legal relationship between the custodian and customer. Custodial assets shall be properly identified and segregated from the assets of the custodian, with proper documentation of asset segregation. (e) Not assets or liabilities Assets properly held in a custodial account under this section are not assets or liabilities of the custodian and shall be maintained on an off-balance sheet basis, including for the purpose of accounting treatment for the custodian, notwithstanding the form in which the assets are maintained. (f) Applicability This section shall apply to all depository institutions, as defined in section 19(b)(1) of the Federal Reserve Act ( 12 U.S.C. 461(b)(1) ), and non-depository trust companies chartered under section 5169 of the Revised Statutes ( 12 U.S.C. 27 ). 706. Implementation rules to preserve adequate competition in payment stablecoins (a) In general The application of a non-depository trust company or the holder of a State license that only persons engaged in crypto asset activities may obtain, which was chartered or issued under the laws of a State or the National Bank Act before the date of enactment of this Act, to receive a charter as a depository institution and to operate under subsection (c) of section 5169 of the Revised Statutes ( 12 U.S.C. 27 ), as added by section 703 of this Act, shall be decided upon by the Comptroller of the Currency before an application for a charter to operate under that section from another entity that is filed on or after the date of enactment of this Act. (b) Application The application of a covered depository institution, as defined in section 15(a) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1853(a) ), chartered before the date of enactment of this Act to become a State member bank in the Federal Reserve System or for access to Federal Reserve services under section 11A of the Federal Reserve Act ( 12 U.S.C. 248a ) shall be decided upon by the Board of Governors of the Federal Reserve System, or a Federal Reserve bank, as applicable, before any