Legislators in Alabama have proposed a bill that would enable the state to invest public funds in Bitcoin.
The recent initiative, known as Senate Bill 283, was submitted this week by Sen. April Weaver and serves as a companion measure to House Bill 482, which was put forward in March.
This legislation would allow the state to allocate up to 10% of its public funds to digital currencies, specifically targeting those with a market cap over $750 billion.
According to the bill, “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.”
At present, Bitcoin (BTC) is the sole cryptocurrency that satisfies this criterion. The legislation also indicates that these digital assets must be held either directly by the state treasurer, a qualified custodian, or through exchange-traded products.
By proposing identical measures in both legislative chambers, Alabama lawmakers hope to streamline the legislative process.
State-Level Bitcoin Initiatives
A number of other U.S. states are examining legislation to allow public funds to be invested in Bitcoin as part of their financial reserves. Alabama is the newest state to propose bills permitting up to 10% of state funds to be directed toward Bitcoin investments, following similar movements in other states.
This year, lawmakers in Texas suggested the establishment of a state Bitcoin reserve, envisioning Bitcoin as a strategic asset. Additionally, Wyoming has passed laws recognizing Bitcoin as legal property and is devising policies to incorporate digital assets into their financial frameworks.
Arizona and Missouri have also made legislative attempts to integrate Bitcoin into their state reserves, although none of these proposals have yet become law. These initiatives reflect a broader trend in financial policymaking, with states increasingly viewing Bitcoin alongside traditional investment assets.