Bill > HB259

This bill, known as the Financial Innovation and Market Expansion Act, establishes a licensing framework for the issuance and sale of "payment stablecoins" in Alabama, which are digital assets designed to maintain a stable value and be used for payments. The Alabama Securities Commission (the "commission") is authorized to enforce these provisions, requiring any entity issuing or selling payment stablecoins to obtain a license as an "Alabama qualified payment stablecoin issuer" or be a "permitted payment stablecoin issuer" (entities licensed or approved at the federal level or by other states). The bill also permits governmental entities in Alabama to use authorized payment stablecoins for contracting and payments to vendors, though vendors cannot be forced to accept them. To be authorized, payment stablecoins must be issued by a U.S.-based permitted issuer, fully backed by U.S. dollars or short-term U.S. Treasury obligations, redeemable on demand, and subject to regular independent audits and reserve reporting. The bill outlines penalties for violations, including fines and felony charges, and grants the commission broad powers for investigation and enforcement, while also establishing procedures for hearings and appeals.

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