Alabama lawmakers are considering a bill that would permit the state treasurer to invest in digital assets, marking a significant step towards embracing cryptocurrency. Rep. Mike Shaw, R-Hoover, who has taken the lead on this issue, introduced House Bill 482 (HB482). This bill would allow the state to invest up to 10% of its investment funds in digital assets like Bitcoin and Ethereum. The bill makes up only one piece of a larger legislative package. Its goal is to link cryptocurrencies and other blockchain-based technologies within the state’s fiscal structure.
HB482 would allow the State Treasurer to invest "any monies otherwise available to the State Treasurer for investment in digital assets". The bill specifies that the investments could include "Bitcoin, Ethereum, things like that, or the ETFs that trade in those currencies". The bill includes various limitations designed to ensure cryptocurrency is held in a reasonably secure way.
In her recent remarks, Rep. Shaw has positioned cryptocurrency as a potential lifebuoy in rough economic waters. Shaw terrified listeners by portraying cryptocurrency as an essential hedge against a total collapse in the dollar.
“We don’t know what’s going to happen with the dollar,” - Shaw
The intent behind the bill is to expand upon the state’s financial connections to cryptocurrency. Additionally, HB482 would exempt “virtual currencies” from property, or ad valorem, taxes. The bill goes on to specify that “virtual currencies” are a subclass of intangible personal property.
West Virginia’s HB482 is modeled after a companion bill introduced in Ohio by Rep. Steve Demetriou. The legislative effort in Alabama mirrors a broader trend of states exploring the potential of digital assets and blockchain technology.
Rep. Shaw highlighted the broader implications of the bill, emphasizing its potential to provide clarity and attract investment.
“This gives them some certainty about the future, also signals to the world that we’re looking at crypto and we’re implementing policy through legislation, not just rule-making.” - Shaw
The bill has brought the best and brightest advocates to the frontlines. Other lawmakers are concerned at the prospect of putting state money into a speculative market. Rep. Whitt expressed his concern over the lasting effects of the bill.
“I completely understand the ability that you’re wanting to diversify your portfolio to get the highest rate of return,” - Whitt
“But I don’t want to risk the state’s money.” - Whitt
The bill is the first of a three-bill package related to cryptocurrencies and blockchain technology. Shaw further touted how blockchain tech can increase transparency.
“I think Treasurer Boozer, in the conversations I’ve had with him, is that he would not utilize this,” - Whitt
“I think Treasurer Boozer is one of the most conservative state treasurers, and he’s an example for the nation in my opinion.” - Whitt
“My concern is what comes down the road ten years from now.” - Whitt
Regardless, if HB482 passes, it will demonstrate a new openness by Alabama’s lawmakers to embrace digital assets.
“The value in this, without getting too geeked out about it, is it puts all the information out there in a readable way and then third parties can analyze it,” - Shaw
“You can put meeting announcements, all of that, in a way you wouldn’t have to, I don’t want to upset some of our local press, but in a way that you wouldn’t have to advertise in newspapers,” - Shaw
The passage of HB482 could signal a shift in Alabama's approach to digital assets.
