Florida Passes First Stablecoin Law
Florida's Senate Bill 314 passed both houses and awaits Governor DeSantis's signature, creating the first state-level framework for payment stablecoin issuers aligned with federal standards. The same session included a temporary CBDC ban until 2030, though Senator Ted Cruz and Rep. Anna Paulina Luna are advocating for a permanent ban citing "government overreach and weaponization" risks.
Passed unanimously in the Florida Senate, the new framework classifies stablecoin issuers as Money Services Businesses, requiring them to secure a state license from the Office of Financial Regulation. This regulatory approach mirrors frameworks already established in other states like New York and Texas. The law mandates stringent financial safeguards, including a one-to-one reserve backing for all stablecoins issued. Companies must also implement Know Your Client (KYC) procedures and are required to report any transaction exceeding $10,000 to state authorities. Under the legislation, certain payment stablecoins are explicitly not classified as securities, providing legal clarity for the industry. The bill also amends Florida's anti-money laundering statutes to formally include stablecoins, requiring issuers to comply with existing financial crime regulations. The state-level rules are designed to integrate with federal standards, specifically the GENIUS Act. While issuers will be regulated by Florida's OFR, they will face joint supervision with the federal Office of the Comptroller of the Currency once their total valuation surpasses $10 billion. The temporary ban on a central bank digital currency (CBDC) builds on a 2023 Florida law, HB 7049, which altered the state's Uniform Commercial Code to explicitly exclude a CBDC from the legal definition of "money." Governor DeSantis has previously cited concerns that a CBDC could be used for financial surveillance. At the federal level, the push for a permanent ban is being led by Senator Ted Cruz through his "Anti-CBDC Surveillance State Act." He recently filed an amendment to a housing bill to remove the 2030 sunset clause on the temporary ban, aiming to prohibit the Federal Reserve from ever issuing a digital currency directly to consumers.
