On May 12, Maryland’s governor signed SB 662, the “Maryland Stablecoin Act,” establishing a regulatory framework for entities in the state to serve as state issuers of stablecoins or as “payment stablecoin services institutions.” The law, which takes effect January 1, 2027, authorizes the state’s Commissioner of Financial Regulation to issue certificates to nondepository trust companies and credit union service organizations seeking to engage in payment stablecoin-related services, including exchanging payment stablecoins for monetary value, providing custodial or safekeeping services, and managing reserve assets for permitted payment stablecoin issuers (PPSIs). The commissioner must approve or deny certificate applications within 60 days and may suspend or revoke certificates for unsafe or unsound practices, fraud, or violations of law. Under the law, certificate holders are prohibited from making loans, accepting consumer or insured deposits, or representing that deposited funds are insured. The law aligns its definitions and framework with the federal GENIUS Act, which was enacted in July 2025 (covered by InfoBytes here), and designates the state’s Office of Financial Regulation as the state payment stablecoin regulator.

The law also requires commercial banks and credit unions to notify the commissioner before seeking federal authorization to become a PPSI or before providing payment stablecoin-related services. Additionally, the law reduces the examination fee for a new commercial bank charter from $15,000 to $7,000 and authorizes nondepository trust companies to request reduced capital stock requirements.