Alabama Lawmakers Propose New Bill to Increase Cryptocurrency Market Penetration
In a strategic move, Alabama lawmakers have proposed a new bill that could significantly increase the state’s penetration of the cryptocurrency market, specifically Bitcoin. The move follows a pattern seen in several U.S. states since the rise of President Donald Trump, which has seen a more receptive approach to cryptocurrencies in the U.S. regulatory environment.
State Senator Bill Barfoot took the lead in introducing this bill, which, if passed, would authorize the State Treasurer to allocate funds to digital assets, capped at 10% of the fund’s total reserves. This measure is not only indicative of the growing institutional interest in cryptocurrencies, but also a clear sign of the potential that the Alabama government sees in these digital assets.
BREAKING:
NEW BILL INTRODUCED IN ALABAMA ALLOWS STATE TO INVEST IN
the #BITCO
$ BTC
WILL GO HIGHER
pic.twitter.com/WNTzFkvOD6
— Ufo Calls (@UfoCalls)
April 2, 2025
As stipulated by the legislation, the investment will be focused on crypto assets that have a market capitalization of more than US$750 billion in the last 12 months, a criterion that currently only Bitcoin meets with its capitalization of US$1.6 trillion. Ethereum and XRP, despite also being major players in the market, have market capitalizations of US$213 billion and US$115 billion, respectively, and therefore do not meet the current requirement of the bill.
The legislation also sets out clear guidelines on custody, lending and other operational aspects related to cryptocurrency investments, laying a solid foundation for the safe and effective management of these assets by the state. At the same time, a similar scenario is unfolding in Minnesota, where similar legislation has been introduced, indicating a growing trend among American states to explore the economic potential of cryptocurrencies.
President Trump’s renewed support for the cryptocurrency industry following his return to the White House stands in stark contrast to the previous administration of Joe Biden, which faced criticism for its restrictive stance on crypto assets. Trump’s new executive order and the formation of a dedicated crypto task force are seen as driving a more favorable investment climate in the U.S.
At the time of publication, the price of Bitcoin was quoted at US$82,532.95 with a drop of 0.1% in the last 24 hours.