HB259 Alabama 2026 Session

Summary

Primary Sponsor

Mike ShawRepresentative

Republican

Session

2026 Regular Session

Title

Stablecoin; license required for issuance or sale of stablecoins, Alabama Securities Commission to enforce and authorize, penalties provided

Summary

HB259 creates a state-licensed framework for issuing and selling payment stablecoins in Alabama, limiting issuance to approved issuers and giving the Alabama Securities Commission enforcement authority.

What This Bill Does

It adds Chapter 7B to Title 8 to regulate payment stablecoins. It requires issuers to be licensed as Alabama qualified payment stablecoin issuers and prohibits issuance unless licensed. Starting July 18, 2028, no digital asset service provider may offer or sell a payment stablecoin in Alabama unless it is issued by a permitted issuer. The Alabama Securities Commission will license issuers, enforce the act and GENIUS Act rules, and impose civil or criminal penalties for violations; issuers must implement anti-money laundering and sanctions programs and undergo regular examinations and reporting.

Who It Affects

• Issuers of payment stablecoins in Alabama must obtain licensure and maintain ongoing supervision.
• Digital asset service providers in Alabama must ensure offerings come from permitted issuers after 2028.
• Alabama consumers and users of payment stablecoins gain regulated, supervised access and protections, with insolvency provisions.
• Regulators and potential issuers (under GENIUS Act) will oversee licensing, compliance, and enforcement.

Key Provisions

• Establishes Chapter 7B, the Financial Innovation and Market Expansion Act, to regulate payment stablecoins under GENIUS Act rules.
• Prohibits issuing a payment stablecoin in Alabama unless the issuer is an Alabama qualified payment stablecoin issuer.
• Requires licensing and supervision of issuers by the Alabama Securities Commission, with a 120-day decision window for substantially complete applications and defined licensing criteria.
• From July 18, 2028, forbids offering or selling payment stablecoins in Alabama by non-permitted issuers (with specific exemptions).
• Defines key terms: Alabama qualified payment stablecoin issuer, authorized payment stablecoin, and permitted payment stablecoin issuer (including banks and certain approved entities).
• Issuers must certify anti-money laundering and sanctions compliance within 180 days of approval and annually thereafter.
• Authorizes the Commission to examine issuers, impose costs, and enforce penalties, including civil penalties up to $100,000 per day and criminal penalties for violations.
• Provides confidentiality for examination materials, with limited disclosures to other agencies and public listing of licensed issuers.
• In insolvency, holders of payment stablecoins have priority claims on assets related to reserves.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Apr 1, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumer Protection