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On April 6, 2026, the Alabama Legislature enacted HB 259 , the Financial Innovation and Market Expansion Act, to establish a regulatory framework for the issuance and sale of payment stablecoins within the state. The new law establishes a comprehensive licensing and oversight regime, governed by the Alabama Securities Commission (ASC), designed to ensure the security and safety of stablecoins. The law prohibits any individual rom issuing a stablecoin in Alabama unless they are classified as a permitted payment stablecoin issuer (PPSI), a status that requires the issuer to be formed and headquartered in the United States. Additionally, beginning in 2028, the law bars digital asset service providers from offering or selling stablecoins in Alabama unless they are issued by a PPSI. Other provisions of the law include, but are not limited to: Mandating that all stablecoins be fully backed on a one-to-one basis by US dollars or short-term Treasury bonds. Requiring PPSIs to undergo quarterly independent attestations by a registered accounting firm. Authorizing state government agencies to recognize and use certain authorized stablecoins to make payments to vendors and contractors. Granting the ASC the authority to conduct examinations, investigate violations and issue civil penalties. Establishing a priority claim for stablecoin holders in the event of an issuer’s insolvency or receivership. The law takes effect on October 1, 2026 .