Sponsored by Sen. Tim Melson and Rep. Jamie Kiel, the Alabama Legal Tender Act recognizes "any refined gold or silver bullion, specie, or coin that has been stamped, marked, or imprinted with its weight and purity" as legal tender in the Yellowhammer State.

The law ensures that no one is obligated to accept gold and silver for transactions unless specified by a contract or required by law.

The measure, backed by Money Metals Exchange and the Sound Money Defense League, sailed through the state legislature with unanimous support, receiving no negative votes in committee or floor votes in either chamber.

Article 1 Section 10 of the U.S. Constitution reads: "No state shall… coin Money; emit Bills of Credit; [or] make any Thing but gold and silver Coin a Tender in Payment of Debts…" Senate Bill 130 aligns with this constitutional mandate.

"I'm proud to sponsor this legislation reaffirming gold and silver as legal tender in Alabama," said Senator Melson in an exclusive interview with the Sound Money Defense League.

"While inflation continues to erode the purchasing power of the U.S. Dollar, encouraging stable, time-tested, and constitutional alternatives like gold and silver is a commonsense step. This bill upholds their constitutional status and supports sound money for our citizens across the state," he concluded.

This marks the fifth pro-sound money law enacted in 2025, a national trend driven by the Sound Money Defense League and Money Metals Exchange for over a decade. Alabama joins Kentucky, Wyoming, and Idaho in passing related laws this year.

So far this year, Wyoming has established a $10 million physical gold reserve, Idaho passed bills eliminating capital gains taxes on gold and silver and reaffirming the two precious metals as legal tender, and Kentucky became one of the dozens of states to end sales taxes on purchases of precious metals.

After President Nixon "temporarily suspended" the convertibility of dollars into gold, America's 54-year experiment with a purely fiat currency system has fueled high inflation, ballooning deficits, and unchecked government spending.

When savers, wage earners, and investors seek ways to protect their savings from the ravages of inflation, they often choose precious metals over fiat currency because precious metals have preserved purchasing power over time.