S.Amdt. 2349

SA 2349. Mr. MERKLEY (for himself, Mr. Schumer, Ms. Warren, Mr.
Peters, Mr. Reed, Mr. Murphy, Mr. Bennet, Mr. Kelly, Mr. Van Hollen,
Mr. Whitehouse, and Mr. Warnock) 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(i) and insert the following:
(i) Rules of Construction.--Nothing in this Act shall be
construed as expanding the authority of the Board with
respect to the services the Board can make directly available
to the public.
(j) Preventing Payment Stablecoin Corruption.--
(1) Definitions.--In this subsection--
(A) the term ``covered former special Government employee''
means an individual who--
(i) served as a special Government employee associated with
the Executive Office of the President on or after January 1,
2024; and
(ii) ceased to serve as a special Government employee
associated with the Executive Office of the President during
the period beginning on January 2, 2024 and ending on the day
before the date of enactment of this Act;
(B) the term ``covered individual'' means--
(i) the President;
(ii) the Vice President;
(iii) a Member of Congress;
(iv) an individual appointed to a Senate-confirmed
position;
(v) a special Government employee associated with the
Executive Office of the President; or
(vi) a covered former special Government employee;
(C) the term ``directly'' means by virtue of the ownership
or beneficial interest of a covered individual, or the spouse
or child of a covered individual, in a payment stablecoin
issuer;
(D) the term ``indirectly'' means by virtue of the
financial interest of a covered individual, or the spouse or
child of a covered individual, in a business entity,
partnership interest, company, investment fund, trust, or
other third party in which the covered individual, or the
spouse or child of a covered individual, has an ownership or
beneficial interest;
(E) the term ``Member of Congress'' has the meaning given
that term in section 13101 of title 5, United States Code;
(F) the term ``promote'' includes the use of the name and
likeness of a covered individual in any marketing materials,
including in the title of the payment stablecoin; and
(G) the term ``special Government employee'' has the
meaning given the term in section 202(a) of title 18, United
States Code.
(2) Prohibition.--
(A) In general.--It shall be unlawful for any covered
individual described in clauses (i) through (v) of paragraph
(1)(B), or any spouse or child of such a covered individual,
to directly or indirectly own, control, promote in exchange
for anything of value, or affiliate with any payment
stablecoin issuer or any entity that provides custodial or
safekeeping services for payment stablecoins.
(B) Covered former special government employees.--It shall
be unlawful for any covered former special Government
employee, or any spouse or child of a covered special
Government employee, to directly or indirectly own, control,
promote in exchange for anything of value, or affiliate with
any payment stablecoin issuer or any entity that provides
custodial or safekeeping services for payment stablecoins
during the 1-year period beginning on the last day of service
of the covered former special Government employee as a
special Government employee associated with the Executive
Office of the President.
(3) Transition.--Any individual in violation of
subparagraph (A) or (B) of paragraph (2) on the date of
enactment of this Act shall, not later than 90 days after the
date of enactment of this Act, come into compliance with the
applicable prohibition under that paragraph.
(4) Enforcement.--
(A) In general.--Beginning on the date that is 90 days
after the date of enactment of this Act, a violation of
subparagraph (A) or (B) of paragraph (2) shall be punishable
by not more than 5 years in prison and fines of not more than
3 times the monetary value of any earnings related to the
violation.
(B) Not an official act.--A violation of paragraph (2)(A)
shall not be deemed an official act if committed by any
covered individual described in clauses (i) through (v) of
paragraph (1)(B) who is in office at the time of the
violation.
(C) Statute of limitations.--No person shall be prosecuted,
tried, or punished for any offense under this subsection
unless the indictment for such offense is found, or the
information for such offense is instituted, not later than 15
years after the date on which the offense was committed.
(k) Financial Disclosure Reports.--Section 13104(b) of
title 5, United States Code, is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
``(2) Disclosure relating to payment stablecoin
involvement.--
``(A) Definitions.--In this paragraph:
``(i) Directly.--The term `directly' means by virtue of the
ownership or beneficial interest of a reporting individual,
or the spouse or child of a reporting individual, in a
payment stablecoin issuer.
``(ii) Indirectly.--The term `indirectly' means by virtue
of the financial interest of a reporting individual, or the
spouse or child of a reporting individual, in a business
entity, partnership interest, company, investment fund,
trust, or other third party in which the reporting
individual, or the spouse or child of a reporting individual,
has an ownership or beneficial interest.
``(iii) Payment stablecoin.--The term `payment stablecoin'
has the meaning given the term in section 2 of the GENIUS
Act.
``(iv) Promote.--The term `promote' includes the use of the
name and likeness of a reporting individual in any marketing
materials, including in the title of the payment stablecoin.
``(B) Requirement.--Each report filed pursuant to
subsections (b) and (c) of section 13103 shall include a
statement of whether the reporting individual, or the spouse
or child of the reporting individual, as of the filing date,
directly or indirectly owns, controls, promotes in exchange
for anything of value, or affiliates with any payment
stablecoin issuer or any entity that provides custodial or
safekeeping services for payment stablecoins.''.
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