"Included in the legislation is a provision declaring that if a bank goes bankrupt or becomes insolvent, 'the claim of a person holding payment stablecoins issued by the payment stablecoin issuer shall have priority over all other claims against the payment stablecoin issuer.'"
Stablecoin owners. Not any crypto owner.
When a bank fails, "the order of priority is as follows:
1. Secured creditors to the extent of their perfected security interest
2. Depositors (including the FDIC to the extent it has paid deposit insurance claims or arranged for assumption of deposits)
3. General creditors (including depositors holding deposits payable solely at a foreign office)
Stablecoin owners. Not any crypto owner.
When a bank fails, "the order of priority is as follows:
1. Secured creditors to the extent of their perfected security interest
2. Depositors (including the FDIC to the extent it has paid deposit insurance claims or arranged for assumption of deposits)
3. General creditors (including depositors holding deposits payable solely at a foreign office)
4. Subordinated creditors
5. Equity holders (e.g., parent holding company)" [1].
This bill is basically elevating stablecoins to a secured obligation. Inasmuch as they are 1:1 backed by high-quality assets, that seems fine.
[1] https://www.goodwinlaw.com/en/insights/publications/2024/01/...
Given crypto, are there any tangible assets?