Who may hold reserves, collateral, and issuance keys

Statutory text, verbatim

Citation

GENIUS Act § 10

Document

S. 1582 ENROLLED (119th Congress)

Source URL

https://www.congress.gov/119/bills/s1582/BILLS-119s1582enr.htm

Retrieved

2026-07-25

Quoted exactly as it appears in the enrolled bill, including its line breaks and indentation. ReserveBeat does not re-wrap, edit, or abridge statutory text.

SEC. 10. CUSTODY OF PAYMENT STABLECOIN RESERVE AND COLLATERAL.
    (a) In General.--A person may only engage in the business of 
providing custodial or safekeeping services for the payment stablecoin 
reserve, the payment stablecoins used as collateral, or the private 
keys used to issue permitted payment stablecoins if the person--
        (1) is subject to--
            (A) supervision or regulation by a primary Federal payment 
        stablecoin regulator or a primary financial regulatory agency 
        described under subparagraph (B) or (C) of section 2(12) of the 
        Dodd-Frank Wall Street Reform and Consumer Protection Act (12 
        U.S.C. 5301(12)); or
            (B) supervision by a State bank supervisor, as defined 
        under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
        1813), or a State credit union supervisor, as defined under 
        section 6003 of the Anti-Money Laundering Act of 2020 (31 
        U.S.C. 5311 note), and such State bank supervisor or State 
        credit union supervisor makes available to the Board such 
        information as the Board determines necessary and relevant to 
        the categories of information under subsection (d); and
        (2) complies with the requirements under subsection (b), unless 
    such person holds such property in accordance with similar 
    requirements as required by a primary Federal payment stablecoin 
    regulator, the Securities and Exchange Commission, or the Commodity 
    Futures Trading Commission.
    (b) Customer Property Requirement.--A person described in 
subsection (a) shall, with respect to other property described in that 
subsection--
        (1) treat and deal with the payment stablecoins, private keys, 
    cash, and other property of a person for whom or on whose behalf 
    the person described in that subsection receives, acquires, or 
    holds payment stablecoins, private keys, cash, and other property 
    (hereinafter referred to in this section as the ``customer'') as 
    belonging to such customer and not as the property of such person; 
    and
        (2) take such steps as are appropriate to protect the payment 
    stablecoins, private keys, cash, and other property of a customer 
    from the claims of creditors of the person.
    (c) Commingling Prohibited.--
        (1) In general.--Payment stablecoin reserves, payment 
    stablecoins, cash, and other property of a permitted payment 
    stablecoin issuer or customer shall be separately accounted for by 
    a person described in subsection (a) and shall be segregated from 
    and not be commingled with the assets of the person.
        (2) Exceptions.--Notwithstanding paragraph (1) or subsection 
    (b)--
            (A) the payment stablecoin reserves, payment stablecoins, 
        cash, and other property of a permitted payment stablecoin 
        issuer or customer may, for convenience, be commingled and 
        deposited in an omnibus account holding the payment stablecoin 
        reserves, payment stablecoins, cash, and other property of more 
        than 1 permitted payment stablecoin issuer or customer at a 
        State chartered depository institution, an insured depository 
        institution, national bank, or trust company, and any payment 
        stablecoin reserves in the form of cash held in the form of a 
        deposit liability at a depository institution shall not be 
        subject to any requirement relating to the separation of such 
        cash from the property of the applicable depository 
        institution;
            (B) such share of the payment stablecoin reserves, payment 
        stablecoins, cash, and other property of the permitted payment 
        stablecoin issuer or customer that shall be necessary to 
        transfer, adjust, or settle a transaction or transfer of assets 
        may be withdrawn and applied to such purposes, including the 
        payment of commissions, taxes, storage, and other charges 
        lawfully accruing in connection with the provision of services 
        by a person described in subsection (a);
            (C) in accordance with such terms and conditions as a 
        primary Federal payment stablecoin regulator may prescribe by 
        rule, regulation, or order, any payment stablecoin reserves, 
        payment stablecoins, cash, and other property described in this 
        subsection may be commingled and deposited in permitted payment 
        stablecoin issuer or customer accounts with payment stablecoin 
        reserves, payment stablecoins, cash, and other property 
        received by the person and required by the primary Federal 
        payment stablecoin regulator to be separately accounted for, 
        treated as, and dealt with as belonging to such permitted 
        payment stablecoin issuers or customers; or
            (D) an insured depository institution that provides 
        custodial or safekeeping services for payment stablecoin 
        reserves shall be permitted to hold payment stablecoin reserves 
        in the form of cash on deposit provided such treatment is 
        consistent with Federal law.
        (3) Customer priority.--With respect to payment stablecoins 
    held by a person described in subsection (a) for a customer, with 
    or without the segregation required under paragraph (1), the claims 
    of the customer against such person with respect to such payment 
    stablecoins shall have priority over the claims of any person other 
    than the claims of another customer with respect to payment 
    stablecoins held by such person described in subsection (a), unless 
    the customer expressly consents to the priority of such other 
    claim.
    (d) Regulatory Information.--A person described under subsection 
(a) shall submit to the applicable primary Federal payment stablecoin 
regulator information concerning the person's business operations and 
processes to protect customer assets, in such form and manner as the 
primary regulator shall determine.
    (e) Exclusion.--The requirements of this section shall not apply to 
any person solely on the basis that such person engages in the business 
of providing hardware or software to facilitate a customer's own 
custody or safekeeping of the customer's payment stablecoins or private 
keys.

What ReserveBeat does with this

Section 4(a)(1)(C)(ii) makes the geographic location of custody part of what an issuer publishes monthly, so custody reaches the coverage board as a disclosed attribute of a reserve category, carried verbatim. ReserveBeat performs no independent check that a named custodian is supervised, and the board asserts nothing about a custodian's status.

Terms used in this provision

• Permitted reserve assets
• Monthly reserve disclosure
• Reserve composition

Definitions live in the learn section. ReserveBeat defines terms in one place and links to it.

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