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Subcommittee rejects bill aimed at limiting discrimination by programmable money systems
Summary
HB2039 would have barred programmable money systems (stablecoins/CBDC implementations) from discriminating against users for ideological or other reasons and prohibited coercion to use particular digital payment systems. The subcommittee voted the bill down after banking and regulatory witnesses urged caution given pending federal rulemaking under the 'Genius Act.'
House Bill 2039 sought to extend protections like those in Tennessee’s earlier "debanking" statute to programmable money—stablecoins, CBDC-based arrangements and similar digital payment technologies. Sponsor said the bill "says that because it's programmable, you can't use this system of money to punish somebody or treat them differently because of their ideology, belief or who they associate with." The sponsor framed the measure as protecting consumer payment choice and nondiscrimination.
Proponents such as Catherine Austin Fitts and another witness argued the market is moving rapidly and guardrails are needed to prevent centralized control of payment systems. Banking witnesses (Stacy Langford, Tennessee Bankers Association) and the Department of Financial Institutions (Todd Staley) cautioned that the federal "Genius Act" rulemaking is ongoing and that state action now might create legal uncertainty and disadvantage local banks. The clerk recorded 2 ayes, 4 nays and 1 present not voting; HB2039 failed to advance.
