Alabama lawmakers have introduced a bill to allow the state investment in Bitcoin (BTC). This follows a string of similar legislations from other states since President Donald Trump’s inauguration. The United States regulatory space has recorded several positive moves backing crypto assets. These efforts could swing macro forces and boost global adoption of the asset class. Alabama Joins The Bandwagon State Senator Bill Barfoot introduced a new Senate bill that will give the State Treasurer the power to invest in digital assets. A second House Bill 482 was also filed to expedite the legislative process. According to the bill, digital asset investment will not exceed 10% of the fund’s balance. While the proposed law does not specifically mention Bitcoin, it restricts all other cryptocurrencies at the time of writing. Only crypto assets with a $750 billion market capitalization in the preceding 12 months are eligible for investments. Currently, only Bitcoins meet this requirement with a market cap of $1.6 trillion. Ethereum and XRP have $213 billion and $115 billion market caps, respectively. “… subject to the requirement of this section, the State Treasurer may invest any monies otherwise available to the State Treasurer for investment in digital assets. The investment in digital assets from any of the funds described in this section shall not exceed, in aggregate, 10% of the balance of the fund at the time of investment,” the bill reads. Furthermore, the proposed law specifies custody, loan, and other requirements. Similarly, another bill was introduced in Minnesota taking the number of Bitcoin reserve bills to 26 in the United States. The bill in Minnesota will allow the state to invest in Bitcoin and other assets including exempting crypto gains from state income taxes. The Trump Effect Boosts Investor Confidence Donald Trump’s return to the White House has opened up positive rules in the crypto market in contrast to the previous administration. Joe Biden’s administration was accused of spearheading a “war” on crypto assets characterized by several lawsuits against projects and industry executives. President Trump pledged to make the United States the world’s crypto and AI capital and has so far rolled out policies aiming to improve the rules. The executive order for a Strategic Bitcoin Reserve and the creation of a crypto task force strengthened bullish momentum. However, recent tariffs have wiped out previous gains.
