Alabama should establish Bitcoin reserve, says state auditor

Alabama state auditor Andrew Sorrell has endorsed the establishment of a state Bitcoin reserve in an interview with a local publication.

The many pros of crypto

Sorrell is a former state legislator and long-time supporter of cryptocurrency. He told 1819 News that embracing cryptocurrency would attract business to the state and enhance the stability of the state’s finances.

“Crypto is here to stay,” Sorrell said, and “the fight for which states will benefit from it has begun.” Furthermore:

“The states that are first to adopt a tax and regulatory framework that are friendly to crypto will attract business and investment.”

The introduction of Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) in the United States makes it possible for the state to invest in those cryptocurrencies as easily as purchasing stock through a brokerage. According to Sorrell, cryptocurrency represents a better value:

“It [cryptocurrency] is also the most rapidly growing asset class (averaging an astounding 55% a year for the last 15 years). […] Investing in Treasuries and bonds certainly has its place, but earning a 4% yield while inflation is 2.7% is barely breaking even.”

Sorrell said the Alabama Bitcoin reserve should be modeled on the Federal BTC reserve promised by President-elect Donald Trump. Since BTC is in a bull market, Sorrell suggested building up the reserve with monthly buys over two years. Diversifying away from the US dollar would be prudent:

“What happens if the dollar ceases to be the reserve currency of the world? What happens if inflation runs 8% again like it did during the post-pandemic era? Bitcoin’s value is unaffected by what happens to the U.S. dollar.”

Related: Wyoming stablecoin may launch Q1 2025 —Governor Mark Gordon

Alabama making slow progress on crypto

Alabama is home to many pro-crypto politicians on the state and federal levels. US Senator Tommy Tuberville is perhaps the most active pro-crypto federal legislator.

Source: 1819 News

The state passed an act to create the Alabama Blockchain Study Commission in May. The commission will study crypto regulation, taxation, mining and other questions and dissolve after submitting a report to the Legislature in 2026.

A bipartisan bill to prohibit the state from restricting digital asset storage or mining or levying additional taxes on digital assets and to “exempt digital asset mining, staking, and the operation of a node from classification as a security or money transmission” failed to pass this year.

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