[Congressional Record Volume 171, Number 86 (Wednesday, May 21, 2025)]
[Senate]
[Pages S3082-S3083]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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

[[Page S3083]]

     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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