S.Amdt. 2250

Mr. Reed proposed SA 2250 to change how payment stablecoin issuers must back their digital currency. Right now, we need to make sure the people we voted into office are keeping these financial products safe and accountable.

This amendment changes section 4(a)(1) of the bill by replacing subparagraph (A). It requires issuers to maintain reserves backing their outstanding payment stablecoins on an at least 1 to 1 basis.

What Counts as Reserves

• United States coins and currency, including Federal reserve notes.

• Funds held as insured demand deposits or other deposits that can be withdrawn upon request at any time at insured depository institutions, or insured shares at insured depository institutions. These are subject to limitations set by the Corporation and the National Credit Union Administration to address safety and soundness risks.

• Treasury bills with a remaining maturity of 93 days or less or issued with a maturity of 93 days or less, and with a weighted average maturity of not more than 30 days.