Adds to existing law to establish the Financial Accountability Stablecoin Transaction (FAST) Act to provide for the authorization and use of payment stablecoins.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1423 BY STATE AFFAIRS COMMITTEE AN ACT1 RELATING TO THE FAST ACT; AMENDING TITLE 67, IDAHO CODE, BY THE ADDITION OF A2 NEW CHAPTER 83, TITLE 67, IDAHO CODE, TO PROVIDE A SHORT TITLE, TO PRO-3 VIDE A DECLARATION OF NECESSITY, TO DEFINE TERMS, TO PROVIDE FOR A LIST4 OF AUTHORIZED PAYMENT STABLECOINS, REQUIRE A CERTAIN REPORT, AND PRO-5 VIDE FOR CERTAIN LEGISLATIVE AUTHORITY, TO PROVIDE FOR STATE USE OF AU-6 THORIZED PAYMENT STABLECOINS, AND TO PROVIDE FOR INTERSTATE COORDINA-7 TION; PROVIDING SEVERABILITY; AND DECLARING AN EMERGENCY AND PROVIDING8 AN EFFECTIVE DATE.9

Be It Enacted by the Legislature of the State of Idaho:10

SECTION 1. That Title 67, Idaho Code, be, and the same is hereby amended11 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-12 ter 83, Title 67, Idaho Code, and to read as follows:13 CHAPTER 8314 FINANCIAL ACCOUNTABILITY STABLECOIN TRANSACTION (FAST) ACT15 67-8301. SHORT TITLE. This act shall be known and may be cited as the16 "FAST Act."17 67-8302. DECLARATION OF NECESSITY. The legislature finds that:18 (1) Timely and efficient payment of obligations to state vendors and19 contractors is essential to the operation of state government;20 (2) The use of payment stablecoins backed by U.S. dollar-denominated21 reserves may reduce transaction costs, improve financial transparency, and22 expedite payment delivery;23 (3) The federal guiding and establishing national innovation for U.S.24 stablecoins act (GENIUS act), P.L. 119-27, establishes a comprehensive fed-25 eral framework governing payment stablecoins, including issuer qualifica-26 tion, reserve standards, consumer protections, and enforcement;27 (4) States are authorized under the GENIUS act to recognize and use per-28 mitted payment stablecoin issuers and to adopt substantially similar frame-29 works for oversight of state-level usage; and30 (5) It is the purpose of this chapter to authorize the state to recog-31 nize and use privately issued payment stablecoins qualified under the GENIUS32 act and state-issued, public purpose-qualified stablecoins.33 67-8303. DEFINITIONS. For the purposes of this chapter:34 (1) "Authorized payment stablecoin" means a GENIUS-qualified or pub-35 lic purpose-qualified stablecoin that has been authorized for state use pur-36 suant to section 67-8304, Idaho Code.37 (2) "GENIUS-qualified stablecoin" means a payment stablecoin that is:38

