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Bill

HB 3336

Allows a financial institution that participates in the signature guarantee program to validate a medallion stamp signature

2026 Regular Session Introduced by Steve Butz

Bill expands financial institutions' authority to independently validate medallion stamp signatures on securities transactions, potentially accelerating processing but raising fraud prevention concerns.

Referred: Emerging Issues(H)
#businessandcommerce #secretaryofstate #securities
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Bill Summary · HB 3336

Legislative bill overview

HB 3336 permits financial institutions participating in signature guarantee programs to independently validate medallion stamp signatures. Currently, medallion stamp validation may be restricted to specific entities or processes. This bill would expand which institutions can perform this authentication function.

Why is this important

Medallion stamps are critical security features used in financial transactions to verify that signatures are genuine, particularly for stock transfers and other high-value securities transactions. Allowing more financial institutions to validate these stamps could streamline transaction processing and reduce delays, though it may also affect the current oversight structure for this verification process.

Potential points of contention

  • Fraud and security concerns: Expanding validation authority to more institutions could increase vulnerability to fraudulent medallion stamps if validation standards aren't uniformly maintained across all participating financial institutions
  • Market concentration effects: Current restrictions on medallion stamp validation may serve to concentrate this function among specialized, highly-regulated entities; broadening access could disrupt existing business arrangements and revenue models
  • Regulatory clarity: The bill may lack detailed provisions specifying which financial institutions qualify, what training/certification requirements apply, and how disputes over invalid stamps would be resolved

Compiled from official sources — confirm details with the bill’s official record.

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