---
title: HB 1272. Banking and finance; licensing of payment stablecoin issuers; provisions
collection: bills
id: 2025-2026/hb1272
cite_as: HB 1272, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1272
md_url: https://georgiacommons.org/bills/2025-2026/hb1272.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1272/text
source_url: https://www.legis.ga.gov/legislation/73077
date: 2026-05-11
status: passed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb1271.md
next: https://georgiacommons.org/bills/2025-2026/hb1273.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 1224
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1272.md?full=1
bill_number: HB 1272
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-05-11
last_action: Effective Date 2026-07-01
sponsors:
- Todd Jones
- Scott Hilton
- Demetrius Douglas
- Bruce Williamson
- Billy Mitchell
- Noel Williams
- Greg Dolezal
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1272/2025
upstream_id: 2113677
summaries_model: claude-sonnet-5
topic_tags:
- cryptocurrency regulation
- stablecoins
- banking law
- financial licensing
- digital assets
---
# HB 1272. Banking and finance; licensing of payment stablecoin issuers; provisions
## Text
House Bill 1272 (AS PASSED HOUSE AND SENATE)
By: Representatives Jones of the 25th, Hilton of the 48th, Douglas of the 78th, Williamson of
the 112th, Mitchell of the 88th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 7 of the Official Code of Georgia Annotated, relating to banking and finance,
so as to provide for use of certain terms in the advertisement and place of business of
licensed payment stablecoin issuers; to provide for licensing of payment stablecoin issuers;
to provide for rules and regulations; to provide for application procedures; to provide for
requirements for licensed payment stablecoin issuers; to provide for license renewal; to
provide for information sharing with certain entities; to prohibit unlicensed persons from
issuing payment stablecoin; to provide for the Department of Banking and Finance to request
and receive conviction data; to provide for certain disqualifying conditions for licensure; to
provide for procedures for denying applications; to provide for appeals; to provide for certain
fees and assessments; to provide for certain certifications to the department; to require
licensed payment stablecoin issuers to maintain certain reserves; to provide for procedures
for failure by a licensed payment stablecoin issuer to meet certain reserves; to provide for
certain capital requirements; to provide for reserves to be held in trust for consumers; to
provide for certain disclosures; to provide for treatment as a financial institution; to provide
for certain activities in which licensed payment stablecoin issuers can participate; to prohibit
certain activities; to provide for annual financial statements; to provide for requirements for
annual financial statements; to provide for examination and investigation of licensed
payment stablecoin issuers; to provide for powers of the department relating to examination
and investigation; to provide for third-party examination or investigation; to provide for
payment of certain fees and costs of examination and investigation; to provide for suspension
or revocation of a license and procedures therefor; to provide for cease and desist orders; to
provide for removal of certain officers and members; to provide for a short title; to provide
for legislative purpose and intent; to provide for definitions; to provide for related matters;
to provide for an effective date and applicability; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, is
amended by revising subparagraphs (K) and (L) of and adding a new subparagraph to
paragraph (21) of Code Section 7-1-4, relating to definitions regarding purposes and
preliminary matters, to read as follows:
"(K) Federal credit unions for the purposes of Part 6 of Article 2 of this chapter,
relating to deposits, safe-deposit agreements, and money received for transmission, and
Article 8 of this chapter, relating to multiple-party accounts; and
(L) Banks and credit unions chartered by states other than Georgia, national banks,
federal credit unions, and federal savings and loan associations for the purposes of
paragraph (1) of Code Section 7-1-650, provided that such institutions have federal
deposit insurance; and
(M) Licensed payment stablecoin issuers as defined by Code Section 7-11-3 for the
purpose of the following provisions:
(i) Code Section 7-1-2, relating to findings of the General Assembly;
(ii) Code Section 7-1-8, relating to supplementary principles of law;
(iii) Code Section 7-1-37, relating to restrictions on officials and personnel;
(iv) Code Section 7-1-70, relating to disclosure of information;
(v) Code Section 7-1-90, relating to judicial review of department actions;
(vi) Code Sections 7-1-113 and 7-1-114, relating to voluntary dissolution;
(vii) Code Sections 7-1-150 through 7-1-225, relating to receivership powers and
procedures; and
(viii) Code Sections 7-1-910 through 7-1-917, relating to records and reports of
currency transactions."
SECTION 2.
Said title is further amended in Article 2, relating to banks and trust companies, by revising
paragraph (2) of subsection (c) of and adding a new subsection to Code Section 7-1-243,
relating to restrictions on banking and trust nomenclature, to read as follows:
"(b.1) Except as provided in subsection (c) of this Code section, no person or corporation,
except a federal qualified payment stablecoin issuer or a licensed payment stablecoin
issuer, as such terms are defined in Code Section 7-11-3, shall use the words 'stablecoin'
or 'payment stablecoin' upon any sign at its place of business or elsewhere, or in any form
of marketing, including, but not limited to, its letterheads, billheads, blank checks, blank
notes, receipts, certificates, circulars, advertisements, or any other written or printed
matter."
"(2) Prohibit advertisement in media distributed in or transmitted into this state by
persons or corporations lawfully engaged in the banking, credit union, or trust business,
or persons or corporations lawfully issuing payment stablecoins outside of this state; or"
SECTION 3.
Said title is further amended by adding a new chapter to read as follows:
"CHAPTER 11
7-11-1.
This chapter shall be known and may be cited as the 'Georgia Payment Stablecoin Act.'
7-11-2.
(a) The purpose of this chapter is to enact Section 4(c) of the Guiding and Establishing
National Innovation for U.S. Stablecoins Act, Pub. L. No. 119-27.
(b) It is the intent of the General Assembly that this chapter;
(1) Provides for the regulation of payment stablecoins;
(2) Enables financial service providers in this state the opportunity to issue payment
stablecoins;
(3) Ensures the law of this state is substantially similar to the GENIUS Act; and
(4) Empower the department to issue regulations to implement federal regulations
promulgated to implement the GENIUS Act.
7-11-3.
As used in this chapter, the term:
(1) 'Department' means the Department of Banking and Finance.
(2) 'Digital asset' means any digital representation of value that is recorded on a
cryptographically secured distributed ledger.
(3) 'Distributed ledger' means technology in which data is shared across a network that
creates a public digital ledger of verified transactions or information among network
participants and cryptography is used to link the data to maintain the integrity of the
public ledger and execute other functions.
(4) 'Federal qualified payment stablecoin issuer' means an entity approved by the federal
Office of the Comptroller of the Currency pursuant to the GENIUS Act to issue payment
stablecoins.
(5) 'GENIUS Act' means the Guiding and Establishing National Innovation for U.S.
Stablecoins Act, Pub. L. No. 119-27, as amended.
(6) 'Licensed payment stablecoin issuer' means a payment stablecoin issuer that is
incorporated or organized under the laws of Georgia or the laws of a foreign country and
that holds a license pursuant to this chapter.
