Bill > HB1695

This bill, titled the "Tennessee Strategic Bitcoin Reserve Act," authorizes the state treasurer to invest a limited portion of eligible state funds, such as the general fund and revenue fluctuation reserve, into Bitcoin, a decentralized digital commodity secured by a proof-of-work public blockchain, to potentially hedge against inflation and improve long-term investment returns. The act defines key terms like "Bitcoin," "cryptocurrency," and "qualified custodian" (a regulated financial institution authorized to hold digital assets), and establishes strict safeguards for holding Bitcoin, including requiring a "secure custody solution" that involves geographically dispersed, encrypted storage of private keys and multi-party authorization for transactions, ensuring no single individual or entity can unilaterally control state-owned Bitcoin. The bill caps Bitcoin investments at 10% of a fund's total assets at the time of purchase, with a limit of 5% acquired annually, and mandates that the treasurer report on holdings and security assessments to the legislature. Additionally, the treasurer may establish a voluntary program to accept Bitcoin for state taxes and fees, and a comprehensive performance evaluation of the Bitcoin reserve is due by October 1, 2032, for legislative review.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1695&ga=114