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State committee advances House Bill 1272 to regulate stablecoins
Summary
A state legislative committee voted unanimously to advance House Bill 1272, which would set state rules for stablecoin issuers and align Georgia’s framework with a cited federal "genius act." Members pressed sponsors on security, issuer oversight and business impacts before passing a do-pass motion.
A state legislative committee on Wednesday advanced House Bill 1272, a measure to regulate stablecoins and authorize the Department of Banking to oversee issuers, passing the measure unanimously on a do-pass motion.
Chairman Jones, who led the hearing, said the bill is intended to put the state “in a position to put the rules together” that could serve as a model for other states. “By us taking the first position, that puts our Department of Banking into the position to put the rules together,” he said, urging the committee to move the bill forward and describing the proposal as a way for the state to lead rather than follow.
Why it matters: Sponsors argued the bill strikes a balance between innovation and consumer protections by tying state requirements to a referenced federal “genius act” and by tasking the Department of Banking with issuer oversight. Supporters said the approach reduces legal risk by staying within the federal construct while enabling faster, lower-cost payments and new fintech activity.
Committee members pressed sponsors on security and the practical distinctions between stablecoins and other cryptocurrencies. Senator Dickerson, citing past crypto failures, asked, “How do we ensure the public that this is going to be a secure transaction that’s not going to be some fraudulent type issue like we saw with ... FTX and Binance?” The sponsor responded that the bill requires segregated reserves and routine mark-to-market checks and described the system as “a public blockchain” with back-office visibility, adding, “I don’t want to say 100% fraud-proof ... I’ll just say 99.49s.”
Explanation of key safeguards: Testimony explained stablecoins under the bill would be backed 1:1 to U.S. dollars or U.S. Treasury securities held in segregated accounts that the Department of Banking would monitor and mark to market. Sponsors emphasized that, unlike speculative cryptocurrencies such as Bitcoin, stablecoins under the proposal would not be designed as investment instruments and issuers would face background, solvency and operational reviews before registration.
Business and payments impacts: Members and witnesses said the bill could speed settlements and reduce lag in payments. Representative Jones said the measure could jump-start business uses, noting that some businesses have gone cashless and that near-instant settlement could be beneficial for closings and cross-border transactions.
Procedure and outcome: Senator Hodges moved to pass House Bill 1272 (LC 620349); Senator Dickerson seconded. The committee voted to advance the bill unanimously; the transcript records the measure as “on the way to rules.” Chair also named Senator Dozall as the legislator who will carry the bill forward.
What remains unclear: The transcript notes the Department of Banking’s support and the presence of industry representatives, including the Georgia Bankers and Community Bankers, but does not include written submissions or a recorded roll-call tally. The bill text referenced regulatory detail beginning at line 329; members requested a plain-language write-up to be circulated.
Next steps: With the committee’s do-pass recommendation, the measure moves to the rules stage for further consideration.
