Alaska Legislature Passes Bill Recognizing Gold, Silver as Legal Tender

The Alaska State Senate passed House Bill 1 on May 11, 2026, sending legislation that recognizes gold and silver as legal tender to Governor Mike Dunleavy for consideration.

Alaska News previously reported that the House passed HB 1 unanimously in a 40-0 vote earlier this session following extensive collaboration with municipalities, stakeholders, and legislators across the state. The bill, sponsored by Representative Kevin McCabe of Big Lake, clarifies that gold and silver coins or stamped bullion qualify as legal tender under federal law and exempts such transactions from local sales and use taxes.

The legislation does not require any individual or business to accept precious metals. Participation remains voluntary for Alaskans who choose to use what McCabe calls constitutional forms of money.

"This bill is about constitutional fidelity, financial freedom, and individual choice," McCabe said. "Gold and silver have been recognized as lawful money since the founding of our nation. HB 1 simply ensures Alaskans are not penalized for choosing to use them."

The bill prohibits boroughs and cities from imposing sales or use taxes on specie transactions, ensuring that money itself is not taxed as a commodity. Municipalities may lose some revenue under the measure, though McCabe noted that Alaska has no state sales tax and local governments do not separately track precious-metal sales. "Alaska does not have a state sales tax, and local municipalities do not track precious metal sales separately. So the precise fiscal impact is indeterminate," McCabe said. "Given the limited volume of these transactions in Alaska, any potential local revenue impact is expected to be minimal. You see that noted in the fiscal note."

The bill also directs the Legislative Budget and Audit Committee to study additional forms of legal tender, including emerging technologies and future monetary instruments.

Senator Mike Cronk of Tok/Northway carried the companion legislation, Senate Bill 162, and worked with McCabe throughout the process.

"A growing number of states have moved to reduce or eliminate taxation on precious metals and reaffirm the constitutional role of gold and silver as lawful money," Cronk said. "HB 1 ensures Alaska remains part of the conversation while protecting individual choice and economic freedom. It's a golden opportunity for the Last Frontier!"

HB 1 will now be transmitted to Dunleavy, who will decide whether to sign the measure into law.