SB187 Alabama 2024 Session

Summary

Primary Sponsor

Merika ColemanSenator

Democrat

Session

Regular Session 2024

Title

Digital assets, regulates digital asset operations

Summary

SB187 would shield digital assets and related activities in Alabama from many government restrictions and reclassify mining, staking, and node operation as non-securities and non-money transmission, while clarifying tax and zoning rules.

What This Bill Does

It prohibits the state from restricting the use or storage of digital assets, from imposing extra taxes on digital assets, and from enacting zoning or noise rules specific to digital asset mining. It exempts digital asset mining, staking, and running a node from being classified as securities or money transmission. It also establishes tax provisions for digital assets (including a small-purchase capital gains exemption) and sets limits on local zoning and licensing related to mining, with protections for existing licensed miners.

Who It Affects

• Digital asset users in Alabama who want to use digital assets to buy goods or services and who may hold self-hosted or hardware wallets.
• Digital asset miners, staking providers, and node operators who would be exempt from securities/money transmission classifications and face fewer zoning/noise restrictions (with some grandfathering for licenses).
• Local governments and municipalities, which would be limited in imposing mining-specific requirements and must respect existing licenses and zoning for certain miners.
• Tax authorities and businesses that accept digital assets, who would see changes in tax treatment for using digital assets as payment and in capital gains tax rules for small-value transactions.

Key Provisions

• Defines terms such as blockchain, digital asset, digital asset mining, digital asset mining business, node, hardware wallet, self-hosted wallet, staking, and staking as a service.
• The state shall not restrict use/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 the operation of a node are exempt from classification as securities or money transmission.
• Local governments cannot impose mining requirements not common to data centers, cannot prohibit mining in industrial zones, and cannot bar mining at private residences except as allowed by ordinances; miners with a municipal license on Jan 31, 2024 may continue to operate.
• Mining or node operations and asset transfers using a blockchain protocol shall not be classified as money transmission; mining or staking as a service shall not be classified as offering a security; and participants shall not be liable for validating transactions.
• Tax provisions allow the state to tax transactions as it would without digital assets and permit municipalities to require mining businesses to have a license; a small-dollar transaction (payment with digital assets valued at $200 or less) may be exempt from capital gains taxes, with CPI adjustments.

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