Alabama lawmakers have introduced legislation to allow the state to invest public funds in Bitcoin. 

The latest proposal, Senate Bill 283, was filed this week by Sen. April Weaver as a companion to House Bill 482, which was introduced in March.

The legislation would permit the state to allocate up to 10% of its public funds to digital assets, but only those with a market capitalization exceeding $750 billion. 

“The investment in digital assets from any of the funds described in this section shall not exceed, in aggregate, 10 percent of the balance of the fund at the time of the investment,” the bill read.

Currently, Bitcoin (BTC) is the only cryptocurrency that meets this threshold. The bills also specify that these assets must be held directly by the state treasurer, a qualified custodian, or through exchange-traded products.

By introducing identical bills in both legislative chambers, Alabama lawmakers aim to expedite the legislative process.

US state Bitcoin proposals

Several other U.S. states are exploring legislation to allocate public funds to Bitcoin as part of their financial reserves. Alabama is the latest to introduce bills allowing up to 10% of state funds to be invested in Bitcoin, following similar efforts in other states. 

Earlier this year, Texas lawmakers proposed the creation of a state Bitcoin reserve, with the idea of holding Bitcoin as a strategic asset. Meanwhile, states like Wyoming have passed legislation recognizing Bitcoin as legal property and are working on policies to integrate digital assets into their financial systems.

Arizona and Missouri have also seen legislative efforts to position Bitcoin as part of their state reserves, though none have yet been enacted into law. These efforts align with broader trends in financial policy, where states are increasingly considering Bitcoin alongside traditional assets.