HB 259

This act is the Financial Innovation and Market Expansion Act. This act adds Chapter 7B to Title 8, Code of Alabama 1975, to: (1) prohibit issuing payment stablecoins without a permit, subject to exceptions; (2) beginning 2028, prohibit digital asset service providers from offering payment stablecoins not issued by permittees, subject to exceptions; (3) authorize the Alabama Securities Commission to establish a license application process according to specified requirements; (4) require licensees to implement anti-money laundering and economic sanctions programs; (5) authorize and require the commission to adopt rules, including fees, to administer this act; (6) authorize the commission to investigate and examine licensees for violations of this act; (7) require the commission to report annually on this act to the Legislature; (8) authorize the commission to enforce this act, including suspending or revoking licenses, ordering licensees to desist violations; and bringing actions in the Circuit Court of Montgomery County; (9) provide that with regard to offering or purchasing stablecoin, knowingly defrauding persons and making untrue statements is a Class B felony; (10) provide that intentionally falsifying information required by this act is a Class C felony; (11) provide that intentionally engaging in activities requiring a license under this act without a license is a Class C felony if more than $5,000 is received in a 30-day period, and a Class D felony if less than $5,000 is received in a 30 day-period; and (12) authorize the commission to assess civil penalties of not more than $10,000 for violating this act.