HB1217 would have established a state licensing and regulatory system for companies issuing payment stablecoins, a type of cryptocurrency tied to a stable asset such as the U.S. dollar. It would have prohibited issuers from paying interest or other rewards to stablecoin holders and, beginning July 1, 2028, generally restricted stablecoin sales to coins issued by licensed companies.

The Indiana State House of Representatives passed HB1217 on January 20, 2026 by a vote of 67 to 23. We have assigned pluses to the nays because this bill expands government regulation, surveillance, and control over private financial activity under the guise of regulating stablecoins. HB1217 moves digital assets further under government control, and helps normalize the infrastructure for programmable, surveillable money. This threatens financial privacy and free-market innovation while undermining the Fourth Amendment's protections against unreasonable searches and unwarranted government surveillance.