The proposed stablecoin circuit-breaker turns on a time-limited Treasury determination, consultation and rulemaking. Certain state ethics actions would instead follow a specified federal court route, with ethics-office exceptions. Reading the actual triggers and defendants is necessary to understand who could use each proposed power.
CLARITY Act — September 14 proposed substitute → US Treasury Secretary — proposed stablecoin intervention
Would confer conditional rulemaking power
Observed in noon pass 14 September 2026; scan cutoff 17:00:54 UTC
Section 10404(c)(3)(C) requires a written Treasury finding within 18 months of enactment of substantial detrimental deposit transfers from banks with assets below $10 billion, specifically tied to regulated activities; rules follow notice/comment and OCC, FDIC and Federal Reserve consultation.
CLARITY Act — September 14 proposed substitute → CLARITY draft — state ethics-enforcement route
Would create constrained state action
Observed in noon pass 14 September 2026; scan cutoff 17:00:54 UTC
Proposed 5 USC 13153(d) separates state actions against the US Attorney General over covered-official violations from direct actions against intermediaries over prohibited listing.
Observed in noon pass 14 September 2026; scan cutoff 17:00:54 UTC
Section 10404(c)(3)(C) requires a written Treasury finding within 18 months of enactment of substantial detrimental deposit transfers from banks with assets below $10 billion, specifically tied to regulated activities; rules follow notice/comment and OCC, FDIC and Federal Reserve consultation. Proposed authority only; 18 months bounds the determination window, not a proven expiry date for resulting rules.
Observed in noon pass 14 September 2026; scan cutoff 17:00:54 UTC
Proposed 5 USC 13153(d) separates state actions against the US Attorney General over covered-official violations from direct actions against intermediaries over prohibited listing. Certain ethics-office opinions/notices bar the first route; no enacted power or successful lawsuit is established.