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HB544 • 2026

Cryptocurrency; governmental entities authorized to use stablecoins as payment to vendors and contractors

Cryptocurrency; governmental entities authorized to use stablecoins as payment to vendors and contractors

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Shaw
Last action
2026-03-03
Official status
Pending Committee Action in House of Origin
Effective date
Not listed

Plain English Breakdown

The bill text states it was introduced on March 3, 2026, and has not yet been passed or enacted; therefore, its provisions are hypothetical until signed into law.

HB544: Allowing Government Agencies to Pay Vendors with Approved Stablecoins

This bill allows state and local government agencies in Alabama to pay vendors using specific digital currencies called payment stablecoins if the vendor agrees, provided those coins meet strict safety rules set by the Alabama Securities Commission or federal law.

What This Bill Does

  • Authorizes governmental entities to use approved payment stablecoins for contracts only when a vendor or contractor requests it.
  • Requires the Alabama Securities Commission to create and publish a list of recognized payment stablecoins that meet specific standards.
  • Sets rules requiring approved stablecoin issuers to be U.S.-based, fully backed by dollars or Treasury obligations, and audited quarterly.
  • Mandates that government agencies give vendors written disclosures about redemption rights, reserve backing, audit requirements, and risks before using stablecoins for payment.
  • Allows the Commission to suspend or remove a stablecoin from the approved list if it no longer meets the required standards.

Who It Names or Affects

  • State and local government agencies in Alabama
  • Vendors and contractors who work with these government entities
  • The Alabama Securities Commission

Terms To Know

Payment Stablecoin
A digital asset designed to keep a stable value, usually tied one-to-one with the U.S. dollar or short-term government debt.
Governmental Entity
Any state or local agency or instrumentality located in Alabama.
GENIUS Act
A federal law called the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which sets rules that some stablecoin issuers must follow to be approved.

Limits and Unknowns

  • Vendors and contractors cannot be forced to accept payment in stablecoins; they must choose it voluntarily.
  • The specific list of approved coins does not exist yet because the Commission has not published it under this new law.
  • This bill only takes effect on October 1, 2026.

Bill History

  1. 2026-03-03 House

    Pending Committee Action in House of Origin

  2. 2026-03-03 House

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

Official Summary Text

Cryptocurrency; governmental entities authorized to use stablecoins as payment to vendors and contractors

Current Bill Text

Read the full stored bill text 
HB544 INTRODUCED
Page 0
HB544
XDU5L77-1
By Representative Shaw
RFD: Financial Services
First Read: 03-Mar-26
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XDU5L77-1 03/02/2026 JWB (L)JWB 2026-1150
Page 1
First Read: 03-Mar-26
SYNOPSIS:
This bill would authorize governmental entities
to pay for contracts, if requested by the vendor or
contractor, using payment stablecoins.
This bill would authorize the Alabama Securities
Commission to recognize certain payment stablecoins for
governmental use.
This bill would also require the governmental
entity to provide certain disclosures to vendors and
contractors before executing a contract where a payment
stablecoin is used as payment.
A BILL
TO BE ENTITLED
AN ACT
Relating to cryptocurrency; to authorize the Alabama
Securities Commission to recognize certain payment stablecoins
for use by governmental entities; to authorize governmental
entities to pay vendors and contractors using payment
stablecoins; and to require governmental entities to give
certain disclosures when paying vendors or contractors using
payment stablecoins.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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HB544 INTRODUCED
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BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) For purposes of this section, the
following terms have the following meanings:
(1) COMMISSION. The Alabama Securities Commission.
(2) GENIUS ACT. The Guiding and Establishing National
Innovation for U.S. Stablecoins Act, 12 U.S.C. §§ 5901-5916.
(3) GOVERNMENTAL ENTITY. Any state or local agency or
instrumentality located in the state.
(4) PAYMENT STABLECOIN. A digital asset or assets
designed to maintain a stable value that is, or is designed to
be, used as a means of payment or settlement. The issuer of
the payment stablecoin:
a. Is obligated to convert, redeem, or repurchase the
payment stablecoin for a fixed amount of monetary value; and
b. Represents, or creates the reasonable expectation,
that the payment stablecoin will maintain a stable value
relative to the value of a fixed amount of monetary value.
(b)(1) Governmental entities may use the following
types of payment stablecoins to make payments to vendors or
contractors for contracted goods or services:
a. Payment stablecoins approved by the commission for
use by governmental entities pursuant to subsection (c).
b. Payment stablecoins issued by payment stablecoin
issuers that are authorized by a federal governmental entity
pursuant to the GENIUS Act.
(2) Vendors and contractors may elect to receive
payment in an authorized payment stablecoin. If the vendor or
contractor elects to receive payment in a payment stablecoin,
the payment shall be enforceable as satisfaction of the
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HB544 INTRODUCED
Page 3
the payment shall be enforceable as satisfaction of the
monetary obligations owed by the state. No vendor or
contractor shall be required to accept payment stablecoin as
consideration.
(c) The commission may recognize and authorize any
payment stablecoin that complies with the following
requirements:
(1) The payment stablecoin is issued by a person that
is incorporated and headquartered in the United States.
(2) The payment stablecoin issuer has corporate
founders and controlling shareholders who are United States
citizens.
(3) The payment stablecoin is fully backed on a
one-to-one basis by the United States dollar or short-term
United States Treasury obligations.
(4) The stablecoin issuer maintains reserves held in
accounts with United States-chartered banks or federally
regulated custodians.
(5) The payment stablecoin is redeemable at par value
on demand by the holder.
(6) The payment stablecoin is subject to quarterly
independent attestations by an accounting firm registered with
the Public Company Accounting Oversight Board.
(7) The payment stablecoin issuer publishes monthly
reserve reports disclosing asset composition and location.
(8) The payment stablecoin issuer and payment
stablecoin both operate in compliance with the GENIUS Act and
all regulations issued thereunder.
(d) The commission shall not authorize any payment
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HB544 INTRODUCED
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(d) The commission shall not authorize any payment
stablecoin if the payment stablecoin is:
(1) Issued by any entity that is headquartered outside
the United States;
(2) Issued by any entity that is controlled by
individuals who are not citizens of the United States;
(3) Backed by synthetic assets, commodities, foreign
currencies, or other digital assets; or
(4) Issued by an entity that is not a permitted
stablecoin issuer authorized by the commission or the federal
government pursuant to the GENIUS Act.
(e) The commission shall maintain a list of all payment
stablecoins that may be used in government contracting
pursuant to subsection (b) and shall publish the list on the
commission's website.
(f) The commission shall conduct an annual review of
all payment stablecoins authorized pursuant to subsection (c)
and may suspend or revoke recognition of any payment
stablecoin that fails to meet the requirements in subsections
(c) and (d).
(g) Before executing an agreement to pay vendors and
contractors with a payment stablecoin under this section, the
governmental entity shall provide a disclosure to the vendor
or contractor that outlines the redemption rights and
procedures of the applicable payment stablecoin, the reserve
backing and audit requirements for payment stablecoins under
this section and the GENIUS Act, and the risks that are
associated with digital asset custody and use.
(h) The commission shall adopt rules to implement and
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HB544 INTRODUCED
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(h) The commission shall adopt rules to implement and
administer this section.
Section 2. This act shall become effective on October
1, 2026.
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