(7) 'Payment stablecoin' means a digital asset that:
(A) Is designed or marketed to be used as a means of payment or settlement;
(B) The issuer of which undertakes to convert, redeem, or repurchase for a fixed
amount of monetary value; and
(C) Is not legal tender, a deposit, or a security registered under federal securities laws.
(8) 'Payment stablecoin issuer' means a person that issues a payment stablecoin.
(9) 'Permitted payment stablecoin issuer' means a subsidiary of an insured depository
institution that has been approved to issue payment stablecoins as described in Section 5
of the GENIUS Act, a licensed payment stablecoin issuer, a federal qualified payment
stablecoin issuer, or a state qualified payment stablecoin issuer.
(10) 'Person' means an individual, corporation, limited liability company, partnership,
association, trust, or any other entity.
(11) 'State payment stablecoin regulator' means a state agency of another state that has
primary regulatory and supervisory authority in such state over payment stablecoin
issuers.
(12) 'State qualified payment stablecoin issuer' means a payment stablecoin issuer that
is legally established under the laws of a state and approved to issue payment stablecoins
by a state payment stablecoin regulator.
(13)(A) 'Ultimate equitable owner' means a person that, directly or indirectly:
(i) Owns a 10 percent or more interest in a corporation or any other form of business
organization;
(ii) Owns 10 percent or more of the voting shares of any corporation or any other
form of business organization; or
(iii) Exerts control over a corporation or any other form of business organization,
regardless of whether such person owns or controls such interest through one or more
natural persons or one or more proxies, powers of attorney, nominees, corporations,
associations, limited liability companies, partnerships, trusts, joint stock companies,
or other entities or devices, or any combination thereof.
(B) For purposes of determining ultimate equitable ownership by an individual, the
individual's interest shall be aggregated with the interest of any other immediate family
member, including the individual's spouse, parents, children, siblings, mothers- and
fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law, and any other
individual who shares such individual's home.
7-11-4.
(a) The department may make reasonable rules and regulations, not inconsistent with law,
for:
(1) The interpretation of this chapter, including, but not limited to, language to achieve
substantial similarity with the provisions of the GENIUS Act; and
(2) The enforcement of this chapter, including, but not limited to, prescribing
administrative fines for violations of this chapter and of any rules promulgated by the
department pursuant to this chapter.
(b) The department shall by rule prescribe application, licensing, examination, and
supervision fees or assessments.
(c) The department shall:
(1) Receive, review, and consider for approval applications from any person that seeks
to issue payment stablecoins as a licensed payment stablecoin issuer;
(2) Establish a process and framework for the licensing, regulation, examination, and
supervision of licensed payment stablecoin issuers;
(3) Issue regulations consistent with the process and framework established pursuant to
paragraph (2) of this subsection; and
(4) Accept and process applications pursuant to the regulations issued in paragraph (3)
of this subsection.
(d) The department may initiate receivership proceedings against a licensed payment
stablecoin issuer pursuant to Code Section 7-1-150. If such proceedings are initiated, the
department has the powers, authorities, and duties prescribed by Code Sections 7-1-150
through 7-1-225.
(e) The department may initiate conservatorship proceedings against a licensed payment
stablecoin issuer pursuant to Code Section 7-1-640. If such proceedings are initiated, the
department has the powers, authorities, and duties prescribed by Code Sections 7-1-640
through 7-1-645.
7-11-5.
(a) The department may share information on an ongoing basis with the Board of
Governors of the Federal Reserve System with respect to licensed payment stablecoin
issuers, including a copy of the initial application and any accompanying documents.
(b) The department may enter into a memorandum of understanding with the Board of
Governors of the Federal Reserve System under which the Board of Governors of the
Federal Reserve System may participate in the supervision, examination, and enforcement
of the GENIUS Act with respect to licensed payment stablecoin issuers.
7-11–6.
(a) It shall be unlawful for any person other than a permitted payment stablecoin issuer to
issue a payment stablecoin in this state.
(b) Beginning July 18, 2028, it shall be unlawful to offer or sell a payment stablecoin
unless the payment stablecoin is issued by a licensed payment stablecoin issuer, a permitted
payment stablecoin issuer, or a state qualified payment stablecoin issuer.
(c) This Code section shall not apply to:
(1) The direct transfer of digital assets between two individuals acting on their own
behalf and for their own lawful purposes, without the involvement of an intermediary;
(2) Any transaction involving the receipt of digital assets by an individual between an
account owned by the individual in the United States and an account owned by the
individual abroad that are offered by the same parent company; or
(3) Any transaction by means of a software or hardware wallet that facilitates an
individual's own custody of digital assets.
7-11-7.
(a) A licensed payment stablecoin issuer shall at all times maintain an office in this state.
(b) Within one year after the date it begins operations, a licensed payment stablecoin issuer
shall have the minimum number of employees in this state as determined by the
commissioner to assure the continued and substantive presence of the licensed payment
stablecoin issuer in this state for the purpose of conducting its corporate affairs and
operations.
7-11-8.
(a) The department is authorized to:
(1) Participate in the Nationwide Multistate Licensing System and Registry;
(2) Enter into operating agreements and other contracts necessary for the department's
participation in the Nationwide Multistate Licensing System and Registry;
(3) Disclose or cause to be disclosed without liability, via the Nationwide Multistate
Licensing System and Registry, applicant and licensed payment stablecoin issuer
information, including, but not limited to, violations of this chapter and enforcement
actions;
(4) Request that the Nationwide Multistate Licensing System and Registry adopt an
appropriate privacy, data security, and security breach notification policy that is in full
compliance with existing state and federal law; and
(5) Establish and adopt, by rule or regulation, requirements for participation by
applicants and licensed payment stablecoin users in the Nationwide Multistate Licensing
System and Registry upon the department's determination that each requirement is
consistent with both the public interest and purposes of this chapter.
(b) The department shall enact rules and regulations establishing a process whereby
licensed payment stablecoin issuers may challenge information entered by the department
on the Nationwide Multistate Licensing System and Registry.
(c) Irrespective of its participation in the Nationwide Multistate Licensing System and
Registry, the department shall retain full and exclusive authority over determinations of
whether to grant, renew, suspend, or revoke licenses issued under this chapter. Nothing in
this Code section shall be construed to reduce or otherwise limit such authority.
(d) Information disclosed through the Nationwide Multistate Licensing System and
Registry is deemed to be disclosed directly to the department and is subject to the
provisions of Code Section 7-1-70. Such information shall not be disclosed to the public
and shall remain privileged and confidential pursuant to Code Section 7-1-70.
7-11-9.
(a) Each applicant for a license under this chapter shall:
(1) Submit an application in writing, which is made under oath and in such form as the
department may prescribe;
(2) Provide to the Nationwide Multistate Licensing System and Registry the following
information:
(A) The legal name and principle office address of the person applying for the license;
(B) The name, residence, and business address of each director, ultimate equitable
owner, and executive officer; and
(C) The location where the initial registered office will be located in this state, if any;
and
(3) Submit such other data, financial statements, and pertinent information as the
department may require with respect to the applicant, its directors, trustees, officers,
members, ultimate equitable owners, subsidiaries, or affiliates.
