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Committee reviews companion bill to implement state licensing for payment stablecoins under the Genius Act
Summary
Representative Pierce presented HB 12‑17 as a state‑level framework to license payment stablecoin issuers consistent with the federal Genius Act; banks and credit unions responded with measured support and cautioned about deposit flight and rulemaking timing. The committee held the bill for further work.
Representative Pierce presented House Bill 12‑17 as a state companion to the federal Genius Act, explaining the bill would create a state licensing pathway for payment stablecoins, require liquidity/reserve safeguards to prevent runs, and give the Department of Financial Institutions rulemaking authority while remaining within the Genius Act’s parameters.
Pierce described payment stablecoins as a subset of cryptocurrencies intended to maintain a 1:1 peg with U.S. dollars for payments and said the bill is intended to mirror federal protections while giving Indiana a state‑side licensing option for issuers under the federal thresholds.
The Indiana Credit Union League’s Carrie Summers said credit unions are still assessing the operational implications and signed up as neutral, asking for careful implementation to protect members. Dax Denton of the Indiana Bankers Association said banks are studying the market and encouraged the state to “get this right,” warning that nontraditional issuers could draw deposits away from local lenders and that rulemaking will be complex.
Denton explained that some larger financial institutions are exploring stablecoin services, but he cautioned that the market is new and that federal rules implementing the Genius Act are expected soon; he urged the committee to coordinate state rules with forthcoming federal regulations.
Committee members asked about scope and eligibility for issuers. Pierce and witnesses agreed the bill follows the Genius Act’s framework and would allow nonbank entities to apply for licenses if they meet statutory requirements; large national issuers above a federal asset threshold would fall under federal jurisdiction.
The committee did not vote on HB 12‑17; the chair said both bills would be held for review and potential amendment and that the panel will return next week to consider changes and a vote.
