Tennessee lawmakers will revisit the proposal to create a Bitcoin repository when the Senate Finance, Ways, and Means Committee hears SB 2639 next Tuesday, April 21.
The “Tennessee Strategic Bitcoin Reserve Act” would direct the state to hold Bitcoin as part of its reserve assets, positioning Tennessee as a leader in cryptocurrency policy.
The Senate bill, sponsored by Sen. Kerry Roberts, you’ve moved up from the Senate Commerce and Labor Committee and now you’re moving to the powerful finance panel, which oversees tax and spending measures. Its House counterpart, HB 1695 from Rep. Jody Barrett, stood down from the Finance, Ways, and Means Subcommittee after the budget was put on notice this week, a move that halts further progress unless leadership renews it.
The bill would authorize the Federal Treasury to invest a limited share of selected national funds in BTC. The bill’s findings cite inflation as a major concern. Lawmakers say that the bill’s inflation erodes the real purchasing power of assets held in the general fund, the variable income reserve, and other state districts.
Bitcoin is defined in law as a decentralized digital asset and has a fixed supply and global currency. The bill states that an honest investor can use such assets to improve long-term, inflation-adjusted returns.
“This is about good stewardship of public funds,” Barrett said in a statement. He compared bitcoin to gold and positioned it as a hedge against inflation.
US State attempts to pass Bitcoin reserve law
Tennessee follows a growing wave of US states testing Bitcoin-focused policy, with lawmakers in South Dakota and Kansas introducing bills that would allow public funds to be allocated to BTC or invested in Bitcoin and other digital assets.
At the same time, states like Rhode Island and Florida have renewed or reintroduced legislation aimed at studying BTC, making it easier to use, or adding it to state balance sheets under defined oversight structures.
10% of Tennessee’s general fund is bitcoin
Under the proposal, the Treasury could allocate funds from the general fund, a variable income reserve, or other federal funds authorized by lawmakers. Bitcoin exposure will be up to 10% of each eligible fund at the time of purchase.
Annual purchases will be limited to 5% each fiscal year until the cap is reached. The bill allows passive price gains to drive prices up without forcing sales.
The law prohibits investment in BTC only. It prevents the distribution of other cryptocurrencies or digital assets. Bitcoin can be held directly by the government, through a qualified custodian, or through an exchange-traded product tied to BTC only.
The bill sets out detailed standards for child custody. A “secure security solution” must store private keys on encrypted hardware stored offline in at least two locations. Access will require encrypted channels and multi-party authorization.
Transparency is also an important aspect of the proposal. Every two years, the Treasury will be required to publish a public report. The report will list the amount of bitcoin held, its dollar value when purchased and at the end of the period, and a summary of the transaction.
It will also include cryptographic proof that allows third parties to verify on-chain balances. Summaries of security checks will be available upon request.
The bill also allows the Treasury to create a system to accept bitcoin for taxes, fees, or other government obligations. Participation can be voluntary. Any bitcoin received will be transferred to the general fund and recorded at market value. Agencies will be reimbursed in dollars.
