AL HB259

Adds Chapter 7B to Title 8, Code of Alabama 1975, known as the "Financial Innovation and Market Expansion Act," implementing Section 4(c) of the federal GENIUS Act (12 U.S.C. § 5903(c)) for state-level regulation of payment stablecoins

Prohibits issuing payment stablecoins in Alabama without being a permitted payment stablecoin issuer; beginning July 18, 2028, digital asset service providers cannot offer or sell stablecoins unless issued by a permitted issuer

Authorizes the Alabama Securities Commission to license "Alabama qualified payment stablecoin issuers," with a 120-day decision deadline on applications and requirements including anti-money laundering and economic sanctions compliance certifications

Establishes criminal penalties including Class B felony for knowing fraud in stablecoin transactions, Class C felony for false statements or unlicensed activity exceeding $5,000 compensation in 30 days, and Class D felony for unlicensed activity at $5,000 or less

Civil penalties up to $100,000 per day for violations, with stablecoin holders receiving priority claims over issuer reserves in insolvency proceedings; effective October 1, 2026