Key Takeaways
- Iowa's House File 246 proposes investing up to 5% of public funds in Bitcoin and precious metals.
- Bitcoin holdings must have a market cap over $750 billion and be stored securely.
- The bill also allows Bitcoin to be used for tax payments and potential lending.
A new bill introduced in the Iowa House, known as the Inflation Protection Act (House File 246), seeks to allow the state treasurer to invest in Bitcoin and precious metals using public funds.
Investment allocation details
The bill would permit the treasurer to allocate up to 5% of the general fund, cash reserve fund, and Iowa economic emergency fund into Bitcoin, stablecoins, and precious metals.
To qualify, a digital asset must have a market capitalization exceeding $750 billion, averaged over the previous calendar year.
Custody requirements
The legislation mandates that Bitcoin holdings be stored through a secure custody solution, with a qualified custodian, or as an exchange-traded product.
Precious metals, such as gold, silver, and platinum, would need to be held in physical form, through a custodian, or as an exchange-traded product.
Additional provisions
Additionally, the bill allows the treasurer to loan Bitcoin to generate additional revenue if it does not increase financial risk to the state.
It also outlines procedures for accepting digital assets as tax payments, requiring that payments in Bitcoin or stablecoins be transferred to the state’s general fund, with equivalent reimbursement in U.S. dollars to the designated fund.
Broader context
If passed, Iowa would join a growing number of states considering Bitcoin as a viable investment for public funds.
