Bill > HB482

This bill provides a comprehensive framework for the Alabama State Treasurer to invest state funds in digital assets, with several key provisions and safeguards. The bill first defines critical terms like blockchain (a secure, distributed digital ledger), digital assets (which include cryptocurrencies and digital tokens), and establishes specific requirements for such investments. The State Treasurer would be authorized to invest up to 10 percent of a fund's balance in digital assets, but only in specific types: either exchange-traded products or digital assets with an average market capitalization of at least $750 billion over the preceding 12 months. Any digital assets must be held through a highly secure custody solution that ensures exclusive control by the governmental entity, uses encrypted channels, prevents smartphone access, maintains hardware in multiple secure data centers, and includes multi-party governance and transaction logging. The bill mandates regular security audits and provides options for holding these assets directly, through a qualified custodian, or via registered exchange-traded products. The State Treasurer is also permitted to loan these digital assets to potentially generate additional returns, provided the loan does not increase financial risk. The legislation is set to become effective on October 1, 2025, giving state financial officials time to prepare for potential digital asset investments.

Budget and Finance

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