Prohibits issuing algorithmic payment stablecoins. Requires registration or authorization for issuing payment stablecoins in the U.S. Limits issuance by non-depository trust companies to $10 billion. Establishes safe harbors for limited issuance and foreign regulatory equivalence. Adjusts thresholds for inflation.
Analysis summaries, actor details, and coverage mappings were LLM-classified and may contain errors.
This is a binding legislative act from the United States Congress with mandatory requirements, explicit prohibitions, enforcement mechanisms, and regulatory oversight by federal agencies.
The document has minimal coverage of AI risk domains. It primarily addresses financial regulation of payment stablecoins and does not substantively address AI-specific risks. No AI risk subdomains receive coverage scores above 1, as this is a cryptocurrency/financial services regulation document without AI governance provisions.
This document primarily governs the Finance and Insurance sector, specifically regulating payment stablecoin issuers including depository institutions, non-depository trust companies, and related financial entities. It also has implications for the Information sector through its regulation of distributed ledger technology and crypto assets.
This document does not govern AI systems or the AI lifecycle. It is a financial services regulation governing payment stablecoins (cryptocurrency). No AI lifecycle stages are covered.
This document does not mention or cover AI models, AI systems, or any AI-related technical concepts. It exclusively addresses payment stablecoins, which are cryptocurrency assets, not AI technologies.
United States Congress (Senators Lummis and Gillibrand as sponsors)
The document is titled 'Lummis-Gillibrand Payment Stablecoin Act' indicating congressional sponsorship and legislative proposal by these members of Congress.
Board of Governors of the Federal Reserve System (Board), Comptroller of the Currency (Comptroller), State bank supervisors
The Act designates the Board, Comptroller, and State bank supervisors as the applicable payment stablecoin regulators with authority to oversee, authorize, and regulate payment stablecoin issuers. The Board is specifically empowered to issue regulations and adjust thresholds.
Board of Governors of the Federal Reserve System (Board), Comptroller of the Currency, State bank supervisors
The same regulatory bodies that enforce the Act (Board, Comptroller, State bank supervisors) are responsible for ongoing monitoring and supervision of payment stablecoin issuers, including registration oversight and compliance with the $10 billion threshold.
Payment stablecoin issuers (non-depository trust companies and depository institutions), persons engaging in the business of issuing payment stablecoins or algorithmic payment stablecoins
The Act explicitly regulates entities that issue payment stablecoins, including non-depository trust companies registered with the Board and depository institutions authorized as national payment stablecoin issuers. It prohibits unauthorized persons from issuing payment stablecoins.