(1) In accordance with the GENIUS Act, Pub. L. No. 119-27, a qualified payment stablecoin issuer must comply with all of the following requirements:
(a) Maintain identifiable reserves backing the outstanding payment stablecoins of the qualified payment stablecoin issuer on at least a one-to-one basis, with reserves consisting of any of the following:
1. United States coin or currency or money standing to the credit of an account with a Federal Reserve Bank.
2. Funds held as demand deposits or insured shares at an insured depository institution, subject to limitations established by the Federal Deposit Insurance Corporation and the National Credit Union Administration.
3. United States Treasury bills, notes, or bonds with a remaining maturity or issued with a maturity of 93 days or less.
4. Money received under repurchase agreements, with the qualified payment stablecoin issuer acting as a seller of securities and with an overnight maturity, which are backed by United States Treasury bills with a maturity of 93 days or less.
5. Reverse purchase agreements, with the qualified payment stablecoin issuer acting as a purchaser of securities and with an overnight maturity, which are collateralized by United States Treasury bills, notes, or bonds on an overnight basis, subject to overcollateralization in line with standard market terms that meet federal requirements in the GENIUS Act, Pub. L. No. 119-27.
6. Securities that are issued by an investment company registered under s. 8(a) of the Investment Company Act of 1940, 15 U.S.C. s. 80a-8(a), or other registered government money market fund, and that are invested solely in underlying assets described in subparagraphs 1.-5.
7. Any other similarly liquid Federal Government-issued asset approved by the primary federal payment stablecoin regulator, in consultation with the office.
8. Any reserve described in subparagraphs 1., 2., and 3. or subparagraph 6. or subparagraph 7. in tokenized form, provided that such reserves comply with all applicable laws and regulations.
(b) Publicly disclose the issuer’s redemption policy, which must comply with all of the following requirements:
1. Establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins.
2. Publicly, clearly, and conspicuously disclose in plain language all fees associated with purchasing or redeeming the payment stablecoins, provided that such fees can be changed only upon not less than 7 days’ prior notice to consumers.
(c) Publish on the issuer’s website a monthly reserve composition of the issuer’s reserve which must contain all of the following information:
1. The total number of outstanding payment stablecoins issued by the issuer.
2. The amount and composition of the reserves described in paragraph (a), including the average tenor and geographic location of custody of each category of reserve instruments.
(d) Comply with all federal prohibitions on pledging, rehypothecating, or reusing reserve assets, either directly or indirectly, except for any of the following purposes:
1. Satisfying margin obligations in connection with investments in permitted reserves under subparagraph (a)4. or subparagraph (a)5.
2. Satisfying obligations associated with the use, receipt, or provision of standard custodial services.
3. Creating liquidity to meet reasonable expectations of requests to redeem payment stablecoins, such that reserves in the form of United States Treasury bills may be sold as purchased securities for repurchase agreements with a maturity of 93 days or less, provided that either:
a. The repurchase agreements are cleared by a clearing agency registered with the Securities and Exchange Commission; or
b. The qualified payment stablecoin issuer receives prior approval from the office.
(e) Engage a registered public accounting firm to conduct a monthly examination of the previous month-end reserve report. For purposes of this paragraph, the term “registered public accounting firm” means a public accounting firm registered with the Public Company Accounting Oversight Board.
(f) Submit to the office each month a certification as to the accuracy of the month-end reserve report by the qualified payment stablecoin issuer’s chief executive officer and chief financial officer. Whoever knowingly makes a false statement in writing with the intent to mislead a public servant in the performance of his or her official duty commits a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.
(g) If the qualified payment stablecoin issuer has more than $50 billion in consolidated total outstanding issuance, prepare, in accordance with generally accepted accounting principles, an annual financial statement, which must include disclosure of any related party transactions, as defined by such generally accepted accounting principles.
1. A registered public accounting firm must perform an audit of the annual financial statement.
2. Each qualified payment stablecoin issuer required to prepare an audited annual financial statement must comply with all of the following requirements:
a. Make such audited financial statements publicly available on the website of the permitted payment stablecoin issuer.
b. Submit such audited financial statements annually to the office.
(h) Comply with any federal regulations or rules prescribed by the commission relating to capital, liquidity, and risk management requirements.
(i) Engage only custodians or safekeepers that comply with s. 10 of the GENIUS Act, Pub. L. No. 119-27.
(j) Comply with any other federal requirements of s. 4(a) of the GENIUS Act, Pub. L. No. 119-27, and any implementing federal regulations.
(2) A qualified payment stablecoin issuer may not engage in any of the following conduct:
(a) Except as may be authorized under federal law, tying arrangements that condition access to stablecoin services on the purchase of unrelated products or services from such qualified payment stablecoin issuer or an agreement not to obtain products or services from a competitor.
(b) Using deceptive names, which includes, but is not limited to, any of the following:
1. Using any combination of terms relating to the United States Government, except abbreviations directly related to the currency to which a payment stablecoin is pegged, such as “USD.”
2. Marketing a payment stablecoin in such a way that a reasonable person would perceive the payment stablecoin to be legal tender, as described in 31 U.S.C. s. 5103, issued by the United States, or guaranteed or approved by the United States Government.
(c) Paying the holder of any payment stablecoin any form of interest or yield solely in connection with holding, use, or retention of such payment stablecoin if such payment is prohibited under federal law.
