The proposed bill, HB259 Engrossed, introduces a new Chapter 7B to Title 8 of the Code of Alabama 1975, known as the Financial Innovation and Market Expansion Act, which establishes a regulatory framework for the issuance and sale of payment stablecoins in Alabama. It prohibits individuals or entities from issuing payment stablecoins unless they are classified as a "permitted payment stablecoin issuer," with the Alabama Securities Commission responsible for processing licensing applications and ensuring compliance with both state and federal regulations. The bill outlines key definitions, including "Alabama qualified payment stablecoin issuer" and "digital asset service provider," and mandates that starting July 18, 2028, only permitted issuers may offer or sell payment stablecoins.

Additionally, the bill sets forth various compliance requirements, including annual certifications for anti-money laundering and economic sanctions, and grants the commission authority to conduct examinations and investigations of stablecoin issuers. It establishes civil and criminal penalties for violations, including the potential for fines up to $100,000 per day for ongoing infractions. Notably, the bill inserts provisions for a priority claim for holders of payment stablecoins in insolvency proceedings and specifies penalties for offenses related to stablecoin transactions. The act is scheduled to take effect on October 1, 2026, and aims to ensure the safety and soundness of payment stablecoin issuers while aligning with federal standards.

Statutes affected:
Introduced: 8-7B-1
Engrossed: 8-7B-1