Tennessee lawmakers have advanced a bill that would allow the state to hold bitcoin as part of its public financial reserves.
Bill details and limits
State Rep. Jody Barrett introduced the proposal this month.
The bill would give the state treasurer authority to allocate money from the general fund, the revenue fluctuation reserve, or other state funds approved by lawmakers into bitcoin.
The proposal caps exposure to bitcoin at 10% of eligible funds at the time of purchase.
It also limits annual purchases to 5% of a fiscal year until the overall cap is reached.
The bill would allow passive gains to push holdings above the limit without forcing sales.
Bitcoin-only mandate
The legislation is limited to bitcoin and would not allocate money to other digital assets.
Related state activity
The Tennessee proposal follows similar efforts elsewhere.
In South Dakota and Kansas, legislators have introduced bills that would permit public funds to be allocated to bitcoin investments.
Mining rules and scam concerns
The bill’s progress comes alongside other bitcoin-related policy activity in the state.
Tennessee recently approved changes to zoning regulations aimed at guiding where bitcoin mining facilities can operate.
The report also cited rising scams tied to bitcoin ATMs, with more than $250 million reportedly lost by consumers in 2024.
The Tennessee Sheriffs’ Association has urged a ban on bitcoin ATMs following a sharp rise in scams in 2023.