(b) The application for license shall be filed with:
(1) An investigation and supervision fee established by the department through rule or
regulation which shall not be refundable but which, if the license is granted, shall satisfy
the fee requirement for the first licensed year or the remaining part thereof;
(2) Any other items required by this chapter; and
(3) Other information as may be required by the department.
(c) The department shall pay all fees received from licensed payment stablecoin issuers
and applicants related to applications, licenses, and renewals to the Office of the State
Treasurer; provided, however, that the department may net such fees to recover the cost of
participation in the Nationwide Multistate Licensing System and Registry.
(d) The department shall enact rules and regulations regarding the time frame by which
all persons shall submit an original or renewal application for licensure through the
Nationwide Multistate Licensing System and Registry.
(e) A substantially complete application shall be evaluated by the department using the
factors listed in Code Section 7-11-10.
7-11-10.
(a) As used in this Code section, the term 'conviction data' means a record of a finding,
verdict, or plea of guilty or nolo contendere with regard to any crime, regardless of whether
an appeal of the conviction has been sought.
(b) In evaluating initial applications received from prospective licensed payment
stablecoin issuers or renewal applications for licensed payment stablecoin issuers, the
department shall consider various factors, including, but not limited to:
(1) The ability of the applicant, based on financial condition and resources, to meet the
requirements prescribed by this chapter;
(2)(A) Whether an individual who has been convicted of a felony offense involving
conversion, theft, money laundering, financing of terrorism, bribery, dishonesty, false
statements or omissions, perjury, extortion, breach of trust, forgery, counterfeiting,
embezzlement, insider trading, tax evasion, kickbacks, identity theft, cybercrime, cyber
attacks, social engineering, fraud, including but not limited to check fraud, credit card
fraud, mortgage fraud, medical fraud, corporate fraud, bank account fraud, point of sale
fraud, currency fraud, bank fraud, and securities fraud, or a felony directly related to the
financial services business is serving as an officer, director, or ultimate equitable owner
of the applicant.
(B)(i) For the purposes of this chapter, a person shall be deemed to have been
convicted of a crime if such person has pleaded guilty or nolo contendere to a charge
before a court or federal magistrate or have been found guilty by the decision or
judgment of a court or federal magistrate or by the verdict of a jury, irrespective of
the pronouncement of sentence or the suspension of such sentence. Additionally, a
person shall be deemed to have been convicted of a crime regardless of whether first
offender treatment without adjudication of guilt pursuant to the charge was entered
or an adjudication or sentence was otherwise withheld or not entered on that charge.
(ii) A person shall be deemed to have been convicted of a crime unless and until the
plea of guilty or nolo contendere or the decision, judgment, or verdict has been set
aside, reversed, or otherwise abrogated by lawful judicial process, or until probation,
sentence, or both probation and sentence of a first offender without adjudication of
guilt have been successfully completed and documented or unless the person
convicted of the crime shall have received a pardon from the President of the United
States or the governor or other pardoning authority in the jurisdiction where the
conviction occurred.
(C) The department shall be authorized to obtain conviction data with respect to any
applicant or licensed payment stablecoin issuer; and any person who is a director,
officer, or ultimate equitable owner of an applicant or licensed payment stablecoin
issuer. Criminal history record checks may be requested by the department through the
Georgia Crime Information Center and the Federal Bureau of Investigation. The
department shall have the authority to receive the results of such checks. The
department may use the Nationwide Multistate Licensing System and Registry as a
channeling agent for the submission of fingerprints to the Federal Bureau of
Investigation and any governmental agency or entity authorized to receive such
information for a state, national, and international criminal history background check
and the receipt of such checks by the department. Fees required for a criminal history
record check by the Georgia Crime Information Center or the Federal Bureau of
Investigation shall be paid by the applicant or licensed payment stablecoin issuer.
(D)(i) Upon request by the department, each applicant or licensed payment stablecoin
issuer and each person who is a director, officer, or ultimate equitable owner of an
applicant or licensed payment stablecoin issuer shall submit to the department
fingerprints, the required records search fees, and such other information as may be
required;
(ii) Fees for background checks that the department administers shall be submitted
to the department by applicants and licensed payment stablecoin issuers together with
fingerprints, and the department is authorized to net such fees to recover any costs
incurred by the department related to running the background checks;
(iii) Upon receipt of fingerprints, fees, and other required information from the
department, the Georgia Crime Information Center shall promptly transmit
fingerprints to the Federal Bureau of Investigation for a search of bureau records and
an appropriate report and promptly conduct a search of its own records and records
to which it has access;
(iv) The Georgia Crime Information Center shall notify the department in writing of
any derogatory finding, including, but not limited to, any conviction data regarding
the fingerprint records check, or if there is no such finding;
(v) All conviction data received by the department shall be used by the department
for the exclusive purpose of carrying out the responsibilities of this chapter, shall not
be a public record, shall be confidential, and shall not be disclosed to any other person
or agency except to any person or agency which otherwise has a legal right to inspect
such data; and
(vi) All such records shall be maintained by the department pursuant to laws
regarding such records and the rules and regulations of the Georgia Crime
Information Center and the Federal Bureau of Investigation, as applicable;
(3) The competence, experience, financial responsibility, character, integrity, and general
fitness of the applicant and of the ultimate equitable owners, officers, and directors of the
applicant, its subsidiaries, and parent company, including:
(A) The record of those ultimate equitable owners, officers, and directors of
compliance with laws and regulation; and
(B) The ability of those ultimate equable owners, officers, and directors to fulfill any
commitments to and any conditions imposed by the department in connection with the
application at issue and any prior applications;
(4) Whether the redemption policy of the applicant meets the standards under Code
Section 7-11-21;
(5) Any other factors established under federal law or regulations as applying to state
qualified payment stablecoin users; and
(6) Any other factors established by this chapter or regulation of the department
implementing this chapter.
7-11-11.
(a) No later than 120 days after receiving a substantially complete application, the
department shall render a decision on the application.
(b) An application shall be deemed substantially complete when all required fees have
been paid, all portions of the application have been completed, and the department has
sufficient information to determine whether the applicant satisfies the factors described in
Code Section 7-11-10.
(c) Not later than 30 days after receiving an application, the department shall notify the
applicant as to whether the department considers the application to be substantially
complete, and, if the application is not substantially complete, the additional information
the applicant shall provide in order for the application to be considered substantially
complete.
(d) An application considered substantially complete remains substantially complete
unless there is a material change in circumstances that requires the department to treat the
application as a new application.
(e) If the department fails to render a decision on a substantially complete application with
120 days of deeming such application substantially complete, the application shall be
deemed approved.
7-11-12.
