Georgia enacted HB 1272, the "Georgia Payment Stablecoin Act," on May 11, creating a state licensing and supervisory framework for payment stablecoin issuers and aligning state law with the federal GENIUS Act.

The statute takes effect on the earlier of January 18, 2027, or 120 days after federal regulators issue final implementing regulations under the GENIUS Act. It charges the Georgia Department of Banking and Finance with licensing entities incorporated under Georgia law or under the laws of a foreign country to issue payment stablecoins within or from the state.

What obligations does the framework impose on licensees?

The statute requires licensed issuers to:

• Hold one-to-one reserves composed of eligible assets as defined in § 7-11-17
• Publish monthly reserve compositions, with CEO and CFO certifications
• Refrain from pledging or rehypothecating reserves, with narrow exceptions
• Inject capital or suspend redemptions if reserves fall below par on a mark-to-market basis, with subsequent distribution to holders in accordance with the GENIUS Act
• Operate BSA/AML and sanctions compliance programs
• File GAAP-compliant audited annual financial statements
• Maintain an in-state office
• Hold reserves in statutory trust for stablecoin holders, with corporate officers owing a fiduciary duty

The department must act on "substantially complete" applications within 120 days; inaction triggers automatic approval. Licenses renew annually.

What can a Georgia-licensed issuer actually do?

The statute limits permissible activity to four lines: issuing and redeeming payment stablecoins, managing reserves, and providing custodial or safekeeping services for stablecoins, reserves, and private keys. Paying interest or yield to holders is prohibited.

Payment stablecoin issuance is excluded from Georgia's money transmission statutes, removing a separate state-level regulatory overlay for licensees.

When does the in-state ban on unlicensed stablecoins kick in?

Beginning July 18, 2028, offering or selling a payment stablecoin in Georgia becomes unlawful unless the issuer holds a license, a permit, or another state qualification under the new regime. Peer-to-peer and other nonintermediated transactions remain exempt, preserving a direct-transfer carve-out for individuals.

What supervisory and enforcement tools does the state gain?

The Department of Banking and Finance can initiate receivership or conservatorship proceedings against licensed issuers using its existing bank-supervisory powers. The statute also authorizes the department to share information and enter into memoranda of understanding with the Federal Reserve for joint supervision, allowing coordinated oversight of issuers with federal touchpoints.

How does the law fit into the broader regulatory map?

The act states its purpose is to implement Section 4(c) of the GENIUS Act and ensure Georgia's framework is "substantially similar" to the federal regime, according to the legislation. That alignment positions Georgia-licensed issuers to operate under a state pathway that mirrors federal requirements rather than seeking direct federal qualification, while extending state enforcement to any unlicensed in-state sale of payment stablecoins after mid-2028.

The effective date, tied to federal rulemaking, gives the Department of Banking and Finance roughly a year to operationalize the licensing framework before the January 18, 2027 trigger. An additional 18 months will pass before the 2028 sale ban takes effect, leaving issuers a defined runway to apply, qualify, or exit the Georgia market.