This legislation creates a federal registration system for eligible state-licensed payment service providers. This framework allows "registered covered providers" to operate across states if they meet specific criteria, such as holding numerous money transmitter licenses or a state depository institution charter. The Comptroller of the Currency is responsible for evaluating applications based on factors like financial resources, risk management, and public benefit. A core component of the bill is the establishment of stringent customer protection standards. Registered providers must maintain 1:1 reserves for all outstanding payment obligations, using highly liquid assets like U.S. currency, Federal Reserve bank credit, or short-term Treasury securities. Crucially, these reserves cannot be rehypothecated, and customer funds held for access or custody services must be segregated from the provider's own assets. The legislation also imposes risk management standards, aligning them with those for stablecoin issuers, and includes a fair access obligation . This prevents providers from denying services based on protected beliefs or political views, requiring decisions to be individualized and risk-based. The Comptroller is empowered to examine these providers, oversee contracted services, and enforce compliance, including taking actions similar to those against insured depository institutions. For nonbank registered providers, the bill outlines specific insolvency procedures, excluding them from traditional bankruptcy chapters 7 and 11. Instead, they are subject to state insolvency proceedings, with the Comptroller having backup authority to intervene. In the event of insolvency, customer claims for outstanding payment obligations are given priority after administrative expenses. Furthermore, the bill grants registered covered providers access to Federal Reserve payment systems, such as Fedwire, FedNow, and FedACH, similar to insured depository institutions. The Board of Governors can issue cease and desist orders in unusual circumstances if these accounts are misused. Finally, the Act clarifies that a balance with a registered covered provider is explicitly not considered a "security" under various federal securities laws, addressing a key regulatory ambiguity.