(a) The department shall deny an application for licensure if:
(1) The department determines that the applicant does not satisfy the factors listed in
Code Section 7-11-10 or that the applicant is operating or would operate in an unsafe or
unsound manner;
(2) Such applicant is subject to a final cease and desist order that has been issued within
the preceding five years if such order was based on a violation of this chapter; or
(3) Such applicant had a license issued pursuant to this chapter revoked within the
previous five years.
(b) The issuance of a payment stablecoin on an open, public, or centralized network shall
not be a valid ground for denial of an application.
(c)(1) As used in this subsection, the term 'email address of record' means the email
address that the applicant has designated as his or her email address for regulatory contact
on file with the Nationwide Multistate Licensing System and Registry.
(2) Notice of the department's intent to deny an application for a license shall be given
to the applicant, sent by registered or certified mail or statutory overnight delivery
addressed to the principal place of business of such applicant or to the email address of
record of such applicant. If a person refuses to accept service of the notice by registered
or certified mail or statutory overnight delivery, the notice or denial shall be served by
the commissioner, or the commissioner's authorized representative, under any other
method of lawful service, and the person shall be personally liable to the commissioner
for a sum equal to the actual costs incurred to serve the notice or order. This liability
shall be paid upon notice and demand by the commissioner or the commissioner's
representative and shall be assessed and collected in the same manner as other fees or
fines administered by the commissioner.
(d) Within 30 days of the date of the notice of intention to deny an application, the
applicant may request in writing a hearing to contest the denial. If a hearing is not
requested within 30 days of such notice of intention, the department shall enter the denial.
(e) If a timely request for a hearing pursuant to subsection (d) of this Code section is
received by the department, the department shall notice a time and place at which the
applicant may appear for a hearing.
(f) The department shall issue a final decision on the application not later than 60 days
after the date of the hearing.
(g) The department shall state the ground upon which it denied the application and such
denial shall be effective on the date of issuance. A copy of the denial shall be sent by mail
addressed to the principal place of business of the applicant or licensed payment stablecoin
user.
(h) A decision by the department denying the application shall be subject to review in
accordance with Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'
(i) Whenever the department initiates an administrative action against an applicant, the
department may pursue such action to its conclusion despite the fact that an applicant may
withdraw its application.
(j) Judicial review of any final decision the department entered pursuant to the Code
section shall be available solely in the superior court of the county of domicile of the
department.
(k) The denial of an application pursuant to this Code section shall not prohibit an
applicant from filing a subsequent application.
7-11-13.
The department shall:
(1) Notify the General Assembly upon receipt of the first application filed pursuant to
this chapter; and
(2) Annually report to the General Assembly on any substantially complete applications
that have been pending for 180 days or more since the date the initial application was
filed and for which the applicant has been informed that the application remains
incomplete.
7-11-14.
A permitted payment stablecoin issuer is not required to obtain any other license or charter
to issue payment stablecoins or to offer, sell, or redeem such payment stablecoin. Issuance
of payment stablecoin shall not be considered to be money transmission as defined by Code
Section 7-1-680. To the extent a permitted payment stablecoin issuer that is not a licensed
payment stablecoin issuer engages in activity that satisfies the definition of money
transmission other than the issuing of a payment stablecoin and offering, selling, or
redeeming such stablecoin, such permitted payment stablecoin issuer will be required to
obtain a license to conduct money transmission.
7-11-15.
(a) Except as otherwise provided for in this chapter, all licenses issued pursuant to this
chapter shall expire on December 31 of each year, and each application for renewal shall
be made annually on or before December 1 of each year.
(b) A license may be renewed by filing an application substantially conforming with the
requirements of Code Section 7-11-9 and department rules and regulations. No
investigation fee shall be payable in connection with such renewal application; provided,
however, that an annual license fee established by the department shall be paid with each
renewal application and shall not be refunded or prorated.
(c) The department is authorized to establish an annual assessment to further defray the
cost of supervision and such assessment shall not be refunded or prorated.
7-11-16.
(a) Not later than 180 days after approval of an application and at the time of filing a
renewal application thereafter, each licensed payment stablecoin issuer shall submit to the
department a certification that the issuer has implemented anti-money laundering and
economic sanctions compliance programs that are reasonably designed to prevent the
licensed payment stablecoin issuer from facilitating money laundering, in particular, money
laundering for cartels and organizations designated as foreign terrorist organizations.
(b) The department shall make such certifications available to the Secretary of the
Treasury upon request.
(c)(1) The department may revoke the license of a licensed payment stablecoin issuer
that does not submit a certification pursuant to subsection (a) of this Code section.
(2)(A) Any person that knowingly submits a false certification shall be subject to Code
Section 16-10-20.
(B) If a person knowingly violates this Code section, the department may refer the
matter to the Attorney General or the United States Attorney General.
7-11-17.
(a) A licensed payment stablecoin issuer shall maintain identifiable reserves backing the
outstanding payment stablecoins of the licensed payment stablecoin issuer on at least a one
to one basis, which reserves are composed of:
(1) United States coins and currency or money standing to the credit of an account with
a federal reserve bank;
(2) Funds held as demand deposits, or other deposits that may be withdrawn upon
request at any time, or insured shares at an insured depository institution subject to
limitations established by the Federal Deposit Insurance Corporation and the National
Credit Union Administration, as applicable, to address safety and soundness risks of such
insured depository institution;
(3) Treasury bills, notes, or bonds:
(A) With a remaining maturity of 93 days or less; or
(B) Issued with a maturity of 93 days or less;
(4) Money received under repurchase agreements, with the permitted payment stablecoin
issuer acting as a seller of securities and with an overnight maturity, that are backed by
Treasury bills with a maturity of 93 days or less;
(5) Reverse repurchase agreements, with the permitted payment stablecoin issuer acting
as a purchaser of securities and with an overnight maturity, that are collateralized by
Treasury notes, bills, or bonds on an overnight basis, subject to collateralization in line
with standard market terms that are;
(A) Tri-party;
(B) Centrally cleared through a clearing agency registered with the Securities and
Exchange Commission; or
(C) Bilateral with a counterparty that the issuer has determined to be adequately
credit-worthy even in the event of severe market stress;
(6) Securities issued by an investment company registered under Section 8(a) of the
federal Investment Company Act of 1940, or other registered government money market
fund, and that are invested solely in underlying assets described in paragraphs (1)
through (5) of this subsection;
(7) Any other similarly liquid federal government issued asset approved by the primary
federal payment stablecoin regulator in consultation with the department; or
(8) Any reserve described in paragraphs (1) through (3) or paragraphs (6) and (7) of this
subsection in tokenized form, provided that such reserves comply with all applicable laws
and regulations.
(b)(1) Licensed payment stablecoin issuers shall publish the monthly composition of the
issuer's reserves on the website of the issuer. Such publication shall include:
(A) The total number of outstanding payment stablecoins issued by the issuer; and
(B) The amount and composition of the reserves described in subsection (a) of this
Code section, including the average tenor and geographic location of custody of each
category of reserve instrument.
