Application Process: Issuers must demonstrate financial stability, provide background information on key personnel, and meet safety and soundness standards. Federal regulators have 120 days to approve or deny applications, with denials possible if activities are deemed unsafe or unsound.
State vs. Federal Regulation: Issuers with less than $10 billion in stablecoins can operate under state regulatory regimes, with a waiver process for larger issuers to remain state-regulated. Larger issuers are subject to federal oversight to mitigate systemic risks.