Summary
The bill sets a $10 billion limit for non-depository trust institutions to issue payment stablecoins. Once exceeded, issuers must be authorized depository institutions. Circle, the largest U.S.-based stablecoin issuer, does not meet this requirement. Paxos, the next largest, falls below the limit. The limit is seen as a threshold between small community banks and larger regional financial institutions with systemic risk potential.
Key Points
1. The bill sets a $10 billion limit for non-depository trust institutions to issue payment stablecoins.
2. Once an issuer exceeds the $10 billion limit, they must be a depository institution authorized as a national payment stablecoin issuer.
3. The $10 billion limit is seen as a threshold between small community banks and larger regional financial institutions with systemic risk potential.