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Subject to section 507(e) of title 11, as added by subsection (d), in any insolvency proceeding of a permitted payment stablecoin issuer under Federal or State law, including any proceeding under that title and any insolvency proceeding administered by a State payment stablecoin regulator with respect to a permitted payment stablecoin issuer—(1) the claim of a person holding payment stablecoins issued by the permitted payment stablecoin issuer shall have priority, on a ratable basis with the claims of other persons holding such payment stablecoins, over the claims of the permitted payment stablecoin issuer and any other holder of claims against the permitted payment stablecoin issuer, with respect to required payment stablecoin reserves; (2) notwithstanding any other provision of law, including the definition of “claim” under section 101(5) of title 11, any person holding a payment stablecoin issued by the permitted payment stablecoin issuer shall be deemed to hold a claim; and (3) the priority under paragraph (1) shall not apply to claims other than those arising directly from the holding of payment stablecoins. (Pub. L. 119–27, § 11(a), July 18, 2025, 139 Stat. 457.) Delayed Effective Date of SectionFor delayed effective date of section, see Effective Date note below. Editorial Notes References in TextSubsection (d), referred to in introductory provisions, means subsec. (d) of section 11 of Pub. L. 119–27. Statutory Notes and Related Subsidiaries Effective DateSection effective on the earlier of the date that is 18 months after July 18, 2025, or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, see section 20 of Pub. L. 119–27, set out as a note under section 5901 of this title.

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