S.Amdt. 2299

As an analyst keeping an eye out for the everyday people, here is the straightforward breakdown of what this amendment is trying to do. Mr. Hickenlooper submitted amendment SA 2299 to the bill S. 1582, which is about regulating payment stablecoins.

What the Amendment Changes

The amendment changes section 4(a) of the bill by replacing paragraph (11) with a new rule about interest. Here is what it aims to add:

• Prohibition on Interest: It states that no permitted payment stablecoin issuer, foreign payment stablecoin issuer, or their affiliates can directly or indirectly pay the holder of any payment stablecoin any form of interest or yield. This applies whether the payment is in cash, tokens, rewards, or other consideration connected to holding, using, or keeping the stablecoin.

• Definitions and Rulemaking: It defines an "affiliate" using the Bank Holding Company Act of 1956. It also requires the primary Federal payment stablecoin regulators to issue rules to carry out this paragraph, including rules that identify activities or transactions that fall outside of this prohibition.