Committee backs bill to create state framework for payment stablecoins, aligning with federal "Genius Act"

A House committee voted to recommend passage of legislation to regulate payment stablecoins, with members and industry witnesses saying the bill would align state rules with the federal "Genius Act" and place licensing and supervision with the Department of Banking and Finance.

Supporters argued the measure would preserve Georgia’s fintech competitiveness while adding consumer safeguards. Industry witnesses urged the committee that the bill’s standards — including monthly reporting on liquidity and explicit reserve rules — would provide clarity for companies and regulators.

Luther Maday, cofounder and CEO of Stable Stablecoin Partners, answered lawmakers’ questions about deposit risk by stressing that "stablecoins and stablecoin issuers are not banks" and that backing is expected to be held in bank deposits and very short-term U.S. Treasuries. Maday said those reserves are intended to prevent the diversion of funds away from traditional banking activities.

Tony Erwin of US Blockchain Corporation described consumer-protection mechanics in the bill, saying the law requires that "the funds that are backing each coin have to be segregated and cannot be commingled with operating capital" and that the reserves would be placed in a statutory trust "for the benefit of the stablecoin holders, not for the benefit of the corporation." He also said licensed issuers would be subject to anti-money-laundering and Know-Your-Customer requirements.

Committee members probed operational details: whether the Department of Banking and Finance has the capacity and funding to oversee the program, how the bill handles issuer failure, and whether a state framework would permit issuers to opt out of federal standards. An industry witness and Amy Patterson (first introduced to the committee as an industry participant) told the panel the bill includes language on funding and that the department would need additional resources to implement the program.

The bill contains provisions for licensing standards, minimum thresholds and failure-event procedures; presenters pointed committee members to specific bill line ranges describing those safeguards during questioning. Presenters repeatedly framed the proposal as complementary to, not a replacement for, existing payment processing businesses in Georgia.

A committee member moved a "do pass" recommendation, the motion was seconded and the chair declared the motion passed by voice vote. The transcript records the committee approving the recommendation but does not provide a roll-call tally.

The committee asked staff and counsel to prepare clarifying language and to continue coordination with the Department of Banking and Finance; no final floor action was recorded in the transcript.