(2) Each month, the chief executive officer and the chief financial officer of a licensed
payment stablecoin issuer shall submit a certification as to the accuracy of the monthly
report to the department in such form and manner as required by the department.
(3) Any person who submits a certification pursuant to paragraph (2) of this subsection
knowing that such certification is false shall be subject to the same criminal penalties as
those set forth in Code Section 16-10-20.
(c) Reserves required under this Code section may not be pledged, rehypothecated, or
reused by the licensed payment stablecoin issuer, either directly or indirectly, except for
the purpose of:
(1) Satisfying margin obligations in connection with investments in permitted reserves
pursuant to paragraphs (4) and (5) of subsection (a) of this Code section.
(2) Satisfying obligations associated with the use, receipt, or provision of standard
custodial services; or
(3) Creating liquidity to meet reasonable expectations of requests to redeem payment
stablecoins, such that reserves in the form of Treasury bills may be sold as purchase
securities for repurchase agreements with a maturity date of 93 days or less, provided that
either:
(A) The repurchase agreements are cleared by a clearing agency registered with the
Securities and Exchange Commission; or
(B) The licensed payment stablecoin issuer receives the prior approval of the
department.
7-11-18.
(a) In the event a licensed payment stablecoin issuer fails to maintain identifiable reserves
required by Code section 7-11-17, the licensed payment stablecoin issuer shall:
(1) Calculate the mark-to-market value of all reserve assets;
(2) If the mark-to-market value of all reserve assets is less than the amount needed for
a one to one reserve requirement, the licensed payment stablecoin issuer shall:
(A) Inject capital into the reserve holdings at an amount required to ensure the one to
one reserve is maintained; or
(B) Halt redemptions, hold all reserves to maturity, and distribute the reserve to
payment stablecoin holders in accordance with the terms provided by the GENIUS Act.
(b)(1) If a licensed payment stablecoin issuer fails to maintain identifiable reserves
required by Code Section 7-11-17 and the licensed payment stablecoin issuer fails to
comply with subsection (a) of this Code section, the department may order the licensed
payment stablecoin issuer to halt redemptions.
(2) Failure of a licensed payment stablecoin issuer to halt redemptions when ordered by
the department may result in additional action by the department, including, but not
limited to, license revocation or receivership.
(c) A reserve is presumed to meet the one to one requirement of the GENIUS Act if the
payment stablecoin maintains its peg to the reference asset.
(d) If a payment stablecoin's value falls below 100 percent of the reference asset, the
licensed payment stablecoin issuer is required to comply with subsection (a) of this Code
section in a timeframe that reduces the likelihood of a potential run on the reserve assets.
7-11-19.
The department shall establish by rule minimum capital requirements, liquidity and risk
standards, governance standards, third-party risk management requirements, and
operational risk and information technology risk standards for applicants and licensed
payment stablecoin issuers. Such standards shall meet or exceed the requirements of
Section (4)(A) of the GENIUS Act and the related regulations promulgated by the federal
payment stablecoin regulators.
7-11-20.
(a) Each licensed payment stablecoin issuer shall hold the reserves required by Code
Section 7-11-17 in trust for the benefit of the holders of such payment stablecoins in the
event of insolvency, the filing of a petition by or against the licensee under the United
States Bankruptcy Code, the filing of a petition by or against the licensee for receivership,
the commencement of any other judicial or administrative proceeding for its dissolution or
reorganization, or in the event of an action by a creditor against the licensee who is not a
beneficiary of the statutory trust.
(b) No reserve impressed with a trust pursuant to this Code section shall be subject to
attachment, levy of execution, or sequestration by order of any court, except for a
beneficiary of the statutory trust.
(c) A licensed payment stablecoin issuer and its officers shall have a fiduciary duty to
preserve and account for its reserves as contemplated by this Code section.
7-11-21.
(a) Each licensed payment stablecoin issuer shall publicly disclose such issuer's
redemption policy.
(b) A licensed payment stablecoin issuer's redemption policy shall, at a minimum:
(1) Establish clear and conspicuous procedures for timely redemption of outstanding
payment stablecoins;
(2) Publicly, clearly, and conspicuously disclose in plain language all fees associated
with purchasing or redeeming the payment stablecoins, provided that such fees can only
be changed upon not less than seven days prior notice to consumers. Such notice shall
provide that the consumer can redeem prior to the effective date of the change at the
existing rate; and
(3) Comply with this chapter, the GENIUS Act, and any applicable state or federal
regulations.
7-11-22.
(a) A licensed payment stablecoin issuer shall be treated as a financial institution for the
purposes of the federal Bank Secrecy Act of 1970 and shall be subject to all federal laws
applicable to a financial institution located in the United States relating to economic
sanctions, prevention of money laundering, customer identification, and due diligence,
including, but not limited to:
(1) Maintenance of an effective anti-money laundering program, which shall include
appropriate risk assessments and designation of an officer to supervise the program;
(2) Retention of appropriate records;
(3) Monitoring and reporting of any suspicious transactions relevant to possible
violations of laws or regulation;
(4) Technical capabilities, policies, and procedures to block, freeze, and reject specific
or impermissible transactions that violate federal or state laws, rules, or regulations;
(5) Maintenance of an effective customer identification program, including identification
and verification of account holders with the permitted payment stablecoin issuer,
high-value transactions, and appropriate enhanced due diligence; and
(6) Maintenance of effective economic sanctions compliance programs, which at a
minimum shall include verification of sanctions lists consistent with federal law.
(b) Licensed payment stablecoin issuers shall comply with the provisions of Code
Sections 7-1-970 through 7-1-917.
7-11-23.
(a) A licensed payment stablecoin issuer shall only:
(1) Issue payment stablecoins;
(2) Redeem payment stablecoins;
(3) Manage related reserves, including purchasing, selling, and holding reserve assets or
providing custodial services for reserve assets consistent with federal and state law;
(4) Provide custodial or safekeeping services for payment stablecoins, required reserves,
or private keys of payment stablecoins consistent with this chapter; and
(5) Undertake other activities that directly support any of the activities listed in this Code
section, or that are incidental to such activities, with the express permission of the
department; provided, however, that the claims of payment stablecoin holders are senior
to any potential claims of nonpayment stablecoin creditors with respect to reserve assets.
(b) A licensed payment stablecoin issuer that engages in other activities not authorized by
this Code section may be subject to revocation or suspension of such license.
7-11-24.
A licensed payment stablecoin issuer shall not provide services to a customer on the
condition that such customer obtain an additional paid product or service from the licensed
payment stablecoin issuer or any of its subsidiaries, or on the condition that such customer
agree not to obtain a product or service from a competitor.
7-11-25.
