Key Takeaways
- Alabama introduced HB482 and SB283 to invest up to 10% of public funds in Bitcoin.
- The bills require a digital asset to have a $750B market cap—criteria only Bitcoin currently meets.
- Alabama joins Texas, Minnesota, and others in exploring Bitcoin reserve strategies.
Alabama has introduced two matching pieces of legislation—House Bill 482 (HB482) and Senate Bill 283 (SB283)—that would permit the state to invest up to 10% of its public funds in Bitcoin.
The bills are nearly identical, differing only in their chambers of origin and sponsoring legislators.
Investment criteria
Both bills define strict eligibility criteria for investment.
The digital asset must maintain a market capitalization of at least $750 billion over the past 12 months—a benchmark that currently only Bitcoin meets.
The legislation specifies that the state may invest through regulated channels like exchange-traded funds or secure custody solutions.
Oversight measures
Oversight measures include regular audits and risk assessments.
The Alabama State Treasurer would manage the investment portfolio and would be permitted to lend out Bitcoin to generate additional returns, so long as financial risk is not increased.
Support for Bitcoin
The bill’s supporters argue that highlighting potential returns and diversification, saying:
Bitcoin has outperformed many traditional assets over the past decade.
The legislation positions Bitcoin alongside conventional assets like stocks, bonds, and real estate in Alabama’s investment strategy.
Broader context
Alabama joins several other U.S. states exploring Bitcoin-related investment laws, including Texas, Minnesota, South Carolina, and Oklahoma.
While Minnesota’s bill names Bitcoin directly, Alabama’s uses criteria that only Bitcoin currently satisfies.
Legislative process
SB283 will move through the Senate first, while HB482 will begin in the House.
