---
kind: "section"
citation: "12 U.S.C. § 5915"
title: "12"
title_heading: "Banks and Banking"
number: "5915"
heading: "Authority of banking institutions"
release: "119-102"
url: "https://uscodex.org/usc/12/5915"
units:
  - "Chapter 56 — Regulation of Payment Stablecoins"
---

# §5915. Authority of banking institutions

- (a) **Rule of construction—** Nothing in this chapter may be construed to limit the authority of a [depository institution](/usc/12/24a.md?p=g-2), Federal [credit union](/usc/12/3423.md?p=a-1-E), [State](/usc/12/5901.md?p=28) [credit union](/usc/12/3423.md?p=a-1-E), [national bank](/usc/12/221a.md?p=a), or trust [company](/usc/12/24a.md?p=g-1) to engage in activities permissible pursuant to applicable [State](/usc/12/5901.md?p=28) and Federal law, [including](/usc/12/25b.md?p=a-3)—
  - (1) accepting or receiving [deposits](/usc/12/5301.md?p=18-A) or shares (in the case of a [credit union](/usc/12/3423.md?p=a-1-E)), and issuing [digital assets](/usc/12/5901.md?p=6) that represent those [deposits](/usc/12/5301.md?p=18-A) or shares;
  - (2) utilizing a [distributed ledger](/usc/12/5901.md?p=8) for the books and records of the entity and to effect intrabank transfers; and
  - (3) providing custodial services for [payment stablecoins](/usc/12/5901.md?p=22), private keys of [payment stablecoins](/usc/12/5901.md?p=22), or reserves backing [payment stablecoins](/usc/12/5901.md?p=22).
- (b) **Regulatory review—** Entities regulated by the [primary Federal payment stablecoin regulators](/usc/12/5901.md?p=25) are authorized to engage in the [payment stablecoin](/usc/12/5901.md?p=22) activities and investments contemplated by this chapter, [including](/usc/12/25b.md?p=a-3) acting as a principal or agent with respect to any [payment stablecoin](/usc/12/5901.md?p=22) and payment of fees to facilitate customer transactions. The [primary Federal payment stablecoin regulators](/usc/12/5901.md?p=25) shall review all existing guidance and regulations, and if necessary, amend or promulgate new regulations and guidance, to clarify that regulated entities are authorized to engage in such activities and investments.
- (c) **Treatment of custody activities—** The [appropriate Federal banking agency](/usc/12/24a.md?p=g-2), the National [Credit Union](/usc/12/3423.md?p=a-1-E) Administration (in the case of a [credit union](/usc/12/3423.md?p=a-1-E)), and the Securities and Exchange Commission may not require a [depository institution](/usc/12/24a.md?p=g-2), [national bank](/usc/12/221a.md?p=a), Federal [credit union](/usc/12/3423.md?p=a-1-E), [State](/usc/12/5901.md?p=28) [credit union](/usc/12/3423.md?p=a-1-E), or trust [company](/usc/12/24a.md?p=g-1), or any [affiliate](/usc/12/24a.md?p=g-1) thereof—
  - (1) to include [digital assets](/usc/12/5901.md?p=6) held in custody that are not owned by the entity as a liability on the financial statement or balance sheet of the entity, [including](/usc/12/25b.md?p=a-3) [payment stablecoin](/usc/12/5901.md?p=22) custody or safekeeping activities; or
  - (2) to hold in custody or safekeeping regulatory [capital](/usc/12/51c.md) against [digital assets](/usc/12/5901.md?p=6) and reserves backing such assets described in [section 5903(a)(1)(A) of this title](/usc/12/5903.md?p=a-1-A), except as necessary to mitigate against operational risks inherent in custody or safekeeping services, as determined by—
    - (A) the [appropriate Federal banking agency](/usc/12/24a.md?p=g-2);
    - (B) the National [Credit Union](/usc/12/3423.md?p=a-1-E) Administration (in the case of a [credit union](/usc/12/3423.md?p=a-1-E));
    - (C) a [State bank supervisor](/usc/12/3101.md?p=17); or
    - (D) a [State](/usc/12/5901.md?p=28) [credit union](/usc/12/3423.md?p=a-1-E) supervisor.
- (d) **State-chartered depository institutions—**
  - (1) **In general—** A [depository institution](/usc/12/24a.md?p=g-2) chartered under the banking laws of a [State](/usc/12/5901.md?p=28), that has a [subsidiary](/usc/12/24a.md?p=g-1) that is a [permitted payment stablecoin issuer](/usc/12/5901.md?p=23), may engage in the business of [money](/usc/12/5901.md?p=18) transmission or provide custodial services through the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) in any [State](/usc/12/5901.md?p=28) if such [State](/usc/12/5901.md?p=28)-chartered [depository institution](/usc/12/24a.md?p=g-2) is—
    - (A) required by the laws or regulations of the [home State](#e-1) to establish and maintain adequate liquidity, and such liquidity is regularly reassessed by the [home State](#e-1) banking supervisor to take into account any changes in the financial condition and risk profile of the institution, [including](/usc/12/25b.md?p=a-3) any uninsured deposits maintained by such institution; and
    - (B) required by the laws or regulations of the [home State](#e-1) to establish and maintain adequate [capital](/usc/12/51c.md), and such [capital](/usc/12/51c.md) is regularly reassessed by the [home State](#e-1) banking supervisor to take into account any changes in the financial condition and risk profile of the institution, [including](/usc/12/25b.md?p=a-3) any uninsured deposits maintained by such institution.
  - (2) **Rule of construction—** Nothing in this section shall limit, or be construed to limit, the authority of a [host State](#e-2) [bank](/usc/12/1426a.md?p=g-1) regulator, to perform examinations of a [depository institution](/usc/12/24a.md?p=g-2)’s [subsidiary](/usc/12/24a.md?p=g-1) [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) or activities conducted through the [permitted payment stablecoin issuer](/usc/12/5901.md?p=23) to ensure compliance with [host State](#e-2) [consumer](/usc/12/5481.md?p=4) protection laws that the [host State](#e-2) [bank](/usc/12/1426a.md?p=g-1) regulator has specific jurisdiction to enforce, which shall apply to such institution consistent with [section 5906(f) of this title](/usc/12/5906.md?p=f).
- (e) **Definitions—** In this section:
  - (1) **Home State—** The term “home State” means the [State](/usc/12/5901.md?p=28) by which the [depository institution](/usc/12/24a.md?p=g-2) is chartered.
  - (2) **Host State—** The term “host State” means a [State](/usc/12/5901.md?p=28) in which a [depository institution](/usc/12/24a.md?p=g-2) establishes a branch, solicits customers, or otherwise engages in business activities, other than the [home State](#e-1).

## Source credit

(Pub. L. 119–27, § 16, July 18, 2025, 139 Stat. 461.)

## Notes

### Delayed Effective Date of Section

For delayed effective date of section, see Effective Date note below.

### Editorial Notes

### References in Text

This chapter, referred to in subsecs. (a) and (b), was in the original “this Act”, meaning Pub. L. 119–27, July 18, 2025, 139 Stat. 419, known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act and also as the GENIUS Act, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 5901 of this title and Tables.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the earlier of the date that is 18 months after July 18, 2025, or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, see section 20 of Pub. L. 119–27, set out as a note under section 5901 of this title.