A licensed payment stablecoin issuer shall not:
(1) Use any name or combination of terms that are:
(A) Barred by the GENIUS Act;
(B) Related to this state or the government of this state; or
(C) Barred by Code Section 7-1-243 as a corporate name; and
(2) Market a payment stablecoin in such a way that a reasonable person would perceive
the payment stablecoin to be:
(A) Legal tender, as described in 31 U.S.C. Section 5103;
(B) Issued by the United States or by this state;
(C) Guaranteed or approved by the government of the United States or the government
of this state;
(D) Insured or guaranteed by a governmental entity, including, but not limited to, by
the Federal Deposit Insurance Corporation or the National Credit Union
Administration; or
(E) Backed by deposits that are federally insured.
7-11-26.
(a) A licensed payment stablecoin issuer shall prepare, in accordance with generally
accepted accounting principles, an annual financial statement which shall include the
disclosure of any related party transaction, as defined by such generally accepted
accounting principles.
(b) A registered public accounting firm acceptable to the department shall perform an audit
of the annual financial statements. Such audit shall be conducted with all applicable
auditing standards established by the Public Company Accounting Oversight Board,
including those relating to auditor independence, internal controls, and related party
transactions.
(c) Each licensed payment stablecoin issuer shall submit such audited financial statements
annually to the department.
7-11-27.
No licensed payment stablecoin issuer shall pay the holder of any payment stablecoin any
form of interest or yield, whether in cash, tokens, or other consideration, solely in
connection with the holding, use, or retention of such payment stablecoin.
7-11-28.
Each licensed payment stablecoin issuer shall submit to the department an annual report
listing:
(1) The financial condition of the licensed payment stablecoin issuer;
(2) The systems of the licensed payment stablecoin issuer for monitoring and controlling
financial and operating risks;
(3) Compliance by the licensed payment stablecoin issuer with this chapter; and
(4) The compliance of the licensed payment stablecoin issuer with the requirements of
the federal Bank Secrecy Act of 1970 and with laws authorizing the imposition of
sanctions implemented by the federal Secretary of the Treasury.
7-11-29.
(a) The department shall investigate and examine a licensed payment stablecoin issuer in
order to assess:
(1) The nature of the operations and financial condition of the licensed payment
stablecoin issuer;
(2) The financial, operational, technological, and other risks associated with the licensed
payment stablecoin issuer that may pose a threat to the:
(A) Safety and soundness of the licensed payment stablecoin issuer; or
(B) The stability of the financial system of the United States or this state;
(3) The systems of the licensed payment stablecoin issuer for monitoring and controlling
the risks described in subsection (b) of this Code section; and
(4) Compliance with state and federal laws and regulations.
(b)(1) The department shall examine or investigate all licensed payment stablecoin
issuers at least once each year and may examine or investigate any licensed payment
stablecoin issuer more frequently at any time it deems such action necessary or desirable.
(2) At least annually, such examination or investigation shall consist of a comprehensive
review of accounts, records, and affairs of the licensed payment stablecoin issuer.
(3) To aid in its examination or investigation of a licensed payment stablecoin issuer, the
department may conduct an examination or investigation of the licensed payment
stablecoin issuer's holding companies, subsidiaries, affiliates, or support organizations
provide material services to the licensed payment stablecoin issuer or that the failure of
such entities would have a material impact on the services provided by the licensed
payment stablecoin issuer.
(c) Notwithstanding subsections (b) and (d) of this Code section, the department may,
consistent with the purposes of this chapter and the rules enacted pursuant to this chapter,
alter the examination frequency and scope in order to assure that appropriate time and
attention are devoted to the supervision of troubled entities regulated by the department or
to minimize the examination burden on well-managed licensed payment stablecoin issuers
which have consistently been operated with safe and sound practices.
(d) In addition to any other authority set forth under this chapter, the department shall be
authorized to conduct investigations and examinations of applicants, licensed payment
stablecoin issuers, ultimate equitable owners, officers, and directors as follows:
(1) The department shall have the authority to access, receive, and use any books,
accounts, records, files, documents, information, or evidence, including, but not limited
to:
(A) Criminal, civil, and administrative history information, including nonconviction
data;
(B) Personal history and experience information, including, but not limited to,
independent credit reports;
(C) For an individual who has resided outside of the United States, an international
investigative background report prepared by a competent independent search firm,
which shall include at a minimum comprehensive credit, criminal, employment, medial,
and financial services regulatory history information; and
(D) Any other documents, information, or evidence the department deems relevant to
the inquiry, examination, or investigation, regardless of the location, possession,
control, or custody of such documents, information, or evidence;
(2) Each licensed payment stablecoin issuer or person subject to this chapter shall make
available to the department, upon request, any books and records relating to the issuance
of payment stablecoins;
(3) No licensed payment stablecoin issuer or person subject to investigation or
examination pursuant to this chapter shall knowingly withhold, abstract, remove,
mutilate, destroy, or secrete any books, records, documents, files, computer records,
evidence, or other information; and
(4) To carry out the purposes of this Code section, the department may:
(A) Enter into agreements or relationships with other government officials or
regulatory associations in order to improve efficiencies and reduce regulatory burden
by sharing resources, documents, records, information, or evidence or by utilizing
standardized or uniform methods or procedures;
(B) Accept and rely on examination or investigation reports made by other government
officials made within or outside this state;
(C) Accept audit reports or portions of audit reports made by an independent certified
public accountant on behalf of the licensed payment stablecoin issuer or person subject
to this chapter covering the same general subject matter as the audit and may
incorporate the audit report in the report of examination, report of investigation, or
other writing of the department; and
(D) Use, hire, contract, or employ analytical systems, methods, or software.
(e)(1) Each licensed payment stablecoin issuer shall pay an examination fee as
established by the rules and regulations of the department to cover the costs of an
examination or investigation.
(2) To aid the department in examining or investigating a licensed payment stablecoin
issuer or its holding companies, affiliates, or subsidiaries, the department may retain a
third-party expert to assist with such examination or investigation. The third-party expert
shall analyze the accounts, records, affairs, systems, data, or information requested by the
department and provide results to the department.
(3) Any fees or costs associated with a third-party expert retained to aid the department
with the examination or investigation of the licensed payment stablecoin issuer shall be
paid by the licensed payment stablecoin issuer.
(f) If a department enters into an agreement with a third-party expert for the purpose of
aiding the department in evaluating a payment stablecoin issuer application or examining
or investigating a licensed payment stablecoin issuer, the agreement may provide:
(1) All fees and costs incurred by the third-party expert shall be paid by the applicant or
licensed payment stablecoin issuer;
(2) The fees may vary depending on the services provided by such third-party expert but
as set forth in a general fee schedule;
(3) The purpose of the agreement is to aid the department in determining if the applicant
or licensed payment stablecoin issuer, its holding companies, and affiliates have complied
with this chapter, any rules and regulations promulgated pursuant to this chapter, and are
operating in a safe and sound manner;
(4) The department shall direct the focus and scope of such third-party expert's analysis,
including, but not limited to, the accounts, records, affairs, data, or information to be
reviewed;
(5) The third-party expert shall produce at least one detailed report to the department
which shall reach conclusions about its review and provide support for any conclusions
in the report;
(6) The third-party expert shall have access to all of the records of the applicant or
licensed payment stablecoin issuer, its holding companies, subsidiaries, and affiliates that
the department may review;
(7) All information reviewed by the third-party expert shall be confidential and not
subject to disclosure other than to the department or as may otherwise be required by law;
and
(8) All services shall be performed in accordance with applicable professional standards.
