CS for CS for SB 1568                            First Engrossed
       
       
       
       
       
       
       
       
       20261568e1
       
    1                        A bill to be entitled                      
    2         An act relating to the use of digital currency by the
    3         Department of Financial Services; creating s. 17.72,
    4         F.S.; establishing the Florida Stablecoin Pilot
    5         Program within the Department of Financial Services;
    6         providing legislative intent; providing definitions;
    7         authorizing the department to engage in certain
    8         activities; authorizing the department to designate
    9         one or more payment stablecoins for certain
   10         activities; requiring that certain payment stablecoins
   11         meet specified criteria; authorizing the department to
   12         accept payment stablecoins; authorizing program
   13         participants to elect to voluntarily participate in
   14         the program and remit payment stablecoins to a
   15         compatible digital wallet address; requiring certain
   16         participants to provide the department with a
   17         compatible digital wallet address; requiring the
   18         department to comply with certain requirements;
   19         requiring the department to provide a compatible
   20         digital wallet address for a specified purpose;
   21         authorizing the department to conduct examinations,
   22         audits, and investigations of permitted payment
   23         stablecoin issuers; requiring the department to
   24         coordinate with the Office of Financial Regulation
   25         under certain circumstances; requiring the department
   26         to monitor and evaluate the pilot program and collect
   27         certain data; requiring the department to submit an
   28         annual report containing certain information to the
   29         Governor and Legislature, beginning on a specified
   30         date and annually thereafter; providing construction;
   31         authorizing the department to adopt rules; providing
   32         an effective date.
   33          
   34  Be It Enacted by the Legislature of the State of Florida:
   35  
   36         Section 1. Section 17.72, Florida Statutes, is created to
   37  read:
   38         17.72Florida Stablecoin Pilot Program.—There is
   39  established within the department the Florida Stablecoin Pilot
   40  Program. It is the intent of the Legislature that the Florida
   41  Stablecoin Pilot Program yield benefits from the acceptance of
   42  payment stablecoins as a form of payment for governmental fees
   43  through this voluntary pilot program.
   44         (1) DEFINITIONS.—As used in this section, the term:
   45         (a) “Blockchain” means a mathematically secured,
   46  chronological, decentralized, distributed, and digital ledger or
   47  database that consists of records of transactions that cannot be
   48  altered retroactively.
   49         (b) “Compatible digital wallet address” means the address
   50  of a software application that securely stores private keys for
   51  accessing and completing transactions with payment stablecoins.
   52         (c) “Digital asset” means any digital representation of
   53  value that is recorded on a cryptographically secured digital
   54  ledger.
   55         (d) “Exchange platform” means a company licensed and
   56  regulated by the Federal Government or a state government which
   57  provides trading, custody, or money transmission services of
   58  payment stablecoins or other digital assets.
   59         (e) “Exchange platform fee” means a fee charged by an
   60  exchange platform for the trading, custody, or money
   61  transmission services of payment stablecoins or other digital
   62  assets.
   63         (f) “Federal qualified payment stablecoin issuer” means any
   64  of the following:
   65         1. A nonbank entity, other than a state qualified payment
   66  stablecoin issuer, approved by the Office of the Comptroller of
   67  the Currency to issue payment stablecoins.
   68         2. An uninsured national bank that is chartered by the
   69  Office of the Comptroller of the Currency pursuant to title LXII
   70  of the Revised Statutes and is approved to issue payment
   71  stablecoins. For purposes of this subparagraph, the term
   72  “national bank” has the same meaning as in the GENIUS Act, Pub.
   73  L. No. 119-27.
   74         3. A federal branch that is approved by the Office of the
   75  Comptroller of the Currency to issue payment stablecoins. For
   76  purposes of this subparagraph, the term “federal branch” has the
   77  same meaning as in s. 3 of the Federal Deposit Insurance Act, 12
   78  U.S.C. s. 1813.
   79         (g) “Network fee” means the cost paid by a user to have a
   80  transaction processed and confirmed on a blockchain network.
   81         (h)1. “Payment stablecoin” means a digital asset that meets
   82  all of the following requirements:
   83         a. Is, or is designed to be, used as a means of payment or
   84  settlement.
   85         b. The issuer of which:
   86         (I) Is obligated to convert, redeem, or repurchase the
