Alabama Lawmakers Introduce Bills to Allow the State to Invest Public Funds in Bitcoin

Alabama lawmakers have introduced legislation to allow the state to invest public funds in Bitcoin.

Lawmakers in Alabama have tabled legislation to enable the state to invest public funds in Bitcoin.

The latest proposal, Senate Bill 283, was filed this week by Sen. April Weaver as a companion to House Bill 482, which was introduced in March.

The legislation would allow the state to invest up to 10% of its public funds in digital assets, but only those with a market capitalization greater than $750 billion.

“The investment in digital assets from any of the funds described in this section shall not exceed, in aggregate, 10 percent of the balance of the fund at the time of the investment,” the bill stated.

As of now, Bitcoin (BTC) is the only cryptocurrency that meets this requirement. The bills also stipulate that these assets must be held directly by the state treasurer, a qualified custodian, or through exchange-traded products.

With both houses of the legislature set to introduce identical bills, the aim is to streamline the legislative process.

Several other U.S. states are exploring legislation to allocate public funds to Bitcoin. Alabama is the latest to introduce bills permitting up to 10% of state funds to be invested in Bitcoin, following a proposal earlier this year in Texas to create a state Bitcoin reserve.

Texas lawmakers suggested including Bitcoin in the state’s financial reserves, with the idea being to hold Bitcoin as a strategic asset.

Furthermore, state lawmakers in Wyoming, which has emerged as a hub for blockchain and cryptocurrency policy, passed legislation recognizing Bitcoin as legal property and are working on policies to integrate digital assets into their financial system.

Meanwhile, Arizona and Missouri have seen legislative efforts to position Bitcoin as part of their state reserves, though none have yet been passed into law. These efforts align with broader trends in financial policy, where states are increasingly considering Bitcoin alongside traditional assets.