State Treasurer, investment of funds in digital assets

SB 283 would allow Alabama's State Treasurer to invest up to 10% of certain state funds in digital assets, such as cryptocurrencies or stablecoins, under strict conditions. It requires investments to be either exchange-traded products (ETPs) or digital assets with a $750 billion+ average market capitalization over the past year. The bill mandates that all digital assets must be held through secure custody solutions meeting detailed security standards, including encrypted private keys, multi-party transaction approval, and geographically diversified data centers. This policy directly affects state investment funds managed by the Treasurer and sets specific risk limits for digital asset holdings. The law would take effect on October 1, 2025.