License requirement; exemptions; transition to federal oversight; definitions.

(1) DEFINITIONS.—As used in this section, the term:

(a) “Home state” means a state other than this state in which a payment stablecoin issuer is established or has its principal place of business.

(b) “Host state” means a state in which the payment stablecoin issuer establishes a branch, solicits customers, or otherwise engages in business activities, other than the home state.

(c) “Out-of-state state-qualified payment stablecoin issuer” means a payment stablecoin issuer that has been approved in accordance with the requirements of the GENIUS Act by the payment stablecoin issuer’s home state to issue payment stablecoin.

(2) LICENSE REQUIREMENT.—A person may not engage in the activity of a qualified payment stablecoin issuer in this state unless the person is licensed or exempted from licensure under this chapter. The office shall give written notice to each applicant that the office has granted or denied the application for a license as a qualified payment stablecoin issuer.

(3) EXEMPTION FROM LICENSURE.—

(a) The license requirement under subsection (2) does not apply to:

1. A federally qualified payment stablecoin issuer.

2. An out-of-state state-qualified payment stablecoin issuer for which this state is a host state. An out-of-state state-qualified payment stablecoin issuer must provide written notice to the office within 30 days after engaging in an activity that makes this state a host state of such issuer.

(b) The following transactions are not regulated under this part:

1. The direct transfer of payment stablecoins between two individuals acting on their own behalf and for their own lawful purposes, without the involvement of an intermediary.

2. Any transaction involving the receipt of payment stablecoins by an individual between an account owned by the individual in the United States and an account owned by the individual abroad, and both accounts are offered by the same parent company.

3. Any transaction by means of a software or hardware wallet that facilitates an individual’s own custody of payment stablecoins.

(c) A payment stablecoin that meets the requirements of this part is not a security and is not subject to chapter 517.

(4) TRANSITION TO FEDERAL OVERSIGHT.—

(a) Unless a federal waiver is obtained, a qualified payment stablecoin issuer with a consolidated total outstanding payment stablecoin issuance that reaches the $10 billion threshold must comply with one of the following requirements:

1. Not later than 360 days after the payment stablecoin issuance reaches such threshold, transition to the applicable federal regulatory framework administered jointly by the office and the Office of the Comptroller of the Currency; or

2. Beginning on the date the payment stablecoin issuance reaches such threshold, cease issuing new payment stablecoins until the payment stablecoin falls below the $10 billion consolidated total outstanding issuance threshold.

(b) A qualified payment stablecoin issuer with a consolidated total outstanding payment stablecoin issuance that reaches the $10 billion threshold must, within 7 business days, provide notice to the office that the threshold has been reached.

(c) To the extent or for any relevant period for which a waiver or transition applies, a qualified payment stablecoin issuer remains subject to this part if a federal waiver of the transition requirements in paragraph (a) is obtained pursuant to the GENIUS Act, Pub. L. No. 119-27, and the office remains solely responsible for supervising the qualified payment stablecoin issuer, or if the office is jointly responsible with the Office of the Comptroller of the Currency to supervise the qualified payment stablecoin issuer pursuant to subparagraph (a)1. The office may enter into an agreement with the relevant primary federal payment stablecoin regulator for the joint supervision of any qualified payment stablecoin issuer.