Alabama on the way to the grounds: planned investments of public funds in Bitcoin could make the state a pioneer in the USA

<P> <strong> Alabama on the way to the grounds: planned investments of public funds in Bitcoin could make the state a pioneer in the USA </strong> </p>

Alabama strives for investments in digital assets

Alabama is approaching the goal of becoming one of the first US states that officially invest public funds in digital assets. The bill introduced by Senator April Weaver this week, Senate template 283, provides for up to 10 % of the state -managed funds to invest in cryptocurrencies. However, these investments would be limited to digital assets with a market capitalization of over $ 750 billion.

Bitcoin as the only suitable digital asset

At the moment, only Bitcoin only fulfills this requirement, which means that the other cryptocurrencies would be excluded from the regulation due to their market capitalization. Alabama manages over $ 31 billion in public funds, which could mean that up to $ 3.1 billion could be redirected to Bitcoin or related listed products.

Double accounting strategy for accelerating the legislative process

In order to accelerate the legislative process, the MPs Alabama's identical draft laws have brought in both in the Senate and in the House of Representatives. Senate template 283 and house template 482 propose a structured framework that defines strict restrictions on investment ability. Only cryptocurrencies with a market capitalization of over $ 750 billion would be permitted, which effectively excluded all out of Bitcoin when March 2025.

According to the draft law, these digital assets must be kept safely, either by the state treasurer, a qualified storage or via IPO -traded products. Alabama is also obliged to monitor his stocks to ensure that the total allocation does not exceed 10 % of the balance of a certain fund at the time of the investment.

Although there is currently no fixed schedule for the adoption of the bill, the strategy with two chambers indicates a strong momentum and broad support in parliament.

Other states examine the integration of Bitcoin

Alabama is not the only state that considers taking Bitcoin in his public reserves. Texas also proposed the foundation of an official state Bitcoin reserve, while Wyoming has already passed laws that Bitcoin treats as legal property. Arizona and Missouri also consider to integrate Bitcoin as part of their financial strategies, but so far none of these efforts have led to enforceable laws.

Alabama's approach with the two draft laws could give the state a procedural advantage and may make it the first state that legally keeps part of his public funds in Bitcoin. The market capitalization threshold of $ 750 billion in the Alabama proposal reflects these wider national discussions and at the same time minimizes the risk of volatile or smaller cryptocurrencies. Momentan is the market capitalization of Ethereum below the aforementioned minimum, which practically limits the selection of the permissible digital assets to Bitcoin.

Institutional acceptance of digital assets

This step takes place at a moment when Bitcoin gains legitimacy as a strategic asset. Institutions take over Bitcoin through regulated stock markets and allocations in corporate financing. The time of legislative efforts in Alabama coincides with a broader trend of institutional interest in digital assets, which is driven by inflation and diversification strategies.

The formulation of the draft law reflects this caution by stipulating that state assets have to be kept from qualified ones or managed through regulated financial instruments. If the initiative in Alabama is adopted, this could make other states to rethink the role of digital assets in their own public financial systems. The draft law does not contain any plans for the inclusion of old coins or stablecoins that remain excluded due to their lower market capitalization or regulatory uncertainty.