Alabama legislators have put forward a new bill that would enable the state to invest public funds in Bitcoin.

This initiative, known as Senate Bill 283, was introduced by Senator April Weaver and serves as a counterpart to House Bill 482, which was proposed in March.

The proposed law allows the state to dedicate up to 10% of its public funds to digital assets, specifically those that have a market capitalization of over $750 billion.

The bill clearly states, “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.”

At present, Bitcoin (BTC) is the sole cryptocurrency that satisfies this criterion. Furthermore, the legislation mandates that these assets must be managed directly by the state treasurer, a qualified custodian, or via exchange-traded products.

By filing matching bills in both chambers of the legislature, Alabama lawmakers seek to streamline the legislative process.

In addition to Alabama, various other states in the U.S. are contemplating legislation to allow public funds to be invested in Bitcoin as part of their financial reserves. The bill from Alabama follows similar moves in other states seeking to allocate a portion of their funds to Bitcoin.

Earlier this year, Texas lawmakers suggested establishing a state Bitcoin reserve with the intent of holding Bitcoin as a strategic asset. Wyoming has already enacted laws recognizing Bitcoin as legal property and is working towards incorporating digital assets into its financial infrastructure.

Other states such as Arizona and Missouri have also made attempts to include Bitcoin in their state reserves, although none of these proposals have yet been codified into law. These initiatives reflect a growing trend in financial policy where states are increasingly recognizing Bitcoin alongside traditional investment options.