S.Amdt. 2253

SA 2253. Mr. REED submitted an amendment intended to be proposed by
him to the bill S. 1582, to provide for the regulation of payment
stablecoins, and for other purposes; which was ordered to lie on the
table; as follows:

Strike section 4(a)(10) and insert the following:
(10) Auditing and internal controls.--
(A) Management responsibility for financial statements and
internal controls.--Each payment stablecoin issuer shall
prepare--
(i) annual financial statements in accordance with
generally accepted accounting principles and such other
disclosure requirements as the primary Federal payment
stablecoin regulators and State payment stablecoin regulators
may prescribe; and
(ii) a report signed by the chief executive officer and the
chief accounting or financial officer of the institution
which contains--

(I) a statement of the management's responsibilities for--

(aa) preparing financial statements;
(bb) establishing and maintaining an adequate internal
control structure and procedures for financial reporting; and
(cc) complying with the laws and regulations relating to
safety and soundness which

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are designated by the primary Federal payment stablecoin
regulators and State payment stablecoin regulators; and

(II) an assessment, as of the end of the institution's most
recent fiscal year, of--

(aa) the effectiveness of such internal control structure
and procedures; and
(bb) the institution's compliance with the laws and
regulations relating to safety and soundness which are
designated by the primary Federal payment stablecoin
regulators and State payment stablecoin regulators.
(B) Internal control evaluation and reporting requirements
for independent public accountants.--
(i) In general.--With respect to any internal control
report of any institution, the institution's independent
public accountant shall attest to, and report separately on,
the assertions of the institution's management contained in
such report.
(ii) Attestation requirements.--Any attestation pursuant to
clause (i) shall be made in accordance with generally
accepted standards for attestation engagements.
(C) Annual independent audits of financial statements.--
(i) Audits required.--The primary Federal payment
stablecoin regulators and State payment stablecoin regulators
shall prescribe regulations requiring that each payment
stablecoin issuer shall have an annual independent audit made
of the institution's financial statements by an independent
public accountant in accordance with generally accepted
auditing standards.
(ii) Scope of audit.--In connection with any audit under
this subparagraph, the independent public accountant shall
determine and report whether the financial statements of the
issuer--

(I) are presented fairly in accordance with generally
accepted accounting principles; and
(II) comply with such other disclosure requirements as the
primary Federal payment stablecoin regulators and State
payment stablecoin regulators may prescribe.

(D) Form and content of reports and auditing standard.--The
scope of each report by an independent public accountant
pursuant to this paragraph, and the procedures followed in
preparing such report, shall meet or exceed the scope and
procedures required by generally accepted auditing standards
and other applicable standards recognized by the primary
Federal payment stablecoin regulators and State payment
stablecoin regulators.
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