Gov. Ron DeSantis signed three bills Friday that have a direct impact on Florida’s financial services and treatment of money.
CS/CS/HB 175 brings in regulation for stablecoins in accordance with the federal Guiding and Establishing National Innovation for U.S. Stablecoins Act.
The bill goes into effect Oct. 1.
The Office of Financial Regulation will determine whether an entity is a “qualified payment stablecoin issuer,” either with a money services business license as a qualified payment stablecoin issuer, or by granting a certificate of approval as a qualified payment stablecoin issuer, which would be the case with trust companies.
Stablecoins can be used for financial settlement under the law, with the value at a fixed rate of exchange with the U.S. dollar.
CS/CS/SB 1568 establishes the Florida Stablecoin Pilot Program within the Department of Financial Services.
Under the law applicants and licensees who interact with DFS can voluntarily pay certain licensing, registration, application and renewal fees using approved “payment stablecoins.”
The department will detemine which stablecoins qualify based on strict financial safeguards, such as being fully backed by reserve assets valued at at least $1 billion.
This bill provides DFS with the authority to have a state-designated digital wallet to convert stablecoin payments to U.S. dollars
HB 505 requires virtual currency kiosk operators to register with OFR, among other new rules.
Users of the kiosks also must be warned of the risk of fraud, with this message required on the initial display screen:
“WARNING: FRAUD OFTEN STARTS WITH CONTACT FROM A STRANGER. IF YOU HAVE BEEN DIRECTED TO THIS MACHINE BY SOMEONE CLAIMING TO BE A GOVERNMENT AGENT, BILL COLLECTOR, LAW ENFORCEMENT OFFICER, OR ANYONE YOU DO NOT KNOW PERSONALLY, STOP THIS TRANSACTION IMMEDIATELY AND CONTACT YOUR FINANCIAL ADVISOR OR LOCAL LAW ENFORCEMENT.”
Transaction limits are capped at $2,000 a day for new users and $10,000 a day for established customers.
OFR will request operators to provide evidence of compliance with rules via transaction records as a condition of license renewal.
Legislators hope the bill may stop people from being scammed into using these devices under duress or ignorance. Time will tell if that works as intended.