MONTGOMERY — In Montgomery last week, entrepreneurs and state officials gathered to explore the prospects of blockchain technology and cryptocurrency in Alabama.

A resolution proposing the formation of a joint legislative study commission, slated to delve into blockchain and cryptocurrency matters in Alabama over a two-year period commencing this summer, is set to be introduced in the legislature this week.

The Alabama Blockchain Alliance convened a panel discussion on Tuesday in Montgomery to deliberate on strategies for enhancing the state’s embrace of crypto and blockchain technologies. Blockchain, a technology commonly linked with cryptocurrency, functions as a shared ledger or database system.

“The primary objective behind the establishment of the Alabama Blockchain Alliance was to create avenues for the residents of Alabama by positioning the state as a frontrunner in the blockchain sector. For over a year, our organization has been dedicated to exploring ways to educate both the general public and elected representatives on subjects related to blockchain technology and cryptocurrency,” remarked Clay McInnis, the board president of the Alabama Blockchain Alliance. He further stated, “While the discourse on blockchain and cryptocurrency policies has been a focal point in Washington, DC for the past five years, we observe a shift in focus towards state-level initiatives and educational campaigns within the industry. The ABA is eager to collaborate with state regulators and private sector partners to delve into policies and practical applications that can yield lasting advantages for Alabama.”

Amanda Senn, Director of the Alabama Securities Commission, highlighted in a statement to 1819 News, “Many of the fraudulent activities we are currently uncovering involve cryptocurrency, as fraudsters are increasingly turning to cryptocurrency to execute their schemes.”

Senn emphasized, “For cryptocurrency to be integrated into the financial landscape, it must operate within a regulated framework. Numerous crypto entities are functioning akin to depository institutions and brokerage firms, both of which are mandated to adhere to regulations aimed at safeguarding investors and mitigating risks to our capital markets. These regulations encompass cybersecurity measures, anti-money laundering statutes, capital reserve prerequisites, and disclosures, including disclosures of financial-related conflicts of interest.” She added, “Blockchain technology has been in existence for some time, and we are eager to explore how this technology can benefit our financial community. As part of this endeavor, we are pleased to announce the establishment of the Financial Innovation division, which will collaborate across industries to explore avenues for enhancing efficiencies through technology within our financial sector. Our primary goal is to shield investors from fraud and uphold the integrity of our financial markets. While technology offers numerous advantages, fraudsters are quick to exploit new mechanisms. By collaborating with the industry, we can devise strategies to fortify new technologies and minimize risks to our investing public while fostering innovation.”

During the panel discussion on Tuesday, Homewood entrepreneur Brian Krogsgard expressed, “The United States has been notably sluggish in supporting this technology.”

Krogsgard emphasized, “The perpetrators will persist regardless of your stance, but by not aiding them in discerning the right course of action, you impede the efforts of the well-intentioned individuals. Embracing this inevitable change in a transparent manner is crucial. There is immense potential for positive impact through this technology. It’s uncertain whether it will mirror the scale of the internet’s impact; however, that comparison may not be entirely accurate. The key is to be supportive of this transformation and have a say in defining its parameters by actively engaging. This approach would be immensely valuable. Presently, there is no advantage in conducting such activities from the U.S.”

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