House Bill 544 Alabama 2026 Session

Summary

Primary Sponsor

Mike ShawRepresentative

Republican

Session

2026 Regular Session

Title

Cryptocurrency; governmental entities authorized to use stablecoins as payment to vendors and contractors

Summary

HB544 would authorize Alabama governmental entities to pay vendors with certain stablecoins and establish regulatory oversight for those stablecoins.

What This Bill Does

The bill lets governmental entities pay vendors and contractors with approved stablecoins if the vendor requests. Vendors may elect to receive payment in an authorized stablecoin, and that payment would satisfy the state's monetary obligations. The Alabama Securities Commission would recognize certain stablecoins that meet strict standards and keep a list of allowed coins. Before paying with a stablecoin, the entity must disclose redemption rights, reserve backing, audits, and custody risks to the vendor.

Who It Affects

• Governmental entities in Alabama (state and local agencies) that would be able to pay vendors/contractors with stablecoins if requested.
• Vendors and contractors who could elect to be paid in an authorized stablecoin.
• Stablecoin issuers that are US-based and meet the criteria, which could be recognized by the Alabama Securities Commission.
• Regulators, specifically the Alabama Securities Commission, which would manage approvals, lists, annual reviews, and oversight.

Key Provisions

• Government entities may pay vendors/contractors using payment stablecoins if the vendor/contractor requests it; payment remains optional for vendors.
• Vendors/contractors may opt to receive payment in an authorized stablecoin, in which case the payment counts as satisfaction of the state's monetary obligations.
• The Alabama Securities Commission may recognize and authorize payment stablecoins that are US-issued, fully backed 1:1 by USD or short-term US Treasuries, have reserves in US banks or custodians, are redeemable at par on demand, and are subject to quarterly attestations and monthly reserve reports, and must comply with the GENIUS Act.
• Restrictions: stablecoins issued outside the United States, controlled by non-US citizens, backed by synthetic assets or other non-currency assets, or not authorized under the GENIUS Act cannot be authorized.
• The Commission will maintain an online list of authorized stablecoins and conduct an annual review, with authority to suspend or revoke recognition; entities must provide vendors with disclosures about redemption, reserves, audits, and custody risks before executing a payment.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 3, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Government Administration