The Alabama House Committee deferred consideration of bills HB482 and HB484, which aim to enhance state ties to cryptocurrencies and blockchain. HB482 allows limited investment in digital assets by the state treasurer, while HB484 mandates publishing public spending on a blockchain. Concerns over the risks of such investments were raised by committee members. Meanwhile, HB483 seeks to exempt virtual currencies from property taxes.
On Wednesday, the Alabama House Ways and Means General Fund Committee postponed votes on HB482 and HB484, bills aimed at enhancing the state’s cryptocurrency and blockchain ties. These bills, introduced by Rep. Mike Shaw, R-Hoover, are part of a larger legislative initiative to increase cryptocurrency’s role in Alabama’s financial framework.
HB482 enables the state treasurer to invest in cryptocurrencies and digital assets, with a restriction of up to ten percent of available investment funds. Shaw noted that the bill is inspired by similar legislation in Ohio. It allows for the purchase of assets like Bitcoin and Ethereum, with an emphasis on securing investments responsibly.
Concerns about risk were raised by Rep. Brett Easterbrook, R-Fruitdale, questioning whether it is prudent for the state to invest significantly in highly volatile cryptocurrencies. Shaw argued that investing in cryptocurrency could serve as a hedge against economic instability, adding that such investments would be at the treasurer’s discretion.
Rep. Andy Whitt, R-Harvest, expressed scepticism, pointing out Bitcoin’s extreme price fluctuations, which could jeopardise state funds. He emphasised the treasurer’s conservative approach and his worries about long-term consequences. A representative of the treasurer’s office confirmed there was no official stance on HB482 yet.
HB484 focuses on integrating Alabama’s financial infrastructure with cryptocurrencies by mandating the Alabama Comptroller to publish public expenditures exceeding $1,000 on a blockchain by 2030. Shaw suggested that blockchain technology could enhance transparency and third-party analysis of public spending, although Alabama already provides accessible financial reports online.
Shaw also indicated that a public blockchain could potentially replace traditional advertising methods for public meetings, reducing reliance on newspapers. Both HB482 and HB484 were tabled for future consideration to allow for more in-depth discussion.
Meanwhile, HB483 has garnered support and could exempt “virtual currencies” from property taxes if it becomes law. Shaw stated that approximately 20 percent of Alabamians hold some form of cryptocurrency, and this bill would provide clarity for investors, demonstrating Alabama’s proactive stance on cryptocurrency policy development.
