Montana task force considers state stablecoin rules as federal 'Genius Act' advances

The Blockchain Digital Innovation Task Force met April 24 in Helena to weigh whether Montana should build a state stablecoin pathway or defer to forthcoming federal rules.

Eric Peterson of Kraken told the panel that the federal Genius Act has created a likely pathway for permitted payment stablecoins and that states must decide how to implement or complement those rules. "Payment stablecoins are allowed to exist in The United States," he said, summarizing federal guardrails requiring 1:1 reserve backing and monthly public disclosure for compliant issuers. Peterson urged Montana to examine multiple models — CSBS, Delaware, North Carolina and others — and to plan for coordination with federal rule‑makings.

Why it matters: the task force framed the choice as one of timing and leverage. Several members said a state pathway could attract exchanges, custodians and mining or compute businesses through clarity and favorable tax or regulatory settings; others warned of regulatory costs and potential consumer harms that federal guardrails address.

Members asked staff to produce comparative options. "Look at the general models and see how they fit into Montana," Peterson said; task force staff agreed to deliver an overview of CSBS model language, Georgia, North Carolina and Delaware drafts ahead of the next meeting. The panel also discussed whether to include triggers that would align any state implementation with final federal rules.

Consumer protection and banking concerns were central. A bank representative and members stressed tools to prevent fraud, especially in retail on‑ramps such as Bitcoin kiosks, citing prior reports of scams. Task force members instructed staff to include options on crypto‑kiosk licensing and methods other states have used, such as Minnesota’s recent legislative moves or bans.

Next steps: staff will compile model statutes and options for the task force’s report to the legislature, including a possible Genius‑style path, CSBS‑based language and measures for kiosk oversight and unclaimed property updates.