§5916 Exception for Foreign Payment Stablecoin Issuers and Reciprocity for Payment Stablecoins Issued in Overseas Jurisdictions

Summary

Allows foreign payment stablecoin issuers to be exempt from the U.S. ban if four things are true: the issuer is supervised by a foreign regulator whose rules the Secretary of the Treasury says are comparable to U.S. rules; the issuer is registered with the Comptroller; the issuer keeps enough reserves in a U.S. bank to meet U.S. customers’ needs unless a reciprocal deal says otherwise; and the issuer’s home country is not under full U.S. sanctions or labeled a primary money‑laundering concern. The Secretary of the Treasury decides which foreign regimes are comparable after a recommendation from every other member of the Stablecoin Certification Review Committee and must publish a justification in the Federal Register before it takes effect. The Secretary must decide on requests within 210 days, keep a public list of approved countries, and issue required rules within 1 year after July 18, 2025. The Secretary can cancel a comparability decision with a public notice, and providers then have 90 days before sales would violate the ban. The Comptroller handles registrations; a registration is approved after 30 days unless rejected, and rejections may be appealed within 30 days. The Comptroller will supervise, require reports and exams, keep a public list of approved issuers, and can cancel registrations for noncompliance with a public notice. The Secretary may also make reciprocal agreements with comparable jurisdictions, must publish any agreement 90 days before it starts, and should finish such arrangements within 2 years after July 18, 2025.