(a) A permitted payment stablecoin issuer shall at all times maintain identifiable reserve assets backing the issuer’s outstanding payment stablecoins on at least a 1-to-1 basis by fair value. Reserve assets must consist only of the following:

(1) United States coins and currency, including Federal Reserve notes, or money standing to the credit of an account with a Federal Reserve Bank.

(2) Funds held as demand deposits or other deposits that may be withdrawn upon request at any time, or insured shares, at an insured depository institution, subject to any limitations imposed by the Commissioner by regulation to address safety and soundness risks.

(3) United States Treasury bills, notes, or bonds that are any of the following:

a. Have a remaining maturity of 93 days or less.

b. Were issued with a maturity of 93 days or less.

(4) Money received under repurchase agreements with the permitted payment stablecoin issuer acting as a seller of securities and with an overnight maturity, that are backed by United States Treasury bills with a maturity of 93 days or less.

(5) Reverse repurchase agreements with the permitted payment stablecoin issuer acting as a purchaser of securities and with an overnight maturity, collateralized by United States Treasury notes, bills, or bonds on an overnight basis, subject to overcollateralization in line with standard market terms, that are any of the following:

a. Tri-party.

b. Centrally cleared through a clearing agency registered with the Securities and Exchange Commission.

c. Bilateral with a counterparty that the issuer has determined to be adequately creditworthy.

(6) Securities issued by an investment company registered under the Investment Company Act of 1940 [15 U.S.C. § 80a-1 et seq.], or other registered government money market funds, that are invested solely in underlying assets described in paragraphs (a)(1) through (a)(5) of this section.

(7) Any other similarly liquid assets approved in writing by the Commissioner, including any reserve described in paragraphs (a)(1) through (a)(6) of this section in tokenized form, if the tokenized reserves comply with all applicable laws and regulations.

(b) Reserve assets required under subsection (a) of this section may not be pledged, rehypothecated, or reused by the permitted payment stablecoin issuer, either directly or indirectly, except under the following circumstances:

(1) To satisfy margin obligations in connection with permitted investments under paragraphs (a)(4) and (a)(5) of this section.

(2) To satisfy obligations associated with the use, receipt, or provision of standard custodial services.

(3) To create liquidity to meet reasonable expectations of requests to redeem payment stablecoins, such that reserve assets in the form of United States Treasury bills may be sold as purchased securities for repurchase agreements with a maturity of 93 days or less, provided that the Commissioner has approved such activity or the repurchase agreements are cleared by a clearing agency registered with the Securities and Exchange Commission.

(c) Reserve assets must be held with eligible financial institutions. A permitted payment stablecoin issuer shall enter into a written custody agreement with each eligible financial institution holding its reserve assets, documenting that institution’s compliance with the requirements of § 3527 of this title.

(d) The Commissioner shall promulgate regulations establishing the following:

(1) Concentration limits on the percentage of reserve assets that may be held at any single eligible financial institution, to reduce systemic risk; provided that such regulations must include a safe harbor under which an issuer is deemed to satisfy the concentration requirement if it maintains no more than 40% of its reserve assets at any 1 eligible financial institution.

(2) Liquidity standards requiring that a permitted payment stablecoin issuer maintain minimum percentages of its required reserve assets in immediately available form, which standards shall be principles-based and tailored to the business model and risk profile of the issuer, and which may include a safe harbor substantially similar to those set forth in Office of the Comptroller of the Currency final regulations, as amended from time to time.

(e) If at any time a permitted payment stablecoin issuer’s reserve assets fall below the minimum required by subsection (a) of this section, the issuer is subject to all of the following:

(1) The issuer must notify the Commissioner through the Commissioner’s designated supervisory office on the same business day on which the issuer becomes aware, or reasonably should have become aware, that its reserve assets have fallen below the required minimum.

(2) The issuer is prohibited from issuing new payment stablecoins until its reserve assets are restored to the required minimum under subsection (a), except that the issuer may issue payment stablecoins solely as necessary to facilitate the transfer of existing payment stablecoins from 1 distributed ledger to another, provided that such transactions do not increase the net outstanding issuance value.

(f) If the issuer fails to restore its reserve assets to the required minimum within 15 consecutive business days after the deficiency first arose, the issuer must do all of the following:

(1) Immediately commence an orderly liquidation of reserve assets and redemption of all outstanding payment stablecoins in a manner consistent with § 3523 of this title and with regulations promulgated by the Commissioner.

(2) Discontinue any fee to a holder for the redemption of payment stablecoins at any time during the liquidation period.

(g) The Commissioner may extend the 15-consecutive-business-day period under subsection (f) of this section by written order for good cause shown, including where the Commissioner determines that the issuer has submitted a credible remediation plan with a reasonable timeline for attaining compliance. Notwithstanding the foregoing, if the Commissioner determines at any time that a permitted payment stablecoin issuer faces a significant risk of being unable to attain compliance with subsection (a) of this section within a reasonable period, the Commissioner may order the issuer to initiate orderly redemption of all outstanding payment stablecoins. The Commissioner’s authority under this subsection does not limit the Commissioner’s authority to pursue other enforcement measures under subchapter IX of this chapter.

