S.Amdt. 2304

SA 2304. Mr. KING 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:

At the appropriate place, insert the following:

SEC. __. INCLUSION OF PAYMENT STABLECOINS IN PROHIBITION
AGAINST FRAUDULENT TRANSACTIONS.

Section 1031 of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5531) is amended by adding at the end the
following:
``(g) Fraudulent Transactions Involving Payment
Stablecoins.--
``(1) Definitions.--In this subsection, the terms `payment
stablecoin', `permitted payment stablecoin issuer', `foreign
payment stablecoin issuer', and `digital asset service
provider' have the meanings given those terms, respectively,
in section 2 of the GENIUS Act.
``(2) Unlawful acts and practices.--Notwithstanding any
other provision in this section, the following shall be
unlawful unfair, deceptive, or abusive acts or practices:
``(A) Use of interstate commerce for purpose of fraud or
deceit.--It shall be unlawful for any person, in connection
with the offer or sale of any payment stablecoin in
interstate commerce, directly or indirectly--
``(i) to employ any device, scheme, or artifice to defraud,
including any misrepresentation of the stability, backing, or
redemption value of any payment stablecoin;
``(ii) to obtain money or property by means of any untrue
statement of a material fact or any omission to state a
material fact necessary in order to make the statements made,
in light of the circumstances under which they were made, not
misleading; or
``(iii) to engage in any transaction, practice, or course
of business which operates or would operate as a fraud or
deceit upon the payment stablecoin purchaser or stablecoin
holder.
``(B) Undisclosed promotional consideration.--It shall be
unlawful for any person to publish, give publicity to, or
circulate any notice, circular, advertisement, newspaper,
article, letter, investment service, or communication in
interstate commerce which describes a payment stablecoin for
a consideration received or to be received, directly or
indirectly, from a permitted payment stablecoin issuer,
foreign payment stablecoin issuer, or digital asset service
provider, without fully disclosing the receipt, whether past
or prospective, of such consideration and the amount thereof.
``(3) Exceptions.--An act or practice described in
paragraph (2) does not include--
``(A) an educational communication that provides neutral
and factual information on the technology behind payment
stablecoins, provided such communication does not promote any
particular payment stablecoin;
``(B) a public statement or action by any officer or agency
of the United States or of any State made in the exercise of
such agency's or officer's official duties; and
``(C) any communication that the Bureau may, by rule,
exempt.
``(4) Enforcement.--
``(A) In general.--The Bureau may enforce this subsection
in the same manner as the Bureau may take action against a
covered person or service provider committing or engaging in
an unlawful unfair, deceptive, or abusive act or practice
under this Act, including by--
``(i) entering an order to cease and desist from conduct
found to be in violation of this subsection;
``(ii) bringing a civil action to enjoin conduct found to
be in violation of this subsection; and
``(iii) imposing or seeking civil money penalties.
``(B) Private right of action.--A purchaser of a payment
stablecoin may bring a civil action in any court of competent
jurisdiction against any person who has committed or engaged
in an unlawful unfair, deceptive, or abusive act or practice
under this subsection in connection with the payment
stablecoin of the purchaser.''.
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