(g) The department may:
(1) Make such public or private examination or investigation within or outside of this
state as it deems necessary to determine whether any person has violated this chapter, any
rule or regulation, or order issued under this chapter, to aid in the enforcement of this
chapter, or to assist in prescribing rules and regulations pursuant to this chapter;
(2) Require or permit any person to file a statement in writing, under oath or otherwise,
as to all the facts and circumstances concerning the matter to be investigated;
(3) Request any financial data from an applicant or licensed payment stablecoin issuer;
(4) Conduct an on-site examination of a licensed payment stablecoin issuer at any
location of the licensed payment stablecoin issuer without prior notice to such licensed
payment stablecoin issuer. The licensed payment stablecoin issuer shall pay all
reasonably incurred costs of the examination. The department is authorized to net its
out-of-state travel expenses incurred as a result of an examination or investigation of a
licensed payment stablecoin issuer against payment from the licensed payment stablecoin
issuer.
(h) For the purpose of conducting any examination or investigation pursuant to this Code
section, the department shall have the power to:
(1) Administer oaths;
(2) Call any party to testify under oath in the course of an examination or investigation;
(3) Require attendance of witnesses;
(4) Require the production of books, accounts, records, documents, and papers; and
(5) Issue subpoenas for witnesses for the production of documentary evidence for such
purposes. Such subpoenas may be served by certified mail or statutory overnight
delivery, return receipt requested, to the addressee's business mailing address or by
examiners appointed by the department, or shall be directed for service to the sheriff of
the county where such witness resides or is found or where the person in custody of any
books, accounts, records, documents, or papers resides or is found.
(i) The department may issue and apply to enforce subpoenas in this state at the request
of any government agency, department, organization, or entity regulating payment
stablecoins in another state if the activities constituting the alleged violation for which the
information is sought would be a violation of this chapter if the alleged activities had
occurred in this state.
(j) In case of refusal to obey a subpoena issued under this chapter to any person, a court
of appropriate jurisdiction, upon application by the department, may issue to the person an
order requiring him or her to appear before the court to show cause why he or she should
not be held in contempt for refusal to obey the subpoena. Failure to obey a subpoena may
be punished as contempt by the court.
(k)(1) Examinations and investigations conducted pursuant to this chapter and
information obtained by the department in the course of conducting its duties pursuant
to this chapter are confidential, except as provided in this subsection, pursuant to the
provisions of Code Section 7-1-70.
(2) In addition to the exceptions set forth in subsection (b) of Code Section 7-1-70, the
department is authorized to share information obtained under this chapter with other state
and federal regulatory agencies or law enforcement authorities. The safeguards to
confidentiality already in place within such agencies or authorities shall be deemed to be
adequate for the purposes of this paragraph.
(3) The commissioner, or a designated examiner, may disclose such information as is
necessary to conduct a civil or administrative investigation or proceeding.
(4) Information contained in the records of the department that is not confidential and
may be made available to the public either on the department's website, upon receipt of
a written request, or in the Nationwide Multistate Licensing System and Registry shall
include:
(A) The name, business address, telephone number, facsimile number, and unique
identifier of a licensed payment stablecoin issuer;
(B) The names and titles of the principal officers or directors;
(C) The name of the owner or owners;
(D) The business address of a licensed payment stablecoin issuer's registered agent for
service;
(E) Information concerning any violation of this chapter, any rule or regulation, or any
order issued pursuant to this chapter, provided that the information is derived from a
final decision of the department; and
(F) Imposition of an administrative fine or penalty pursuant to this chapter.
(l) The authority to conduct an examination or investigation as provided for in this Code
section shall remain in effect whether a licensed payment stablecoin issuer or person acts
or claims to act pursuant to any licensing or registration law of this state or claims to act
without such authority.
(m) In the absence of malice, fraud, or bad faith, a person is not subject to civil liability
arising out of furnishing the department with any information required by this chapter or
required by the department under the authority granted in this chapter. No civil cause of
action of any nature shall arise against a person for any information:
(1) Relating to suspected prohibited conduct furnished to or received from law
enforcement officials, their agents, or employees or to or from other regulatory licensing
authorities;
(2) Furnished to or received from other persons subject to the provisions of this chapter;
or
(3) Furnished in complaints filed with the department.
(n) The commissioner or any employee or agent of the department shall not be subject to
civil liability, and no civil cause of action of any nature shall exist against such individuals
arising out of the performance of activities or duties pursuant to this chapter or by
publication of any report of activities pursuant to this Code section.
7-11-30.
(a)(1) Except as provided in this Code section, no person or group of persons acting in
concert shall become an ultimate equitable owner of any licensed payment stablecoin
issuer through acquisition or other change in control as a result of such acquisition or
other change in control unless such person or group of persons acting in concert has first
received approval for such acquisition, change in control, or designation as an executive
officer from the department.
(2) To obtain such approval, such person or group of persons acting in concert shall:
(A) File an application with the department in such form as the department may
prescribe from time to time;
(B) Provide such other information as the department may require concerning the
financial responsibility, background, experience, and activities of the applicant, its
directors and executive officers, if a corporation, and its members, if applicable, and of
any proposed new directors, executive officers, members, or ultimate equitable owners
of the licensed payment stablecoin issuer; and
(C) Pay such application fee as the department may prescribe.
(b) The department may prescribe additional requirements for the approval of such
acquisition, change in control, or designation as an executive officer as a result of such
acquisition or other change in control through rules and regulations.
(c) If the application is denied, the department shall notify the applicant in writing of the
denial and the reasons for such denial.
7-11-31.
(a)(1) The department is authorized to suspend or revoke a license issued pursuant to this
chapter if it finds that any grounds exist that would require or warrant the denial of an
application for the issuance of a license.
(2) The department may also suspend or revoke a license if it finds the licensed payment
stablecoin issuer has:
(A) Violated:
(i) This chapter or any regulation or decision issued pursuant to this chapter;
(ii) The GENIUS Act; or
(iii) Any condition imposed by the department in writing;
(B) Committed any fraud or engaged in any dishonest activities;
(C) Made a false statement in an application or failed to give a true reply to a question
in an application or renewal;
(D) Demonstrated incompetency or untrustworthiness to act as a licensed payment
stablecoin issuer;
(E) Failed to pay a judgment recovered in any court by a claimant or creditor in an
action arising out of the licensed payment stablecoin issuer's business in this state
within 30 days after such judgment becomes final;
(F) Purposefully withheld, deleted, destroyed, or altered information requested by an
examiner of the department or made false statements or misrepresentations to the
department;
(G) Operated in an unsafe or unsound manner; or
(H) Made a general assignment for the benefit of its creditors, suspended payment of
its obligations, or is insolvent.
