[Congressional Record Volume 171, Number 96 (Thursday, June 5, 2025)]
[Senate]
[Page S3259]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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.''.
                                 ______