S.Amdt. 2346

Mr. Hawley and Mr. Blumenthal submitted SA 2346 to the bill S. 1582 regarding the regulation of payment stablecoins. If we want to hold folks accountable, we need to know what changes they are trying to push through. Common sense tells us this amendment targets big tech companies and online platforms that promote or handle digital money.

Key Changes Added to the Bill

• Adds a definition for an interactive computer service, which includes any system or access software provider that connects multiple users to a computer server or the internet, averages more than 25,000,000 unique monthly users or has 25,000,000 user accounts, and includes any parent, subsidiary, and affiliate.

• Removes certain legal liability protections for these large interactive computer services regarding the promotion, marketing, or facilitation of a transaction involving a payment stablecoin.

• Applies this removal of liability protection if the interactive computer service fails to take reasonable steps to prevent material misrepresentation, market manipulation, or unauthorized promotion of the asset.

• Applies this removal of liability protection if the service materially edits or amplifies content relating to digital asset investment, including through algorithmic curation or boosting.

• Applies this removal of liability protection if the service fails to take reasonable steps to prevent illegal activity transacted using the asset.