   87  digital asset for a fixed amount of monetary value, not
   88  including a digital asset denominated in a fixed amount of
   89  monetary value.
   90         (II) Represents that such issuer will maintain, or create
   91  the reasonable expectation that it will maintain, a stable value
   92  relative to the value of a fixed amount of monetary value.
   93         2. The term does not include a digital asset that is any of
   94  the following:
   95         a. A national currency as defined in the GENIUS Act, Pub.
   96  L. No. 119-27.
   97         b. A deposit as defined in s. 3 of the Federal Deposit
   98  Insurance Act, 12 U.S.C. s. 1813, including a deposit recorded
   99  using distributed ledger technology. For purposes of this sub
  100  subparagraph, the term “distributed ledger” has the same meaning
  101  as in the GENIUS Act, Pub. L. No. 119-27.
  102         c. A security as defined in s. 517.021, s. 2 of the
  103  Securities Act of 1933, 15 U.S.C. s. 77b, s. 3 of the Securities
  104  and Exchange Act of 1934, 15 U.S.C. s. 78c, or s. 2 of the
  105  Investment Company Act of 1940, 15 U.S.C. s. 80a-2.
  106         (i) “Permitted payment stablecoin issuer” means a person
  107  formed in the United States which is one of the following:
  108         1. A subsidiary of an insured depository institution that
  109  has been approved to issue payment stablecoins under the GENIUS
  110  Act, Pub. L. No. 119-27. For purposes of this subparagraph, the
  111  term “insured depository institution” has the same meaning as in
  112  the GENIUS Act, Pub. L. No. 119-27.
  113         2. A federal qualified payment stablecoin issuer.
  114         3. A state qualified payment stablecoin issuer.
  115         (j) “State payment stablecoin regulator” means the Office
  116  of Financial Regulation. The term also includes a state agency
  117  in another state that has primary regulatory and supervisory
  118  authority in such state over entities that issue payment
  119  stablecoins.
  120         (k) “State qualified payment stablecoin issuer” means an
  121  entity legally established under the laws of a state and
  122  approved to issue payment stablecoins by a state payment
  123  stablecoin regulator.
  124         (2) PROGRAM PARTICIPATION.—
  125         (a) The department may engage in any of the following
  126  activities that meet the requirements of this section:
  127         1. Accept payment stablecoin for the payment of authorized
  128  fees as provided in paragraph (c).
  129         2. Issue refunds, reimbursements, or other similar
  130  disbursements in the form of payment stablecoins to any
  131  participant who elects to receive a payment in such form. The
  132  department may purchase payment stablecoins in an amount that is
  133  necessary to support such activity.
  134         3. Hold payment stablecoin. If such payment stablecoin does
  135  not earn any interest or yields, the department may hold payment
  136  stablecoin only in the amount that is estimated to be required
  137  to issue refunds, reimbursements, or other similar disbursements
  138  during a revolving 30-day period. Any direct or indirect yields
  139  earned with respect to payment stablecoins shall be credited to
  140  the benefit of the state.
  141         (b) The department may designate one or more payment
  142  stablecoins for activities authorized in paragraph (a). Any
  143  payment stablecoin that is accepted, purchased, held, or
  144  disbursed by the department pursuant to this section must meet
  145  all of the following criteria:
  146         1. Have an average market capitalization of at least $1
  147  billion during the preceding 12-month period.
  148         2. Be fully backed by reserve assets on a one-to-one basis
  149  limited to United States currency, demand deposits at insured
  150  depository institutions, United States Treasury bills having a
  151  remaining maturity of 93 days or less, or reverse repurchase
  152  agreements collateralized by such treasury bills.
  153         3. Be redeemable at all times at a one-to-one ratio for
  154  United States dollars through the permitted payment stablecoin
  155  issuer or its agent.
  156         4. Be issued by a permitted payment stablecoin issuer.
  157         5. Be purchased by the department directly from a permitted
  158  payment stablecoin issuer through a blockchain network or
  159  indirectly through an exchange platform, or received by the
  160  department from a program participant.
  161         6. Be subject, if network fees or exchange platform fees
  162  are paid by the department, only to reasonable fees that do not
  163  exceed the fees that would be charged to the department if
  164  payment were accepted by similar mediums of exchange.
  165         7. Except as otherwise provided in this section, be issued
  166  by an issuer that meets any additional criteria for a permitted
  167  payment stablecoin issuer under any applicable federal or state
  168  law including, but not limited to, the GENIUS Act, Pub. L. No.
  169  119-27.
  170         (c) The department may accept payment stablecoins as a form
  171  of payment for fees that include, but are not limited to,
  172  licensing fees, registration fees, certification fees,
