Tennessee lawmakers will take a fresh look at a proposal to create a state Bitcoin reserve 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 cryptocurrency policy leader.
The Senate bill, sponsored by Sen. Kerry Roberts, has advanced from the Senate Commerce and Labor Committee and now moves to the powerful Finance panel, which oversees tax and spending measures. Its House companion, HB 1695 from Rep. Jody Barrett, has stalled in the Finance, Ways, and Means Subcommittee after being placed behind the budget and then taken off notice this week, a step that halts further movement unless leadership revives it.
The bill would grant the State Treasurer authority to invest a limited share of select state funds in BTC. The bill’s findings cite inflation as a central concern. Lawmakers state in the bill that rising prices erode the real purchasing power of assets held in the general fund, the revenue fluctuation reserve, and other state pools.
Bitcoin is described in the legislation as a decentralized digital commodity with a fixed supply and global liquidity. The bill argues that a fiduciary investor may use such an asset to improve long-term, inflation-adjusted returns.
“This is about responsible stewardship of public finances,” Barrett said in a statement. He compared bitcoin to gold and framed it as a hedge against inflation.
U.S. State efforts to pass Bitcoin reserve legislation
Tennessee follows a growing wave of U.S. states exploring Bitcoin-focused policy, with lawmakers in South Dakota and Kansas introducing bills that would allow public funds to be allocated to BTC or placed into a strategic Bitcoin and digital assets reserve.
At the same time, states like Rhode Island and Florida have revived or reintroduced legislation aimed at studying BTC, easing its use, or potentially adding it to state balance sheets under defined oversight frameworks.
10% of Tennessee’s general fund into bitcoin
Under the proposal, the Treasurer could allocate funds from the general fund, the revenue fluctuation reserve, or other state funds approved by lawmakers. Bitcoin exposure would be capped at 10% of each eligible fund at the time of purchase.
Annual purchases would be limited to 5% per fiscal year until the cap is reached. The bill allows passive price gains to push holdings above the cap without forcing sales.
The legislation restricts investments to BTC only. It bars allocations to other cryptocurrencies or digital assets. Bitcoin could be held directly by the state, through a qualified custodian, or via an exchange-traded product tied solely to BTC.
The bill sets detailed custody standards. A “secure custody solution” must store private keys in encrypted hardware kept offline in at least two locations. Access would require encrypted channels and multi-party authorization.
Transparency is also a core feature of the proposal. Every two years, the Treasurer would need to publish a public report. The report would list the amount of bitcoin held, its dollar value at purchase and at the end of the period, and a summary of transactions.
It would also include a cryptographic proof that allows third parties to verify on-chain balances. Security assessment summaries would be available upon request.
The bill also allows the Treasurer to create a program to accept bitcoin for taxes, fees, or other state obligations. Participation would be voluntary. Any bitcoin received would be transferred to the general fund and recorded at market value. Agencies would be reimbursed in dollars.
Micah first discovered Bitcoin in 2018 but remained a skeptic on the sidelines for too long. Since 2021, he has covered crypto and business and now works as a news reporter for Bitcoin Magazine, based in North Carolina.
