On May 11, Georgia enacted HB 1272, the “Georgia Payment Stablecoin Act,” establishing a licensing and regulatory framework for payment stablecoin issuers in the state. The law, which becomes effective on the earlier of January 18, 2027, or 120 days after the issuance of final implementing regulations for the federal GENIUS Act, authorizes the state’s Department of Banking and Finance to license entities incorporated under Georgia law or the laws of a foreign country to issue payment stablecoins. The law explicitly states its purpose is to enact Section 4(c) of the GENIUS Act (covered by InfoBytes here) and to ensure the state’s law is “substantially similar” to the federal framework.

The law requires licensed issuers to maintain one-to-one reserves comprising eligible assets as defined under § 7-11-17 of the statute. Issuers must also publish monthly reserve compositions with CEO and CFO certifications, and reserves may not be pledged or rehypothecated except under limited circumstances. An issuer that falls below the one-to-one threshold on a mark-to-market basis must inject capital or halt redemptions and distribute reserves to holders in accordance with the GENIUS Act. The law requires the department to act on “substantially complete” applications within 120 days, after which they are automatically deemed approved, with renewal required annually. Licensed issuers are obliged to maintain an in-state office, implement BSA/AML and sanctions compliance programs, submit GAAP-compliant audited annual financial statements, and hold reserves in statutory trust for stablecoin holders, with officers bearing a fiduciary duty over those reserves.

The law limits licensed issuers’ permissible activities to issuing and redeeming payment stablecoins, managing reserves, and providing custodial or safekeeping services for stablecoins, reserves, and private keys, and prohibits them from paying interest or yield to holders. Under the statute, payment stablecoin issuance is excluded from Georgia’s money transmission laws; however, beginning July 18, 2028, offering or selling a payment stablecoin in the state will be unlawful unless issued by a licensed, permitted, or state-qualified issuer, though certain peer-to-peer and nonintermediated transactions are exempt. The statute further specifies enforcement mechanisms, authorizes the department to share information and enter into a memorandum of understanding with the Fed for joint supervision, and grants the department authority to initiate receivership or conservatorship proceedings against licensed issuers using its existing bank supervisory powers.