MONTGOMERY, Ala. — Alabama Rep. Mike Shaw, R-Hoover, said Wednesday he intends to introduce legislation related to regulating cryptocurrency and blockchain technology.
“I don’t know what that’s going to look like, but I plan to put something together to present next year, but it’s going to take some time,” Shaw told attendees of the Montgomery town hall, hosted by cryptocurrency exchange Coinbase.
“We’re going to have to make sure that lawmakers and the public understand as much as possible how technology works, what it means for economic development and what it can mean for our state.”
Alabama lawmakers have expressed interest in researching how blockchain technology could benefit the state, as well as how to regulate it, with the Alabama Legislature’s Blockchain Study Commission holding its inaugural meeting last month.
The foundation upon which cryptocurrencies like Bitcoin are built, blockchain technology acts as a secure public ledger that records and verifies transactions.
Some states have already adopted the use of blockchain technology. California recently has digitized its archives of 42 million car titles. When it comes to regulating the industry, most states have has not adopted any specific regulation for cryptocurrencyand instead relied on existing laws on the transfer of funds.
When it comes to cryptocurrency regulation, Shaw said there is a need for “a bit of a reboot.”
“I think it would be an incentive (for cryptocurrency and blockchain investments) to just have some regulatory environment so they know what to expect here,” Shaw told Alabama Daily News.
“A lot of the regulation around cryptocurrencies is based on very old laws and case law and things like that, which is fine, but it’s so new that sometimes they try to force it through. I think we probably need a bit of a reboot.”
The town hall meeting was held at Montgomery’s Prevail Coffee, owned by Wade Preston of the Alabama Blockchain Alliance. He not only participated in the Blockchain Study Commission last month, but recently began accepting cryptocurrencies as payment at his coffee shop.
Preston and Coinbase Senior Director Ashley Gunn made a strong case at the event for creating a regulatory environment specifically for crypto, while cautioning against over-regulating the industry.
Rep. Phillip Ensler, D-Montgomery, was also a keynote speaker at the event and agreed that over-regulation of the cryptocurrency industry could stifle investment and innovation.
“We don’t want to stifle small businesses, we don’t want to hamper investors or people who are looking to use this for economic development and growth,” Ensler said.
