MONTGOMERY, Ala. — Members of the Alabama Blockchain Study Commission recently agreed that the state of Alabama should strive to “place itself at the forefront” of emerging blockchain technology. blockchain to become one of the most cryptocurrency and blockchain-friendly states in the country.
“There are very few states right now that can present themselves as really crypto-friendly, or at least open to working with crypto companies and wanting to interact with them,” said Wade Preston, commission member and leader of the Alabama Blockchain Alliance. “Crypto entrepreneurs have been considered pariahs for so long that in my opinion, taking the lead would be a good boost for the state.”
Blockchain technology refers to a type of digital database that can act as a secure public ledger that records and verifies all transactions, and is the foundation on which cryptocurrencies such as Bitcoin are built. Although its roots date back to the early 1980s, more advanced and decentralized forms of blockchain technology have only emerged in the last decade.
The study commission was created last year by Sen. Greg Albritton, R-Range, as a tool to explore ways the state could potentially use blockchain technology to improve government efficiency, as well as how it should be regulated. Some states have already implemented blockchain technology for government operations, including California. digitize its 42 million automobile titles last year, although states have generally been slow to adopt regulations affecting the industry.
That could change soon, however, with Donald Trump’s second administration, with several key cabinet picks including Paul Atkins as SEC chairman and David Sacks as AI and crypto czar, advocates of regulations favorable to cryptocurrency. Trump also pledged to issue executive orders to benefit the cryptocurrency industry.
Many Bitcoin enthusiasts and investors are quick to say that government-backed currencies are prone to devaluation and that increased government buyouts will stabilize future price fluctuations, giving them more legitimacy and stimulating already rising prices.
But the risks are significant. Critics say crypto investments are highly speculative, and there are so many unknowns about future return projections. They warn that investors should be prepared to lose money.
Only a few public pension funds have invested in cryptocurrency. A U.S. Government Accountability Office study of 401(k) plan investments in crypto, released late last year, warned that it had “particularly high volatility.” He found no standard approach to projecting future crypto returns.
Committee members agree that it would be beneficial for the state to quickly establish an entrepreneur-friendly blockchain and cryptocurrency policy.
“I think we need to be at the forefront of technology; it’s happening, it’s here,” Albritton told the Alabama Daily News. “We don’t want to be (in) the queue.”
Although the commission did not take a vote at its Jan. 16 meeting, members agreed that state leaders should consider collaborating with Innovate Alabama, the state’s initiative designed to foster entrepreneurship and technological advancement, to develop a consistent message that the state of Alabama welcomes cryptocurrency and blockchain entrepreneurs.
Members argued, however, that appropriate safeguards around technology should still be put in place to protect consumers.
“I would suggest that as we continue to move forward, despite everything the federal government is going to do, we still have to be accountable to the state of Alabama,” said Sen. Bobby Singleton, a Greensboro Democrat. “I think we should continue to listen to the experts, learn as much as we can, be prepared to put in place these safeguards for consumer protection and be open-minded to the industry as it develops, while ensuring that our interests are protected.” citizens. »
Rep. Mike Shaw, R-Hoover, who last year launched the idea to introduce legislation relating to the regulation of cryptocurrency and blockchain technology in the state, told ADN that taking a friendly stance, both rhetorically and politically when it comes to entrepreneurs in cryptocurrency and blockchain, could produce a significant economic benefit for the state. He also confirmed that he still intends to introduce at least one “crypto-related bill” during the 2025 legislative session.
“I hope we can continue to communicate, both in what we do and in the laws we pass, that we want to be a blockchain-friendly state,” Shaw said. “We obviously want to protect our people, but this new technology has so many applications that could be really beneficial to our state’s economy. »
The Associated Press contributed to this report.
