Committee moves to modernize money‑transmission law to include cryptocurrency firms

At a March 7, 2025 Senate Labor and Commerce Committee hearing in Juneau, committee members voted to report Senate Bill 86 from committee after a brief recap and a single public witness in favor. The measure would modernize Alaska’s money‑transmission laws into a broader "money services" framework modeled on a multistate regulatory approach.

Senator Jesse Kiel, the bill sponsor, described Senate Bill 86 as a regulator‑ and industry‑developed model that provides safety and soundness regulation for money transmitters, cryptocurrency companies and other non‑bank payment service providers. Kiel told the committee Alaska saw more than $1,500,000,000 worth of cryptocurrency transactions in the state last year that are not required to be reported under current statute.

Kathy Tomaszewski, executive director of the Money Service Business Association, testified in support, saying the model law "provides many benefits" including consistent customer protections across states, regulatory efficiencies and tools for multistate cooperation. Tomaszewski told the committee 26 states have adopted the model framework to date and said the tiered fee structure in the bill seeks to reduce start‑up costs for Alaska firms.

After public testimony and no further questions, Senator Dunbar moved to report Senate Bill 86 from committee with individual recommendations and an attached fiscal note. The motion carried by voice vote and the committee directed legislative staff to complete report paperwork. The transcript records the motion and the bill moving from committee; no roll‑call tally appears in the record.

The bill would permit multistate supervisory tools, tiered fees for small firms, and data‑sharing tools described in the model act; the transcript does not include text of the bill or a fiscal note breakdown.