This week Alabama legislators will consider all three bills. This wave of proposed legislation, if passed, would dramatically reshape how the state engages with and regulates cryptocurrency and blockchain technology. These bills will clarify the state’s regulatory framework for digital assets and allow states to invest in cryptocurrency. In addition, they mandate the use of blockchain for state spending. The proposed legislation signals a move towards embracing digital innovation and positioning Alabama as a leader in the blockchain space.
Rep. Mike Shaw, R-Hoover, is carrying House Bill 483. This bill is one of at least three he’s filed this year addressing cryptocurrency and blockchain technology overall. This is the first time Shaw has floated the idea of regulating cryptocurrencies like Bitcoin and Ethereum. The other two of these bills are House Bill 482 and House Bill 484.
House Bill 482 would authorize the State Treasurer to invest state funds in digital assets, including cryptocurrency. House Bill 484 would mandate that all state expenditures over $1,000 be posted to a public blockchain.
Wade Preston, chairman of the Alabama Blockchain Alliance, has been outspoken in his enthusiasm for the legislation as proposed. He is additionally a member of the Alabama Blockchain Study Commission.
"I think it’s interesting and a very promising sign of the times that this is where the blockchain sector has gotten itself to where we have bills like this coming in at the national and state level," - Preston
The Alabama Blockchain Study Commission, established by Sen. Greg Albritton, R-Range, endorsed the idea of positioning Alabama as a cryptocurrency and blockchain-friendly state. Preston’s inclusion as one of its members came as little surprise, however.
Preston called HB484 "super smart legislation." HB484 is a companion bill to House Bill 483, sponsored by Shaw.
Preston clarified that the bill’s definition of digital currencies could be interpreted as including digital assets. This might include support for digitized medical records. He added that he hoped for a day when digitized medical records were uniformly kept as digital assets on a blockchain.
One way to do this is through blockchain, an unchangeable, digital public ledger used to record and verify transactions. Cryptocurrencies exist on a blockchain. Digital public ledgers date back to the early 1980s. Over the last ten years, more sophisticated and decentralized iterations made possible through blockchain technology have surfaced.
In addition, as we’ve documented, at least 18 states have already started utilizing blockchain tech for various state record-keeping purposes. California, for instance, transformed its 42 million car titles into electronic records with the technology.
"Alabama to really step out and take the lead," - Preston
