Bill > SB2639

This bill, titled the "Tennessee Strategic Bitcoin Reserve Act," authorizes the state treasurer to invest a limited portion of eligible state funds, including the general fund and revenue fluctuation reserve, into Bitcoin, a decentralized digital commodity. The bill defines Bitcoin as a cryptocurrency created by a peer-to-peer network, secured by a proof-of-work public blockchain, and distinguishes it from other digital assets. It sets a cap of 10% of a fund's total assets for Bitcoin investment at the time of purchase, with a limit of 5% acquired annually until the cap is reached, though passive appreciation above the cap does not require divestment. Bitcoin must be held through a secure custody solution, with a qualified custodian, or via an exchange-traded product (ETP), which is a security derived from Bitcoin. The treasurer is required to establish robust procedures for secure custody, including key management, transaction authorization, and disaster recovery, and to ensure custodians are regulated and maintain adequate insurance. The bill also mandates annual reporting on the Bitcoin holdings and requires an evaluation of the reserve's performance by October 1, 2032. Furthermore, it allows the treasurer to establish a program to accept Bitcoin for state taxes and fees, though participation is voluntary. The act takes effect on July 1, 2026.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=SB2639&ga=114