First US state-level stablecoin bill passes in Florida

The Florida legislature has passed the first state-level regulatory framework for stablecoins, setting the bill up for Gov. Ron DeSantis' signature in the coming days or weeks.

Senate Bill 314 passed a State Senate vote on Thursday with 37 votes in favor and zero opposition.  

“It has now passed the Senate and the House, and will be signed by DeSantis within the next 30 days!” Samuel Armes, founder of the Florida Blockchain Business Association web3 advocacy group, posted to X on Friday. 

SB 314, along with the Florida House bill 175, looks to create a framework for payment stablecoin issuers in the state, including consumer protections and financial stability guidelines, in line with the federal GENIUS Act, which was signed into law last July, according to Republican Florida State Senator Colleen Burton. 

About the stablecoin bill

In particular, the bill revises the Florida Control of Money Laundering in Money Services Business Act to include stablecoins, requiring issuers to comply with existing rules and prohibiting unlicensed issuance. It also specifies that certain payment stablecoins are not securities.

Out-of-state qualified payment stablecoin issuers will be required to provide specified written notice to the Office of Financial Regulation in Florida, according to the bill overview. 

The law notes that certain payment stablecoins will be solely overseen by the OFR, while others will be jointly supervised by the Office of the Comptroller of the Currency, a top federal banking regulator.

GENIUS passed the federal legislature with bipartisan support, building a framework for stablecoin issuance in the U.S. 

A recent attempt to pass broader crypto market structure legislation, often referred to as the Clarity Act after an approved House draft, has yet to pass the Senate, in part due to banking industry concerns over yield-bearing stablecoins. 

Florida’s state-level stablecoin bill would prohibit qualified payment stablecoin issuers from paying any form of interest to holders “if such payment is prohibited under federal law.”

Additionally, a companion bill CS/CS/SB 1440, passed the Florida Senate and House on Friday, expanding confidentiality protections for information obtained by the OFR involving virtual currency businesses, qualified payment stablecoin issuers, and trust companies acting as such issuers, an effort to protect trade secrets and other non-public information.