12 USC § 5911 - Application of existing insolvency law

---
identifier: "/us/usc/t12/s5911"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 5911 - Application of existing insolvency law"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "5911"
section_name: "Application of existing insolvency law"
chapter_number: 56
chapter_name: "REGULATION OF PAYMENT STABLECOINS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 119–27, § 11(g), July 18, 2025, 139 Stat. 458.)"
---


# § 5911. Application of existing insolvency law

In accordance with otherwise applicable law, an insolvency proceeding with respect to a permitted payment stablecoin issuer shall occur as follows:

**(1)** A depository institution (as defined in section 1813 of this title) shall be resolved by the Federal Deposit Insurance Corporation, National Credit Union Administration, or State payment stablecoin regulator, as applicable.

**(2)** A subsidiary of a depository institution (as defined in section 1813 of this title) or a nonbank entity may be considered a debtor under title 11.

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**Source Credit**: (Pub. L. 119–27, § 11(g), July 18, 2025, 139 Stat. 458.)

### Delayed Effective Date of Section

For delayed effective date of section, see Effective Date note below.

## Statutory Notes and Related Subsidiaries

### Effective Date

Section effective on the earlier of the date that is 18 months after , or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing , see , set out as a note under .