(b) The department may revoke a license if the licensed payment stablecoin issuer is
subject to a final cease and desist order that has been issued within the five proceeding
years if such order was based on a violation of this chapter.
(c)(1) As used in this subsection, the term 'email address of record' means the email
address that the licensed payment stablecoin issuer designated as the email address for
regulatory contact on file with the Nationwide Multistate Licensing System and Registry.
(2) Notice of the department's intention to suspend or revoke a license shall be given to
the licensed payment stablecoin issuer, sent by registered or certified main or statutory
overnight delivery addressed to the principal place of business of such licensed payment
stablecoin issuer or sent to the email address of record of the licensed payment stablecoin
issuer.
(3) If a person refuses to accept service of the notice of intention to suspend or revoke
by certified mail or statutory overnight delivery, the notice shall be served by the
commissioner or the commissioner's authorized representative pursuant to any other
method of lawful service, and the person shall be personally liable to the commissioner
for a sum equal to the actual costs incurred to serve the notice. This liability shall be paid
upon notice and demand by the commissioner or commissioner's representative and shall
be assessed and collected in the same manner as other fees or fines administered by the
commissioner.
(d) Within 30 days of the date of notice of intention to suspend or revoke, the licensed
payment stablecoin issuer may request a hearing to contest the order in writing. If a
hearing is not requested within 30 days of such notice of intention, the department shall
enter a final decision on the suspension or revocation of the license.
(e) If the department receives a timely request for a hearing, the department shall notice
a time and place at which the licensed payment stablecoin issuer may appear for a hearing
within 30 days of the receipt of such request.
(f) Not later than 60 days after the date of the hearing, the department shall issue a final
decision on the suspension or revocation.
(g) Any final decision of the department suspending or revoking a license shall state the
grounds upon which such suspension or revocation is based and shall be effective on the
date of issuance. A copy of the final decision shall be forwarded promptly by mail
addressed to the principal place of business of the licensed payment stablecoin issuer, the
authorized agent of said issuer, or the licensed payment stablecoin issuer.
(h) Any decision by the department suspending or revoking a license shall be subject to
review pursuant to Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'
(i) Judicial review of any final decision of the department entered pursuant to this chapter
shall be available solely in the superior court of the county of domicile of the department.
(j) Whenever the department initiates an administrative action against a licensed payment
stablecoin issuer, the department may pursue such action to its conclusion even if a
licensed payment stablecoin issuer withdraws or surrenders its license.
7-11-32.
(a) The department is authorized to issue an order requiring a licensed payment stablecoin
issuer to cease and desist immediately from unauthorized activities whenever it shall
appear to the department that the licensed payment stablecoin issuer has violated any law
of this state, any applicable federal law or regulation, or any decision, order, or regulation
of the department. Such cease and desist order shall be final 20 days after it is issued,
unless the licensed payment stablecoin issuer submits a written request for a hearing within
such 20 day period.
(b) The department may issue an order requiring a person to cease and desist immediately
from unauthorized activities whenever it shall appear to the department that the person has
engaged in activities requiring a license pursuant to this chapter and such person is not a
licensed or permitted stablecoin issuer. Such cease and desist order shall be final 30 days
from the date of issuance, and there shall be no opportunity for an administrative hearing.
If the proper license or authority to engage in such activities is obtained and provided to
the department within the 30 day period, such order shall be rescinded by the department.
(c) Any cease and desist order issued pursuant to this Code section shall be in writing, sent
by registered or certified mail or statutory overnight delivery, and addressed to the person's
business address or, if the person is an individual, to the individual's personal address.
(d) Any hearing authorized under this Code section shall be conducted in pursuant to
Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'
(e) Judicial review of any final order entered by the department pursuant to this chapter
shall be available solely in the superior court of the county of domicile of the department.
7-11-33.
(a) Whenever a person fails to comply with the terms of a final decision or order of the
department issued pursuant to this chapter, the department, through the Attorney General
and upon three days' notice to such person, petition the superior court where the person is
domiciled for an order directing such person to obey the final decision or order within a
period of time as shall be fixed by the court. Upon the filing of a petition, the court shall
allow a motion to show cause as to why it should not be granted. After a hearing on the
merits or after a failure of such person to appear when ordered, the court shall grant the
petition of the department upon a finding that the order of the department was properly
issued.
(b)(1) Any person who violates the terms of any final decision or order issued pursuant
to this chapter shall be liable for a civil penalty not to exceed $1,000.00. Each day the
violation continues shall constitute a separate offense.
(2) In determining the amount of the penalty, the department shall take into account:
(A) The appropriateness of the penalty relative to the financial resources of such
person;
(B) Good faith efforts of such person to comply with the order;
(C) The severity of the violation;
(D) The history of previous violations by such person; and
(E) Any other factors or circumstances that contributed to the violation.
(3) The department is authorized to compromise, modify, or refund any penalty which
has been imposed pursuant to this Code section.
(4) Any person penalized pursuant to this subsection shall have the right to request a
hearing within ten days of notification of such penalty has been served upon such person.
Otherwise, such penalty shall be considered final except as to judicial review as provided
in Code Section 7-1-90.
7-11-34.
The department shall be authorized to remove a director, officer, employee, ultimate
equitable owner, or controlling stockholder of a licensed payment stablecoin issuer from
the position or office he or she holds, and prohibit further participation in the affairs of the
licensed payment stablecoin issuer and any entity supervised, licensed, or registered with
the department if the department determines that:
(1) The director, officer, employee, or controlling stockholder has knowingly committed
a violation or attempted a violation of this chapter, the GENIUS Act, or any regulation,
decision, or order issued pursuant to this chapter; or
(2) The director, officer, employee, or controlling stockholder has knowingly committed
a violation of a federal or state law or regulation, including, but not limited to,
Subchapter II of Chapter 53 of Title 31 of the United States Code."
SECTION 4.
Subject to appropriations by the General Assembly, this Act shall become effective upon the
earlier of:
(1) January 18, 2027; or
(2) 120 days after the issuance of final implementing regulations for the GENIUS Act.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 1272 would create a new Georgia licensing system for companies that issue payment stablecoins, a type of digital currency pegged to the dollar, putting the Department of Banking and Finance in charge of approving, regulating, and policing these issuers.
### Plain-language summary
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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Passed (2026-05-11)
- Last action: Effective Date 2026-07-01 (2026-05-11)
- Sponsors: Todd Jones, Scott Hilton, Demetrius Douglas, Bruce Williamson, Billy Mitchell, Noel Williams, Greg Dolezal
- Official page: https://www.legis.ga.gov/legislation/73077
> The history, votes, and amendments (1,224 characters) are at https://georgiacommons.org/bills/2025-2026/hb1272.md?full=1