Blockchain
Lawmakers Convene First Meeting of Alabama Blockchain Study Commission
THE Alabama Blockchain Study Commission met for its inaugural meeting on Tuesday, with industry leaders and regulatory officials urging a cautious approach as the state explores the potential of blockchain technology.
State Sen. Greg Albritton (R-Atmore), who chairs the committee, stressed the importance of determining Alabama’s role in regulating and using blockchain technology, which underpins cryptocurrencies like Bitcoin.
“Blockchain, Bitcoin, cryptocurrency have been in the news nationally and internationally and are still being developed and are continuing to expand,” Albritton said. “The question that I think this body should consider is what is Alabama’s role in this, so that we can determine what role, if any, Alabama has as a state to control or regulate this.”
The commission was established earlier this year through a joint resolution introduced by Albritton. Its mandate is to research how the state can best utilize blockchain technology and determine appropriate regulations.
Blockchain technology acts as a secure public ledger that records and verifies transactions. While it is considered secure, it remains far less regulated than traditional financial institutions. The commission’s appointees include legislators, state agency leaders, and industry stakeholders, including Wade Preston of the Alabama Blockchain Alliance.
Preston highlighted California’s recent adoption of blockchain to digitize 42 million auto titles, suggesting that Alabama could similarly improve record-keeping efficiency and security.
“We have a lot of inefficiencies, arguably, within government structures, especially when it comes to record keeping,” Preston said. “We also have a lot of vulnerabilities when it comes to servers and surfaces where bad guys can attack, steal people’s identities and whatnot, and blockchain offers solutions to those inefficiencies and security issues.”
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Amanda Senn, director of the Alabama Securities Commission, expressed concern about compliance issues and fraud in the cryptocurrency industry, urging lawmakers to be thorough in crafting regulations.
“A lot of these companies that are popping up around cryptocurrency and allowing consumers and investors to store their assets (or) lend with these digital assets are not complying with the laws that are required of financial institutions in this state,” Senn said. “Some of the cryptocurrency companies are charging fees that would never be allowed by any of our regulated financial entities, so it’s not fair for these organizations to pop up and operate as financial institutions to the detriment of our legitimate, licensed financial sector.”
Mike Hill, superintendent of the state Department of Banking, echoed Senn’s caution, highlighting concerns about the ability to track money within the current system and the need for some regulation without over-regulating the industry.
Rep. Mike Shaw (R-Hoover) stressed the need to balance regulation with creating a welcoming environment for cryptocurrency and blockchain investments in Alabama.
“It’s really important that we work with cryptocurrency companies and make sure that this is a friendly environment for cryptocurrency companies, we want them to stay here,” Shaw said. “There are opportunities for our state, for jobs, but there are also benefits to being at the forefront of introducing these companies in a positive way. I want this state to be very friendly to blockchain companies, but I also want to make sure that our people are protected as well.”
Preston warned that Alabama could miss out on significant growth opportunities if it doesn’t embrace blockchain technology. He compared the current climate to the early days of the internet, predicting that blockchain and cryptocurrency could grow from a $2 trillion asset class to a $50-100 trillion asset class within the next decade.
“The question right now is, will Alabama be able to take advantage of this monumental growth in value? Or will we let it slide?” Preston said.
The commission will continue to meet and is expected to issue an initial report by the third day of the February legislative session, with a final report due during the 2026 session.
Grayson Everett is the political and state editor for Yellowhammer News. You can follow him on X @Grayson270.
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