Senate approves state licensing framework for 'payment stablecoins' under Genius Act model

The Senate passed House Bill 259 on March 31, 2026, establishing a state licensing and supervisory framework for payment stablecoins for entities under certain thresholds and consistent with the federal Guiding and Establishing National Innovation for US Stablecoins (the "Genius Act").

Sen. Shelnut (floor) described the bill as authorizing the Alabama Securities Commission (ASC) to review applications from potential "Alabama qualified payment stablecoin issuers," which include subsidiaries of insured depository institutions, OCC‑approved nonbank issuers, uninsured national banks chartered by the OCC, federal branches and state‑approved issuers. The measure sets programmatic standards: one‑to‑one backing or appropriate collateralization, monthly reserve reports verified by independent accountants, AML and sanctions compliance programs, and regular ASC examinations.

Floor discussion emphasized the bill aims to allow companies that currently hold state money‑transmitter licenses to convert into an Alabama state stablecoin licensing framework instead of relying solely on an eventual federal regime. The bill also creates civil and criminal penalties for misconduct, grants the ASC subpoena and examination power, and prescribes insolvency priority rules for holders of authorized payment stablecoins.

The Senate adopted committee action and approved final passage by roll call. Sponsors said the law is designed to offer a state compliance path for certain issuers while integrating federal requirements where applicable.