HB214 Alabama 2024 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Mike ShawRepresentative
Republican
Session: Regular Session 2024
Title: Digital assets, regulates digital asset operations
Summary: HB214 would protect digital assets and related activities in Alabama by limiting state restrictions and exempting mining, staking, and nodes from securities or money transmission classifications.
What This Bill Does
If passed, the bill would bar the state from restricting use or storage of digital assets or imposing new taxes or zoning/noise rules tied to mining. It would exempt digital asset mining, staking, and operating a node from being treated as securities or money transmission, and define key terms used in this area. It also creates tax and usage rules for digital assets, including a small-capital-gains exemption for purchases made with digital assets and an annual CPI-based adjustment, and it restricts local mining regulations while grandfathering certain existing operations. The act would take effect on October 1, 2024.

Who It Affects
Digital asset miners, staking providers, and node operators: protected from being classified as securities or money transmitters and allowed to operate, with liability protections for validating transactions.
Digital asset users and wallet holders: allowed to use digital assets to buy goods/services, may hold self-hosted or hardware wallets, and benefit from limited taxes on digital asset payments and a small-purchase capital gains exemption.
Local governments and regulatory bodies: limited ability to impose unique mining rules (must not create burdens beyond data centers, and mining can occur in industrial zones; may still require business licenses).
Existing mining businesses with municipal licenses (as of January 31, 2024): may continue operating despite future zoning or regulation changes.

Key Provisions
Definitions: blockchain, blockchain protocol, digital asset, digital asset mining, digital asset mining business, hardware wallet, node, self-hosted wallet, staking, and staking as a service.
The state shall not restrict use or storage of digital assets, impose additional taxes on digital assets, or enact zoning/noise restrictions specific to digital asset mining.
Digital asset mining, staking, and operation of a node are exempt from classification as securities or money transmission.
Individuals may use digital assets to purchase goods/services and maintain self-hosted or hardware wallets; no additional tax for digital asset payments.
Capital gains tax exemption for a digital asset transaction if used as payment and value is $200 or less, with the dollar amount adjusted annually by the Consumer Price Index.
Local ordinances cannot impose mining requirements not required for data centers, prevent mining in industrial zones, or ban mining at private residences except as related to ordinances; mining businesses with a municipal license as of January 31, 2024 may continue operating.
Mining shall not be classified as money transmission; operation of a node or transferring digital assets via a blockchain protocol shall not be money transmission; node/exchange activities are not securities offerings; liability for validating transactions is not imposed on participants.
Tax and licensing provisions: the state may tax transactions not involving digital assets; municipalities may require business licenses for digital asset mining businesses.
Effective date: October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Telecommunications & Utilities