In a landmark decision on March 6, the Florida Senate passed Bill 314, establishing comprehensive regulations for payment stablecoins. This unprecedented move positions Florida as the first state in the United States to create a legal framework specifically addressing stablecoins, pending approval from Governor Ron DeSantis.
The newly passed legislation significantly draws from the federal GENIUS Act, ensuring compliance with national standards. A key aspect of the bill is the clarification that stablecoins are not classified as securities. However, their issuers are categorized as Money Services Businesses (MSBs) due to the monetary value of the stablecoins they provide.
Under this framework, stablecoin issuers are mandated to acquire operational licenses, such as the state MSB license or specific certificates of approval, aligning with anti-money laundering regulations. Additionally, these providers must implement Know Your Client (KYC) procedures and maintain real-time transaction records, mirroring the requirements placed on traditional banking institutions.
Issuers are also required to report transactions exceeding $10,000 to the Florida Office of Financial Regulation (OFR) and to flag suspicious transactions. A crucial stipulation of the bill mandates that stablecoin issuers should maintain a 1:1 reserve for the stablecoins they issue. Once the total valuation of their stablecoins hits $10 billion, they will transition into federal oversight.
Regarding stablecoin yield farming, the legislation prohibits issuers from offering interest to holders if such practices contravene federal law. This provision reignites discussions in the U.S. Senate, where the topic has been contentious and remains unresolved.
Some crypto commentators argue that the GENIUS Act restricts interest offerings specifically tied to stablecoins, but does not extend to other forms of rewards. The regulatory landscape has drawn criticism, including from figures like former President Donald Trump and his son Eric Trump, who have accused banks of lobbying against stablecoin yields out of concern for capital flight.
In related developments, Tether has participated in a funding round of $7.5 million aimed at building APIs that facilitate USDT payments on the Bitcoin network. Meanwhile, USDC continues to evolve as the liquidity reserve for Cardano”s stablecoin, USDCx. The overall market capitalization of stablecoins currently stands at $312.85 billion, a notable increase from $205 billion as recorded in January 2025.
