SB283 Alabama 2025 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Will BarfootSenator
Republican
Session: 2025 Regular Session
Title: State Treasurer, investment of funds in digital assets
Summary: The bill lets the Alabama State Treasurer invest some state funds in digital assets, with strict custody rules and limits, effective October 1, 2025.
What This Bill Does
It authorizes the State Treasurer to invest monies available for investment in digital assets and sets a 10% cap on how much of a fund can be invested. It defines eligible assets as either exchange-traded products or assets with a 12-month average market cap of at least $750 billion, as determined by the Treasurer. Investments must be held through a secure custody solution, by a qualified custodian, or as an ETF issued by an Alabama-registered issuer. The Treasurer may loan digital assets to generate additional returns if the loan does not increase risk, and may adopt rules to implement these provisions.

Who It Affects
State funds under the State Treasurer: the funds may be invested in digital assets up to 10% of the fund balance, subject to custody and eligibility rules.
Financial institutions and service providers (custodians, banks/trust companies, ETF issuers, and other digital asset providers): they would interact with the state's investments, custody arrangements, and potential asset lending, and must meet the custody and governance requirements.

Key Provisions
Defines blockchain, digital asset, exchange-traded product, private key, qualified custodian, and secure custody solution.
Authorizes the State Treasurer to invest funds otherwise available for investment in digital assets.
Investment limit: digital assets may not exceed 10% of the fund balance at the time of investment.
Eligible assets: digital assets must be an exchange-traded product or have a 12-month average market capitalization of at least $750,000,000,000 as determined by the Treasurer.
Holding methods: assets must be held directly via a secure custody solution, by a qualified custodian, or as an exchange-traded product issued by an Alabama-registered issuer.
The Treasurer may loan digital assets to increase returns if the loan does not raise financial risk, and may adopt rules to implement the section.
Effective date: the act becomes effective on October 1, 2025.

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