HB 1272: Banking and finance; licensing of payment stablecoin issuers; provisions

Georgia currently has no specific law governing payment stablecoins, digital assets designed to hold a steady value and be used like cash. This bill creates a new chapter of state law, the Georgia Payment Stablecoin Act, meant to mirror the federal GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act). It sets up a licensing process through the Department of Banking and Finance for companies that want to issue stablecoins in Georgia, and it makes it illegal for anyone else to issue them. Licensed issuers must keep reserves backing their coins on at least a one-to-one basis, hold those reserves in trust for coin holders, publish monthly reports on their reserves, get annual audits, and follow anti-money-laundering rules used by banks. The department can examine issuers, deny or revoke licenses, issue cease-and-desist orders, and fine violators up to $1,000 per day. The law would take effect by January 18, 2027, or 120 days after federal regulators finish GENIUS Act rules, whichever comes first, and unlicensed issuance becomes illegal for sales starting July 18, 2028.

• Creates a new licensing system through the Department of Banking and Finance for companies (payment stablecoin issuers) that want to issue stablecoins in Georgia.
• Makes it illegal for anyone other than a licensed, federally qualified, or state-qualified issuer to issue a payment stablecoin in Georgia.
• Requires licensed issuers to back every coin with at least one dollar of approved reserves (cash, insured deposits, or short-term Treasury securities) and hold those reserves in trust for coin holders.
• Requires monthly public reserve reports, annual audited financial statements, and anti-money-laundering compliance certifications from licensed issuers.
• Bans licensed issuers from paying interest or yield to coin holders and from bundling stablecoin services with other required purchases.
• Gives the department power to examine issuers, deny or revoke licenses, issue cease-and-desist orders, remove officers, and fine violators up to $1,000 per day.

Companies that want to issue or already issue stablecoins in Georgia, banks and credit unions that compete with or partner with them, the Department of Banking and Finance, which gains new licensing and enforcement duties, and everyday Georgians who buy, hold, or redeem stablecoins for payments.

Georgians who use stablecoins for payments would gain state oversight meant to ensure issuers hold real reserves and can honor redemptions, similar to protections around bank deposits. Companies wanting to issue stablecoins would face a formal licensing process, reserve rules, audits, and penalties for violations, shaping who can legally offer this service in the state.

• Code Section 7-11-6 makes it unlawful for anyone besides a permitted, licensed, or state-qualified issuer to issue a payment stablecoin in Georgia, with narrow exceptions for peer-to-peer transfers and personal wallets; the sale restriction begins July 18, 2028.
• Code Section 7-11-9 and 7-11-10 set application requirements, including background checks on owners and officers, and factors the department must weigh, such as financial condition and prior felony convictions involving fraud or financial crimes.
• Code Section 7-11-11 requires the department to decide on a complete application within 120 days, or the application is automatically approved.
• Code Section 7-11-17 requires licensed issuers to hold one-to-one reserves in specific safe assets like cash, insured deposits, and short-term Treasuries, and restricts pledging or reusing those reserves.
• Code Section 7-11-18 requires issuers whose reserves fall short to inject capital or halt redemptions, with department authority to order a redemption halt or pursue license revocation.
• Code Section 7-11-26 requires audited annual financial statements from a registered public accounting firm.
• Code Section 7-11-27 bars licensed issuers from paying interest or yield to stablecoin holders.
• Section 4 sets the effective date as January 18, 2027, or 120 days after final federal GENIUS Act implementing regulations, whichever is earlier, subject to legislative funding.

1. 2026-05-11Effective Date 2026-07-01
2. 2026-05-11Act 452
3. 2026-05-11House Date Signed by Governor (House)
4. 2026-04-10House Sent to Governor (House)
5. 2026-04-02Senate Passed/Adopted (Senate)
6. 2026-04-02Senate Third Read (Senate)
7. 2026-04-02Senate Taken from Table (Senate)
8. 2026-03-31Senate Tabled (Senate)

• Todd Jones (R, HD-025)Primary sponsor
• Scott Hilton (R, HD-048)
• Demetrius Douglas (D, HD-078)
• Bruce Williamson (R, HD-112)
• Billy Mitchell (D, HD-088)
• Noel Williams (R, HD-148)
• Greg Dolezal (R, SD-027)

1. PassedHouse voteMarch 4, 2026

   154 yea, 16 nay (3 not voting, 4 absent)

   Passage: House Vote #627

2. PassedSenate voteMarch 31, 2026

   39 yea, 10 nay (2 not voting, 3 absent)

   Motion To Table Remaining Legislation On The Rules Calendar: Senate Vote #912

3. PassedSenate voteApril 2, 2026

   50 yea, 1 nay (1 not voting, 2 absent)

   Passage: Senate Vote #953

• cryptocurrency regulation
• stablecoins
• banking law
• financial licensing
• digital assets