S.Amdt. 2268

Submitted by: Ms. Slotkin, along with Ms. Lummis, as an amendment to the bill S. 1582 regarding the regulation of payment stablecoins.

Main Purpose: It gives a State payment stablecoin regulator or an appropriate Federal banking agency the power to limit, condition, or prohibit certain rules (specifically paragraph (2) of the bill).

Why They Can Do It: Regulators can step in when it is necessary to mitigate systemic risk, protect depositors and consumers, address liquidity or operational risks, or preserve the safety and soundness of insured depository institutions.

How It Works: When regulators make these rules or orders, they must tailor the requirements based on the nature of the custodial arrangement, the type and risk profile of the permitted payment stablecoin issuer, the size and complexity of the insured depository institution, and the scope of commingled activity.