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AlabamaHB2592026 Regular SessionHouse

Stablecoin; license required for issuance or sale of stablecoins, Alabama Securities Commission to enforce and authorize, penalties provided

Sponsored By: Mike Shaw (Republican)

Enacted

Consumer Protection

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 3 costs, 3 mixed.

Stablecoin holders get priority reserve claims

If an Alabama-approved issuer becomes insolvent, its stablecoin holders have priority claims against the required reserves. Holders share that priority proportionally with other stablecoin holders, ahead of the issuer and other claimants. The priority covers only losses directly from holding that issuer's payment stablecoin. It does not cover unrelated claims or guarantee full repayment.

Safer systems for state stablecoin payments

The Commission must make rules for securely processing payment stablecoins through state systems. The rules must cover links to state accounting and payment systems, security, and fraud prevention. They must also provide educational material about stablecoin use.

Stablecoin fraud and unlicensed activity become felonies

Knowing stablecoin fraud, including material false statements or omissions in offers, sales, or purchases, is a Class B felony. Intentionally making false required filings or records is a Class C felony. Intentional unlicensed activity is a Class C felony when compensation exceeds $5,000 in a 30-day period. Compensation of $5,000 or less in that period makes it a Class D felony. The Class B offense has a five-year discovery rule for prosecution, and other criminal liability still applies.

New limits on Alabama stablecoin sales

Beginning October 1, 2026, only permitted issuers can issue payment stablecoins in Alabama. Permitted issuers include approved federal banking entities, federally approved nonbank firms, and state-approved issuers. Beginning July 18, 2028, digital asset providers can offer or sell Alabama residents only stablecoins from permitted issuers. Exceptions cover specified direct individual transfers, transfers between someone's U.S. and foreign accounts at the same parent company, and self-custody wallet transactions. Protocol developers, self-custody interfaces, validators, and liquidity pools are excluded from the provider definition.

Stablecoin issuers face compliance and examination costs

Alabama-approved issuers must follow the named federal requirements and rules implementing the GENIUS Act. They must certify their anti-money-laundering and sanctions programs within 180 days after application approval, then every year. These programs must address money laundering and terrorist financing, including activity involving cartels and designated foreign terrorist groups. The Commission identifies applicable federal standards and may examine issuers, investigate them, and require relevant records when reasonably needed. Unless the Commission directs otherwise, licensees pay reasonable examination costs for themselves and their authorized delegates.

Stablecoin records stay private with public reporting

Covered applicant, licensee, and examination or investigation records are confidential and generally unavailable through Alabama public-record requests. The Commission can share them with state or federal agencies that promise confidentiality in writing. It can publish licensee lists and combined financial data. Its annual public report to the Legislature must list authorized stablecoins, transaction volumes, cost savings, risk safeguards, and recommendations.

Stablecoin violations bring repayment orders and fines

The Commission can suspend or revoke licenses for fraud, unsafe practices, insolvency, failure to cooperate, and other listed grounds. It can stop violations, appoint a receiver or conservator, order repayment or return of improper gains, and seek court injunctions. Civil fines can reach $100,000 per day per violation, plus state investigation and prosecution costs, including reasonable attorney fees. Assessments consider frequency, persistence, willfulness, and the number of people harmed. Civil fines go to the State General Fund; separate investigation and examination cost charges go to the Alabama Securities Commission Fund.

Stablecoin issuers get one licensing framework

Beginning October 1, 2026, the Alabama Securities Commission runs the state's stablecoin licensing system. It reviews financial strength, leadership, certain officer or director felony convictions, redemption plans, and safe business practices. It must decide on a substantially complete application within 120 days. Providers do not need another license or charter for activities allowed by this chapter, but the chapter's own license remains required. The Commission sets licensing and renewal rules, subject to applicable federal limits on state authority.

Sponsors & Cosponsors

Sponsor

  • Mike Shaw

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 387 • No: 8

Senate vote • 3/31/2026

Petition To Close Debate- Adopted Roll Call 1002

Yes: 26 • No: 7

Senate vote • 3/31/2026

Third Reading in Second House

Yes: 33 • No: 0

Senate vote • 3/31/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 1003

Yes: 34 • No: 0

House vote • 3/10/2026

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 846

Yes: 97 • No: 1 • Other: 3

House vote • 3/10/2026

Third Reading in House of Origin

Yes: 97 • No: 0 • Other: 3

House vote • 3/10/2026

Motion to Adopt - Adopted Roll Call 845

Yes: 100 • No: 0 • Other: 4

Actions Timeline

  1. Enacted

    4/6/2026House

  2. Third Reading in Second House

    3/31/2026Senate

  3. Petition To Close Debate- Adopted Roll Call 1002

    3/31/2026Senate

  4. Motion to Read a Third Time and Pass - Adopted Roll Call 1003

    3/31/2026Senate

  5. Ready to Enroll

    3/31/2026House

  6. Enrolled

    3/31/2026House

  7. Delivered to Governor

    3/31/2026House

  8. Signature Requested

    3/31/2026Senate

  9. Delivered to Governor

    3/31/2026House

  10. Reported Out of Committee Second House

    3/17/2026Senate

  11. Read for the Second Time and placed on the Calendar

    3/17/2026Senate

  12. Read for the first time and referred to the Senate Committee on Fiscal Responsibility and Economic Development

    3/11/2026Senate

  13. Pending Committee Action in Second House

    3/11/2026Senate

  14. Third Reading in House of Origin

    3/10/2026House

  15. Financial Services 1st Substitute Offered

    3/10/2026House

  16. Motion to Adopt - Adopted Roll Call 845

    3/10/2026House

  17. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 846

    3/10/2026House

  18. Ledbetter intended to vote "Yea"

    3/10/2026House

  19. Engrossed

    3/10/2026House

  20. Read for the Second Time and placed on the Calendar

    3/5/2026House

  21. Financial Services 1st Substitute

    3/4/2026House

  22. Reported Out of Committee House of Origin

    3/4/2026House

  23. Read for the first time and referred to the House Committee on Financial Services

    1/15/2026House

  24. Pending Committee Action in House of Origin

    1/15/2026House

Bill Text

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