  173  assessment fees, application fees, renewal fees, other
  174  regulatory fees administered by the department, or any other fee
  175  owed to the department.
  176         (d) An applicant, a licensee, or other program participant
  177  may elect to voluntarily participate in the pilot program and
  178  remit payment stablecoins to a compatible digital wallet address
  179  designated by the department as a valid form of payment for any
  180  fee authorized in paragraph (c).
  181         (e) A participant that elects to receive from the
  182  department a refund, reimbursement, or other similar
  183  disbursement in the form of payment stablecoin must provide the
  184  department with a compatible digital wallet address where such
  185  payment may be sent.
  186         (3) DEPARTMENT DUTIES.—
  187         (a) The department must comply with all of the following
  188  requirements:
  189         1. Ensure that any payment stablecoin issuer designated for
  190  use in the pilot program is a permitted payment stablecoin
  191  issuer. If the Federal Government has not approved any federal
  192  qualified payment stablecoin issuers and no state payment
  193  stablecoin regulator has approved any state qualified payment
  194  stablecoin issuers, the department may not engage in any of the
  195  activities authorized in subsection (2).
  196         2. Provide a compatible digital wallet address to any
  197  participant that elects to participate in the voluntary pilot
  198  program for the payment of any fees authorized in paragraph
  199  (2)(c) to be paid in the form of payment stablecoins.
  200         3. Within a reasonable time after receiving a payment
  201  stablecoin from any program participant, convert the payment
  202  stablecoin into United States currency and credit the applicable
  203  account where the funds would be held in a qualified public
  204  depository, unless an exception applies pursuant to s. 280.03,
  205  in the same manner as a payment made by any other authorized
  206  means. The department must attempt to minimize the amount of
  207  potential fees, if applicable, when determining the date and
  208  time to convert the payment stablecoin.
  209         (b) The department may conduct examinations, audits, or
  210  investigations of a permitted payment stablecoin issuer of a
  211  payment stablecoin designated for use in the pilot program to
  212  verify asset backing, redeemability, and adherence to consumer
  213  protection standards, including standards related to fraud
  214  prevention and dispute resolution. To the extent that the
  215  department intends to engage in such conduct as to a state
  216  qualified payment stablecoin issuer, the department must
  217  coordinate with the Office of Financial Regulation to avoid
  218  duplicated efforts and to efficiently regulate such issuer.
  219         (4) REPORTING.—
  220         (a) The department shall monitor and evaluate the pilot
  221  program and collect data on transaction volume, cost savings,
  222  security incidents, regulatory compliance, and economic impacts,
  223  as well as any instances of fraud or disputes.
  224         (b) Beginning February 1, 2027, and annually thereafter,
  225  the department must submit a report to the Governor, the
  226  President of the Senate, and the Speaker of the House of
  227  Representatives which must include all of the following:
  228         1. A summary of the data collected pursuant to paragraph
  229  (a).
  230         2. Any findings the department makes with respect to the
  231  pilot program which include, but are not limited to, findings
  232  regarding any trends or patterns relating to financial matters,
  233  such as fiscal impacts, or nonfinancial matters, such as
  234  utilization analysis.
  235         3. Any recommendations for expansion or termination of the
  236  pilot program.
  237         4. Any proposed statutory changes, if appropriate.
  238         (5) CONSTRUCTION.—This section:
  239         (a) Does not alter or supersede any existing statutory fee
  240  obligations, licensing requirements, or enforcement authority of
  241  the department.
  242         (b) Authorizes the acceptance of payment stablecoins as an
  243  optional payment method and does not require or authorize the
  244  acceptance of any other digital asset.
  245         (c) May not be construed to relieve the Chief Financial
  246  Officer or the department of any obligation to secure public
  247  funds, including any payment stablecoins, in a qualified public
  248  depository unless an exemption applies pursuant to s. 280.03 or,
  249  with respect to payment stablecoins, to hold such stablecoins in
  250  a manner similar to how direct United States Treasury
  251  obligations are held pursuant to s. 17.57(2)(a).
  252         (d) Authorizes the department to give preference to, when
  253  designating payment stablecoins for use in the pilot program
  254  pursuant to paragraph (2)(b), state qualified payment stablecoin
  255  issuers approved by the Office of Financial Regulation.
  256         (6) RULEMAKING.—The department may adopt rules to implement
  257  this section.
  258         Section 2. This act shall take effect upon becoming a law.