S.Amdt. 2323

This amendment, submitted by Ms. Warren, aims to add specific national security and criminal background checks to the bill regarding payment stablecoins. If we are voting to regulate these financial tools, we need to know who is behind them and what risks they pose to our people.

Here is what the amendment changes and adds to the bill:

• It adds a requirement for a report from the Director of National Intelligence. This report must evaluate national security considerations for granting an application, specifically assessing whether the applicant has a history or presents a future risk of facilitating the transfer of child sexual abuse material.

• It requires the Director of National Intelligence to promptly furnish these reports and provide annual updates to primary Federal payment stablecoin regulators and State payment stablecoin regulators.

• It targets criminal convictions or civil penalties against the applicant, or any person owning more than 5 percent of the applicant, for failing to comply with laws related to money laundering, countering the financing of terrorism, or sanctions.

• It makes such a conviction or civil penalty a mandatory basis for declaring the applicant unsafe or unsound, which results in the revocation of their registration.

• It requires the permitted payment stablecoin issuer to liquidate reserve assets and redeem coins within 180 days after a revocation decision, giving regulators the authority to set the rules for how this liquidation and redemption happen.