HB1272: HB1272 Banking and finance; licensing of payment stablecoin issuers; provisions

Payment stablecoins are digital assets meant to be used for payments and redeemable for a fixed amount of money. Right now Georgia has no specific licensing framework for companies that issue them. This bill creates a new chapter of Georgia banking law, the Georgia Payment Stablecoin Act, that lets the Department of Banking and Finance license and supervise these issuers. The bill lays out how companies apply for a license, what background checks and financial requirements apply to owners and officers, and what reserves issuers must hold to back every stablecoin one for one. It also sets rules for redemption policies, advertising, audits, examinations, and penalties for violations, and it makes it illegal for anyone besides a licensed, federally qualified, or state qualified issuer to issue payment stablecoins in Georgia. The law would take effect on the earlier of January 18, 2027, or 120 days after federal regulators finish implementing rules for the GENIUS Act, and depends on the General Assembly providing funding.

• Creates a new licensing system inside the Department of Banking and Finance for companies that want to issue payment stablecoins in Georgia.
• Requires licensed issuers to back every stablecoin with reserves held one to one in cash, short term Treasury securities, or similar safe assets, and to publish monthly reserve reports.
• Makes it illegal for anyone other than a licensed, federally qualified, or state qualified stablecoin issuer to issue payment stablecoins in Georgia, with limited exceptions for peer to peer transfers.
• Restricts use of the words 'stablecoin' or 'payment stablecoin' in advertising or signage to authorized issuers only.
• Gives the department power to examine, fine, suspend, or revoke the licenses of stablecoin issuers and to remove officers or owners who violate the law.
• Bars licensed issuers from paying interest or yield to stablecoin holders and from bundling services in ways that pressure customers.

Companies and individuals who want to issue payment stablecoins in Georgia, the Department of Banking and Finance, consumers who hold or redeem stablecoins, banks and credit unions covered by related nomenclature rules, and third party auditors or examiners hired to review issuers' books.

If enacted, Georgians who use stablecoins for payments would gain state-backed reserve, disclosure, and redemption protections, while companies wanting to issue stablecoins would need a Georgia license, background checks, capital reserves, and regular audits, adding oversight but also compliance costs.

• Section 1 adds licensed payment stablecoin issuers to the list of entities covered by specific existing banking code sections, such as those on disclosure of information and receivership.
• Section 2 restricts use of the terms 'stablecoin' and 'payment stablecoin' in signage or advertising to authorized issuers under O.C.G.A. § 7-1-243.
• Section 3 creates new Code Section 7-11-6, making it unlawful for anyone other than a permitted, licensed, or state qualified issuer to issue payment stablecoins in Georgia, effective July 18, 2028 for offering or selling.
• New Code Section 7-11-9 and 7-11-10 set application requirements and list disqualifying factors, including felony convictions for fraud, money laundering, or related financial crimes among owners and officers.
• New Code Section 7-11-17 requires licensed issuers to maintain one to one reserves in specific safe asset categories and publish monthly reserve composition reports.
• New Code Section 7-11-20 requires reserves to be held in trust for stablecoin holders, protected from creditors' claims in bankruptcy or receivership.
• New Code Section 7-11-33 sets civil penalties up to $1,000 per day for violating a final department order, with factors the department must weigh in setting the fine.
• Section 4 sets the effective date as the earlier of January 18, 2027, or 120 days after final federal GENIUS Act implementing regulations, 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

• stablecoins
• cryptocurrency regulation
• banking and finance licensing
• consumer financial protection
• digital assets