Bill > SB283

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 decentralized digital ledger), digital assets (virtual currencies and digital-only assets), and establishes specific requirements for such investments. The State Treasurer may invest up to 10 percent of a fund's balance in digital assets, but only in those that are either part of an exchange-traded product or have a market capitalization of at least $750 billion over the past 12 months. Any digital assets must be held through a secure custody solution that ensures exclusive control by the governmental entity, uses encrypted environments, prevents smartphone access to private keys, maintains hardware in geographically diverse secure data centers, enforces multi-party transaction authorization, and undergoes regular security audits. The bill also allows the State Treasurer to loan these digital assets to potentially generate additional returns, provided the loan does not increase financial risk. Importantly, the bill gives the State Treasurer the authority to create implementing rules and sets an effective date of October 1, 2025, providing ample time for preparation and developing comprehensive guidelines for digital asset investments.

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