The Alabama Blockchain Study Commission convened for its inaugural meeting on Tuesday, with industry leaders and regulatory officials urging a cautious approach as the state explores the potential of blockchain technology.
State Sen. Greg Albritton (R-Atmore) who chairs the committee, emphasized the importance of determining Alabama’s role in regulating and utilizing blockchain technology, which underpins cryptocurrencies like Bitcoin.
“Blockchain, Bitcoin, cryptocurrency has hit national and international news and is being developed and continuing to expand,” Albritton said. “The question that I think this body ought to consider is what is Alabama’s role in that so that we can determine what place, if any, Alabama has as a state to control or regulate that.”
The commission was established earlier this year through a joint resolution introduced by Albritton. Its mandate is to research how the state could best utilize blockchain technology and determine appropriate regulations.
Blockchain technology acts as a secure public ledger that records and verifies transactions. While considered secure, it remains far less regulated than traditional financial institutions. Among the commission’s appointees are lawmakers, state agency leaders, and industry stakeholders, including Wade Preston of the Alabama Blockchain Alliance.
Preston pointed to California’s recent adoption of blockchain to digitize 42 million car titles, suggesting Alabama could similarly enhance its record-keeping efficiency and security.
“We have a lot of inefficiencies – allegedly – within government structures, especially when it comes to record keeping,” Preston said. “We also have a lot of vulnerabilities when it comes to servers and the surface area for bad actors to be able to attack, steal peoples’ identities and whatnot, and blockchain offers solutions to these inefficiencies and security issues.”
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Amanda Senn, director of the Alabama Securities Commission, expressed concerns about compliance issues and fraud in the cryptocurrency industry, urging lawmakers to be thorough in crafting regulations.
“Many of these companies that are popping up around cryptocurrency that are allowing consumers and investors to deposit their assets (or) make loans with these digital assets are not complying with laws that are required of financial institutions in this state,” Senn said. “Some of the crypto firms are charging fees that would never be allowed by any of our regulated financial entities, and so it’s just not fair for these organizations to pop up and operate like financial institutions to the detriment of our legitimate licensed financial industry.”
Mike Hill, superintendent of the State Banking Department, echoed Senn’s caution, highlighting concerns about the ability to track money within the current system and the need for some regulation without over-regulating the industry.
Rep. Mike Shaw (R-Hoover) emphasized the need to balance regulation with creating a welcoming environment for cryptocurrency and blockchain investments in Alabama.
“It’s very important that we work with crypto companies and make sure this is a friendly environment for crypto companies, we want them to stay here,” Shaw said. “There’s opportunities for our state, for employment, but there’s also just advantages to us being on the forefront of bringing these companies in in a positive way. I want this state to be very friendly to blockchain companies, but I also want to make sure our people are protected too.”
Preston warned that Alabama could miss out on significant growth opportunities if it does not embrace blockchain technology. He compared the current climate to the early days of the internet, predicting that blockchain and cryptocurrency could grow from a $2 trillion to a $50-$100 trillion asset class within the next decade.
“Right now the question is, is Alabama going to be able to take advantage of this monumental growth in value? Or are we going to let it pass us by?” Preston said.
The commission will continue to meet and is expected to issue an initial report by the third day of the legislative session in February, with a final report due in the 2026 session.
Grayson Everett is the state and political editor for Yellowhammer News. You can follow him on X @Grayson270.
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