AL HB544

Authorizes Alabama governmental entities to pay vendors and contractors using payment stablecoins when requested by the vendor or contractor, with payment constituting satisfaction of monetary obligations owed by the state

Alabama Securities Commission may recognize payment stablecoins that meet specific requirements: issued by U.S.-incorporated companies with U.S. citizen founders, fully backed 1:1 by U.S. dollars or short-term Treasury obligations, redeemable at par value on demand, and subject to quarterly independent audits

Prohibits authorization of stablecoins issued by entities headquartered outside the U.S., controlled by non-U.S. citizens, or backed by synthetic assets, commodities, foreign currencies, or other digital assets

Requires governmental entities to provide vendors and contractors with disclosures about redemption rights, reserve backing requirements, and risks associated with digital asset custody before executing stablecoin payment agreements

Effective October 1, 2026