Alabama House Postpones Votes on Cryptocurrency Bills
On Wednesday, the Alabama House Ways and Means General Fund Committee decided to delay voting on HB482 and HB484 for a later date.
Legislative Context
These bills are part of a trio introduced by Republican Rep. Mike Shaw from Hoover earlier this month, aiming to enhance Alabama’s financial and infrastructural connections to cryptocurrencies and blockchain technology.
Details of HB482
According to Shaw, HB482 allows the state treasurer to strategically purchase cryptocurrencies and crypto assets, albeit with certain restrictions to ensure safe storage. The proposal permits investments in digital assets from state funds, capped at 10% of available money.
Comparison to Ohio Legislation
Shaw noted that this legislation is similar to a law proposed in Ohio, which also imposes a 10% limit on cryptocurrency investments while emphasizing secure storage protocols for digital assets.
Concerns Over Investment Risks
During the discussion, Rep. Brett Easterbrook raised concerns about the risks associated with the state investing in volatile assets like Bitcoin and Ethereum. In response, Shaw framed cryptocurrencies as a potential hedge against a devaluation of the dollar.
Introducing HB484
While HB482 focuses on investment, HB484 seeks to integrate cryptocurrency technologies into Alabama’s financial framework by mandating that the Alabama Comptroller publish public expenditures over $1,000 on a blockchain by 2030. Shaw argued that this could enhance transparency and accessibility of financial data.
Next Steps for the Legislation
The committee chair, Rep. Rex Reynolds, suggested that further deliberations were necessary, resulting in both HB482 and HB484 being put off for future discussion. The third bill from Shaw’s legislative package, HB483, which aims to exempt cryptocurrencies from property taxes, received a favorable report.
