Introduced in Senate (03/23/2020) 116th CONGRESS 2d Session S. 3571 To require member banks to maintain pass-through digital dollar wallets for certain persons, and for other purposes.
IN THE SENATE OF THE UNITED STATES March 23, 2020 Mr. Brown introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL To require member banks to maintain pass-through digital dollar wallets for certain persons, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. Short title. This Act may be cited as the “Banking for All Act”.
SEC. 2. Definitions. In this Act: (1) DIGITAL DOLLARS.—The term “digital dollars” means dollar balances consisting of digital ledger entries recorded as liabilities in the accounts of any Federal reserve bank.
(2) DIGITAL DOLLAR WALLETS.—The term “digital dollar wallet” means a digital wallet or account, maintained by a Federal reserve bank on behalf of any person, for the purpose of holding digital dollar balances.
(3) MEMBER BANK.—The term “member bank” means any national bank, State bank, or bank or trust company which has become a member of one of the reserve banks created by the Federal Reserve Act (12 U.S.C. 221 et seq.).
(4) PASS-THROUGH DIGITAL DOLLAR WALLETS.—The term “pass-through digital dollar wallet” means a digital wallet or account, maintained by a member bank on behalf of any person, entitling that person to a pro rata share of a pooled reserve balance that the member bank maintains at any Federal reserve bank.
(5) POSTAL RETAIL FACILITY.—The term “postal retail facility”— (A) means post office, post office branch, post office classified station, or other facility that is operated by the Postal Service, the primary function of which is to provide retail postal services; and (B) does not include a contractor-operated facility offering postal services.
(6) POSTAL SERVICE.—The term “Postal Service” means the United States Postal Service. SEC. 3. Authority and mandate for member banks to maintain pass-through digital dollar wallets. (a) Obligations of member banks.—
(1) IN GENERAL.—Member banks shall open and maintain pass-through digital dollar wallets for all persons, including persons eligible to receive payments from the United States pursuant to a Federal law relating to the coronavirus disease 2019 (COVID–19), who elect to deposit funds into pass-through digital dollar wallets.
(2) MAINTENANCE OF ASSETS.—
(A) IN GENERAL.—Each member bank shall establish and maintain a separate legal entity for the exclusive purpose of holding all assets and maintaining all liabilities associated with pass-through digital wallets.
(B) CONTENTS.—The assets of any entity described in subparagraph (A) shall consist exclusively of a balance maintained in a master account at a Federal reserve bank, and the liabilities or obligations of the entity shall consist exclusively of an equal quantity of balances maintained by holders of pass-through digital wallets.
(C) CAPITAL OR LIQUIDITY REGULATION.—The assets and liabilities of any legal entity described in subparagraph (A) shall not be deemed assets or liabilities of the member bank or its affiliates for purposes of any capital or liquidity regulation promulgated by Federal or State banking authorities.
(D) ONLINE APPLICATION REQUIREMENT FOR LARGE BANKS.—Member banks with total consolidated assets greater than $10,000,000,000 shall promptly offer application, through online or telephonic means, for pass-through digital wallets.
(b) Terms of pass-Through digital dollar wallets.—Pass-through digital dollar wallets
(1) shall not be subject to any account fees, minimum balances, or maximum balances and shall pay interest at a rate not below the greater of the rate of interest on required reserves and the rate of interest on excess reserves;
(2) shall provide functionality and service levels no less favorable than those that the member bank offers for its existing transaction accounts, including with respect to debit cards, automated teller machines, online account access, automatic bill-pay, mobile banking, customer service and such other services as the Board of Governors of the Federal Reserve System determines appropriate in the public interest, provided that digital dollar wallets shall not include overdraft coverage;
(3) shall be prominently branded in all account statements, marketing materials, and other communications as “pass-through FedAccounts” maintained by the member bank on behalf of the Federal Reserve;
(4) may not be closed or restricted by the bank on the basis of profitability considerations; and
(5) shall provide account holders with reasonable protection against losses caused by fraud or security breaches. (c) Reimbursement for costs.— Continued: https://www.congress.gov/bill/116th-congress/senate-bill/3571/text