2 (a) Approved, certified, listed, or otherwise authorized under the GE-1 NIUS act, including any rule, order, or regulation issued pursuant to2 the GENIUS act;3 (b) Fully backed on a one-to-one basis by U.S. dollars or U.S. treasury4 obligations;5 (c) Redeemable at par value on demand;6 (d) Fungible and transferable on regulated banking platforms, ex-7 changes, or open markets;8 (e) Sufficient for operational scale and market usage, demonstrating9 no less than two billion dollars ($2,000,000,000) in aggregate trans-10 action volume during the preceding twelve (12) months, as verified11 through publicly available disclosures, independent audits, or other12 reliable documentation acceptable to the state treasurer; and13 (f) Issued by a corporation or entity:14 (i) That is incorporated and headquartered in the United States;15 (ii) Whose corporate founders are United States citizens;16 (iii) Whose controlling shareholders are United States citizens;17 (iv) That maintains reserves in accounts held in banks chartered18 within the United States or with federally regulated custodians;19 (v) That is subject to quarterly independent attestations by an20 accounting firm that is currently registered with the public com-21 pany accounting oversight board; and22 (vi) That publishes monthly reserve reports disclosing asset com-23 position and location.24 (3) "Public purpose-qualified stablecoin" means any public entity25 stablecoin issued by a U.S. state and fully backed by U.S. dollars or U.S.26 treasury obligations with statutory over-collateralization. Public pur-27 pose-qualified stablecoins must provide a public benefit to Idaho through a28 revenue-sharing agreement or substantially similar benefit agreement.29 67-8304. LIST OF AUTHORIZED PAYMENT STABLECOINS -- REPORT. (1) Annu-30 ally, by January 1, the department of finance shall compile, maintain, and31 publish a list of payment stablecoins that are GENIUS-qualified or public32 purpose-qualified and have been authorized for use in state payments. The33 state treasurer may suspend or revoke authorization of any payment stable-34 coin that no longer maintains GENIUS or public purpose qualification or that35 presents material risk to state operations.36 (2) By December 15, 2027, and annually by December 15 thereafter, the37 state treasurer shall submit a report to the legislature through the portal38 provided pursuant to section 67-705, Idaho Code. The report shall be made39 available to the public and shall include:40 (a) Transaction volumes and estimated cost savings to the state to use41 authorized payment stablecoins; and42 (b) How the use of authorized payment stablecoins will:43 (i) Provide demonstrable fiscal benefits, revenue opportuni-44 ties, or cost savings to the state;45 (ii) Enhance transparency, auditability, or financial stability;46 or47 (iii) Promote competition and innovation within U.S. financial48 infrastructure.49

3 (3) The department of finance shall establish standards for regulatory1 compliance. The state treasurer shall establish operational risk manage-2 ment procedures. The state controller shall establish accounting controls3 and audit requirements.4 (4) Notwithstanding the provisions of this section, the legislature5 may suspend or revoke the authorization of any payment stablecoin by adopt-6 ing a concurrent resolution or through the enactment of a law amending or7 superseding a list of stablecoins that have been authorized for use in state8 payments by the department of finance.9 67-8305. STATE USE OF AUTHORIZED PAYMENT STABLECOINS. (1) The state10 of Idaho and the state controller may use authorized payment stablecoins to11 make payments to vendors and contractors.12 (2) A vendor or contractor may elect, but shall not be required, to re-13 ceive payment in an authorized payment stablecoin.14 (3) Payments made using an authorized payment stablecoin shall be15 deemed valid, final, and enforceable as satisfaction of monetary obliga-16 tions owed by the state.17 (4) Prior to electing to receive payment in an authorized payment sta-18 blecoin, a vendor or contractor shall be provided disclosures relating to19 redemption rights, reserve backing, audit standards, and digital-asset cus-20 tody risks.21 (5) The state treasurer and the state controller shall establish secure22 systems and procedures for the use of authorized payment stablecoins and may23 contract with private entities to implement necessary infrastructure.24 (6) The state treasurer shall coordinate with applicable federal reg-25 ulators to ensure compliance with the GENIUS act and with applicable state26 regulators to ensure compliance with public purpose regulations and shall27 not impose issuer requirements inconsistent with federal law.28 67-8306. INTERSTATE COORDINATION. The state treasurer and the state29 controller, acting jointly, are authorized to enter into memoranda of under-30 standing, cooperative agreements, or information-sharing arrangements with31 other states and with federal agencies for the evaluation, integration, or32 utilization of public purpose-qualified stablecoins.33

SECTION 2. SEVERABILITY. The provisions of this act are hereby declared34 to be severable and if any provision of this act or the application of such35 provision to any person or circumstance is declared invalid for any reason,36 such declaration shall not affect the validity of the remaining portions of37 this act.38

SECTION 3. An emergency existing therefor, which emergency is hereby39 declared to exist, this act shall be in full force and effect on and after40 July 1, 2026.41