85 Del. Laws, c. 339, § 1; 

(a) A permitted payment stablecoin issuer shall maintain minimum capital sufficient to ensure its ongoing operations. The Commissioner shall promulgate regulations establishing the following:

(1) A minimum fixed capital requirement for de novo permitted payment stablecoin issuers, which must not be less than $5,000,000.

(2) A minimum ongoing capital requirement equal to not less than 12 months of the issuer’s projected operating expenses.

(3) Any additional capital requirements the Commissioner determines are appropriate based on the issuer’s risk profile, business model, outstanding issuance value, or other relevant factors.

(b) The Commissioner may, by regulation or order, require a state-qualified payment stablecoin issuer to maintain capital buffers above the minimum requirements of subsection (a) of this section if the Commissioner determines that additional capital is necessary to ensure the ongoing operations of the issuer, having regard to the issuer’s business model and risk profile.

(c) The Commissioner’s capital requirements under this section shall do the following:

(1) Be tailored to the business model and risk profile of permitted payment stablecoin issuers.

(2) Not exceed requirements that are sufficient to ensure the ongoing operations of the issuer.

(3) Align, to the extent practicable, with capital requirements established by the primary federal payment stablecoin regulators for federal qualified payment stablecoin issuers, to maintain the substantial similarity necessary for GENIUS Act [12 U.S.C. § 5901 et seq.] certification.

85 Del. Laws, c. 339, § 1; 

(a) A permitted payment stablecoin issuer shall publicly disclose its redemption policy, which must do all of the following:

(1) Establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins.

(2) Specify any conditions, limitations, or fees associated with redemption, provided that:

a. Fees may only be changed upon not less than 7 days prior notice to holders.

b. Any discretionary suspension of redemptions may only be imposed by order of the Commissioner under § 3555 of this title, by order of the Board of Governors of the Federal Reserve System, or by a court of competent jurisdiction.

(3) Establish the following mandatory timing standards:

a. Require the issuer to complete any requested redemption not later than 2 business days following the date of the requested redemption, except as otherwise provided in paragraphs (a)(4) and (a)(5) of this section.

b. Prohibit the permitted payment stablecoin issuer from unilaterally limiting, suspending, or otherwise delaying redemptions for any reason in the absence of an order described in paragraph (a)(2)b. of this section.

c. Require the permitted payment stablecoin issuer to honor any redemption request for a whole number of payment stablecoins not less than 1, subject to applicable customer identification and onboarding requirements established by regulation.

(4) If a permitted payment stablecoin issuer faces redemption demands in excess of 10% of its outstanding issuance value in a single 24-hour period, the period for timely redemption under paragraph (a)(3)a. of this section is immediately extended to 7 calendar days by operation of this paragraph (a)(4) with respect to all redemption requests outstanding at the time the 10% threshold is met and all subsequent redemption requests. The issuer must notify the Commissioner within 24 hours of the time at which the 10% threshold is met. The Commissioner may, in the Commissioner’s discretion, permit the issuer to resume normal 2-business-day redemption prior to the expiration of the 7 calendar-day period upon a finding that the issuer has the ability to redeem in an orderly and fair manner. This extended period is nondiscretionary and operates by statute upon the occurrence of the trigger event.

(5) The required redemption policy disclosure must be posted in a clear and conspicuous manner on the issuer’s publicly accessible website and must include a statement consistent with paragraph (a)(3) of this section explaining the mandatory timing standards and the limited circumstances under which redemptions may be delayed.

(b) The Commissioner may, by written order, extend or modify the redemption period applicable to a permitted payment stablecoin issuer beyond the periods specified in this subsection in the event of an extraordinary market disruption, systemic liquidity crisis, material cybersecurity incident, or other emergency conditions posing imminent risk of harm to payment stablecoin holders or the financial system. Any order under this subsection must specify the duration and conditions of any extension and is subject to review under § 3555 of this title.

(c) A permitted payment stablecoin issuer may not pay interest or yield on payment stablecoins to holders. This prohibition does not prevent an issuer from earning returns on its reserve assets for the issuer’s own account. Notwithstanding anything in this subsection, if any federal law, regulation, order, or guidance permits a federally chartered or federally licensed payment stablecoin issuer to pay interest or yield on payment stablecoins to holders, then a state-chartered or state-licensed permitted payment stablecoin issuer shall be equally permitted to pay interest or yield on payment stablecoins to holders on the same terms and to the same extent as authorized for a federally permitted issuer, without further legislative action.

(d) A permitted payment stablecoin issuer may not issue or market a payment stablecoin in any name, mark, or description that states or implies that the payment stablecoin is issued, guaranteed, or backed by the United States government or any agency thereof.

(e) A permitted payment stablecoin issuer may not make the issuance of a payment stablecoin contingent upon the purchase of any other product or service.

85 Del. Laws, c. 339, § 1;