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Senate committee advances stablecoin bill despite State Treasurer's opposition
Summary
S 1423 would authorize a framework for state use of payment stablecoins and let finance officers compile qualified stablecoin lists; Idaho State Treasurer Julie Ellsworth testified in opposition citing risks to interest earnings, lack of recourse for failed payments and security concerns. The committee recommended do pass.
Senator Anthon introduced S 1423, the Financial Accountability Stablecoin Transaction (FAST) Act, saying the bill would modernize state payment options by authorizing payment stablecoins and enabling the Department of Finance, State Treasurer and State Controller to develop lists of qualified stablecoins for use with state contracts.
Representative Dustin Manwaring told the committee the measure would allow controlled, phased implementation and would not force vendors to accept stablecoin payments. An industry witness, Gregory Graf of World Liberty Financial, testified the bill would help Idaho prepare for digital payment options while keeping vendor participation voluntary.
Idaho State Treasurer Julie Ellsworth testified in opposition. Ellsworth said the measure could reduce interest earnings for the state, pointed to a lack of clear regulatory procedures for disputed or failed stablecoin payments, and raised security and operational concerns. She told the committee her office lacked the current expertise to implement the proposed changes and questioned the claimed speed advantages of stablecoin.
Vice Chairman Bernt asked whether stablecoins would affect state investments and interest; Representative Manwaring replied the legislation would not change investment policy. Senator Anthon closed by emphasizing phased implementation and control measures included in the bill.
Vice Chairman Bernt moved and Senator Harris seconded sending S 1423 to the floor with a do-pass recommendation. The motion carried by voice vote; Senator Shippy recorded a nay.
The bill will proceed to the Senate floor for further consideration.
