MONTGOMERY, Ala. — The Alabama Blockchain Study Commission has reached a consensus that the state should proactively embrace emerging blockchain technology to become one of the most cryptocurrency and blockchain-friendly states in the country. Wade Preston, a commission member and leader at the Alabama Blockchain Alliance, emphasized that many states are not yet welcoming to crypto businesses, making early engagement advantageous for Alabama. Blockchain technology serves as a secure public ledger that records and verifies transactions, forming the backbone for cryptocurrencies like Bitcoin. Although blockchain has roots dating back to the 1980s, more sophisticated and decentralized applications have emerged in recent years. Formed last year by Sen. Greg Albritton, R-Range, the commission aims to explore how Alabama can utilize blockchain to enhance government operations and determine appropriate regulatory measures. While some states have successfully integrated blockchain into government processes—California digitizing 42 million car titles last year—overall regulatory adoption remains slow. Anticipation grows around potential regulatory changes under a second Trump administration, particularly with advocates for cryptocurrency like Paul Atkins as SEC chair and David Sacks overseeing AI and crypto. Trump has also promised to introduce executive orders to support the cryptocurrency sector. However, critics highlight the speculative nature of crypto investments, cautioning potential investors that they could face significant losses. Limited public pension funds have ventured into cryptocurrency, and a U. S.

Government Accountability Office report noted the “uniquely high volatility” of crypto, lacking a standardized method for predicting returns. Commission members concur that establishing favorable policies for blockchain and cryptocurrency businesses is crucial. Sen. Albritton remarked, “We need to be on the cutting edge; it’s here. ” Although the commission did not vote on proposals during their January 16 meeting, there was agreement to collaborate with Innovate Alabama, focusing on a welcoming narrative for crypto entrepreneurs. Sen. Bobby Singleton, D-Greensboro, stressed the need for responsible governance that includes consumer protections as the technology evolves. Rep. Mike Shaw, R-Hoover, indicated plans to introduce legislation related to cryptocurrency regulation during the 2025 session, highlighting the potential economic benefits of being a blockchain-friendly state while ensuring safeguards for citizens. The Associated Press contributed to this report.