relating to the standards for approval of registration requests and the process for appealing denials of such registration requests.
(F)Public notice
The Comptroller shall keep and make publicly available a current list of foreign payment stablecoin issuer registrations that have been approved.
(2)Ongoing monitoring
A foreign payment stablecoin issuer shall 1
(A)be subject to reporting, supervision, and examination requirements as determined by the Comptroller; and
(B)consent to United States jurisdiction relating to the enforcement of this chapter.
(3)Lack of compliance
(A)Comptroller action
The Comptroller may, in consultation with the Secretary of the Treasury, rescind approval of a registration of a foreign payment stablecoin issuer under this subsection if the Comptroller determines that the foreign payment stablecoin issuer is not in compliance with the requirements of this chapter, including for maintaining insufficient reserves or posing an illicit finance risk or financial stability risk. Prior to such rescission taking effect, the Comptroller shall publish in the Federal Register a justification for the rescission.
(B)Secretary action
The Secretary of the Treasury, in consultation with the Comptroller, may revoke a registration of a foreign payment stablecoin issuer under this subsection if the Secretary determines that reasonable grounds exist for concluding that the foreign payment stablecoin issuer presents economic sanctions evasion, money laundering, or other illicit finance risks, or, as applicable, violations, or facilitation thereof.
(d)Reciprocity
(1)In general
The Secretary of the Treasury may create and implement reciprocal arrangements or other bilateral agreements between the United States and jurisdictions with payment stablecoin regulatory regimes that are comparable to the requirements established under this chapter. The Secretary of the Treasury shall consider whether the jurisdiction’s requirements for payment stablecoin issuers include 1
(A)similar requirements to those under section 5903(a) of this title;
(B)adequate anti-money laundering and counter-financing of terrorism program and sanction compliance standards; and
(C)adequate supervisory and enforcement capacity to facilitate international transactions and interoperability with United States dollar-denominated payment stablecoins issued overseas.
(2)Publication
Not later than 90 days prior to the entry into force of any arrangement or agreement under paragraph (1), the Secretary of the Treasury shall publish the arrangement or agreement in the Federal Register.
(3)Completion
The Secretary of the Treasury should complete the arrangements under this subsection not later than the date that is 2 years after July 18, 2025.
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
This chapter, referred to in subsecs. (a)(1), (b)(1), (4)(A), (c)(1)(C)(iii), (2)(A), (3)(A), and (d)(1), was in the original “this Act”, meaning Pub. L. 119–27, July 18, 2025, 139 Stat. 419, known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act and also as the GENIUS Act, which is classified principally to this chapter. For complete classification of this Act to the Code, see
Short Title
note set out under section 5901 of this title and Tables.
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. § 5916
Title 12, Banks and Banking
Last Updated
Sep 23, 2026
Release point: 119-110