Bill > HB1203

This bill establishes the Strategic Bitcoin Reserve Act, which allows the State Treasurer and state retirement funds to invest in certain digital assets with specific restrictions and safeguards. The bill defines key terms like Bitcoin (a decentralized digital currency), digital assets (including cryptocurrencies and non-fungible tokens), and stablecoins (digital assets backed by dollars or high-quality liquid assets). The State Treasurer is permitted to invest up to 5% of public funds from the State General Fund, Revenue Stabilization Fund, and Constitutional Reserve Fund in Bitcoin or digital assets with a market capitalization over $500 billion, with the requirement that these assets must be held by a qualified custodian or through an exchange-traded product. The bill also allows for staking digital assets through third-party solutions and permits state retirement funds to invest in digital asset exchange-traded products registered with the SEC or CFTC, again limited to 5% of the fund's total assets. Stablecoins must have regulatory approval from the U.S. or a U.S. state, and the act is set to become effective on November 1, 2025, representing a forward-looking approach to integrating digital assets into state financial strategies.