S.Amdt. 2304

This amendment, submitted by Mr. King, aims to protect the people by adding new rules against fraudulent transactions involving payment stablecoins to the Consumer Financial Protection Act of 2010. If we want to hold our elected officials and the entities they oversee accountable, this text lays down clear expectations for what is considered unlawful.

Key Changes To The Bill

• Fraud Prohibition: It makes it unlawful to use interstate commerce for fraud or deceit when offering or selling payment stablecoins, including lying about their stability, backing, or redemption value, or hiding important facts.

• Undisclosed Promotions: It bans anyone from promoting a payment stablecoin in interstate commerce for payment without fully disclosing that they received compensation and how much it was.

• Clear Exceptions: The rules do not apply to neutral educational communications about the technology, official statements by United States or State officers and agencies, or any communication exempted by the Bureau.

• Enforcement And Accountability: The Bureau can enforce these rules using cease and desist orders, civil actions to stop the conduct, and civil money penalties. Additionally, a purchaser of a payment stablecoin gets a private right of action to bring a civil action against anyone who breaks these rules.