(Money Metals News Service) Mike Maharrey, a reporter and analyst at Money Metals Exchange, recently spoke with Jp Cortez, executive director of the Sound Money Defense League, about the major strides being made in sound money policy across the United States.
As of early April 2025, five states have already passed pro-sound money legislation, with more expected before the legislative season wraps up in June.
(Interview Starts Around 4:17 Mark)
Alabama Reaffirms Gold and Silver as Legal Tender
On April 10, 2025, Alabama Governor Kay Ivey signed Senate Bill 130 into law. Carried by Senator Tim Melson, the legislation reaffirms gold and silver as legal tender for voluntary transactions in the state. This marks the third major sound money bill passed in Alabama since 2018.
The state’s journey began with a 2018 law that expanded the sales tax exemption on precious metals. In 2023, Alabama eliminated the state capital gains tax on the sale of gold and silver. Now, with the signing of SB 130, Alabama continues to position itself as a leader in restoring constitutional money.
In practical terms, this means that when residents of Alabama purchase precious metals, they are not subject to sales tax, and when they sell, they are not required to pay capital gains taxes to the state. While federal taxes remain, Alabama has removed all state-level friction that would otherwise discourage the use of gold and silver as money.
Incremental Policy Wins Build a Foundation
Cortez emphasized the importance of the step-by-step legislative approach adopted by Alabama and other states like Utah and Arkansas. Rather than attempting to pass sweeping reform all at once, these states have focused on building legal frameworks incrementally.
In Arkansas, for example, the state has not only affirmed gold and silver as legal tender but is now considering a system allowing vendors who do business with the state to transact using precious metals. Cortez noted that while some bills are more symbolic than functional, they play an important psychological role by reaffirming to the public and businesses that gold and silver are, in fact, money.
This process, Cortez explained, is part of a broader strategy employed by the Sound Money Defense League with support from Money Metals Exchange. Each legislative win helps pave the way for larger reforms such as the establishment of state gold reserves or bullion depositories.
Five States Leading the Charge in 2025
As of today in early April, five states have passed sound money legislation in 2025 alone: Alabama, Wyoming, Idaho, Tennessee, and Kentucky.
Each state has contributed to the growing movement to restore gold and silver as viable forms of constitutional money.
- Wyoming
- Passed Senate File 96, establishing a multi-million-dollar physical gold reserve for the state.
- Builds on the 2018 Legal Tender Act, which removed taxes on gold and silver and reaffirmed their status as legal tender.
- Positions Wyoming to better protect state funds and taxpayers from inflation and currency volatility.
- Idaho
- Passed House Bill 40, the largest tax cut in Idaho history, including a capital gains tax exemption on the sale of precious metals.
- Followed up with House Bill 177, reaffirming gold and silver as legal tender.
- Allows residents to buy and sell precious metals without being subject to state taxation, making Idaho one of the most metal-friendly states in the West.
- Tennessee
- Advancing legislation to establish a state gold reserve, initially estimated at $60 million.
- Built upon earlier success removing sales tax and income tax on precious metals.
- Jp Cortez recently testified in Nashville in support of the current reserve legislation.
- Kentucky
- Removed the sales tax on gold and silver retroactively after years of legislative battles.
- Overrode a veto by Governor Andy Beshear, who had opposed the measure.
- New law includes penalties for wrongful taxation and allows taxpayers to sue the state for improper tax collection related to bullion purchases.
- Money Metals is also helping to lead a class action lawsuit against Gov. Andy Beshear.
- Alabama
- Passed Senate Bill 130, reaffirming gold and silver as legal tender.
- Marks the third sound money law passed in the state since 2018, following the elimination of the sales tax and capital gains tax on precious metals.
- Now offers a fully frictionless environment for buying and selling gold and silver at the state level.
Cortez described these victories as part of a long-term, strategic process to normalize the use of precious metals in commerce. With the 2025 legislative season still underway, he expects more states to join the movement before the year is out.
Upcoming Battles and Legislative Opportunities
The legislative season in many states continues through May and June. Cortez outlined several states where important bills are still under consideration.
In Alaska, a bill is advancing that would prohibit municipalities from imposing local sales taxes on gold and silver. The state does not levy a sales tax at the state level, but localities still can. The bill would also reaffirm gold and silver as legal tender.
Maine is again debating a bill to exempt precious metals from sales tax. A similar bill failed by just one vote two years ago, but this year it has bipartisan support and broader momentum.
In Iowa, legislators are reviewing a bill to exempt gold and silver from the state capital gains tax. And in Tennessee, the push to fund and establish a gold reserve continues.
Cortez described the expanding interest in sound money as a nationwide movement that has grown significantly since the Sound Money Defense League began its work in 2014. Whereas only a handful of states used to consider such legislation, it is now common for multiple states to propose and pass bills each session.
Federal Efforts: Gold Audits and Tax Reform
At the federal level, the Sound Money Defense League has also been active. Cortez highlighted legislation first introduced in 2019 and again in 2021 by Congressman Alex Mooney of West Virginia to audit the gold held at Fort Knox and other U.S. depositories.
Mooney has also reintroduced the Monetary Metals Neutrality Act of 2024. This bill would eliminate federal capital gains tax on gold and silver, which could automatically nullify state-level taxes in many jurisdictions that base their tax codes on federal income tax structures.
Cortez stressed the importance of a real audit—complete with bar serial numbers, weight verification, and assays—not just a superficial walkthrough for the media. He warned against another theatrical event like the one that occurred in the 1970s, where pre-selected gold bars were displayed for cameras but no true accounting was done.
A complete audit, he said, should include a full inventory of encumbrances such as leases or swaps and determine who actually owns the gold. Many of the bars, Cortez added, are not refined to current international standards and would need to be updated to become market-liquid.
The Sound Money Index: Tracking Progress
To track this legislative progress, the Sound Money Defense League publishes the annual Sound Money Index. This scorecard ranks all 50 states based on how supportive or hostile they are to sound money policies.
Top-ranking states typically have removed sales and capital gains taxes, recognized gold and silver as legal tender, and may even hold bullion in reserve. States at the bottom of the index tend to impose high taxes and offer little legal or policy support for precious metals as money.
With the 2025 legislative wave, Cortez expects significant changes in the next edition of the index. States like Alabama, Kentucky, Idaho, and Wyoming are likely to move up in the rankings thanks to their recent actions.
The Sound Money Index can be accessed at SoundMoneyDefense.org and also through the Money Metals website.
Conclusion
As Cortez travels from state to state testifying on behalf of pro-sound money bills, the movement continues to gain steam. He credited the success of these efforts in large part to support from Money Metals Exchange, which not only funds legislative efforts but also activates grassroots support from its customer base.
With more states advancing legislation, and growing federal interest in gold audits and tax reform, Cortez believes that America is witnessing the early stages of a widespread monetary renaissance.
The legislative season is not yet over, and Jp Cortez is optimistic that additional wins are still to come before summer. As more Americans feel the effects of inflation and dollar devaluation, the call for sound money is no longer fringe—it is becoming mainstream.
