Tennessee has joined the Bitcoin reserve trend recently seen among U.S states. Lawmakers have advanced a bill to include BTC in its public financial reserves.
Lawmakers Look to Establish Tennessee Bitcoin Reserve
The policymakers are considering legislation that would allow the state hold Bitcoin. Tennessee state Rep Jody Barrett introduced the bill this month amid the growing adoption of the coin. This would give the state Treasurer authority to use a share of the state funds in purchasing BTC.
Sources say the bill has made significant progress in the House after deliberations among the lawmakers. As of press time, specific details on the stage of Tennessee Bitcoin Reserve were not shared, but was recently updated on the legislator’s proceedings tracker.
Under the proposed plan, the Treasurer would allocate money from the general fund, the revenue fluctuation reserve, or other state funds approved by the lawmakers. The exposure to Bitcoin would not exceed 10% of the eligible funds at the time of purchase.
The annual purchases would also not exceed 5% of the fiscal year until the limit was reached. The proposed bill would allow passive gains to exceed the limit without selling the assets. The legislation only permits investment in Bitcoin. It would not allocate money to other cryptocurrencies or digital assets
Tennessee’s Bitcoin Reserve is part of an increasing trend of states in the U.S. considering BTC-focused policies. For example, in South Dakota and Kansas, legislators have introduced bills to permit public funds to be allocated to Bitcoin investments.
Tennessee Builds On Growing Crypto Economy
This comes amid the growing crypto operations in the state. Just last week, Tennessee approved changes to the city’s zoning regulations to amend the land zoning for crypto mining sites.
The ordinance provides guidelines on the locations for cryptocurrency mining facilities within the city. This ordinance was approved after the planning division in Kingsport recommended it in December and will need another vote before the amendment is approved.
While lawmakers look to establish a Tennessee Bitcoin reserve, crypto scams have continued to rise in the state. This was particularly prevalent using crypto ATMs. Over $250 million was reported to have been lost by consumers in 2024.
However, the Tennessee Sheriffs’ Association is urging a ban on crypto ATMs in the state following a sharp rise in scams in 2023.