This bill creates a federal registration and rule set for large state-licensed payment providers called "registered covered providers." It defines which firms qualify, including entities with at least 40 active state money transmitter licenses, or firms that hold a state depository institution or state credit union charter. The Office of the Comptroller of the Currency (Comptroller) will review applications using a short list of factors, must act within set deadlines, and may revoke registrations if standards are not met.
The bill requires registered covered providers to hold reserves equal to outstanding payment obligations on at least a 1:1 basis. Allowed reserve assets include U.S. cash or Federal Reserve accounts, demand deposits or insured shares, short-term Treasury securities, certain overnight repurchase agreements, approved government money market fund assets, and approved tokenized versions of those assets. Providers may not rehypothecate these reserves and must segregate customer funds held for custody or access services. Providers must keep records of customer balances, reserves, and beneficial ownership where applicable.
Risk, capital, and liquidity rules similar to those for permitted payment stablecoin issuers under the GENIUS Act will apply, but they must be tailored to each provider's business model. The bill adds fair-access obligations: providers must follow the Equal Credit Opportunity Act rules in comparable ways, not deny access because of protected beliefs or views, and use individualized, objective risk analyses for account decisions.
The Comptroller may examine and supervise registered covered providers, and may extend supervision to third parties that perform critical services. The Comptroller can enforce the Act's requirements using enforcement powers that apply to insured banks. Registered covered providers must file periodic reports to the Comptroller; the Comptroller should use existing reports when possible to avoid duplication.
For insolvency and customer protection, a registered nonbank provider (one that is not an insured depository institution) is excluded from Chapters 7 and 11 bankruptcy. Insolvency proceedings are to be handled by a State regulator, with the Comptroller able to act as conservator or receiver. If a State does not act promptly, the Comptroller must initiate the proceeding. Liquidation proceeds are prioritized so that administrative expenses come first, then outstanding payment obligations to customers, then other general senior liabilities, and then subordinated claims and shareholder claims. Properly segregated custodial assets are not general assets; any shortfall in custodial assets ranks with customer claims.
The bill lets registered covered providers request access to a payments reserve account at a Federal Reserve Bank (including access to Fedwire, FedNow, and FedACH). The Federal Reserve Board must act on such requests within 120 days (with a 60-day extension possible), and a failure to act means approval. The Board can issue directives restricting use of Fed accounts in "unusual and exigent" circumstances, subject to notice, administrative review, and judicial review rules.
Finally, the bill amends several federal securities laws to state that a balance with a registered covered provider is not a "security."
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The bill frames federal registration and rules as a way to support innovation, competition, and broader access to payment services while protecting customers. It creates clear reserve and recordkeeping rules, supervision by the Comptroller, and a defined insolvency priority for customer payment balances. It also provides a path to Federal Reserve payments accounts.
No publicly available information.