Committee hears second presentation on HB1 to recognize gold and silver specie as legal tender; amendment deadline set

Representative Kevin McCabe reintroduced House Bill 1 on May 8, 2025, in House State Affairs. HB 1 would recognize gold and silver specie as legal tender in Alaska, and the committee set an amendment deadline of Monday, May 12 at 5:00 p.m.

“HB 1 is about choice, not mandates. No one is required to use gold or silver,” Representative McCabe told the committee, describing the bill as affirming Alaskans’ ability to use sound money under constitutional principles. He positioned the measure as enabling the use of physical gold and silver as a form of payment consistent with Article I, Section 10 of the U.S. Constitution.

Members asked about consumer protections and how value would be determined in transactions. Vice Chair Story noted a Department of Commerce, Community and Economic Development response that the state “does not currently accept cryptocurrency as a valid form of payment for any debts, dues or obligations,” and that cryptocurrency must first be converted to U.S. dollars. The sponsor and invited testifiers clarified this bill addresses physical gold and silver specie, not cryptocurrency.

Larry Hilton, co‑founder and general counsel of Goldback Inc., described Goldbacks as negotiable instruments redeemable for U.S. Minted gold dollars and said the product incorporates multiple anti‑counterfeit features and is already accepted by some merchants nationally. He said the specie’s paper‑dollar equivalent would typically be set by market negotiation or by reference to spot gold pricing and that merchants and apps exist to show current exchange values.

Committee members raised several practical questions: whether contractors’ payments and taxes differ when paid in specie, how merchants and consumers would agree on conversion rates, and whether the state’s designation would create additional consumer protections. Representative McCabe responded that protections are similar to existing protections for other currencies and that reputable vendors and security features provide buyer safeguards. The committee did not vote on the bill; rather it set the amendment deadline and encouraged members to submit amendments for consideration.

The committee indicated it may consider HB1 further later in session and will accept amendments up to the May 12 deadline.